GNC unveils preventative nutrition NPD for booming Chinese supplements market
The company is strengthening its Chinese focus as country enters a “post-COVID-19 development stage”
01 Dec 2020 --- Dietary supplements player GNC is making moves to advance health and nutrition in China amid rising demand for wellness products. GNC has chosen China as the market in which to first unveil a host of launches, including NMN. The β-nicotinamide mononucleotide is part of its Preventive Nutrition product line to address anti-aging and immunity concerns.
The MNM product released by GNC is imported from the US. To ensure the purity and potency of the ingredients, GNC has set stringent guidelines for its manufacturers to test raw materials while actively participating in developing the industry standard.
On the nutritionals NPD track
The MNM launch took place at this year’s China International Import Expo (CIIE), where GNC showcased over 100 products to the Chinese market, nearly half of which were unveiled for the first time.
NMN is a β-nicotinamide mononucleotide ingredient, part of GNC’s Preventive Nutrition product line, which targets anti-aging and immunity concerns.
For example, the company recently launched a genetic testing product, called GNC4U DNA Kit, providing consumers with highly personalized services.
Moreover, in September this year, GNC launched the first offline health drink bar in Shanghai to meet the needs of consumers seeking delicious and healthy drink options.
Besides these product innovations, GNC has also reformed its traditional business model to meet the increasingly individualized needs of Chinese consumers.
Amid this year’s pandemic, GNC also followed local trends and activated Online to Offline and live stream e-commerce sales models.
Establishing GNC’s presence in the market
In the wake of the COVID-19 crisis, the Chinese health and wellness market seeks to overcome financial hurdles and regain its foothold. Furthermore, China’s rising economy has led to increased consumer awareness of health and wellness.
“China’s health and nutrition industry has witnessed rapid development in recent years with unprecedented opportunities for growth,” the company says.
According to an Innova Market Insights survey, 24 percent of Chinese consumers claim “health aspects are the factors they pay importance to when buying food and beverage products.” Additionally, 11 percent are consuming more products with functional benefits or active ingredients.
With this in mind, GNC is looking to tap into the CNY8 trillion (US$1.2 trillion) Chinese market with its global selection of premium dietary supplements.
As China enters a new post-COVID-19 development stage, it is crucial for the company to deeply integrate itself into the international and domestic dual circulations, GNC explains.
Thus, its appearance at CIIE is an important step that allows the brand to integrate deeper into this strategy, the company says.
Overcoming challenges
GNC made an ambitious start to the year and sought to expand its East Asian reach on the grounds of a partial US-China trade agreement. The deal pledged to reduce tariffs on some imported Chinese goods used by US supplement and food companies.
However, the company had to overcome several difficulties this year, as the COVID-19 pandemic’s aftermath on the Chinese economy led it to declare bankruptcy in June.
At the show, the company showcased over 100 products for the Chinese market, nearly half of which were unveiled for the first time. Following this, the company was acquired by Harbin Pharmaceutical Group Holding, an affiliate of GNC’s largest shareholder, for US$760 million.
“Harbin Pharmaceutical Group is a leading enterprise in China’s pharmaceutical industry and an ideal partner for us,” the company previously stated.
“As China’s dietary supplements market continues to expand, we hope to leverage GNC’s brand advantages and Harbin Pharmaceutical’s strong distribution network, operational capabilities and manufacturing technologies to enhance GNC’s competitiveness in the Chinese market and rapidly increase its brand influence in China.”
A lucrative market
Since the introduction of economic reforms in the late 1970s, China’s economy has been one of the world’s fastest-growing, with annual growth rates consistently above 6 percent, according to the World Bank.
China is also the world’s largest exporter and second-largest importer of goods, which is grounds for key food industry players eyeing the nutritional opportunities China presents.
As early as 2013, the Chinese State Council held meetings to research and implement policies that facilitate China’s health service industry development.
Currently, an initiative dubbed “Healthy China” has become a critical part of the country’s 14th Five-Year Plan. Under this, the health and nutrition industry plays a key role and has been assigned the utmost responsibility to perform in accordance with the initiative’s goals.
Tapping into this need, GNC released more than 33 new products in China in the past year, with the brand’s business increasing by nearly 150 percent.
By Kristiana Lalou
