1. News
August 10, 2017

Suning signs MoU to distribute Metcash products in China

Chinese retail company Suning Holdings Group has signed a memorandum of understanding (MoU) with grocery distribution and marketing firm Metcash to provide Australian and New Zealand products to Chinese consumers.

Chinese retail company Suning Holdings Group has signed a memorandum of understanding (MoU) with grocery distribution and marketing firm Metcash to provide Australian and New Zealand products to Chinese consumers.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

Under the terms of the MoU, the parties will jointly distribute the products sourced by Metcash to both online and offline channels.

The agreement will also enable Metcash to leverage Suning's position in the region.

Suning International vice-president Steven Zhang said: "The cooperation with Metcash will allow us to provide more Australian and New Zealand brands with the opportunity to enter the Chinese market."

Suning will distribute Metcash’s products by launching an Australian pavilion store on its Suning.com e-commerce platform, as well as handle the storage, promotion, marketing and logistics.

"The cooperation with Metcash will allow us to provide more Australian and New Zealand brands with the opportunity to enter the Chinese market."

Customers in China will now be able to purchase items from Australia and New Zealand such as groceries, fresh produce, alcoholic beverages, personal care items and cosmetics.

Established in 1927, Metcash operates through three separate divisions, namely, Metcash Food & Grocery, Australian Liquor Marketers, and Independent Hardware Group.

In addition to covering the home markets of Australia and New Zealand, Metcash exports its products to the Southern and Central Pacific, as well as China, Hong Kong, Singapore, Brunei, Malaysia and the Philippines.


Image: Suning International vice-president Steven Zhang signing MoU with Metcash CEO Ian Morrice. Photo: courtesy of Suning Holdings Group.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.