Abundant further expands Chinese e-commerce presence

By Meagan Evans. Published at Jul 20, 2018, in Juniors

Plant intellectual property developer Abundant Produce Ltd’s (ASX:ABT) wholly‐owned subsidiary, Abundant Natural Health (ANH), has agreed to sell its full product range of branded nutraceuticals and cosmetics through e-commerce platforms Xiaohongshu (Little Red Book) and NetEase Kaola (Kaola).

ABT signed an agreement with Hong Kong‐based Fohun International Limited to represent ANH on the e‐commerce platforms, with launch on Little Red Book and Kaola stores targeted within three months.

The agreement will see Fohun responsible for operating an ANH flagship store until 2020 to directly sell ANH products to Little Red Book and Kaola. Products ranged in the store and marketed to Chinese customers will include ANH’s full range of ActiveLyco infused face products, magnesium‐enriched nutraceutical and salt skin cleansing gels.

Fohun will create a store service team and be responsible for store licencing, maintaining and promoting the store.

This agreement follows an earlier agreement with Hui Yi (Beijing) International Trade Co., announced in early July, Ltd to manage ANH’s online shop on the Chinese e-commerce giant JD Global’s online platform, JD.com.

At the same time, it’s worth noting that this is an early stage play and investors should seek professional financial advice if considering this company for their portfolio.

Backed by Alibaba, Little Red Book is a social media e‐commerce shopping app based in Shanghai, targeting 18‐to‐35‐year‐old urban Chinese women. Users share shopping tips, swap fashion ideas and buy luxury, fashion and beauty products from overseas. Founded in 2013, it has grown rapidly, with an estimated 30 million monthly active users in June 2018.

Kaola, a subsidiary of NetEase Inc., launched in early 2015 and has grown to become a leading comprehensive e‐commerce platform mainly focusing on cross‐border business. Kaola is the key strategic project for NetEase and has become the largest cross border e‐commerce platform in China. It aims to provide Chinese consumers with high‐quality products, competitive prices and quality after‐sales service.

Fohun is a marketing and management company based in Hong Kong that sources products targeted to Chinese mothers and babies, creating partnerships with well‐known brands including Kérastase Paris and Australia’s Aptamil and Nature’s Way, representing them to customers in China.

ABT CEO, Shanan Birkin, said: “We are really excited to be working with Fohun International to extend our reach onto these two platforms, Little Red Book and Kaola, which will help ANH further grow its brand in China.

“Taking our products onto these two growing platforms will ideally complement our upcoming launch and presence on the JD Global platform in markets that are perfectly suited to our products.”

ANH’s flagship stores on Little Red Book and Kaola platforms are expected to launch later this quarter, subject to the finalisation of the marketing implementation plan.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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