• Roolife subsidiary RLG Marketplace inks deal to supply major pharmaceutical company in China
  • Deal follows RLG’s partnership with AULife International announced in mid-August
  • New sales and supply agreement adds significant new distribution channels for RLG

 

Roolife’s new partnership with China-focused e-commerce company AULife International is paying off after securing a $950k contract to source and supply products for Shanghai No.1  Pharmaceuticals.

Roolife Group (ASX:RLG)  subsidiary RLG Marketplace Pty Ltd will source and supply products to be sold in China both online and through physical pharmacies and stores of Shanghai Stock Exchange-listed Shanghai No.1 Pharmaceuticals.

The deal between RLG Marketplace and Shanghai Pharmacy’s No. 1 Pharma (Hong Kong) will see RLG Marketplace source and to supply a range of goods from food, health and well-being, nutritional to beauty care.

Products will be sold in China online and in the extensive physical store network of Shanghai No.1 Pharmaceuticals Co, is a diversified pharmaceutical distribution enterprise and part of the Bailian Group, which operates both wholesale and retail businesses.

Shanghai No. 1 Pharmacy is one of the first three pilot dual-channel (online and offline) pharmacies in Shanghai.

 

AULife International partnership paying off

RLG Marketplace says initial orders of food and dairy product totalling $950k have been received this week under the terms of the annual contract with Shanghai  No.1  Pharmaceuticals Co.

RLG CEO Bryan Carr says the latest deal showcases the strength of its new RLG Marketplace delivering new channels to market.

Earlier this month RLG announced it had entered a deal with AULife to jointly market and sell international products in China under the new platform and brand RLG Marketplace.

RLG Marketplace is owned 51% by RLG and 49% by AULife’s Asia Pacific Capital Holdings, with profit sharing of 80% to RLG and 20% to AULife (net profit basis).

“It’s a great way to start and with 80% of the net profit from these product sales to drop
directly to our bottom line it highlights the value of this new partnership,” Carr says.

He says the new sales and supply agreement adds “significant new distribution channels” for RLG – both online and offline. “This  sales  and  distribution  agreement  with  Shanghai  No.1  Pharmaceuticals  further  enhances our positioning in the health, well-being, food, and beverage sector in China where we continue to grow out our online and physical store channels,  servicing  high  consumer demand for quality international products with China’s large, emerging middle class,” he says.

“This latest arrangement is confirmation and delivery on our strategy of sales channel growth focussed on health, wellbeing, food, and beverage products, adding to distribution through ALDI, Ole and Alibaba’s HEMA supermarkets in China.

 

China’s growing middle class

China’s population is progressively experiencing increased wealth, as a growing number of individuals are entering the middle-class bracket with concerted initiatives to alleviate poverty.

In its latest 2023 report on China’s future consumer trends, the Boston Consulting Group (BCG) forecasts 80 million individuals joining the middle and upper class between 2022 and 2030, accounting for 40 percent of the entire population by that time.

The rise of the middle and upper class is expected to boost spending power as disposable income increases.

Furthermore, China is working on its population becoming healthier. The China’s National Nutrition Plan (2017-2030) and the Healthy China 2030 campaign are forecast to drive the growth of sports and fitness activities and in turn health and wellbeing products.

RLG Marketplace’s latest deal with Shanghai No.1 Pharmaceuticals Co further expands the company’s sales channels and portfolio in the health and well-being along with food and beverage sector in China.

The company is exclusively distributing Remedy Drinks, New Zealand Honey Co, Fiji Kava, Hydralyte and RLG’s own VORA protein range.

 

This article was developed in collaboration with Roolife Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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