Belgian companies tap into nation's growing healthcare, skincare markets

Sales of high-quality fish oil surged during China's "Double Eleven" online shopping frenzy, fueled by urban Chinese consumers' continuously growing health awareness after the COVID-19 pandemic.

Belgian fish oil brand WHC notched sales of over 10 million yuan ($1.38 million) within one hour in the presale session of the "Double Eleven" shopping event, a Chinese version of Black Friday, and the company said its total sales for the shopping festival has exceeded 100 million yuan.

Entering the China market in 2015, the Belgian company has seen sales via major e-commerce platforms in the country surge 40-fold thus far.

"Many young office employees have been troubled by chronic diseases and suffer from insomnia due to work pressure. Our main consumers come from first and second-tier cities and are aged between 25 and 40, with female consumers accounting for some 70 percent of the total," said Dylan Zhang, co-founder of InReady, the solo partner of WHC in China. Inready is the sole distributor of WHC in China.

"They have been moderate to heavy users of health products and dietary supplements, and they have a better understanding about the components of fish oil and its core component omega-3."

WHC sources fish from Peruvian waters, as the deep-sea fish there have a short growth cycle and are suitable for making high-purity fish oil. The raw materials are purified and processed in Germany and encapsulated in the Netherlands, before arriving at warehouses in Belgium from where they are delivered to different countries.

Currently, health and medical products and household medical equipment stand as the top category that has witnessed the fastest sales growth on Tmall Global, the cross-border e-commerce site of Alibaba Group. Sales growth in the category has become even more significant since the COVID-19 pandemic. The category is followed by beauty, personal care, and maternal and child products, said Pang Shuhao, head of marketing and business strategy at Tmall Global's pharmaceutical and healthcare sectors.

"Chinese consumers have shown an unprecedented strengthening of health awareness after the pandemic, driven by a huge elderly population and increasing health awareness among the younger generation. Such a trend has fueled the growth of health products, food and personal hygiene products," said Yang Li, a global partner with Boston Consulting Group.

Meanwhile, another Belgian brand, AnesSens, which makes personal care products such as shower gel and body lotion with donkey milk freeze-dried essence, has seen positive sales in China, as a growing number of young sophisticated Chinese consumers pursue quality lifestyles.

As the first skincare brand in Europe that manufactures products based on donkey milk, the company entered the China market in 2020 and netted sales revenues of 3 million yuan in 2021 through cross-border e-commerce sales.

Without extensive marketing, a large number of customers are returning buyers who have an understanding of the skincare effect of donkey milk, which can help promote skin metabolism, the company said. Donkey milk skincare has a long history in Europe, and the earliest can be traced back to over 2,000 years ago.

"Our main consumers in China are females who are aged between 25 and 45, and many of them lived in Europe before. Male consumers, which account for about 20 percent, mainly buy solid shampoo based on donkey milk, as it's easy to clean and carry," said Zhang Jie, supply chain and product manager of AnesSens in China. "An increasing number of Chinese mainland consumers have recognized the products. We plan to strengthen our marketing efforts and expand our market in Hong Kong, Macao and Taiwan next year."

The fourth quarter of the year has been a traditional peak season for consumption in China, as it includes the National Day holiday break, the "Double Eleven" shopping festival, and the "Double Twelve" shopping event.

The Ministry of Commerce has also guided brick-and-mortar businesses to actively carry out promotional activities and further unleash consumption potential.