​Internet Wave Promotes New Trends of Health Product Market
date:2015-09-24
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Since the 1990s, although China's health product market has gone through ups and downs, the demand of the public on health consumption goods has a steady and high-speed growth. In recent years, under the promotion of the Internet tidal wave, a series of new development trends have also occurred in the traditional health product market, including market segmentation, youthfulness and standardization, increasingly prosperous online market, and marketing mode digital transformation. These changes make the big health layout become the inevitable road to the enterprise development. 
 
Market
 
Segmentation    Youthfulness    Standardization
 
Calcium-supplementing foods for children, prenatal vitamins, collagens for women's cosmetology, bone-invigorating health products for middle-aged and old people, traditional Chinese medicine products for health maintenance and other health foods with various efficacies are full of beautiful things in eyes to make people feel overwhelmed, and the classification becomes more and more meticulous and the pertinence becomes more and more strong. The market survey shows that the development of the market for young adult and children consumption groups has particularly been rapid in recent years, which reflects some new changes of China’s health food market in the new period. 
 
In recent years, with the rapid development of China’s economy, great improvement of residents' disposable income, aggravation of population aging, increasing deterioration of environment, increase of life pressure, etc., the environmental protection and health consciousnesses of the public have been obviously improved and the consumption demand of the public on health products have become more and more strong. The health product consumption has become increasingly popular and therefore health products have become the necessities in the consumption structure of most consumers. The health product category and industry chain have been constantly expanded. From professional pharmaceutical products to nutritional health foods, from medical equipment and leisure wellness to health management and maintenance, and from health products to information consultation and services, the formation of the “big health” concept makes the capacity and prospect of the health product market more considerable. According to the Twelfth Five-year Plan for Food Industry Development printed and issued jointly by the National Development and Reform Commission and Ministry of Industry and Information Technology in 2012, it is planned that the operating revenue of China’s nutrition and health food industry will reach RMB 1 trillion with an annual average growth of 20% by 2015; more than 10 enterprises with a product sales revenue of more than RMB 10 billion will be formed.        
 
Not only that, the growth of young adult and children consumption groups is also an important presentation of expansion of health product market consumption demand. Due to the large work pressure and the social contagion of sub-health phenomenon, the young adult group pays more and more attention to various pertinent and functional health products for vitamin supplementation, immunity enhancement, maintaining beauty and keeping young, etc. and even the supplementation-following phenomenon occurs. This urges health product enterprises to successively adjust the product strategy and segment the consumption market so as to increase the proportion of product research and development of the young consumption group (the generations after 80s and 90s). Industry experts predict that the development space proportion of this market will be continuously expanded with the change of health product consumption structure in the future.
 
In addition, under the overall environment that the Internet and mobile Internet play a leading role, the recognition of the public on nutrition and health care is deeper and the information-obtaining channel is also greatly expanded, which makes the recognition of consumers on health product consumption more rational so as to no longer blindly follow suit and believe advertisings. Therefore they can properly select health products according to their own needs. 
 
Based on this, Chen Tejun, director of public relations of By-Health, said, “China’s health product market has entirely tended to segmentation, youthfulness and standardization in recent years, except that functional requirements are changeless.”
 
Marketing
 
Digital marketing impacts the traditional mode
 
In addition to the change of market demand, traditional health product enterprises face the challenge of marketing mode transformation. The domestic health food market is taken as an example. At present, the direct selling mode represented by Amway Nutrilite and the indirect selling mode represented by By-Health are still predominant in the domestic marke. 
 
By-Health takes the “special counter + nutrition consultant” as the core to form the network taking the regional distribution, direct supply terminal and chain operation as the main channels. By the end of 2014, its products have entered 96 China’s top 100 chain drugstores and more than 50 China’s top 100 commercial supermarkets; the quantity of terminals is 50,000, and the proportion of drugstores is about 90%; the operating revenue of By-Health mainly comes from the drugstore channel.
 
However, it is an undisputable fact that the traditional mode faces the impact of online e-commerce. At present, the health food market segment is inclining to the young consumption group which is more easily affected by the network. Meanwhile, under the trend of media decentralization, the information-obtaining channel of the public is more diversified and fragmentized, and especially the prosperity of WeMedia completely breaks the original propagation mode so as to transform it to the interactive social mode, which requires that the marketing positioning shall be more detailed and accurate. He thinks that the digital marketing has been an irresistible trend, but the precision marketing is the core and starting point of the digital marketing, characterized by “the more vertical, the more accurate”. According to the life habit and propagation habit of target population, the precision marketing is constantly segmented and accurately positioned to make the marketing optimized.
 
Transformation
 
Embrace the Internet, lay out the big health
 
Under the multiple influences of change of market environment and marketing mode, the strategic transformation of traditional health food enterprises has been imminent.
 
Recently, Amway has released the 2025 strategy to announce that it will fully implement the strategy of digitization, experience and youthfulness to add the wings of mobile social e-commerce for the direct selling system and create the O2O entrepreneurial platform for marketing personnel. Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd. has also recently announced that it will invest RMB 10 million in establishing a wholly-owned subsidiary to set foot in the R&D and production of health products and perfect the ecological industry chain from the chain to the pharmaceutical manufacturing, health product production and e-commerce. After the expansion from pharmaceutical products to health foods, Beijing Tongrentang has also recently revealed that it will prepare for the oral care center and lay out the WeChat commerce scheme. Under the promotion of e-commerce trend, the big health industry has become the inevitable choice of traditional health enterprises for transformation. For this, By-Health has also launched the strategy of “embracing the Internet, laying out the big health”.        
 
By-Health said, “For this, Chen Tejun has also revealed that we will transform into a content and service provider in the future. At the beginning of product knowledge marketing, we should provide the solutions according to the market demand and simultaneously do a good job in information, consultation, management and other health services.”
 
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