Following Alibaba’s 20% stake in Thailand’s True Corporation branch Ascend Money, the company is now planning to leverage from True Corporation’s Parent Company, CP Group, to offer Thai fruits on Tmall, Alibaba’s B2C marketplace.
Chinese marketplace Tmall currently owns 61% of the B2C ecommerce market share, the site attracts over 1 million shoppers and 150 million browsers visiting daily.
This new business aims to promote Alibaba services in Thailand, leveraging Chinese consumers’ preference for Thai fresh produce and encourage more Thai fruit produces to move online.
Nopporn Swaddhonphisut, Managing Director of Thai Fruit 1975 Co.Ltd, one of the companies on Tmall for the last two years, said there is a lot of cross border sales potential on the site.
On average, Thai Fruit 1975 makes approximately $11,4000 monthly, as shoppers prefer buying bulk quantities of mango and durian online; buying imported fruit off the street is more expensive for shoppers. This partnership is effective as Tmall eliminates the middle man and allows shoppers to deal directly with the owner of the fruit plantation. Local Chinese logistics providers can also partner with Thai companies for delivery to ease the fulfillment process.
Selling through Tmall is a way for companies to expand beyond the local market.
A version of this appeared in Prachachat Online on July 1. Read the full article here.