CWH strengthens China presence


Australian retailer Chemist Warehouse will be opening new multi-brand stores as part of a renewed multimillion-dollar collaboration with an online Chinese retail marketplace

Australian retailer Chemist Warehouse has renewed its strategic collaboration with Alibaba Group’s business-to-consumer marketplace Tmall Global for an additional two years, it announced on Tuesday.

Chemist Warehouse first opened its store on Tmall Global in 2015, and has since grown to become the largest cross-border store in the world selling to Chinese consumers via Alibaba’s ecosystem. 

Its China online store stocks more than 200 brands and over 3200 stock keeping units.

As part of the new agreement, Chemist Warehouse will be opening a number of additional stores and promises ramp up its targeted marketing efforts.

These new stores include one on Kaola, a cross-border import e-commerce marketplace recently acquired by Alibaba Group, and three new multi-brand stores that opened last month on Tmall Global under the My Chemist, My Beauty Spot and Discount Vitamin Warehouse retail brands.

Nancy Jian, chief executive officer of Chemist Warehouse China and Maggie Zhou, managing director of Alibaba Group in Australia and New Zealand.

Chemist Warehouse says it also has plans to open a store on Alibaba’s Lazada marketplace to further extend its reach to consumers in Malaysia and Singapore.

As part of the agreement, Chemist Warehouse will also focus on a number of smaller and medium brands to provide easier entry points, market access, and marketing support to China’s growing consumer market.

“We are thrilled to sign this agreement and commit to a further two years of strategic cooperation with Alibaba Group,” said Nancy Jian, chief executive officer of Chemist Warehouse China.

“The opportunities to grow our business in China and Southeast Asia are second to none and Alibaba is an integral part of our overall growth strategy.”

Maggie Zhou, managing director of Alibaba Group in Australia and New Zealand, said Chemist Warehouse has successfully grown their brand awareness in China.

“As Chemist Warehouse’s partnership with Alibaba matures, today’s agreement will see the company open additional stores and work with us on a range of new and exciting marketing initiatives,” said Ms Zhou.

In 2018, Chemist Warehouse achieved 100 million RMB (AUD$20.8m) in gross merchandise volume in just seven hours during Alibaba’s 24-hour 11:11 Global Shopping Festival.

In 2015, Chemist Warehouse became the first cross-border retailer in the world to achieve 10 million renminbi RMB (AUD$2.1 million) in gross merchandise volume during Alibaba’s annual 11:11 Global Shopping Festival, a feat it achieved in just 46 minutes.

In 2018, the company achieved 100 million RMB (AUD$20.8m) in gross merchandise volume in just seven hours.

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