More than 1000 retail outlets promoting Australian manufactured health products, packaged food and wine will open across China during the next two years
This is part of a new initiative which is expected to generate $100 million in sales in the first year, which will lift to $800 million annually in five years.
Total pharmacy sales across the Chinese market are currently in excess of $300 billion a year.
Chinese pharmacies have been increasingly keen on retailing Australian health products in recent years, including lines such as infant formula and complementary medicines; Chinese consumers have stocked up on Aussie products at events like Singles Day, but also visited pharmacies to source medicines and other health lines.
Last year the Pharmacy Guild signed a number of Memorandums of Understanding with its Chinese counterpart.
Today’s announcement follows agreements signed with 28 major pharmacy chains as a result of the recent Qingdao International Health Products Expo, which highlighted Australian products. The pharmacy chains control more than 10,000 stores across China.
Initially each themed outlet will be located within a pharmacy. The concept will then be rolled out through other retail chains. Each will vary in size between 100 and 300 square metres.
The Qingdao Expo highlighted 42 Australian suppliers including Blackmores, Sigma, Nature’s Way, Purafine Nature, Ferndale, Ageless Products, Herbal Fix , Optislim and Pure Aussie Made, honey producers Honeylife and Pure Peninsula Honey and Di Giorgio wines.
“Chinese want Australian items because they are produced and manufactured under extremely strict health regulations,” says Sunny Sun, chief executive of Australia New Zealand Health Products.
“China is reducing the red tape on importing packaged food products and as a result registration and approval, which was difficult, is now quiet simple,” Mr Sun said.
Chairman of the Australian China Business Council (Victoria), the Hon. Ken Smith, who also attended the Expo as the head of delegation, said the Australian themed retail concept would “throw open” the door to dozens of Australian producers and manufacturers.