UK retailer Iceland is partnering with JD.com to make its debut in the Chinese market.

Flagship store on JD Worldwide

The Iceland flagship store on JD.com’s cross-border ecommerce platform, JD Worldwide carries six key categories: snacks, beverages, baking, baby, skin care and personal care. There are . Popular products available on the store include Iceland’s own-brand biscuits, cereals and sauces, as well as a selection of cosmetic products from brands such as Pulsin, Re-gen, and Soft and Gentle.

A win-win for the two retailers

The launch of the Iceland store comes as the demand for premium imported products is soaring in China, as consumers increasingly choose quality over price.

Iceland founder Sir Malcom Walker said: "Iceland never stands still. The rapid growth and opportunities the market in China offers were significant, and we decided it was time to act. JD.com is a magnificent partner for us and we are excited to see the response of customers in China to our product range."

JD.com said that in the three years since its Worldwide division started bringing overseas retailers on board, 20,000 brands from about 70 countries and regions have established stores with it.

Yang Ye, General Manager of JD Worldwid said: " We’re delighted to be working with Iceland to bring their renowned products to Chinese consumers for the first time. With consumer demand for imported British products growing rapidly, this is an ideal time for a respected brand like Iceland to enter the China market. Iceland adds to the growing number of British brands on our platforms as we continue our push to bring the best of Britain to Chinese consumers."

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Iceland is to become the first major UK supermarket to take out palm oil from its private label products as Waitrose announces commitment to removing disposable coffee cups from its stores.

Iceland: removing palm oil from 130 food lines

Iceland has promised to stop using palm oil as an ingredient in all of its own-brand food by the end of 2018, warning that it drives the destruction of rainforests.

Iceland’s Managing Director, Richard Walker commented on the decision “Until Iceland can guarantee palm oil is not causing rainforest destruction, we are simply saying ‘no to palm oil.’”

The frozen specialist has already successfully removed palm oil from 50% of its own label range, and the move will reduce the demand for palm oil by over 500 tonnes per year.

The initiative is the latest amongst a whole host of recently announced sustainability commitments from Iceland.

Waitrose: commitment to removing its disposable coffee cups

Waitrose announces its commitment to removing all takeaway disposable cups from its stores by autumn 2018.

The retailer will initially remove disposable cups from nine branches from 30th April, before taking effect in all branches from 23rd May.

The strategy will better equip the retailer in managing the roll out of the scheme across its estate.

Waitrose reports that the move will help to reduce over 52 million cups a year.

According to our Shopper Vista research, 36% of shoppers consider the impact on the environment extremely or very important when choosing food and groceries, a 9% increase since January 2017.

Head of Sustainability and Responsible Sourcing at Waitrose, Tor Harris, commented, “It underlines our commitment to plastic and packaging reduction and our aim is to deliver this as quickly as possible.”

Food-to-go outlets, including Pret, Starbucks and Costa, have also shown commitment to reducing waste through rewarding customers with discounts on hot drinks for bringing in their own reusable cups.

The UK-based frozen specialist is planning to enter the Norwegian market, according to reports from local news source Dagens Næringsliv

Two store trial in new market

Iceland Foods will open its first two stores in the Norwegian market this year. The insight gained from these will inform future roll-out.

The UK-based frozen food operator has an estate of more than 900 stores in its domestic market, including its main small frozen supermarket format, and new bulk-focused, larger Food Warehouse format. 

The retailer's international business spans more than forty markets with a range of different operating models, from export agreements to store franchise partnerships. Key markets include Spain and Portugal, Ireland and the Czech Republic. The international store proposition is flexed by country, for example the inclusion of local products in its Irish stores. However, features such as the Bonus loyalty programme and Iceland's own brand product range are available across markets.

Value positioning likely to resonate well with local shoppers

Norwegian shoppers' receptivity to value-orientated retailing means Iceland's price positioning is likely to be well received. The absence of large established chains of frozen food specialist stores in the market will also provide Iceland with a point of difference. 

In the UK Iceland is the leading frozen specialist, but its competitor set reaches beyond value-orientated frozen retailers such as Heron and Farmfoods. Leading the agenda on sustainability, investing in store refurbishment and its online shopping business, and ongoing range developments are bringing Iceland into closer competitor with leading online and supermarket grocers and the discounters.

Want to know more?

Retail Analysis subscribers can download our Iceland store visit report here

Our latest Food Warehouse store visit report will be live on the website soon.