China's hyperactive e-commerce market is not only attracting huge amounts of domestic business, but it's also drawing foreign food and drink producers as well.
Ice cream, salmon and a variety of snacks from the United Kingdom are some of the products making a splash at this year's Food Hotel China Exhibition. While offline retail is still important, some British food and drink exhibitors are keen to expand their online presence.
"Now 80 percent of our business is coming from offline, but we want to change that to 50-50 - 50 online and 50 offline. I do believe that e-commerce market will also be a share part of our success in the future," Zhang Jing with Maoxi Trading Company said.
"It's very much a developing market for the online because it's such a growing and at such a pace. People are actually putting more infrastructure and distribution. People can get their product quicker. They can buy smaller amounts," Brendan Lappin with Irwin's Bakery said.
Last year, food imports from the UK increased 9% to over 2.5 billion yuan, which include cheese, chocolate and salmon. And now, China is the second largest market for UK food exports outside the European Union.
UK Secretary of State for Environment, Food and Rural Affairs Elizabeth Truss said the country wants to further bolster its food exports to China by increasing cooperation with e-retailers.
"We are really keen to do that (to collaborate with Chinese e-retailers). We think there are a lot of opportunities with Chinese online retailers. We think it's a massive opportunity in China and it's gonna be the biggest importer of food by 2018. We're very excited by online retail. It gives a real opportunity for some of our smaller craft companies to get their products out to market in China," Elizabeth Truss, UK Secy. of State for Environmental & Food Affairs, said.
Although the booming Chinese online market presents opportunities for UK food and drink companies, some still believe they should take it slow and be focused.
"For now, we are quite content with that Yihaodian. I think it's important you establish a relationship, that you make it more of a partnership. We want to build a brand, we want people to have the confidence in the brand. And you can't do that with too many different distribution channels," Ben Harris with Daioni Organic Milk said.
Meanwhile, British Prime Minister David Cameron has appointed Chinese e-commerce giant Alibaba's Jack Ma to advise him on how to boost exports from small and medium-sized British businesses to China through online platforms.
