China is one of the leading trendsetters worldwide for online sales. A lot of the sales can be done online, with online platforms, online transactions and apps that make it easier to purchase things online. According to George Liu, the reason this online trend developed so fast in China, is because the logistics in China are suitable for this online trend.
As he explains: “The logistical structure in China is quite unique. It is quite dense, therefore the delivery can be quite fast. Furthermore, the costs for delivery are not that high. This really benefited the development of online sales in China. In other countries, the circumstances for logistics are different, and therefore it might take some time to reach the same level as China.”
Team of Frutacloud
The last few years more online promotional activities have taken place and are becoming more popular in the Chinese market. In America Black Friday is a very well-known shopping day with large discounts. In China 'Single’s Day' is a very popular day to gain large discounts as a consumer online.
According to George Liu, these kinds of online sales activities are becoming more important for sellers, as online and offline habits are still quite different. “Before, consumers would go to the supermarket every day to buy their necessities. Therefore, going to the supermarket became a habit for most people. This is changing now that people also can buy their products online. However, for a lot of people it is not very common yet to buy their products online every day. It is not reaching the same level of acceptance as going to the grocery store. In order to overcome this gap and trigger more people to go online and buy something, these kind of special online sales days were ‘invented’. Furthermore, the amount of these special promotion days is growing as well, because online promotions like Single’s Day, can really help develop the emergence of online shopping.”
George Liu CEO
Frutacloud is a company that provides several kind of services, they import, distribute and market fruits for their partners by improving the supply chain efficiency, creating brand value and providing end to end solutions. “With the development of online sales, the way we can approach consumers is thus changing as well. This brings a lot of new opportunities for us to reinvent how people buy and enjoy fresh produce. Our company has 30 years of experience importing fruit and selling at the Chinese market. Frutacloud was established in 2016, but my fathers’ business Kingo Fruits Co., Ltd. was established in 1986 and has been importing fruits since then. Over the years a lot of good contacts were built and with Frutacloud we wanted to take the next step. We want to give a more value added service to our partners, since we know the market and its customers very well. We can help our partners to grow further in the Chinese market.”
New avocado brand from Frutacloud, Mokado
Frutacloud focuses on selling grapes, berries, cherries, high-end apples and citrus. All these products need to have an efficient management of a cold chain supply line, in order to maintain the integrity of the product.
“We are focusing on the products that are hard to ship, because we have the knowledge and know-how in China, to ensure all products arrive in good condition. Furthermore, we see that these fruits have a lot of potential in the Chinese market, but most of the time cannot reach our market, because of the difficulties with transport. As we are more specialized in this field, we give our partners advice and provide them with our services when needed. In order to let their products reach the Chinese market as well.”
“Recently we also began to introduce our own avocado brand, Mokado. In order to supply the best products, we work closely together with the resources and make sure the avocados get the right ripening process in our own ripening facilities. As the avocado is still a quite new product in the Chinese market, we hope to develop it further in the future.”
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George Liu - CEO