China is likely to become the largest economy in the world which offers a huge opportunity for Australia’s and New Zealand’s fruit growers, farmers and manufacturers.
- ANZHPL aims to provide China based customers with genuine, clean and healthy products.
- ANZHPL has developed its own private branded products featuring milk powder, wine, oats, honey, soap, pet food and confectionery.
- ANZHPL will continue to export fresh fruit to China.
- ANZHPL is committed to nurturing strong relationships with major pharmacy principals and supermarket chains.
- ANZHPL is developing relationships with several e-commerce suppliers based in Australia.
- ANZHPL will recognise special days and weeks in China such as Chinese New Year, Golden Week and Singles Day.
There are three ways to sell into China.
- e-commerce channels – including Alibaba, Tmall, JD worldwide, Taobao. Many e-commerce sites sell both CIQ and non CIQ approved products.
- Local agents purchasing stock in another country for China based customers.
- Regular in store trade – Merchandise sold in China after receiving CIQ or ‘blue hat’ approvals.
ANZHPL sells its products on line and off line. ANZHPL will identify the best platform for each product category.
Products include – fresh fruit, wine, milk powder, oats, honey, soap, pet food and confectionery.
ANZHPL will increase its focus on beauty, anti-aging and well being by working with key suppliers to drive the pharmacy channel in China.
ANZHPL’s SUCCESS FACTORS
ANZHPL presents an opportunity to participate in the Chinese market which is set to become largest economy in the world. In collaboration with a number of Chinese companies and distributors, ANZHPL now has the unique opportunity to provide Australian and New Zealand products directly to China. The current market share of imported health care products is relatively low, particularly in the offline market, due to registration being required for most products. Therefore, as a result, online sales are the main sales channels as Chinese consumers continue to have doubts over the authenticity of some products and the safety of some of their own brands.
The ANZHPL distribution business is focussed on selling its own private branded products and some authorised products to supermarkets, pharmacies and licensed stand alone shops. These outlets will offer a catalogue of quality and authentic Australasian products.
ANZHPL has already hosted and participated in large Chinese trade missions with potential supply partners. This gives ANZHPL the enviable position of having access to many highly prized customers.
RETAIL SECTOR OVERVIEW
Rapid urbanization and a rapidly growing middle class are driving China’s retail sales to record levels. As a result of globalization and development, China’s younger population has become very accustomed to imported food products being available at retail stores in major cities ( particularly in first tier cities). Many different business models within the retail industry have emerged recently. Small-sized convenience stores and specialty stores remain the most prominent retail model, though in recent years large retailers are taking market share as they are able to realize greater efficiencies through better supply chains and wider distribution channels.
Furthermore, the retail industry has recently undergone many mergers, acquisitions and witnessed the introduction of new entrants which has strengthened the large retailers’ position in the market. Large retailers have the resources to source directly from domestic and international supplier thereby allowing them to realize greater profits and have more control over the quality and authenticity of the product.
High quality and premium-priced food products, including imported food and beverages are expected to continue its success – particularly in first-tier cities. Retailers are also now focusing on imported food sales in second-and third-tier cities such as Nanjing and Chengdu. To be successful, Australian and New Zealand exporters need to maintain the high quality and safe perception that Australian and New Zealand food has in China. Investing in the necessary elements (time, marketing resources, in-country contact/ office) is the first step to achieving success in the Chinese retail industry.
- Australia has 6,663 pharmacies (one pharmacy per 3,680 people) with 4,000 pharmacy owners.
- China has 550,000 pharmacies. It has 1,350 Chain store pharmacy groups with many owning more than 250 franchised store
- ANZHPL is the accredited Australian supplier to 240,000 pharmacies.
- China is the world’s second largest prescription drug market.
We have an established network of online and offline distribution channels wanting and willing to sell selective Australian and New Zealand health products.
