Aumake building health empire with Chemsave deal
Aumake launched the first of its innovative daigou shopping hubs in March. Photo: Aumake International
Daigou shopping group Aumake International has made significant progress in its plans to build a new-age retail empire, with a new strategic partnership with pharmacy network Chemsave to ramp up distribution of its own-branded health supplements across Australia’s east coast.
Aumake listed on the ASX last year as a platform to connect Australian suppliers with daigou shoppers and Chinese tourists, specialising in items popular among Chinese consumers including health supplements, skin and body care, dairy products and baby food, as well as wool and leather products.
Under the deal announced to the ASX today, Aumake will distribute its own-branded products, including Health Essence supplements and Medigum Honey, at up to 150 Chemsave pharmacies in Queensland, New South Wales, the ACT, Victoria and South Australia.
Aumake will promote Chemsave to daigou shoppers and Chinese tourist communities, with cross promotional activities designed to increase awareness of the brand in China.
The companies said they would also look at future strategies using the entire supply chain to gain further value from the alliance.
Aumake chairman Keong Chan said the deal was a significant milestone for the company, which made its move into supplement manufacturing with the acquisition of a 50 per cent stake in Health Essence in November last year.
“We have demonstrated success in introducing and growing sales of new and own-branded products to daigou and Chinese tourists utilising our own distribution network and this partnership with Chemsave allows us to significantly expand the reach of our products across Australia and to reinforce the legitimacy of Aumake products with our customers via a well-regarded pharmacy network,” Mr Chan said.
“This is not simply a distribution agreement but a long-term, mutually beneficial strategic alliance with Chemsave to become the primary destinations for daigou and Chinese consumers in the Australian market.”
Chemsave chief executive Michael Dixon said the group had examined several partnership opportunities over the past 12 months, to increase its exposure to Chinese consumers.
“At our initial and subsequent meetings with Aumake, we were very impressed with their professionalism and strategic outlook to create a new force in the Australian market,” Mr Dixon said.
“We are delighted to be entering this strategic partnership with Aumake and can see the benefits for our member pharmacies as well as the Chemsave brand.
Aumake moved into manufacturing late last year, with the acquisition of a 50 per cent stake in supplements group Health Essence, which included an option to acquire the remaining 50 per cent of the company.
Aumake’s retail model combines flagship stores with its in-house developed ‘daigou hubs’, alongside warehouse showrooms, smaller retail stores and online sales, including a WeChat store and live streaming.
The company opened its first daigou hub on March 8, flagging plans to expand in Sydney initially, then to other capital cities across Australia.
The hubs are designed to allow daigou shoppers to connect directly with Australian suppliers, allowing for better promotion, as well as the tailoring of products and packaging for the Chinese market.
Aumake also entered into a strategic partnership with one of China’s leading online travel platforms, Itrip.com, in February, giving it direct marketing exposure to the site’s 600,000 active members.