NGS gets the thumbs up from China ecommerce giant Alibaba, with new flagship online storeSheng
Clinically-tested medical supplements company Nutritional Growth Solutions (ASX:NGS) had some good distribution news for the market this morning.
The company announced the official launch of its Healthy Height online store on Tmall Global – a direct B2C channel of Chinese ecommerce giant Alibaba.
The approval to launch on Tmall Global gives NGS unique access to the huge Chinese market.
And it marks an important new distribution channel for the company’s Healthy Height protein shakes – clinically-tested dietary supplements that assist children with growth issues.
With hundreds of millions of monthly active users, Tmall Global is the premier channel for global brands to gain access to the Chinese market.
Nutritional Growth Solutions’ admittance onto the platform also leaves it well-placed to benefit from two other tailwinds.
Firstly, the preference among Chinese middle-class consumers – the largest middle-class market in the world – to access quality international brands for premium foot and health products.
And secondly, the focus on improved health and well-being in the Chinese market in the wake of the COVID-19 pandemic.
The net result is illustrated by data from the TMO Group, which showed nutritional health supplements were among the “fastest growing categories on Tmall Global during 2020, with monthly sales of more than RMB1bn (around $200m)”, NGS said.
Within that category, protein powders and amino acids among the largest sub-sectors.
The numbers indicate that with its advanced health supplement formulation, NGS is ideally positioned to benefit from changing consumption patterns among Chinese consumers.
Commenting on the announcement, NGS CEO Liron Fendell said the Tmall Global marketplace will give the company an opportunity to complement its existing presence in physical retail stores across the Chinese market.
“This is a great opportunity to increase global presence for our products and to utilize the many innovative technologies that Alibaba has developed,” Fendell said.
The partnership with Alibaba provides a “new, fantastic channel, through which we can distribute our Healthy Height products in an online global market with incredible potential”, she said.