RooLife Group has expanded its product range after launching Australia’s number one Kombucha brand, Remedy Drinks, into the Chinese market. Pic: Getty
Tech
The deal with Remedy today has expanded Roolife’s product range in China as it targets another sales record in Q4.
China-focused digital marketing and e-commerce company, RooLife Group (ASX: RLG), has expanded its product range after launching Australia’s number one Kombucha brand, Remedy Drinks, into the Chinese market.
The company has signed an exclusive distribution deal with Remedy Drinks International to market and sell the drink in China.
Remedy is currently Australia’s number one kombucha brand, with the drink already being sold in Australia, New Zealand, UK, USA, Canada and parts of Asia.
In the deal, Roolife will exclusively manage and operate social media and e-commerce activities for the brand in China, to drive sales and distribution of the product.
The three-year contract is subject to sales and performance milestones, which requires a minimum scaled-up revenue target of $5 million to be achieved over the contract period.
“With strong and growing demand for healthy foods in a market the size of China, we see great potential for Remedy Drinks,” commented Roolife managing director, Bryan Carr.
The Remedy brand has been successful in Australia, as well as a number of international markets due to its taste profile and health benefits.
According to Remedy’s executive director, Gary Cobbledick, the drink will be embraced by Chinese consumers seeking premium “better for you” beverages, such as kombucha.
RooLife recorded its best ever quarter in March, delivering preliminary revenues of $3.4 million in Q3 – more than all of financial year 2020.
The Q3 revenue was 145 per cent higher than the previous quarter, and the company is expecting another record sales in Q4 as its systems and processes gain traction.
During the quarter, Roolife also launched Alipay’s buy-now-pay-later capability on its ecommerce stores.
The facility allows Chinese customers to pay for purchases with their Alipay wallet using credit facilities provided by Ant Financial to pay back in instalments.
Roolife’s record sales have been driven by Chinese consumers’ insatiable and continuing appetite for health and well-being products, especially for international brands that are produced in the West.
As an Australian-listed company, Roolife said it provides credibility and trust to the international brands seeking to enter the Chinese online market.
And that online market is huge, estimated to be worth a whopping $2.2 trillion – almost double the entire Australian GDP.
To take advantage of this opportunity, RooLife has secured exclusive Chinese distribution arrangements with clients.
These contracts are either on a consignment basis, or a complete end-to-end sales and distribution service agreement.
The company has developed a proprietary, profiling algorithm which analyses the behaviour of Chinese consumers, allowing brands to effectively drive sales based on consumer profiles and purchasing behaviours.
With a team of expert online marketers sitting in city of Guangzhou, the company has been driving product sales for international brands through some of China’s biggest online marketplaces like TMall, Taobao, and JD.com
This article was developed in collaboration with RooLife, 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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