Tmall launches new export channel for Australian wines

Wine Australia and Alibaba group have joined forces to launch a flagship Australian wine online store that will further provide an avenue for Chinese consumers to purchase Australian wines. Tmall.com will initially stock 10 brands from eight wine regions, including Brokenwood, Coriole, John Duval, Pikes and Voyager Estate.

Tmall.com has been constructed and operated by vinehoo.com, a leading online wine retail in China. vinehoo.com will play the role in facilitation the fulfilment of all orders.

Andreas Clark, CEO of Wine Australia said: "The opening of the store is a landmark moment that builds on a year of strong growth for Australian wine in the Chinese export market. It opens up another commercial opportunity for Australian wineries to tap in to China’s growing appreciation for our fine wines."

Coinciding with the store’s launch will be the inaugural Tmall 9.9 Global Wine and Spirits Festival. The festival will be an online Alibaba Group event, celebrating the increased popularity of imported wines and spirits among Chinese consumers.

Chinese mainland is now Australia’s second most valuable export market, with Wine Australia reporting an increase of 50 per cent in the past year to $419 million. Clark attributes some of this growth to China’s expanding middle class and the positive impact of the China-Australia Free Trade Agreement, late 2015.

A major contributor for the increase in demand is the younger generation of consumers in China. According to the "Global Wines and Spirits Consumption Report" released jointly by Tmall and CBNData, an increase in popularity amongst 20s age group was found. The report also found that 7 percent of wine consumers in China have purchased imported red wines online. From 2013 to 2015, Alibaba's Tmall platform saw a 5 times increase in the number of active buyers in the wines and spirits category, reaching more than 10 million consumers.

“‘The food and wine culture in China continues to evolve, and there is increased demand from Chinese consumers for premium quality products online. Our support of Tmall’s flagship Australian wine store helps us capitalise on this growing interest in Australian wine and gives us the opportunity to further reinforce the message with consumers that wines of Australian provenance are of the highest quality.” said Clark.

Commenting on the store opening, Maggie Zhou, Managing Director of Australia and New Zealand for Alibaba said, “The partnership between Tmall and Wine Australia will allow local winemakers to access the 434 million active consumers on our China retail marketplaces. As the domestic wine sector in China is still developing and Australian wines are considered world-class and come at varied price points, the opportunity to sell to China’s burgeoning middle class is significant.

“Beyond established, well-recognised Australian wine brands, there is also strong potential for smaller producers to gain traction internationally. With the opening of Alibaba’s Australian office in late 2016, our local team will be helping winemakers of all sizes effectively market their products, navigate distribution channels and align to overseas preferences.”