Australia's repairing trade relationship with China is benefitting Aussie health stocks. Pic: Getty Images
Health & Biotech
Australia has led a delegation of more than 250 companies to the six-day, 7th China International Import Expo with ASX health and wellbeing stocks among the companies looking to capitalise on our largest trading partner’s love affair for Australian products.
The world’s largest trade show – which concluded on Saturday – aimed to showcase the strength of China’s relationships with its trading partners.
Australian trade minister Don Farrell, who attended this year’s CIIE, said the Federal Government had been working working to de-escalate tensions in the Australia-China relationship.
“But we can’t rest on our laurels, the job is not done,” he said.
A Department of Foreign Affairs and Trade (DFAT) spokesperson told Stockhead the CIIE was an important platform for Australian health and wellness companies to showcase their world-class goods and services to Australia’s largest export market.
“Australia has a strong offering of high-quality health and wellness products, ideally suited to an increasingly health-conscious consumer market in China,” the spokesperson said.
The China Australia Free Trade Agreement has improved market access for health and wellness by eliminating tariffs up to 10% on pharmaceuticals, including vitamins and health products from January 1, 2019.
A rising middle class and a health-conscious younger generation are fuelling growth in China’s wellness sector, which the Global Wellness Institute ranks as the world’s second largest, valued at US$683bn, just behind the US.
Furthermore, China’s consumers value Australia’s regulation of the safety, quality and efficacy of supplements and therapeutic goods.
So as Australia looks to continue rebuilding its trade relationship with China and our health and wellness products highly valued among Chinese consumers, here are some of the ASX stocks which attended the recent CIIE.
The genomic life science company is promoting both its EZZ-branded healthcare and EAORON-branded skincare ranges of products to new buyers at this year’s CIIE.
EZZ has a dominant digital B2C strategy in China, including on Douyin (China’s version of TikTok) and Tmall Global. The company has also continued to expand its distribution channels and started trading on Onion Global’s O’Mall in July 2023.
Similar to Tmall Global and Douyin, O’Mall is one of the major cross-border e-commerce platforms in China, with ~300 million users.
EZZ has also been bolstering its marketing spend in China to raise brand awareness.
“EZZ is delighted to be exhibiting at the sixth China International Import Expo,” chairman Glenn Cross told Stockhead.
“Australian products remain popular with Chinese consumers and EZZ is proud to have China as its top export market for its range of quality healthcare and skincare products.”
The health and functional food products company has four brands focused on the protein lactoferrin health supplement market, including Neurio, Moroka, Jinvigorate and IONE.
JAT’s vision is to become a health and wellness consumer goods leader in the Asia Pacific region.
CEO Sunny Jian Xin Liang said it had been an exciting week for Jatcorp participating in the CIIE, which highlights thousands of international brands vying for a place in China’s vast consumer market.
“We’re particularly excited to showcase our lactoferrin-enriched functional foods, including our popular Moroka brand, which continues to gain strong traction with consumers across China,” he said.
“China remains our most significant consumer market, and we are dedicated to deepening our presence here by delivering high-quality, scientifically-backed products that support health and wellness.
“This expo allows us to connect with our Chinese partners and customers, reinforcing our commitment to meeting local needs with tailored, innovative solutions that align with health-conscious trends.”
He said as JAT expanded its product offerings, the company was focused on strengthening its R&D efforts and working closely with distributors to ensure its products were accessible across the region.
VLS has two brands in the Chinese market including VitaHealth and Herbs of Gold. At the CIIE Herbs of Gold – which has sold more than 200 million RMB in gross merchandise value in the China e-commerce market – was in the Australian Pavilion through a partnership with Austrade.
Herbs of Gold Australia New Zealand CEO shaun Rutherford told Stockhead the collaboration provided a valuable opportunity to strengthen the brand’s presence with the support of a national endorsement, fostering trust and appeal among Chinese consumers.
This year, Austrade organised live-streaming on Douyin – the equivalent of China’s TikTok – as an official channel to promote Australian brands to Chinese audiences.
During the event, Herbs of Gold conducted a live-streaming session with influencers, using the Australian Pavilion and the CIIE as the backdrop and topic, significantly boosting consumer interest and engagement to drive brand visibility in China.
Rutherford said Australian healthcare products have a strong reputation among Chinese consumers, who value the quality and reliability associated with Australian brands.
“Many Chinese consumers have developed a preference for Australian health products, with some even choosing them as gifts when returning from trips to Australia,” he said.
“This year, major Chinese e-commerce platforms collaborated with popular influencers to launch ‘Australian Health Product Discovery’ livestreams, where top Chinese influencers visited Australia to explore and introduce Australian brands to their audiences.”
At Stockhead, we tell it like it is. While EZZ Life Sciences is a Stockhead advertiser, the company did not sponsor this article.
Health & Biotech
Health & Biotech
Health & Biotech
