Launching in October 2020, infant formula player Bubs Australia will expand into the vitamin and supplement arena with a children's range; Vita Bubs.
Unsurprising to many, Vita Bubs will launch through vitamin powerhouse Chemist Warehouse in Australia who own more than 50% of the AUD$2.3 billion vitamin and supplement market domestically. Vita Bubs will also want to pursue Chinese sales via the Chemist Warehouse Tmall store; Tmall's largest international merchant. On Chinese Singles Day (11.11.2019) Chemist Warehouse enjoyed AUD$20.8 million dollars in sales on Alibaba platforms in only three hours and 15 minutes.
According to the Bubs Australia Investor Update - Citi, "Opening orders for Chemist Warehouse are expected to be delivered during the first quarter of FY21, with on-shelf implementation in late October 2020. In addition, the Company plan to roll out the Vita Bubs range to the international markets, including China (CBEC), Vietnam, Hong Kong, Singapore and Malaysia during the course of the calendar year 2020".
Following the re-brand of iconic Australian children's vitamin brand Pentavite in 2019, Vita Bubs is entering an extremely crowded and competitive market where the success of a brand is reliant on exceptional marketing and promotional strategy and execution.
Given the crowded nature of the vitamin and supplement market, Bubs Australia will need to rely on the strength of its infant formula brand domestically and abroad in order to succeed.
Opting for blonde-hair, blue-eyed Jennifer Hawkins as Bubs Global Brand Ambassador, was a natural choice being a new mother and formerly Miss Universe and the face of Australian department store Myer.
"The Vita Bubs launch will be spearheaded by our newly appointed Bubs Global Brand Ambassador, Jennifer Hawkins, via an integrated consumer engagement campaign across all our key markets".
ASX:BUB share price is trading at AUD$0.94 between a 52-week low of AUD$0.40 and a 52-week high of AUD$1.53
All opinions are of the author, Daniel Kitay. Daniel has previously worked as the Head of Sales & Marketing for China's #1 Vitamin and Supplement (VMS) brand BY-HEALTH with a market capitalisation of $6.5b. Daniel is a lawyer and runs DMK Consulting, offering support to food and vitamin and supplement businesses who are looking to grow their business in domestic and export markets.
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