Blackmores planning to expand China business

Chief executive Alastair Symington says Blackmores could see new opportunities to sell to Chinese consumers, who currently contribute some 22 per cent of the company’s revenues.

Blackmores is planning to expand its business in China following the country’s opening up, according to chief executive Alastair Symington.

In an interview with The Weekend Australian, after his third trip to the country this year, Mr Symington said Blackmores could see new opportunities to sell to Chinese consumers, who currently contribute 22 per cent of the company’s revenues.

Based on last year’s revenue figures for the company, which is now owned by Japanese beer and beverage giant Kirin, this represents revenues of more than $145m.

Mr Symington said Black­mores was currently selling to China through global e-commerce channels such as Alibaba.

But with China opening up, he said the company was looking at making more direct connections, including selling through more local e-commerce platforms and directly into retail stores.

He said this could also include packaging in China products such as pills made in Australia, which could allow faster access to the Chinese consumer.

“I can see increasing confidence levels in China,” he said after a visit to the China International Import Expo in Shanghai.

“The Chinese are still very enthusiastic about products from Australia, and they are particularly interested in products around healthcare in the wake of Covid.”

Blackmores’ biggest sellers in China are fish oil for general health and glucosamine for joint health.

Blackmores CEO Alastair Symington. Blackmores, which began selling its products in China in 2012, has 50 staff based in China, most of them in Shanghai.

While Mr Symington said Blackmores was doing about 30 per cent of its business in Southeast Asia, it saw plenty of new ­opportunities in the China market following its opening up after Covid.

“There are still lots of opportunities in China. We are planning to invest more in our China business,” he said.

Blackmores, which began selling its products in China in 2012, has 50 staff based in China, most of them in Shanghai.

Mr Symington said this week’s visit to China by Anthony Albanese was important in helping to boost business ties between the two countries.

Blackmores set up an innovation centre in Shanghai in 2019 to study the specific needs of the Chinese consumer.

Mr Symington said the research from the centre could result in Blackmores developing products specifically for the Chinese consumer.

He said this could produce products that would also sell to the broader Chinese diaspora in Southeast Asia and Australia.

Mr Symington said more than 3000 foreign companies had their products on display at CIIE, taking advantage of the reopening of the Chinese market.

He urged more Australian chief executives to visit China to see first hand how the country was changing.

“There are plenty of opportunities there,” he said. “It is important that the leaders go there themselves to see the ­potential.”

Blackmores also was gearing up for the November 11 sales day on Saturday run by e-commerce giant Alibaba. But he said the event was turning into a longer sales program than the original one-day event, with sales starting several weeks ago.

He said Chinese consumers were becoming increasingly sophisticated and were particularly interested in products that could be beneficial to their health.

Originally published as Blackmores planning to expand China business