- One of the world’s biggest pharmaceutical companies with over 5,000 stores across China.
- Green Forest to supply vitamins, cosmetics, dairy products and a range of other health related consumer goods.
- Consumers scan a QR code in-store to receive home delivery from a cross-border bonded warehouse (or direct from Australia).
50% owned JAT subsidiary Green Forest International Pty Ltd has entered into an agreement with China National Pharmaceutical Group Corporation (Sinopharm) to supply vitamins, cosmetics, dairy products and a range of other health related consumer goods for sale through Sinopharm stores.
Sinopharm is the largest Chinese medical and healthcare group directly managed by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). It ranks 194th in Fortune’s 2018 Global 500 and is the sixth biggest pharmaceutical company on the list with annual revenue in 2017 of USD 51.8 billion.
Sinopharm is establishing a new O2O sales channel for 5,000 plus retail stores across China, including its GuoDa Phramacies. Sinopharm Holding Guoda Drugstore Co., Ltd. (GuoDa) is a national pharmacy chain operating more than 3,800 retail pharmacies in over 70 Chinese cities.
GouDa’s strong growth was recognized internationally when Walgreens Boots Alliance, Inc. (Nasdaq: WBA) recently acquired a 40 percent minority stake through a capital increase worth RMB2.767 billion (around $416 million).
Online-to-offline shopping is increasingly popular in China, allowing consumers to familiarise themselves with products in their local retail store, which are not available through domestic distribution channels, then scan the product’s QR code to make the purchase and order home delivery.
Sinopharm’s head office manages the orders through a proprietary cross-border business-to-business ordering system. Under the agreement, Green Forest will supply Australian consumer goods to Sinopharm for this new sales channel, including both in-house brands and client products.
“O2O is a large and growing part of China’s retail landscape and we are delighted to be part of Sinopharm’s national O2O rollout,” Executive Director Wilton Yao said. “This is a great opportunity for JAT and for the brands we represent.”