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Suning Holdings signs deal for Down Under products

China’s retail giant Suning Holdings Group has signed a co-operation agreement with Australian grocery wholesaler Metcash to introduce more Australian and New Zealand products to Chinese consumers.

Suning International VP Steven Zhang has signed a memorandum of understanding with Metcash CEO Ian Morrice during a visit to Australia at the invitation of Metcash. He also had discussions with vendors and explored the business landscape.

Zhang says that with their eco-friendly environments, the two countries have a ready market for their products from Chinese consumers, who value nature and wellness. “The co-operation with Metcash will allow us to provide more Australian and New Zealand brands with the opportunity to enter Chinese market through our retailing platform.”

Suning and Metcash will jointly promote and distribute Australasian products in both online and offline channels. The two sides have set an initial three-year revenue goal of AU$60 million (US$47 million).

An Australian Pavilion will be set up on Suning.com, offering groceries, fresh produce, alcoholic beverages, personal-care items, cosmetics and other consumer goods. Suning will handle the storage, promotion, marketing and logistics.

Zhang, accompanied by other Suning International officials, also visited two Community Co factories in Australia. Community Co is a Metcash brand of quality food, water, dairy products and other daily goods.

“If we think a product is good to introduce to Chinese consumers, we like to see how it is produced,” says Suning International deputy-GM Henry Tao. “We visited the Community Co factories to ensure our consumers can enjoy these products safely.”

In introducing the concept and value of Community Co to China, Suning and Metcash aim to identify and jointly fund charities that support Chinese communities and people in need.

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