Baolingbao Prepares to Open Online Shop of IMO End Product

According to CCM International's investigation on 22 June 2012 to Baolingbao Biology Co., Ltd. (Baolingbao), the largest isomalto-oligosaccharide (IMO) producer in China, the company is preparing to open an online shop on tmall.com, one main large business-to-consumer (B2C) e-commerce platform belonging to Alibaba Group in China, which aims at promoting its brand and an end product of IMO, also a health care product called "Shuang Qi Run Sheng" (SQRS). However, Baolingbao expressed that the specific launch date and the price have not been determined, according to CCM’s July issue of Sweeteners China News.

It is predicted that this online shop on tmall.com may help the selling and popularity of Baolingbao's SQRS in the future. According to Baolingbao, the company's opening an online shop on tmall.com is to help the brand promotion of SQRS, which may attract customers to buy the company's products in entity selling shops, while traditional sales channels will still be dominant , such as drug stores and supermarkets. Additionally, Baolingbao's gross margin of IMO decreased obviously from 2008 to 2010, so the SQRS may become a potential new profit growth point for the company's IMO.

 

In fact, Baolingbao has put efforts to promote its SQRS in the past few years. For example, Baolingbao opened an online shop on taobao.com, the largest consumer-to-consumer (C2C) e-commerce platform in China also belonging to Alibaba Group, to promote its brand and IMO in 2009. However, since the company hasn't received the end product selling license in China until 2012, it did not sell SQRS before 2012. 

There are two key reasons attracting Baolingbao to open online shop to sell its product on tmall.com.

 

Firstly, as the Internet has developed fast and online shopping has been accepted by more and more Chinese people over the past few years, Baolingbao hopes to promote its end product of IMO through online shop as a marketing strategy. In fact, according to China Internet Network Information Center (CINIC), the number of Chinese Internet users reached about 513 million by the end of 2011, and about 56 million were new users this year. Besides, in line with Alibaba Group, tmall.com has ever attracted 55 million daily visits before. And because of such a large number of Internet users in China, the company chooses network media for marketing.

 

Secondly, the rapid growth of Chinese e-commerce transactions also attracts Baolingbao to open this online shop. The company expressed that it is exploring various sales channels for its end product of IMO in China, and Internet sale may become a new important sales channel for the product in the future. As a matter of fact, with the improved living standards and the transformation of consumption pattern of Chinese people, more and more Chinese people prefer shopping online. Moreover, Chinese e-commerce has enjoyed a rapid growth over the past few years. For example, Chinese e-commerce transactions reached about USD943.3 billion in 2011, increasing by 28.8% over 2010, according to CCID Consulting Co., Ltd., a consulting company in China.

 

It's worth noting that many sweetener producers, including GLG Life Tech Corporation, Xiwang Sugar Holdings Company Limited and Shandong Futaste Technology Group Co., Ltd., etc., have opened online shops for their end products of non-calorie sweeteners in China during the past few years. It is observed that Chinese sweetener producers are tend to increasingly focus on the end products with high gross margin and diversify their sales channels, such as network marketing. For example, GLG Life Tech Corporation has opened an online shop on taobao.com to promote its tabletop sweeteners (zero-calorie one containing stevia sweetener only and low-calorie one containing stevia sweetener and sucrose) and other products in Jan. 2012.

Source: Sweeteners China News 1207

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1207:

China imported 254,046 tonnes of sucrose in May 2012

Industrial standard for L-arabinose launched

National HFCS summit forum to held in Beijing

JK Sucralose held meeting on implementation of Food Safety Law

Changzhou Niutang awarded as advanced enterprise in Jiangsu

China's import volume of corn increases by seventyfold in Jan.-May 2012

Tight supply of domestic sucralose in June 2012

Erythritol industry develops smoothly in H1 2012

Government launched 12th Five-Year Plan for National Food Safety Standard

Domestic crystallized glucose performs poorly in H1 2012

… …

If you are interested in CCM International’s July issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1130.html