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Your Trusted Partner in China
Your Trusted China Partner Market Overview Your Trusted Partner in - - PowerPoint PPT Presentation
Your Trusted China Partner Market Overview Your Trusted Partner in - - PowerPoint PPT Presentation
Chinas Dietary Supplement Industry Market Insights Natural Products Expo West March 11, 2017 Your Trusted China Partner Market Overview Your Trusted Partner in China Source: McKinsey & Company Your Trusted Partner in China Consumer
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Your Trusted Partner in China
Source: McKinsey & Company
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Your Trusted Partner in China
Consumer Confidence Index
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$64 billion China Health Care Association 2014 $34 billion Chinese Industrial Information Network 2015 $29 billion CHYXX Industry Website 2015 $20 billion ASKCI Research Academy 2015 $18 billion Euromonitor 2015 $15 billion SOHO Website 2015
“Health Food” Industry Figures $ 2 5 b i l l i
- n
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Your Trusted Partner in China
Regulatory
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Your Trusted Partner in China
This is the year it was approved and its corresponding certificate number. “G” indicates it is a domestic product This means China Food and Drug Administration (CFDA). This is the CFDA Functional product logo with Chinese statement which means health food product.
CFDA’s “Blue Hat” Registration for Health Food
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Your Trusted Partner in China
Registration Costs
– Need to hire registration consultant – Registration fee in excess of $150,000 per SKU – 2-3 years waiting period
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Your Trusted Partner in China
New Recording Process Begins: May 1, 2017
– Need to hire registration consultant – Recording fees approximately $15,000 – 1 year waiting period
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Your Trusted Partner in China
Blue Hat Registration Costs
Item Fee (¥) Fee ($)
Agent Fees 咨询费
¥350,000 $56,452
Toxicology test 毒理痢性测试
¥70,000 $11,290
FuncAon appraisal test （animal）动物实验
¥80,000 $12,903
Func%on appraisal test （human）⼈亻体试验
¥200,000 $32,258
Hygienically and stability test 卫⽣甠和稳定性试验
¥60,000 $9,677
Efficacy composiAon evaluaAon 功效成分评估
¥30,000 $4,839
SAmulant / banned substance test 兴奋剂/禁⽤甩物 质检测
¥10,000 $1,613
Microbial idenAficaAon 微⽣甠物检测
¥15,000 $2,419
Microbial toxicity evaluaAon 微⽣甠物毒性检测
¥15,000 $2,419
Review inspecAon 评定审查
¥50,000 $8,065
TOTAL 费⽤甩总计
¥880,000 $141,935
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History of CFDA Registrations 1996 – 2016
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Your Trusted Partner in China
Professional Shoppers
3 – 10 Times Compensation Numerous lawsuits against global companies
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Your Trusted Partner in China
Sales Channels
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Your Trusted Partner in China
- High-end Supermarkets
- Shopping Mall Kiosks
- Health and Beauty Store
Watson’s Mannings
- Pharmacies
- Direct Sales (MLM)
- E-Commerce
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Your Trusted Partner in China
Image Source: McKinsey & Company
- E-commerce allows for entire market penetration
- Even Remote Areas Have Smart Phone Access
- 1 billion Active Users across digital platforms
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Your Trusted Partner in China
Trends
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Investment in Foreign Companies
Buyer AcquisiAon / CooperaAon Year Price (US dollars)
Kingdomway Doctors Best Holdings 2014 35 million Sinolife Good Health 2014 18 million BiosAme SWISSE 2015 1.3 billion Kingdomway Vitatech 2015 96 million Sinolife HeJian 2015 26 million DSM Jiang Shan PharmaceuAcals 2015 ConfidenAal By-Health Nature’s Bounty 2016 17.39 million Pfizer TREERLY 2016 ConfidenAal XiWang Group Muscle Tech 2016 730 million Kingdomway Kaluli 2016 3 million Shanghai Pharma Vitaco 2016 136 million IVC Perrigo 2016 ConfidenAal Ausnutria NutriAon Care 2016 19 million Aland Brunel Healthcare Manufacturing Ltd. 2016 ConfidenAal Aland Biocare Ltd. 2016 ConfidenAal Aland IVC 2016 ConfidenAal Sirio Ayanda 2016 ConfidenAal Kingdomway Labrada Bodybuilding NutriAon 2017 8.1 million Tasly Holding Group Herbalife 2017 ConfidenAal
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Your Trusted Partner in China
Blue Hats Difficulties Competing with Cross Border E- Commerce Pricing Cross Border Most Global Brands China Business is in Cross Border E-Commerce Trade Wars?
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Your Trusted Partner in China
Introduction to U.S. – China Health Products Association
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Your Trusted Partner in China
Established: July 28, 2010 Status: U.S. Non-Profit Organization Model: Traditional Association / Business Consultancy
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Your Trusted Partner in China
Working directly with Government Entities Translation and Regulatory Comments Industry Working Group U.S. Shanghai Consulate Product Approvals Customs Clearance Trade Marks Partner Search Overall market solutions………
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China Dietary Supplement Industry Insights
Natural Products Expo West - March Anaheim U.S.A
International Nutrition and Health Industry Summit
FiAsia / HNC Expo - June Shanghai, China
International Omega-3 & Probiotics Industry Seminar
FiAsia / HNC Expo - June Shanghai, China
International Sports Nutrition Industry Summit
FIBO China – September Shanghai, China
China Ingredient & Supplement Industry Insights
SupplySide West – October Las Vegas U.S.A.
Association Annual Conferences:
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Weekly English NewsleAer ”China Updates” www.uschinahpa.org Weekly Language NewsleAer “Health Weekly –健康周报” www.chinaushpa.org
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Your Trusted Partner in China
SOCIAL MEDIA Launched WeChat Group - December 1, 2014
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China Expos
May 16 – 18, 2017
Shanghai National Exhibition and Convention Center
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China Expos
June 20 – 22, 2017
Shanghai New International Expo Center
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China Expos
September 7 – 9, 2017
Shanghai Convention & Exhibition Center of International Sourcing
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Your Trusted Partner in China
Jeff Crowther
Executive Director