Secaucus, NJ- Vitamin Shoppe, a nutritional product manufacturer, has launched its first digital platform in China.
Vitamin Shoppe’s global expansion to China via a digital platform marks the fourth international market the company has become involved with in the past two years. Via online distributor Tmall Global, an assortment of private brand products as well as select third-party brands from The Vitamin Shoppe will be available for purchase by Chinese consumers.
The Vitamin Shoppe will use its distribution center in Arizona to deliver products to China in or under two weeks, which, if effective, will make it one of the fastest suppliers of vitamins, minerals and supplements from the U.S. to China.
“This is another example of the different strategies and partnerships we are pursuing to expand our reach and enhance the customers’ experience,” said David Denker, Vitamin Shoppe director of international development, in a statement. “The Asian vitamin, mineral and supplement market is an attractive market for us exhibiting a growth rate of 6% per year and is projected to reach $20 billion in the next five years, according to Nutrition Business Journal, and we are pleased that we are able to secure ease of entry into China.”
Vitamin Shoppe has seen its stock price battered after a sales drop and in its latest quarterly earnings call CEO Colin Watts said 70% of the decline in sales was in the highly competitive sports performance category. He announced an increase in marketing and promotion spending with more grassroots store marketing, increases in paid SEO, and a greater social media presence.
The company also introduced in-store price matching to remain competitive with other distributors such as GNC, who have already implemented such sales strategies. Additionally, the company introduced “Spark Auto Delivery,” an addition to their Healthy Awards Program which involves a subscription box service that sends customers customized sample boxes four times per year, free shipping, a complimentary wellness plan, and more. This expansion to Vitamin Shoppe’s loyalty program takes after MyGNC Pro Access, which launched in December of 2016.
Published on WholeFoods Magazine Online, 10/2/17