2019-08-05 14:51


The pressure of health food industry is rising


[Beijing Direct News Network, August 5] (First Finance and Economics)Since this year, the whole health food industry has been attacked on both sides. On the one hand, the violation of the rights and health of direct selling enterprises has led to the whole industry being cleaned up. On the other hand, the implementation of the new e-commerce law has also impacted on the sales of health food overseas.

The industry on the tip of the tongue, the enterprise on the tip of the knife, and the health food circle like to take this sentence as their own, to describe their often "treading on thin ice" situation. Since this year, health food enterprises must feel more empathy.

At the end of last year, Quanjian, a direct selling enterprise, was exposed to many problems, such as suspected false propaganda and pyramid selling. As a result, the market chaos accumulated for a long time in the health food industry was brought to the public, which directly triggered a large-scale clean-up at the national level. Not only is the health food industry challenged, but the new e-commerce law, which has been implemented this year, has also impacted on the overseas health food procurement model.

In the first half of this year, many health food enterprises faced pressure on their performance.

Starting from January 8 this year, the State Administration of Market Supervision jointly launched a 100-day joint campaign to rectify the disorder in the health market across the country. For a time, the whole health food industry was silent and everyone was in danger, while the public distrust of health food was shrouded in the sky of the industry.

"The impact on our sales in the last half of the year is still great. People's trust in health food has dropped to a freezing point, and their disgust for the direct selling industry has risen again." Recently, a person from a health food company in East China sighed at the first financial reporter.

This decline in performance is not an individual phenomenon. "Quan Jianfeng has a great impact on the industry, and our sales fell by about 6% in the last half of the year." A large foreign direct sales enterprise personage also disclosed to the first financial reporter.

"As far as I know, the impact on domestic-funded enterprises is relatively severe, especially health-care foods of traditional Chinese medicine. Some companies can not even pay wages for months." The East China people also added.

In the health food industry, according to the distribution channel structure, it is divided into two camps: direct marketing and non-direct marketing. Among them, non-direct marketing channels are mainly composed of pharmacies, online and Shangchao.

The outbreak of chaos in the direct selling enterprises has put the whole direct selling enterprises on the crater. The rectification actions initiated by various departments of the state also radiate to non-direct marketing channels. For example, drugstores are the sales focus of non-direct selling enterprises. Since this year, there have been many policies requiring health insurance designated drugstores to take off shelves health food and other non-medical products.

As a giant of non-direct health food, Tongchen Beijian's development started from pharmacy sales. "Since this year, sales of Tongchen Beijian (300146.SZ) offline market have maintained relatively rapid growth, but we do feel pressure. Strictly speaking, the consumption ratio of Tongchen Beijian's product brushing medical insurance is very low. But as the whole drugstore medical insurance control fee event advances, and there may be some differences in the way and method of implementation across the country, enterprises will be affected more or less. Tangchen Beijian CEO Lin Zhicheng told the first financial reporter.

The other side of the attack from health food enterprises is the implementation of the new e-commerce law on January 1 this year. Haitao brand is a major force in online health product sales market. For the Chinese local enterprises with overseas health brands, the impact of e-commerce is more obvious.

"Some links of the original model of cross-border e-commerce sales to China have been thoroughly broken, which has led to many overseas brands, in marketing methods, channels, consumer communication, product delivery and other aspects have changed." For example, some individual sellers used to hoard goods, but according to the provisions of the new e-commerce law, sellers must first acquire operational qualification; secondly, on the source of goods, in addition to direct mail, other imported goods must first be placed in bonded warehouses, which invisibly increases the cost of sellers. The gross margin of cross-border e-commerce is very low, and it pays attention to fast turnover.