Bubs signs major deal with leading Chinese e-commerce platform

Bubs signs major deal with leading Chinese e-commerce platform

Bubs Australia (ASX: BUB) has partnered with leading Chinese e-commerce platform Alibaba to sell its products on the Tmall Global store.

Alibaba has 580 million monthly users across its different apps, with mother and baby products the second largest category on Alibaba, spearheaded by infant formula.

Bubs expects the Global Merchandise Value to be in excess of approximately $1 million in the first year of trading.

This is a major deal for the Australian infant milk formula producer and is expected to give them a larger footprint in China, according to founding managing director of Bubs Australia Kristy Carr.

"Alibaba is one of the largest retailers in the world," says Carr.

"This is therefore an important milestone in the evolution of our cross-border e-commerce strategy that will significantly broaden our reach to Chinese parents."

Carr says the group's unique market position and product offering will be a massive advantage when competing on the Chinese platform.

"As the only Australian vertically integrated producer of goat milk infant formula, we will be in a unique position to offer Chinese parents comfort that we have complete control over the quality and scalability of our supply chain back to the farm gate," says Carr.

"With this solid foundation in place, and with the support of the Alibaba team, we believe we are well positioned to establish a popular Flagship Store on Tmall Global."

The company has also made a significant step toward getting its product ready for the Chinese market after entering into a deal with Australia Deloraine Dairy (ADD).

ADD is one of only 15 licenced facilities in Australia authorised by Certification and Accreditation Administration of the People's Republic of China to produce infant formula products eligible for importation into China.

Bubs Australia chairman Dennis Lin says this is an important step to getting its products into China.

"This strategic partnership is a crucial step in achieving China Food and Drug Administration (CFDA) registration, enabling us to advance our China expansion strategy," says Lin.

"There is an increasing demand for goat milk based infant formula in China, especially in Mother and Baby stores. The Manufacturing Agreement will facilitate our CFDA registration and provide a defined pathway to maximising Bubs' access to 80,000 stores aligned with our partner QuanJaiWanPu, China's largest nationwide distributor of infant formula."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Car subscription software company Loopit eyes global markets after $3.6m seed round

Car subscription software company Loopit eyes global markets after $3.6m seed round

In a bid to enter new global markets and capitalise on the growing ...

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

As a consequence of our addiction to fast fashion, Australia sends ...

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

In an effort to appease Australian and New Zealand regulator concer...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...