Sainsbury’s is considered the second largest supermarket in the United Kingdom, and the supermarket is now ready to enter into the Chinese market. They are not opting for the traditional method of entering into the market, which would mean getting a local business license and then setting up shop. No, Sainsbury is thinking about taking the least amount of risk so that if this plan does fail, the company is not going to see a huge drop in their earnings. Instead, they are partnering with Alibaba to enter into the Chinese market.
Through working with Alibaba, Sainsbury is making it much easier on them and taking less of a risk. Plus, with the popularity of online shopping, chances are they are going to find that this is the best way to reach the Chinese consumer. Sainsbury will be entering onto the Tmall Global platform.
What they will Offer
Staying true to their roots, Sainsbury is going to be offer a number of items that are meant to authentic United Kingdom products. For example, they are promoting tea, specialty teas, coffees and biscuits to the Chinese consumer, something that is greatly associated with afternoon tea in the UK. In particular, they are going to be offering So Organic and Taste the Difference lines of products. Why is this? They hope that this will allow them to target a category of people that are rising within the shopping ranks online. And this is the middle class.
In addition, Sainsbury is hoping that people will see these two product lines are high quality products. Therefore, they do cost a bit more. It has been found that Chinese consumers are willing to pay more if the product is going to be of high quality.
A Warning for Sainsbury
Though the idea of entering into the Chinese market is one that should be applauded, Sainsbury is going to want to make sure that they are doing all that they can do in order to be seen. The problem with online grocery platforms right now is that these platforms have hardly any type of publicity. Thus, they are not drawing in the new customers as they had hoped. For Sainsbury, it may mean running their own marketing campaign, such as with social media, in order to reach the right type of Chinese consumers they are looking to find.