In China, the health supplements market has rapidly increased in recent years. In 2015, Chinese consumers purchased over RMB109 billion (US$16.3 billion) of vitamins and dietary supplements, almost double its value in 2008. This market is predicted to reach RMB149 billion (US$22.3 billion) by 2020 According to the China Chamber of Commerce for Import & Export of Medicines & Health Products, imports of health foods and nutritional supplements (including ingredients and finished products) into China were worth US$2.67 billion in 2014. The market share is almost 35 percent of Chinese health food market. This continuing growing demand is driven by various reasons, such as Chinese economic growth, improved health and wellness consciousness by global natural trends, limited availability of mainstream healthcare service, the second child wave from new family planning policy resulting in pregnancies, and the contribution of the baby market’s demand China is also an ageing society, a distinct market characteristic in which elderly population are rising now. Those people are likely to retain their health and manage their health condition, but they are not used to be targeted regarding health supplements companies. Also, most Chinese people are interested in and trust the Traditional Chinese Medicine (TCM). so there is an opportunity for companies to move towards of this potential market. Moreover, E-commerce is the primary sales channel for most vitamins and dietary supplements businesses in China, because it can bypass heavy tariffs and high costs for international brands. However, this channel has been tightened by authority’s new regulations since 2016 which means tax and other changes have been made. But it is also an effective way for New Zealand exporters to China, with the favourable tariff and easier market access compared to traditional trade. The biggest two competitors in this channel in China are Swisse and Blackmores, which are famous Australia health supplements brands, marketed to Chinese consumers. Major e-commerce platforms include TMall, JD and KaoLa, who take over half the market share in China.
This paper uses a qualitative method of interviewing to obtain open and in-depth information, and to focus on thematic analysis for preparing export to China. Of three interviewees, two work at Health 2000 Marketing Department and one is International Corporation Marketing person in China.
Suggestions for Health 2000 regarding exporting to China include: doing sufficient research before they enter the market because the market characteristics are always changing; the business needs to understand their customers fully. Using multiple social networks to fit in mature technology market in China where people can use the mobile app to do online shopping, and use QR code with an appropriate tracking number to track their order status, and, consider local competitors and new entries. Using the leverage of e-commerce influences to develop online to offline long-term business model for building an international brand.
This research aims to provide appropriate marketing strategies for Health 2000 to expand its international market share in China and looking to explain Chinese new regulations regarding cross-border e-commerce. Moreover, it aims to to help Health 2000 understand Chinese customers’ characteristics and achieve the market potential to boost its brand in the international market.