Loren Zhao, the co-founder of China’s leading online fruit retailer Fruitday, has been in Australia this week to develop its procurement of premium imported produce from the country.
Zhao visited citrus, table grape and stonefruit growers and exporters in Victoria’s Sunraysia and Swan Hill regions as well as apple and pear producers in the state’s Goulburn Valley, before heading on to Tasmania to meet with cherry and apple producers.
The Shanghai-based online fruit retailer, which has conducted promotions for Sunkist among a range of other major US fresh fruit supplier groups, is looking to ramp up its sourcing of Australian oranges this year, following the success of initial imports last year, Zhao told Asiafruit.
“The sugar levels of the Australian oranges were very high, and the quality was much better than competing sources, so we want to really increase our volumes in 2014,” said Zhao, who has been working with major Mildura-based citrus cooperative MFC.
Fruitday now plans to introduce Australian table grapes to its online offer this season, providing market access procedures can be finalised in time, and Zhao did not rule out the possibility of selling Australian apples either.
Currently, mainland Australian apples and pears do not have access to China, but Tasmania, the country’s so-called apple isle, has a protocol in place for its apples.
Fruitday has already successfully marketed Tasmanian cherries and Zhao is exploring the potential to introduce apples from the state. Opportunities could exist for Tasmanian Pink Lady in particular, although he conceded that competing on price would be a challenge for the state’s producers, particularly given the high prices their fruit can command in the Australian domestic market.
Nevertheless, Fruitday caters to a premium end market in China where price is a secondary consideration to freshness, quality and safety for consumers. Zhao said his company’s main challenge is providing those consumers with choice, given the lack of products with market access right now.
China remains off-limits to Washington apples and US oranges, while New Zealand is also still working to reopen the market to its apples, which have enjoyed a strong showing via such high-end niche retail channels. “We sold around 20 containers of New Zealand apples last year,” said Zhao.
After cherries, New Zealand kiwifruit is one of Fruitday’s key sellers, and Zhao said it will be running promotions for SunGold Zespri kiwifruit this year.
Phil Webley, China consultant to the Victorian Department of Environment and Primary Industries (DEPI), said the Victorian government was delighted to host Zhao’s visit to Australia.
“The growth of e-commerce and social media in China’s food sector is phenomenal and fresh fruit is at the cutting edge of this expansion,” he said. “It’s great to have one of the leading players in this field here in Australia to meet with our growers and exporters.”
Zhao will be speaking on the opportunities online retailing offers for fresh fruit marketers at Asiafruit's China conference event - Asiafruit Market Insight - on 28-30 May in Hangzhou.
