Blackmores / 澳佳寶

SHARE THIS ARTICLE

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:

  • China having the fastest growing middle class means more disposable income
  • Chinese people are the most health conscious people in the world
  • Chinese consumers preferential treatment of herbal supplements to seeing a GP
  • Chinese customers prefer medicine with multiple functions
  • China’s widespread counterfeit and watered-down products means most Chinese consumers are prepared to pay for a premium product
  • China’s ageing population
  • End to one child policy
  • Trust of brand is strong in China

Blackmores in Tmall store

What We Learnt

Brand localisation

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 China Website

Summary

Blackmores have a great understanding of Chinese consumers and their spending habits and was able supply products that appeals to its intended customers.

SHARE THIS ARTICLE

Leave a Reply

Your email address will not be published. Required fields are marked *