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Woolworths targets Chinese shoppers with new online store on Tmall Global site

By business reporter Justine Parker
Updated 43 minutes ago
PHOTO: Woolworths has responded to growing Chinese demand for Australian products by opening a new online store.(Clint Jasper)
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MAP: China
Supermarket giant Woolworths has joined the race to tap into the Chinese appetite for Australian products by opening an online store on Chinese website Tmall Global.
The embattled retailer took the move to defend its business after it found other retailers and individuals were selling its products through the Chinese site.
Woolworths launched the store early this month with little fanfare, selling around 80 Woolworths and branded products including powdered milk, baby formula and vitamins.
The move was telegraphed by the publicly listed digital commerce firm eCargo, which released a statement to the ASX saying Woolworths had engaged it to run its Tmall site.
That sent eCargo's share price soaring, nearly tripling in afternoon trade to 39 cents at 2:30pm AEDT.
Tmall Global allows foreign companies sell direct to Chinese shoppers online without having to register a physical presence in China.
Woolworths confirmed it had opened the Tmall store but sought to downplay the significance of the move.
"We found that a number of Woolworths products are being sold through other retailers on Tmall," a spokesperson for the supermarket said.
"As a consequence, Woolworths has established a store on the site to sell a small, selected range directly to Chinese consumers.
"Woolworths is Australia's leading online retailer and we are continuously scoping new options for our online businesses.
"While we have no significant plans for Tmall at this stage we will no doubt benefit from the experience it brings."