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Australia’s Largest Pharmacy Opens Overseas

October 29, 2019 0 Comments

Earlier this month pharmacy retailer Chemist Warehouse reported they are opening its first brick-and-mortar store in China as a pilot for future store openings.

Australia’s Largest Pharmacy Opens Overseas

Chemist Warehouse’s First Physical Store in China

Bubs and Chemist Warehouse to Expand Further to Chinese Market


Chemist Warehouse’s First Physical Store in China

Earlier this month, Chemist Warehouse reported they are opening their first store in China, in the Henan province. The store will operate alongside a new online marketplace, and serves as a pilot for future store openings.

The chief executive officer of Chemist Warehouse China, explained to InsideRetail that the store is an online-to-offline self-pick-up store. Customers can still shop in the physical store, to enjoy the Chemist Warehouse shopping experience.

As this is a pilot store, the company also intends to expand to other cities of China in the near future. In Australia, there are currently over 450 Chemist Warehouse stores. They are also established in New Zealand.

team of pharmacist chemist woman and man group standing in pharmacy drugstore

Since Chemist Warehouse initially partnered with the Tmall Global marketplace (the global site of Alibaba) in 2015, they have reportedly been the number one cross-border retailer on the e-commerce site.

This month, the discount chemist giant renewed its strategic collaboration with Tmall Global for another two years. Chemist Warehouse will now be opening additional online stores and promises to boost its marketing efforts to reach more Chinese customers.

Figures from Alibaba’s annual single day Global Shopping Festival in November have shown that initially in 2015, Chemist Warehouse was the first cross-border retailer in the world to reach gross merchandise volume of AUD $2.1 million. In 2018, this has significantly increased to AUD $20.8 million. 

The Dailymail also reported on the 2015 Global Shopping Festival, where Chemist Warehouse only needed 46 minutes to sell more than $1.9 million worth of its health and beauty products to Chinese buyers. 

An Alibaba spokesperson mentioned that Chemist Warehouse had a very successful launch on their site. They became the fastest retailer on Alibaba to hit the record in sales on the shopping festival day. 

They highlighted that Alibaba users can buy from around 1,300 Australian brands through the Tmall website and the customers are valuing high quality Australian goods over their prices. The fact that the brand was also listed on Tmall as a trusted provider of health products has appealed to the Chinese customers.

Pills spilling from a bottle

Bubs and Chemist Warehouse to Expand Further to Chinese Market

Also this year, Bubs, the infant formula maker, also entered into a deal with Chemist Warehouse. The deal will both help Bubs to establish in the domestic market and to improve its distribution channels into China, the same market which Chemist Warehouse has earned influence and reputation in.

The Chinese sales reported from Bubs’ 2018 year-end report have also seen an increase by 2,281 per cent compared with Q2 2018.

Bubs said that partnering with Chemist Warehouse will allow them to further increase their reach to the Chinese customers through the discount giant. This is in strong response to the increasing number of Chinese residents and tourists alike selling Australian health and infant nutrition products back to China.

Bubs also acknowledged that Chemist Warehouse’s online store at Tmall Global is the largest in the world by gross merchandise volume. In return for marketing support, Chemist Warehouse will charge a share-based fee to Bubs.

Subject to Bubs hitting their sales targets, Chemist Warehouse will also be able to purchase additional Bubs shares, in annual instalments over a three-year period.

Pharmacy medicine on green background


What do you think about Chemist Warehouse’ further expansion to China? We would love to hear from you.

Let us know by scheduling a call Today with our friendly consultants Sean Kelly and Alyssa Bonfa find out more what pharmacist jobs in Australia he can discuss with you.

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