In 2021, “health” is still one of the key words in modern society. With the upgrading of consumption and the deepening of health concept, the market demand for health products is increasing. At the same time, with the release of industrial policy dividends and the strengthening of supervision in recent years, the health products industry is becoming more and more standardized and showing a benign development trend.
Due to the good prospect of the industry, new “players” continue to flow into the health care products track, and the health care products market has been further expanded. Under the background of fierce competition in the industry and the upgrading of consumer demands, the health care products industry has begun to change in products, channels and other aspects.
Ouyang, an expert of the direct selling Expert Committee of China Marketing Society, said that at present, the health care products industry shows a “three modernizations” trend, that is, youth, diversification and standardization. In addition, a number of respondents pointed out to the reporter of China Business Daily that enterprises need to clarify their own positioning, continuously invest in product R & D, brand construction and digitization, and further tap consumer demand.
policy dividend promotes the industry
It is the consensus of many people in the health products industry that the growth is still strong, which is closely related to the dividend of the policy. In the outline of “healthy China 2030” plan, the great health industry is regarded as a national strategy, which is undoubtedly beneficial to the health care products industry. In addition, since 2021, relevant policies have been continuously promoted, making the health care products industry show a benign and healthy growth trend. According to China market supervision news network, according to the opinions of the CPC Central Committee and the State Council on deepening reform and strengthening food safety, the special food department actively promotes the dual track operation of health food registration and filing, takes the lead in comprehensively upgrading and transforming the health food filing system, and continues to optimize the whole process of national health food filing “online handling”, “inter provincial general handling” and “one network handling”. As of December 20, 2021, relevant departments have issued 2915 health food filing certificates.
Zhang Zhaofeng, doctor of nutrition of Peking University and Secretary General of Beijing nutrition society, said that the current record management of health food simplifies the approval process, creates conditions for enterprises to market related products more flexibly and quickly, and is also conducive to the promotion and sales of enterprises in the next step.
Under the superposition of multiple factors, the prospect of health products industry is considerable. According to Euromonitor data, the narrow health care products market will grow by 4% in the future, and the market scale is expected to reach 320 billion yuan by 2025. In contrast, the market concentration of health care products industry is relatively scattered, and there may be opportunities for new entrants. Therefore, more and more enterprises have joined the wave of rapid expansion of the scale of health care products market.
The reporter noted that in the lineup of cross-border entry into the health care products industry, including Xiwang Foodstuffs Co.Ltd(000639) and other food companies, Bloomage Biotechnology Corporation Limited(688363) and other upstream raw material manufacturers, Shandong Buchang Pharmaceuticals Co.Ltd(603858) and other pharmaceutical enterprises, these enterprises enter the health care products industry through the acquisition of foreign health care products brands or the establishment of subsidiaries.
According to fan Xiaojun, chairman of China Federation of agents, it is a good thing for large companies to enter the health care products industry, which can further promote the integrated development of the industry. He said, “The plate of health care products is large enough to accommodate more \’players\’ to enter the track. After the market grows, enterprises can promote each other’s development. Enterprises should constantly improve the supply side to meet the changing needs of consumers. In addition, enterprises should pay attention to the fan base, brand building, price system establishment, product efficacy, service system innovation, brand positioning, etc 。”
new trend
\u3000\u3000 “There are three trends in the development of the health care products industry: first, it is younger. Relevant data show that at least 80% of the people aged 20-45 in China have known and contacted health care products, of which more than 60% have eaten health food. The younger consumer group means that enterprises should constantly develop products to meet their needs. Second, the categories of health food should be diversified. Third, the supervision of health food is becoming more and more standardized. ” Ouyang article said.
As Ouyang’s article said, the rejuvenation of consumer groups promotes the innovation of product categories. According to the preferences of young people, there are soft candy, jelly, bottle drinks and other products on the market to supplement vitamins, improve immunity and help sleep. Health care products enterprises including Amway and By-Health Co.Ltd(300146) have made layout in this field. Tmall global data show that the consumption of imported health care products represented by sleep aid health care products has maintained a high growth for two consecutive years. Among them, the annual growth rate of sales and sales pieces of soft candy and jelly functional foods reached 377% and 352% respectively, becoming a new trend of imported consumption.
When the market was hot, many emerging brands were born, and functional foods such as sleeping fudge and hyaluronic acid fudge were also launched. The reporter inquired about various e-commerce platforms and found that the functional soft candy of most brands on the market did not obtain the “blue hat”, which still belongs to the category of food. However, as the market supervision administration put the gel candy and powder into the form of health food record, the emerging category is expected to be standardized in the future.
