eCargo does a deal with Woolworths, its shares go nuts

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eCargo, a China-based e-commerce solution provider for fashion brands, has done a deal with Woolworths to support the supermarket’s operations in China.

A short time ago, the ASX-listed eCargo shares were up 247.62% to $0.365.

The deal leverages the relationship between Woolworths and Cargo Services Far East, a member of CS Logistics Holdings Limited and a significant investor in eCargo.

eCargo will build and manage Woolworths’ storefront on Tmall, the largest B2C online marketplace in China. It will also coordinate Woolworths’ inventory, packing and distribution requirements, advise on brand entry strategy and undertake a wide-range of digital and social marketing activities.

China’s total retail e-commerce sales would increase 133% to $US1.568 trillion in 2018, up from an estimated $US672 billion this year, according to eMarketer.

Since its listing in 2014, eCargo has brought several high profile brands to China including Karen Millen, La Perla, Tom Tailor, Mammut, New Look and Jeanswest Australia.

“This is a significant milestone for eCargo in expanding into food and groceries,” says CEO hristopher Lau. “It is a testament to our team and our ability to work with a top supermarket chain in Australia. We are delighted to have this opportunity to connect China’s consumers with more high-quality Australian food and grocery products.”

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