ECMOHO Announces Strategic Cooperation Agreement with South Korean ChongKunDang Group to Establish Distribution of High-End Health Foods
SHANGHAI, China, July 16, 2021 (GLOBE NEWSWIRE) -- ECMOHO Limited (Nasdaq: MOHO) (“ECMOHO” or the “Company”), a leading integrated solutions provider in the health and wellness market in China, is pleased today to announce a strategic cooperation agreement with well-known South Korean pharmaceutical company, ChongKunDang Group (hereafter referred to as “CKD”), in providing global marketing and multichannel sales for one-stop retail solutions for CKD’s health products in China. With advanced equipment and cutting-edge technology as its foundation, CKD will be able to provide Chinese consumers with high-quality, diversified healthcare products, including probiotics, via ECMOHO’s established and extensive domestic distribution channels.
ECMOHO, as a leading online retail service provider of health products in China, has cooperated with well-known domestic and foreign healthcare brands such as Harbin Pharmaceutical, ONLLY, Jiangzhong Pharmaceutical, Bayer, and Puritan’s Pride, among others. Given ECMOHO’s extensive experience in customer data collection and analysis, new product trend research, and digital marketing and promotion in the domestic health food market, the new partnership will provide CKD with an in-depth analysis of various user groups, including China’s Generation Z. Since the beginning of 2021, ECMOHO has expanded to new social media platforms, such as TikTok and Kuaishou, and involved key opinion leaders (KOLs) and key opinion consumer (KOC) resources to promote and distribute professional content and empower its business partners to achieve more efficient and rapid growth in the China market.
CKD was founded in 1941 and is one of South Korea’s longest standing pharmaceutical companies, with nearly a century-long history. Its probiotic brand LACTO-FIT has maintained a leading position in the South Korean probiotic market since its debut, and has won the Korean national “Functional Health Food Award” for 3 consecutive years. Upon debuting in the Chinese market in May 2020, LACTO-FIT won the praise of Chinese consumers and saw sales soar to RMB 100 million, creating a supply of high-end health products that meet consumer demands for high quality, effective health foods.
Ms. Zoe Wang, Chairman and CEO of ECMOHO, commented: “With China’s booming domestic health food industry, ECMOHO provides invaluable sales and marketing services for CKD’s many brands via channels such as Tmall, JD, Koala, TikTok, and Kuaishou, which cover many categories of nutrition and healthcare products. The partnership will be mutually beneficial, as ECMOHO and CKD work together to introduce high-quality health products to Chinese consumers.”
“With the rise in living standards, Chinese consumers are demanding better health products, leading to growth and expansion of many health industries. Among them, probiotics has been relatively popular in recent years, which involves daily supplements, health foods, medicines, and even pet products,” continued Ms. Zoe Wang.
Mr. Li Xin CFO of ECMOHO, added: “Due to an acceleration in the pace of work and life and increases in physical and mental pressures, consumers have turned to probiotics for improving immunity and digestion, in particular to help with nutrient absorption and reducing intestinal inflammation. Probiotics also help with indigestion and congenital lactase deficiency, and have other obvious health benefits. Data shows the probiotic market in China is growing at 10-15% per year; in 2015 it was RMB 48.6 billion, in 2020 it reached RMB 84.9 billion. However, the demand for probiotics has become increasingly personalized and the market lacks sufficient high-end products with improved efficacy and quality that fully meet the needs of many consumers.”
ECMOHO’s cooperation with CKD was chosen after thorough consideration and in-depth analysis of the health food industry, and having proposed a new development strategy. As the demand for low- and medium-end health foods plateaus, introduction of high-quality products will be the driver of consumer demand. Meanwhile, ECMOHO will also develop customized probiotic products to meet the needs of different consumer groups with diverse health conditions.
ECMOHO’s full-scale, extensive domestic marketing network, built up over 10 years, will help ensure CKD’s high-end probiotic products can quickly reach Chinese consumers from all cities and regions, including those in domestic low-tier cities, as well as attract young consumers through novel tastes and diverse product offerings. ECMOHO’s nearly 11 million paying users is expected to help drive the demand for CKD’s high-quality probiotic products. CKD, through continued research and development technology in probiotics, will ensure the continued improvement of its products’ efficacy and quality, creating significant advantages in the Chinese high-end health food market.
About ECMOHO Ltd.
ECMOHO is a leading integrated solutions provider in the health and wellness market in China. The company curates and sells the best global brands and quality products to Chinese health-conscious consumers. Our technology, network and expertise in marketing and distribution empower us to connect families with advanced health supplements, nutrition and food items, personal care products, household healthcare equipment and other wellness products. Through over ten years of operation, ECMOHO has established an ecosystem of trusted products and relationships to provide customized solutions which promote health regeneration, impart therapeutic benefits, and increase longevity to our devoted consumers to sustain health. For more information, please visit http://ir.ecmoho.com/
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