Chinese see value in CWH offering

CHEMIST Warehouse is the leading Australian brand for Chinese consumers living in the nation’s tier 2 cities, and those who do not have a university education, new research reveals.

Data collected by Monash University and Digital Crew, revealed the discount pharmacy group was one of the leading Australian health and beauty brands across China, according to the Australian Brands in China Index 2019.

However, CWH did not make the top 10 Australian Brands in China, but claimed fourth spot in the top fast-moving consumer goods (FMCG) and retail brands categories, behind Dairy Farmers, Capilano Honey and Coles.

The 2019 Index showed a decline in the profile of Australian FMCG brands in China, with the report’s authors noting “buying the hottest trend no longer appeals to Chinese consumers searching for an Australian FMCG brand”.

“Chinese consumers continue to look for brands in this industry that are highest in quality and most practical, but the brands must also offer value for money,” the authors said.

Bio Island listed at the top Australia health brands, ahead of Caruso’s Natural Health and Blackmores, with trust, quality and value key drivers in this category.

“The Chinese place less emphasis on innovativeness or trendiness in the health sector,” researchers wrote.

“They want what works and what is established.

“New entrants can break into a country that is increasing its demand for health products by emphasising quality and value for money via digital media.”

Chinese consumers’ value focus was less stringent when it came to cosmetics, with premium brands prized by shoppers.