Last Friday investors in vitamins manufacturer and retailer Blackmores Limited (ASX: BKL) had some good news when the company announced that it had been appointed to an advisory role for Chinese regulators on product import quality.
China is now Blackmores' single most important overseas market via e-commerce and physical store sales that have been growing at strong rates thanks to the rise of the middle class and the company's investments in brand awareness. In total the Chinese vitamin market is estimated to be worth around $20 billion per year according to independent research analysts.
Blackmores also operates in other fast-growing Asian markets such as Indonesia, Vietnam, Thailand, Malaysia and Singapore. For the quarter ending March 31 2017 the group delivered $174 million in sales, with net profit of $43 million for the nine-months ending March 31, 2017.
After a near 5% rise last Friday, Blackmores shares gave back 1.6% today and are down 12.5% over 2017 as investors worry over vitamin discounting in Australia and rising competition from the likes of Suisse and others.
