Blackmores is an Australian based natural healthcare and services company with history dating back to the 1930s. In 2010, Blackmores focused on the Chinese market for future growth and by 2014-2015, its revenue was growing 25% year-on-year. Asian shoppers now make up 50% of Blackmores sales.
Blackmores was able to successfully capture the lucrative Chinese market by understanding a few key points:
By understanding the widespread counterfeit, pollution and watered down products problem in China, Blackmores understood the significance of being Australian hence its Chinese brand localisation 澳佳寶 – which can loosely be translated into ‘Australia’s good treasure’. It sets a ‘clean and green’ image for all its vitamins range of products for Chinese buyers.
Chinese buyers prefer herbal medicine and self medication to visiting a GP. The recent 2016 acquisition of Global Therapeutics, a leading Traditional Chinese Medicine company based in Australia will fill a missing gap of products for Blackmores and provide fantastic opportunity for Blackmores further down the line in the $70 billion Chinese consumer health market.
Blackmores have a great understanding of Chinese consumers and their spending habits and was able supply products that appeals to its intended customers.