Behind the Big Story
WATCH: NMN, bone growth chews, social commerce fuelling EZZ’s growth in China
The ASX-listed company operates health supplements business under the brand EZZ and skincare business under the brand EAORON.
In the first half of FY24, revenue from its health supplements was up 50 per cent to AUD$19.1m (US$12.4m), representing 88 per cent of the company’s total revenue.
In total, its revenue was AUD$21.7m (US$14.1m), which was 43 per cent higher than the same period last year.
Greater China was its largest market, generating a revenue of AUD$18.5m (US$12m) during this period. Australia and New Zealand came next with a revenue of AUD$3.2m (US$2m).
Its strong performance in China could be attributed to two of its hero products and leveraging social and e-commerce platforms, Glenn Cross, chairman at EZZ told NutraIngredients-Asia.
Out of its 11 new launches in the first half of FY24, two products stood out in the China market – namely its NMN supplement and Bone Growth Chews formulated with lysine, calcium and vitamin D to assist healthy bone development in children and adolescents.
“Our performance is across the entire product range, and we also released a number of new products in the first half of FY24.
“Of which, two key products had stood out: Bone Growth Chews, which is our hero product, especially in China. It is for children and adolescents and supports healthy bone development.
“The second product is our NMN supplement, and NMN is gaining favour globally.”
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Sales channel is also another factor influencing growth.
Notably, product sales via the content community and social platform Kuaishou is fast catching up with Tmall Global and Douyin – China’s version of TikTok.
Generating more than AUD$4m (US$2.6m) in revenue in the first half of FY24, Kuaishou is now EZZ’s second largest distribution channel after Douyin.
It entered Kuaishou in the first half of FY24 and Douyin earlier in 2022.
Pinduoduo, an e-commerce channel known for team purchase or group buying and steep discounts, is another fast-growing sales engine.
“We have continued to grow through Douyin and Tmall, but over the last six months, the two new channels that we had opened, Kuaishou and Pinduoduo have showed really strong growth,” said Cross, adding that the Chinese market was “very much influencer-driven”.
“We have been strategic in terms of the influencers that we deal with,” he said.
The company also sells its products in China via other e-commerce platforms such as Onion, VipShop, and Shopify.
New markets
EZZ has also expanded into South East Asia, namely Vietnam, and more recently, into the Middle East through Kuwait.
A growing gross domestic product (GDP) in Vietnam is one of the reasons for venturing into the market about six months ago.
“It is still early days for us in Vietnam, but the country's GDP is increasing, and we see it as a strong growth market for us in the future.”
Kuwait, in comparison, is a smaller market but one that comes with a high GDP per capita.
The company is also planning new product developments based on its core focus around healthy ageing and weight management.
Watch the video to find out more.
