CWH opens second bricks-and-mortar store in China
Nancy Jian, CEO of the Chemist Warehouse China Division, has this month announced the grand opening of the chain’s second store in China.
“We are very excited to celebrate the grand opening of our second store in China,” said Ms Jian on social media.
“Outstanding effort by our team in Australia and in China!”
The new store is located in Guangdong, while the first Chemist Warehouse to open in the country was based in Zhengzhou.
Chemist Warehouse also sells products to Chinese customers through two online platforms – Alibaba’s Tmall International since 2015, and Kaola since 2019.
Its main growth of sales comes from its beauty and mum-and-bubs categories.
Alibaba Australia and New Zealand managing director Maggie Zhou told Inside Retail that the popularity of Australian products in China was due a perception of Australia by the Chinese consumer as clean and natural.
“For things to eat, to drink, to use on your skin, [Australian products] are really well thought of by the Chinese consumer,” Zhou said.
In October last year, the business signed an agreement committing to a further two years of strategic cooperation with Alibaba Group.
“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,” said Ms Jian at the time.
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.
Chemist Warehouse co-founders Jack Gance and Mario Verrocchi were recently listed on the Australian Financial Review’s Rich List for 2020.
Mr Gance is placed at number 93 this year, after a 10.5% boost taking his wealth to $1.1 billion. Mr Verrochi is in 98th place with total wealth of $1.06 billion, a 10.4% increase from 2019.