Woolworths is planning to tap into the huge demand for Australian food in the Chinese market.

The company is planning to sell grocery products in China's largest market, the Alibaba Tmall Global. eCargo Holdings is collaborating with Woolworths in this venture. 

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They are planning to sell around 80 products like Woolworths' milk powder. They will also sell Swiss vitamins along with Devondale products. A Woolworths' official recently said that the retailer knows that a lot of products from Woolworths were already getting sold through other retailers on Tmall. As a result, eCargo Holdings will only sell a selected range of products.

This move from Woolworths comes only two months after the food wholesaler Metcash established a site on Tmall Global. This company is currently selling about 175 Australia-made food products such as Uncle Toby's products, Tim Tams, honey, milk, infant formula and also meat.

Tmall Global is an offshoot of Tmall and it enables many foreign companies and brands to do business online without any need to register a physical business in China. This is beneficial to a lot of brands, even if they are already well established in the market. Even though Tmall Global is smaller than Tmall, is still accounts for about 15 per cent of the customer traffic.

The chief executive of eCargo Christopher Lau said that the Woolworths deal is a significant milestone for their company. He believes that the expansion in the grocery sections will bring huge growth to eCargo in the coming years. It is also expected to raise the company's value in the share market, which fell down to 20 percent in this year alone.

TagsWoolworths, Woolworths produce, Woolworths diversification, Woolworths china