UK's Sainsbury's expanding online in China with Tmall Global

As part of an online trial, UK supermarket, Sainsbury's, is doubling the number of products it sells - such as British tea - via China's Alibaba-owned Tmall Global website. Sainsbury's will also be the only international retailer highlighted on Tmall's "super brand day" on 8 August. “Chinese online shoppers are increasingly demanding high quality international products. Many customers also want to replicate tastes and occasions that they have enjoyed or heard about through international travel," says Sainsbury's CFO John Rogers. 

Sainsbury’s will be shipping more tea to China as its expands an online trial with the website Tmall Global.

The British supermarket is doubling the number of products it sells via the international shopping site of Alibaba – a China-based company similar to Amazon – to 100, including olive oil, tea bags, pasta and coffee.

It will be the only international retailer highlighted during Tmall’s “super brand day” promotion on 8 August, one of China’s biggest sales events outside Singles’ Day in November.

John Rogers, the chief financial officer at Sainsbury’s, said: “Chinese online shoppers are increasingly demanding high quality international products. Many customers also want to replicate tastes and occasions that they have enjoyed or heard about through international travel.

“Products to make a British breakfast and English afternoon tea have therefore proved hits and top-selling lines to date include Sainsbury’s Taste the Difference granola with raisins, honey and nuts, tea, shortbread and UHT milk.”

British products are becoming popular sellers online in China. Photograph: Suzanne Plunkett/Reuters

Sainsbury’s first began selling on Tmall in September last year. It joined a growing number of British brands now have virtual stores on Tmall including Asos, Burberry and Waitrose, which sells via Royal Mail’s virtual store on the Chinese site. Amazon has a branded site on Tmall, despite being a direct competitor.

China is the biggest international consumer of British products online, accounting for 25% of overseas online shoppers purchasing goods from the UK, according to Royal Mail.

Operating online offers a way for brands keen to benefit from demand from China’s growing middle class without having to invest heavily.

In 2010, Sainsbury’s considered opening stores in China, following Tesco, which developed a small chain but has since sold all but a 20% stake in its business there.

Rogers said: “Our trial with Tmall has enabled us to learn a lot about China’s huge digital market, including the importance of sales events such as Singles’ Day ... Alibaba’s expertise in this rapidly growing market will be a huge asset to us as we grow and develop our business in China.”