Chinese e-commerce giant invests in Australia

A Chinese online shopping giant has arrived in Australia this week to unveil its new Sydney distribution centre.

VIP.com is one of the largest players in China’s e-commerce space with total orders for the third quarter of 2017 increased by 23 per cent to 74.0 million from 60.1 million in the prior year period.

“Australia is already a very strong market for VIP.com. We are looking to procure about AUD 500 million of Australian goods in FY18 and we expect to double that figure the year after,” said Hillary Wang, VIP.com’s head of global buying.

“We have highly effective partnerships with many Australian businesses and have become their primary sales channel in China. We have serious aspirations to become the number one platform in China for many more of our suppliers’ businesses.”

With Australian brands highly sought after in China – based on consumer’s perceptions of trust and value – VIP recently partnered with Australia’s largest food manufacturer, Nestle,  to introduce Australia’s Uncle Toby’s, Allen’s confectionery and Soothers trademarks to China.

“We only deal with brand owners directly or through their authorised distributors. Authenticity is critical to building brands and Chinese shoppers know that VIP.com delivers that,” Wang said.

VIP stated its female skewed audience (+80 per cent) and ability to customise the recommended range of products to shoppers, based on demographic and purchase history, give it major point of differences to its Chinese e-commerce competitors.

“We are pleased to be investing in Australia,” said Wang.

“Chinese consumers trust Australia’s production standards and quality of its natural resources.

“Australia is our number one import market for nutrition and food and beverage, and whilst we have made much progress, we have plans for further significant growth. This trip is about deepening our partnerships with existing suppliers and inviting participation from potential new partners.”

The online retailer will invest in local infrastructure to enable growth in trade between Australian businesses and its accessible database of 300 million Chinese shoppers.

Investment is being channelled into supply chain capability and people in Australia to facilitate trade.

“In discussions with our Australian partners, we are often told the Australian market is a highly contested and offers relatively low growth,” said Wang.

“We are happy to bring a good news story to these businesses, the opportunity to share with Chinese shoppers brands that are rich in history, made with the best ingredients to the highest standards, by hard working Australians. These are exciting times.”

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