Fan Xiaojun believes that youth is an inevitable trend. Whether it is a large number of R & D or the renewal of marketing means, they all cater to the preferences of young people and stimulate their consumption. However, food can not publicize its efficacy. If you want long-term development, you still need to apply for “blue hat”. At the same time, he suggested, “enterprises should make long-term layout, constantly innovate and make some good products.”
Relevant policies also make it possible to diversify health products. At the beginning of 2021, the State Administration of Market Supervision issued the dosage forms and technical requirements for the filing products of five health food raw materials such as coenzyme Q10, and the catalogue of five health food raw materials such as coenzyme Q10 will be officially implemented. On December 20 of the same year, the 2022 edition of the list of health food raw materials nutrient supplements and other three drafts were publicly solicited for comments, and it is planned to include six kinds of raw materials in the list of health food raw materials.
Zhang Zhaofeng said that the implementation of the above provisions enables enterprises to obtain more space in the selection of raw materials for recorded products. As more raw materials are more quickly included in the list of raw materials for filing system, the products in the health care products market will be more diversified, which will not only benefit the enterprises, but also further stimulate the market vitality.
According to Huachuang securities, the subdivided tracks are mainly divided into three categories in the industry: beauty and health food of collagen and dietary fiber, Chinese nourishing food based on bird’s nest and fish glue, and functional products based on anti sugar and whitening. There will be more subdivided tracks for health products in the future. The reporter inquired about the information and learned that the foreign health care product market started early, and the products for refined people have become the mainstream. For example, various products are launched for the different efficacy needs of women, men, infants and children, the elderly and even pets. It remains to be seen how Chinese brands will further refine their development in the future.
channel transformation accelerated
In recent years, the channel system of health products has changed, and the marketing channels have gradually declined. Under the influence of policy changes and the impact of new channels, the proportion of direct sales channels has decreased. According to Euromonitor data, the proportion of direct sales channels of health products decreased from 39% in 2015 to 25% in 2020, and the proportion of e-commerce channels increased from 18% to 40%.
Zhou Bangyong, Deputy Secretary General of China Health Care Association, once said in an interview that “the direct selling mode is still the main mode of health care product sales, but the direct selling mode has a certain threshold and can only be operated under the direct selling license issued by the Ministry of Commerce.
”According to the direct selling industry management system of the Ministry of Commerce, there are only 89 direct selling licenses in China. Under the tightening of direct selling policy, some enterprises have to adjust their thinking and aim at online channels.
Fan Xiaojun said that the innovative marketing of health products will continue to emerge in 2021, and various brands have transformed to private traffic, live broadcasting and other directions. “Compared with the public domain traffic, the private domain traffic is connected to the original health care product consumers, with higher trading volume and conversion rate, higher customer unit price and easier consumer education.”
According to Kwai Fan Xiaojun, all kinds of new platforms have been used by health care products companies, such as jitter, tiktok, Jingdong, Tmall and other platforms. The reporter learned that in 2021, Herbalife, By-Health Co.Ltd(300146) , limitless and other enterprises have increased their online platforms to deepen the digital transformation. “The effective use of various platforms by enterprises will also be conducive to the vigorous development of the whole health care industry.” He said.
Ouyang article believes that digital transformation is an inevitable choice for health product enterprises to build competitiveness. Externally, in the tide of digital transformation, if digital transformation is not carried out, health care products enterprises may lag behind the times. Internally, digital transformation can capture new market opportunities, try new business models and occupy a place in the future business market in advance. In the era of digital economy, the core competitiveness of health care products enterprises has changed from the traditional “product manufacturing capability” to “service capability + Digital capability + product manufacturing capability”.
In addition to online channels, Beijing Tongrentang Co.Ltd(600085) , xiaoxianstew and other enterprises have made efforts offline to open the “third space” to connect the new generation. According to public information, previously Beijing Tongrentang Co.Ltd(600085) created a composite functional body of healthy diet + medical center + physical examination + social entertainment in Beijing, known as “health”, and launched health coffee such as medlar latte. Xiaoxian stew launched its first immersive Chinese tonic experience store in 2021.
With regard to the future development direction of health care products enterprises, Ouyang’s article points out that health care products enterprises should have the ability to carry out technological R & D and innovation, and accelerate the transformation of R & D and design to co assimilation, dynamic and mass creation; We should have the ability to change the mode of production and accelerate the transformation of product sales to intelligence, flexibility and service. At the same time, enterprises should have the ability of organizational management reengineering and speed up the expansion of organizational management to flat, maker and self-organization; We should also have the ability of cross-border cooperation to promote the evolution of the innovation system from a chain value chain to a flexible value network with real-time interaction and multi-party participation.
(source: China business network)
