Blackmores launches in India in pivot from China focus
Health supplements company Blackmores launched into the India market on Thursday, as part of diversification from reliance on the China market.
Health supplements company Blackmores launched into the India market on Thursday, in a deal with Amazon India and other e-commerce platforms as part of its strategy of diversification from reliance on the China market.
The product launch, at virtual event in India on Thursday with executives of Amazon India, includes Blackmores’ products for the health of heart, eyes, bones and joints.
The release coincided with the Australia-India Business Exchange business leaders’ forum to be attended on Friday by Trade Minister Dan Tehan who is visiting the region. The forum will also be addressed by Blackmores’ chief executive Alastair Symington.
Mr Symington said the launch of the products on Amazon and e-commerce platforms in India was a precursor to the company selling its products in traditional retail outlets in key cities in India.
“Primed for a post-Covid wellness boom, India is a growth markets for Blackmores given the country’s focus on natural health,” he said. “We are excited to be part of their journey to lead happier, healthier lives.”
Optimism about the potential of the China market for Blackmores saw the company’s shares soar to more than $210 at the end of 2015, under former chief executive Christine Holgate.
The shares steadily fell to a low of just below $60 in the market crash of last year, recovering to just below $95 this week.
The China trade has also been hit by travel bans as a result of Covid closing borders to international travellers and Chinese students, who were active in the daigou trade buying products in Australia to sell to family and friends back in China.
Mr Symington, who took over as chief executive in September 2019, started diversifying the company with plans to expand into India, launching a halal range in Indonesia and expanding across South-East Asia.
His strategy helped deliver an 89.4 per cent rise in net profit to $28.6m for the financial year to the end of June.
The company, which now operates in 13 markets across the Asia-Pacific, is planning to roll out more products for the Indian market in coming months.
Mr Symington’s goal is to “connect” Blackmores’ products with a billion customers globally by 2025.
The Blackmores diversification into India comes as Federal Treasurer Josh Frydenberg has urged Australian companies not to put all their eggs in the China basket.
The federal government has been keen to see Australian companies expand into India, particularly given the establishment of the “Quad” political arrangement with Australia, the US, India and Japan.
Austrade India representative Sam Freeman said Blackmores, with a legacy of almost 90 years in natural healing, was a “great example of Australia’s clean, green and safe manufacturing reputation”.
“We are excited to offer our customers an opportunity to explore Blackmores’ products from the comfort and safety of their homes,” Nishant Raman, Amazon India category leader said at the launch.
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