E-Commerce Text
March 4, 7:16 pm | By Kang Xiaoxiao

Tmall partnering Danone and Nestle to sell overseas milk powder

Tmall announced on March 1 it will be partnering with Danone (NYSE: DA) and Nestle in selling milk powder directly for overseas producers.

Danone’s milk powder brands Karicare, Nutrilon, Cow & Gate and Dumex and Nestle’s Nan H. A and Wyeth are included in this cooperation.

Chinese domestic milk powders disappointed Chinese parents with the tainted milk powder scandal in 2008, which made foreign brands quite popular in China.

However, foreign countries including the U.S, New Zealand, Australia, Germany and the Netherlands all issued limited orders of their domestic milk powders since 2012. “Milk powder famine” is increasingly troubling Chinese parents since the “milk powder purchase limited order” issued by the Hong Kong government.

These policies have made Chinese parents increasingly dependent on online shopping. It was reported by The Beijing News that milk powder has become the second largest agent-purchasing product from overseas.

In fact, many other food e-commerce platforms such as Yihaodian also sell imported milk powders, but most of them are provided by distribution agencies instead of directly supplied from overseas.

According to Zhang Yong, president of Tmall, the company is trying a C2B (consumer-to-business) model, in which milk powders will be provided directly by overseas producers after consumers place an order. “As direct supplies can cut down the length of supply chains, the prices will be more favorable.”

“We believe that Chinese parents and babies will live smoothly through the difficult period with milk powder famine,” Tmall announced.