Published On: July 11th, 2022
RooLife Group Limited (ASX: RLG) (RooLife Group or “Company”) has announced that the Company has partnered with AFT Pharmaceuticals (ASX: AFP) to launch over-the-counter (OTC) pharmaceuticals in China. The OTC medications will be sold through the Kiwi Health Global Flagship store on Tmall Global, an online platform.
The store is registered under the Chinese cross-border e-commerce (CBEC) OTC pilot scheme. Under the scheme, this is the first New Zealand direct to consumer OTC marketplace in China. The launch will be completed over two phases, and the product portfolio will be expanded to include AFT Pharmaceuticals’ patented pain relief medication Maxigesic and five other OTC products.
RooLife Group’s Role
RooLife Group will oversee digital marketing and store operation of the store. The Company will also ensure the sale of AFT Pharmaceuticals’ products including vitamin C and D lipo sachets, Loraclear hay fever relief, Ferro sachets, Kiwisoothe, Histaclear non-drowsy allergy relief, and Crystalwash Extend. In addition, RooLife Group will also be responsible for the end-to-end approval process to ensure AFT Pharmaceuticals can sell its OTC products in China.
Caption: Some of the OTC medications sold by AFT Pharmaceuticals.
Commenting on the partnership, RooLife Managing Director Bryan Carr said, “The partnership with AFT Pharmaceuticals puts us at the forefront. We can directly service the strong demand for international OTC products from Chinese consumers. Since the partnership leverages our experience in Chinese e-commerce and market and AFT Pharmaceuticals’ pharmaceutical experience, it represents an excellent achievement for both.”
Growing Demand in the Chinese Market
Dr Hartley Atkinson, the Founder and Managing Director of AFT Pharmaceuticals, said, “The Kiwi Health Global Flagship store is a significant growth opportunity for us. Since this will be the first New Zealand-based company to be approved under the CBEC OTC pilot scheme, we are quite excited.”
The Kiwi Health Global Flagship store was launched in 2020 and initially included a trial range of AFT Pharmaceuticals’ health supplements. In the following years, owing to the strong support, the store has expanded to include a range of OTC products.
Caption: The Kiwi Heath Global Flagship store offers a range of OTC medications.
The Chinese OTC medicines market is the second largest. In 2020, the net worth of the market was USD 16.3 billion. It is expected to reach USD 22.7 million by 2023. Furthermore, New Zealand products are a popular choice among Chinese consumers, who have become more careful about the products they use. This, along with the few very OTC products approved on Tmall Global allows AFT Pharmaceuticals to leverage growth. The Kiwi Health Global Flagship store helps AFT Pharmaceuticals fill the demand gap on Tmall Global for New Zealand products.
Investor’s Outlook
- RooLife Group and AFT Pharmaceuticals have planned more product launches over the next few months.
- Tmall Global, a part of the Alibaba Group, is the premier channel for international brands to reach Chinese consumers. The launch of the Kiwi Health Global Flagship store marks the first instance where New Zealand products have become available in China.
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