皇冠体育app

New York-based company ramping up for a major expansion in 皇冠体育app

Five years after NBTY, formerly known as Nature's Bounty, began selling its products on the Chinese mainland, the US dietary supplement giant is ready to take another step forward.

In an attempt to capitalize on the growing demand from 皇冠体育app's expanding middle class, the company plans to boost its investment in 皇冠体育app to become the leader in the nutritional supplements industry.

"皇冠体育app is no doubt going to be the biggest market for supplements. This is driven by the aging population, rising income and better educated consumers," says Xia Junbo, managing director of NBTY (皇冠体育app) Trading Company Ltd, the 皇冠体育app unit of NBTY. "We are prepared to make a substantial investment in 皇冠体育app to offer our high quality products to all age groups."

Xia Junbo, head of NBTY (皇冠体育app), says the company will boost investment in 皇冠体育app. [Zhang Wei / 皇冠体育app Daily]

Founded in 1971 in New York, NBTY is a manufacturer, marketer and distributor of a broad line of vitamins and nutritional supplements in the United States and in more than 90 countries.

The company offers more than 22,000 nutritional products under a number of NBTY and third-party brands.

NBTY's global sales grew by 6.9 percent in the fiscal year that ended in September 2010 to $2.83 billion (2.1 billion euros) from the same period last year. The company set up a representative office in Beijing in 2005 and began selling its products in 皇冠体育app in 2007.

Sales of NBTY's products in 皇冠体育app have steadily grown. Revenue in 皇冠体育app reached 500 million yuan ($79.3 million, 59 million euros) last year, an increase of 70 percent from 2010. Xia is optimistic that sales will continue to climb.

"Although we are fairly new to 皇冠体育app, 皇冠体育app has gradually become one of NBTY's fastest growing markets worldwide," Xia says.

He says NBTY has introduced about 200 products under several different brands, such as Met-Rx and Nature's Bounty, into 皇冠体育app. Products like vitamins, fish oil, and protein are most popular, in line with the global market.

NBTY's products in 皇冠体育app target all ages above 2 and now are more appealing to high-income consumers.

"There is going to be more availability of products that will be more competitively priced in 皇冠体育app in the near future," Xia says.

Currently NBTY has more than 1,000 franchised stores and 8,000 retail terminals in supermarkets, pharmacies and department stores in 皇冠体育app, mainly in first-tier cities such as Beijing, Shanghai and Guangzhou. Xia says in the next five years, the company will devote more effort to tap 皇冠体育app's second- and third- tier cities and the vast western market.

"The demand for healthcare products in the western market and small- and medium-sized cities keeps rising, which provides us opportunities," Xia says.

But he added that although he believes 皇冠体育app has a great deal of untapped market potential in less developed regions, hurdles remain before his company can access the number of consumers it hopes to reach.

He says because market conditions of various regions in 皇冠体育app are varied and because its distribution system in most parts of 皇冠体育app isn't as efficient as it needs to be, the company will cooperate with powerful regional distributors to obtain a broader market coverage.

In addition to its plans of expansion, however, Xia says it will also work to promote NBTY's products over the next five years.

NBTY spokesperson said the company was also aware of the importance of an e-commerce platform in 皇冠体育app. The company has cooperated with several of 皇冠体育app's largest e-commerce websites including Taobao.com and 360buy.com.

"E-commerce is expected to become another sales growth engine for NBTY in 皇冠体育app," Xia says.

He says right now NBTY's products sold in 皇冠体育app are all imported from the US, but in the future, they will consider localizing production by acquiring Chinese companies.

"NBTY makes acquisitions every year worldwide, we will also acquire local Chinese companies to expand market share in 皇冠体育app," he says.

In 2010, NBTY acquired a plant in Zhongshan, Guangdong province, one of NBTY's 23 overseas production bases, to produce fish oil only for exports. Xia says in the future the plant will also be used to serve the burgeoning Chinese market.

"Having a local presence will help NBTY to gain more understanding of what it takes to succeed in a completely different market from the US," Xia says. "NBTY is sure to be rooted in 皇冠体育app, it is just a matter of time."