Fruit Day Co Ltd is proving that clicks mean cash after racking up sales worth 100 million yuan ($16.1 million) in the first month of this year [2015]. The largest fresh fruit e-commerce site smashed through that barrier in January with the company’s co-founder Zhao Guozhang hailing the figures as a “milestone”. Launched in 2009, Fruit Day has taken advantage of the new regulations governing the China (Shanghai) Pilot Free Trade Zone. During the Chinese New Year in February, the company brought in its first batch of Tasmanian cherries and sold them directly to consumers online at duty-free prices…Full Article: June 2015

Key Points

  • Mainland China has a 25% import duty on tariffs plus a valued-added tax (VAT) on cherry imports. Fruitday is able to bypass these duties.
  • Fruitday, which invested more than CNY 100 million (~US$16.2 million) in cold storage facilities, has six warehouses in Shanghai, Beijing, Shenzhen, Guangzhou, Hangzhou, and Chengdu.

ChinaAg Comments

  • In June 2014, Tasmania exported Royal Gala apples directly to an e-commerce company based in Shanghai.
  • In April 2014, a representative from Welch’s Food Inc. (American grape producer) noted that they work with in the Shanghai market and were considering using them as a packer.
  • In March 2014, received financing from a Shanghai-based private equity firm to expand its business operations.
  • In 2013, China’s fruit consumption reached an estimated US$64.5 billion and had an annual growth rate of 15%.
  • In 2013, according to Alibaba (a Hangzhou-based e-commerce business), sales for agricultural goods sold on its platform grew by 195%. Its best performers in this category were fruit, vegetables, and seafood.
  • In January 2013, Tmall, a business to consumer e-commerce website that is operated by Alibaba, ran special promotion that sold American foods directly from US firms to Chinese consumers.

Similar Posts by ChinaAg

Spread the word. Share this post!