The company’s marketing strategy will include high-impact advertising, long-term branding and community building as well as expanding the existing base of distribution channels. The strategy is to build momentum in multiple distribution channels and markets. Advertising will be aimed at the general public educating them on our clean, green and genuine product range from Australia and New Zealand.
The Australia and New Zealand Health Products Company is determined to offer its Chinese customers:
- Best Value – particularly in regards to its own private branded products.
- Fastest and most reliable Service.
- Latest on trend merchandise.
- Highest integrity.
- Genuine Australian & New Zealand products only.
ANZHPL intends to create multiple commercial platforms that enable buyers and sellers to transact via physical and digital channels seamlessly.
The Company will create a central hub that sellers can access to market their product to established Chinese buyers.
- Joint Venture with KGT Supermarket Store (s) (Supplier / Retailer).
- Access to the Shanghai and Guangzhou fruit markets.
- Joint Venture with Eden Community Stores (Supplier).
Joint Venture with Convenience Shops (Supplier).
Continual development of its e-commerce website(s) – axvip.com.au
ANZHPL’s Primary Categories.
- Our primary merchandise categories are:
- Fresh fruit
- Milk Products
- Mother and Baby Products
- Food including cereals, oats, snacks
- Pet food
Consumers of Imported Retail Products
Affluent Chinese consumers are seeking high quality products that portray an image of high status. High-end retail chains (e.g. Sam’s Club, Taste, Great, Treat) cater to these buyers, and tend to focus on products with special health claims. Labelling and brand image are important to these consumers.
Online retailers have many advantages over the traditional offline retailer. Online retailers are able to scale quickly because they are not dependent on obtaining real estate in areas with high foot traffic, which are generally expensive areas to rent. Rather, online retailers buy warehouses outside of the city center and have the food delivered to the consumer’s destination. Another advantage for online retailers is their ability to adjust to trends quickly. Online retailers analyze the data they obtain from the consumer and then tailor their offerings.
HEALTH & COMPLEMENTARY MEDICINES The demand for complementary medicines is growing rapidly in China as an increasingly health-conscious population searches for products that enhance their wellbeing. The Chinese health food market – which includes vitamins, dietary supplements and minerals, animal and herbal extracts, and traditional Chinese medicine (TCM) – is valued at RMB200 billion (US$30 billion) and is projected to grow by 10 per cent every year until 2025. The Boston Consulting Group forecasts that China’s overall health and wellbeing market could be worth over RMB400 billion (US$60 billion) by 2020.
Middle-class Chinese consumers seek the same high quality and safe products the affluent and foreign national consumers do, but are willing to seek out the best value. These consumers tend to be somewhat price-sensitive and will compare several brands before they make a final purchasing decision. On average, this target group is looking for food products that are fresh, easy to-prepare, and consistent. Companies that offer value-added services and great customer service seem to do well with this group of consumers. China’s younger generation has become more knowledgeable about imported food products. This group of consumers will still purchase in the many markets around China, but at a much lower frequency rate in comparison to past generations. Younger consumers now purchase through hypermarkets, supermarkets, and online. Healthy eating is important as well as convenience of purchase. Many will buy through online or mobile shopping applications (e.g. We-chat and Ali-pay).
BEAUTY China’s Personal Care and Cosmetics Products consumption at $24 per person, per annum in 2014, is still far lower than neighboring countries such as South Korea and Japan, which averaged $223 and $174 respectively.
Overview. China is projected to become the largest market for personal care and cosmetics products globally in the next five to ten years. Despite its relatively large market size, merely 10% of the population uses cosmetics regularly. Consumption of cosmetics is most prevalent in Tier 1 megacities, with increasing penetration into China’s inland Tier 2 and Tier 3 cities, which are also experiencing the fastest increases in China’s growing middle class and consumption of consumer products.
Sales Channels Market channels for personal care and cosmetics products are changing rapidly, reflecting consumer distrust of mass market channels; the upgrading of Chinese consumer preferences and the growing middle class in Tier 2 and Tier 3 cities.