After launching a successful partnership in June with Baozun, a Chinese leading eCommerce distributor, Else officially opened its Tmall store at the end of September for Chinese consumers, with other stores on major e-Commerce platforms to follow shortly
ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) (“Else” or the “Company”), announces that it launched its flagship Chinese store on Tmall Global on September 29 and is now selling Else Nutrition Toddler Formula and Baby Cereal products directly to Chinese consumers through the store. The opening of the Chinese market is the third market for Else in its international expansion. This is the second new market for Else this year, following the company entering Canada in June.
“Selling our innovative, plant-based, clean pediatric nutrition products in China is a key milestone in the company’s strategic plan to become a player in the global infant nutrition market. Following our recent growth in North America, we are on track for expansion globally. We are very excited to help fulfill the increasing demand in China for a dairy & soy-free pediatric nutrition alternative, and provide China’s youngest generation with nutritionally balanced, whole plant, clean, dairy and soy-free alternatives, especially considering the very high rate of lactose intolerance in China of about 22.4%, the additional suspected lactose intolerant population of about 25%, and the proportion of infants and toddlers under 2 years who claim to experience allergic symptoms is as high as 40.9% (3.7 million infants/toddlers).
“Another indicator of the need for plant-based alternatives is Chinese consumers’ rising awareness of health and sustainability which has led to the increasing consumption of plant-based milk, especially among Gen Z and Gen Y consumers. The average annual growth rate of the Chinese plant-based milk industry is expected to remain above 20% in the next few years, and the market size is expected to reach 300 billion Yuan ($56.65 billion CDN) by 2025,” said Hamutal Yitzhak, the CEO and Co-Founder of Else.
The global infant formula market in 2021 accounted for approximately $77 billion. The market is expected to grow and reach around $110 billion by 2026. China will remain the market leader with about 40% of the global market share. China’s infant formula market is projected to grow at a CAGR of 8%, from $30 Billion in 2021 to $40 Billion by 2025. Else chose to partner with Baozun, the largest e-commerce service provider in the market, to ensure the most effective penetration. The flagship store is already open on Tmall, and WeChat, JD and Douyin stores are scheduled to open during the quarter to increase reach and consumer awareness.
“The partnership with Baozun, with their experience and status as a ‘six-star’ partner to Tmall, was a strategic choice for Else. One that we are confident will lead the way to a strong market entrance and continued growth in China,” added Hamutal Yitzhak, CEO, and Co-Founder of Else Nutrition. “We look forward to many milestones in the Chinese market including our upcoming store launch on WeChat, with its 1.25 billion active users.” (Source: finance.yahoo.com)
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