JAT subsidiary Golden Koala’s first container loads of the newly formulated (and freshly packaged) milk powders are fresh from the production line and ready to ship.
The production run includes infant, follow-on and toddler formula and adult milk powder.
These English language packaged products are destined for sale in Australia and, via daigou and cross-border channels, to Chinese families.
JAT’s Green Forest International today exhibited at Alibaba’s Sydney E-commerce Expo, meeting new buyers, integrating Sunnya products and demonstrating the synergies between JAT and its recently (and soon-to-be) acquired subsidiaries.
“This has been a valuable exercise for the JAT group of companies,” Executive Director Wilton Yao said. “Not only because we have secured more buyers, but also as a small scale preparation for the huge China International Import Expo coming up in Shanghai in November.
- 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.”
JAT is delighted to note that NEURIO Formulated Milk Powder with Lactoferrin is now selling to Chinese consumers via Woolworths’ flagship store on cross-border platform TMall Global.
Woolworths’ TMall Global online store (woolworths.tmall.hk) is the only online store for Chinese consumers to purchase products direct from Woolworths.
JAT is delighted to note that NEURIO Formulated Milk Powder with Lactoferrin is now selling to Chinese consumers via specialist maternal and baby platform – Momtime.
On Sunday, senior management from Thermos and Camelbak joined Green Forest’s Family Day at Centennial Park in Sydney.
Daigou shopping groups attending the event were provided with free samples and the latest product information as part of Green Forest’s ongoing promotion of Australian products through this important sales channel.
JAT has entered into a distribution agreement with Healthy One Co., Ltd (“Healthy One”).
Healthy One, part of the Hong Kong listed Tian Ge Interactive Holdings Ltd (1980.hk), has been growing its online and offline distribution capacity in China for 8 years.
Under the agreement Healthy One has non-exclusive rights to sell Neurio and other JAT products across a range of channels:
- Cross-border platforms
- Tmall – Healthy One Overseas Products Speciality Store
- Taobao – Taoanju Daigou Jinguan Store, and shop distribution
- Offline retail outlets
- Hangzhou Tianjiong Industry Co., Ltd
- Chinese domestic sales platforms
- Global Scanner
Healthy One immediately placed its first order under the agreement, for a pallet (960 tins) of NEURIO Formulated Milk Powder With Lactoferrin.
JAT has granted exclusive distribution rights to AustAgri Pty Limited to sell Golden Koala Premium Range Infant Formulas in mainland China over a five year period, in a $98 million distribution agreement.
The agreement gives AustAgri exclusive rights to distribute and sell the 900g Chinese language versions of Golden Koala’s Premium Range Infant Formulas in mainland China, and non-exclusive right to distribute and sell the products via commerce platforms into Hong Kong, Macau and Taiwan.
AustAgri must order a minimum volume in each of the five years of the agreement, generating approximately $98 million in revenue for Golden Koala.
The agreement requires AustAgri to pay a $1 million deposit in two instalments in order to secure the exclusivity. The first 50% is due within seven days of signing the agreement (refundable should JAT fail to secure the requisite regulatory approvals within 12 months) and the remainder is due within seven days of receiving regulatory approval to sell the products within China. Should AustAgri at any time fail to place the minimum orders, it would forfeit the $1m deposit, and it’s exclusive rights would terminate.
Alibaba-backed, social media cross-border ecommerce specialist in imported products
100 million users – 30 million monthly active users
JAT is pleased to announce a high visibility campaign to launch NEURIO products on Alibaba-backed Xiaohongshu (which translates as “Little Red Book”).
Xiaohongshu is a social media ecommerce shopping app based in Shanghai, targeting 18-to-35-year-old Chinese urban females. Users share shopping tips, swap fashion ideas and buy luxury, fashion and beauty products from overseas.
Founded in 2013, Xiaohongshu has grown explosively, claiming 15 million monthly active users in June 2017 and 30 million in June 2018.
The NEURIO campaign will run from mid-July to mid-August. The campaign includes ten high profile internet celebrities promoting Neurio products and posting articles on Xiaohongshu.
In addition 100 selected consumers (leaders with strong Xiaohongshu followings) will trial Neurio products and post their views.
The following NEURIO products will be promoted and sold in the campaign and remain available for sale on the app when the campaign concludes;
- Lactoferrin Milk Powder
- DHA Algae Oil Softgel
- Probiotics drop drink
- Mushroom juice drink
“Xiaohongshu is now the most popular Chinese e-commerce platform for imported luxury products,” Executive Director Wilton Yao said. “This is the Neurio brand’s first large scale marketing campaign on a major Chinese ecommerce platform and will greatly enhance the brand’s market visibility as well as directly impacting sales.”
For more information about Xiaohongshu, readers may wish to view the following;
JAT has secured exhibition space at the 18th Shanghai International Children Baby and Maternity Products Industry Expo, taking place from 25th to 27th July.
JAT’s 18 square metre exhibition space will showcase the portfolio of in-house products that the company has been developing since shareholders formally approved the change to Fast Moving Consumer Goods trading, including;
- Golden Koala
- Premium Infant Formula (Stage I for newborns to six months),
- Premium Follow-On Formula (Stage II for six to twelve months),
- Premium Toddler Milk Drink (Stage III for one to three years),
- Full Cream Instant Milk Powder.
- Lactoferrin Milk Powder
- DHA Algae Oil Softgel
- Cobbitty Country
Golden Koala and NEURIO product samples will be made available to visitors (in addition to detailed product information) and brochures will outline the range of products Cobbitty Country plans to release over coming months.
JAT staff will be supported by staff from Shanghai Dragon Corporation both in the exhibition space and at private meetings with agents, distributors, wholesalers and retailers.
“These trade fairs offer excellent brand exposure,” JAT Executive Director Wilton Yao said. “More importantly, visitors are trade professionals looking for new products and new suppliers and planning to place orders.”
The CBME China 2017 Post-show Report showed that almost all visitors were professional buyers and that 89% attended with the purpose of placing orders, as detailed in the following tables:
“JAT’s exhibition space is ideally located in the ‘Australia’ pavilion, adjacent to the ‘Fabulous Mom Zone’.” Mr. Yao said.
The organisers of CBME China 2018 expect numbers to exceed last year’s;
- 88,316 trade buyers
- 2,662 exhibitors showcasing 3,952 brands
- 239732 sqm exhibition space