Kroger to launch online storefront in China on Alibaba's Tmall Global site on Wednesday that will initially sell dietary supplements and private-label products
Context & Ripple Effects
Kroger is following a well-worn path into China: Amazon opened its own storefront on Alibaba's Tmall back in 2015, the same year Alibaba agreed to handle payments and shipping for Saks and Macy's, establishing the marketplace as the default entry point for US retailers unwilling to build local operations. Kroger's version starts narrow — dietary supplements and private-label goods sold cross-border through Tmall Global.
First-order effects
- Kroger gains direct access to Chinese consumers without warehouses, licenses, or local staff, using its private-label portfolio as the low-risk test of demand.
- Alibaba adds another marquee US grocery brand to Tmall Global, reinforcing its role as the intermediary for American retailers in China.
Second-order effects
- Rival grocers face pressure to match the channel: Walmart has already taken a different route, investing $50M in Chinese delivery firm New Dada rather than renting shelf space from Alibaba.
- Supplement and private-label suppliers gain a new export outlet, with pricing and assortment decisions shifting toward what sells on Tmall Global.
Third-order effects
- If the pattern holds, US food retail treats China as an export market reached through platforms rather than owned operations — a structure Alibaba extended further by later opening Tmall directly to US merchants and taking the model to Europe.
The trend: Western retailers are entering China by renting space on Alibaba's marketplaces instead of building their own infrastructure, making Tmall Global the standard gateway for US consumer brands.