Meet the CEO DSM - China Dream- Elderly Health Food

1. Meet the CEO
28 February 2014
Angeliki Antonakou
Lu Chen
Jiajia Gao
Jildou Lebouille
Ratna Lim
Marwa Mostafa
Menno van der Woude

2. The Chinese Dream

3. Longer Life Expectancy

5. China is Aging
120%

100%

2013: 13% - 128 M
2050: 34% - 400 M
Rest of
population
80%
60%
65+
40%
20%
0%
2013
2050
Bloomberg, August 2013

6. Growing Chinese middle class and
spending on vitamins and supplements
Capturing a Share of China’s Consumer Health Market, BCG Feb 2014

7. China’s health food market
Health Food Segment
Target Consumer Segment
5%
Traditional Chinese
Ingredients
30%
65%
Modern Nutrition or
Supplement
Functional: heart
protection, better
sleep, digestion
Youth
25%
Woman
25%
Elderly
50%
HKTDC Research, March 2013

8. Lu’s dream of grandparents

9. How long can our grandparents stay
with us?
 Assuming
that my grandparents will live 20 more
years
 2 * 20 years * 3 days = 120 days
 4 months

10. Dietary Supplements
Market in China
$ 25.9 Billion

11. Retail products for healthy aging in China

13. DSM’s healthy aging products

14. Localized portfolio to build brand awareness
US Brands
New brands in China
HKTDC Research, March 2013

15. Consumer Behavior - Supplements in China
BCG Chinese Consumer Health and Wellness Survey 2013, BCG Analysis

16. Combined Marketing Strategy

17. Ear – Brand awareness
Free medical consultation and activities in elderly communities

18. Eye – Visibility
i）Traditional Channels
Pharmacy
Supermarket
ii) Modern Channels
Online Store
TV shopping

19. Word of mouth – Feedback and broadcast
“DSM product
makes me
more energetic”
“DSM product
makes me
think faster”

20. Governmental Initiatives

Over 13 million seniors
in retirement homes or
‘retirement villages’ by
2050

Nursing, insurance and
health care services
”Bridging the gap, aging China and the senior housing opportunity”,PwC 2012

21. 2050-view opportunity
Health ingredients
in breakfast, lunch
& dinner meals

22. DSM nutrition
& health
DSM
Ingredients
DSM
Application
Foodservice companies
Senior care & hospitals
(US “big three”)
MENU
For
brain
health &
memory
Good for
the heart
For
diabetics

23. Bridging the gap
Catering delivery to
seniors at home

24. Market potential estimate
Home
Delivery
Catering
97% of
seniors
(387M)
14 B
meals/year
Catering
Retirement
Homes
2050
$ 465 M
if 5% market
share by DSM
3% of
seniors
(13 M)
470 M
meals/year