Blackmores CEO on China Market, New Opportunities

The video discusses the importance of the Chinese market for Blackmore's, despite COVID disruptions. It highlights the company's strategy of geographic diversification, focusing on Southeast Asia and Australia. The pandemic has increased health awareness, boosting demand for vitamins and supplements. The business is resilient to economic downturns, with a focus on cost control and pricing strategies. Inflation and currency fluctuations are managed through pricing plans and natural hedges.

What has been a significant factor in Blackmore's strategy for market expansion?

• Reducing product variety

• Geographic diversification

• Focusing solely on the Australian market

• Eliminating online sales channels

Which market showed a 36% growth for Blackmore's in the past year?

• Thailand

• China

• Indonesia

• Australia

How has consumer behavior towards health supplements changed post-pandemic?

• Complete reliance on traditional medicine

• Decreased interest in health

• Increased interest in health literacy

• Shift towards non-health-related products

What is a key reason for the resilience of the health supplement market during economic downturns?

• Frequent changes in consumer preferences

• High dependency on luxury items

• Non-discretionary nature of supplements

• Lack of competition in the market

What strategy does Blackmore's use to manage rising import costs due to inflation?

• Reducing product quality

• Implementing pricing adjustments

• Increasing reliance on US dollar

• Eliminating certain product lines

How does Blackmore's handle currency fluctuations in its operations?

• By avoiding international markets

• Through a natural hedge on FX

• By fixing prices annually

• By relying heavily on the US dollar

What is a major focus for Blackmore's in maintaining cost control?

• Increasing product prices significantly

• Reducing the number of markets

• Monitoring price sensitivity

• Eliminating marketing expenses