1. C
hina’s rapidly developing economy is presenting new
and distinct opportunities in the travel retail sector.
Urbanisation, a growing middle class with rising disposable
incomes, along with an ageing population and an increasing reliance
on self-medication have come together to create a booming health
and wellbeing market.
Yintong Betser, managing director of business and PR
consultancy Active Anglo-Chinese Communications, argues that
China has become the world’s biggest market for health and
wellbeing products with a population of 1.3bn and a population
that is keen to maintain their health in order to enjoy the wealth
they have accumulated.
“The first generation of entrepreneurs have come to an age
when they are concerned about their health and wellbeing after a
successful business life. Premature deaths are often reported about
businessmen due to their stressful and unhealthy lifestyles, so this
is another reason that people’s attention is turning to a healthier
existence and better quality of life,” says Betser. “With their
increased wealth, people can afford to buy this type of product.’’
On Chinese soil, spending on health and wellness has rocketed
in the last 10 years with cities such as Beijing and Shanghai seeing
detox, juice cleansing and health food companies springing up,
serving and stimulating the growing market.
In Hong Kong, T Galleria by DFS, the luxury department store
for travellers, is expanding its beauty hall concept, T Galleria Beauty
by DFS. The store takes a holistic view of beauty through new or
HEALTH & WELLBEING
24 • OCTOBER 2016 • FRONTIER
approach
A healthy
China is leading the explosion of spending on health and wellness products, a
category that is expected to be worth $70bn annually by 2020. Mark Lane discovers
how travel retailers are preparing to grab their share of this lucrative market

2. expanded product categories such as men’s, health,
wellness, hair, body and nail as well as a trend
area featuring popular Korean brands.
Growth in this sector is expected not only to
continue but to gather pace and it is forecast that
the health and wellness market will reach nearly
$70bn by 2020.
An increasingly prosperous Chinese population
is now using its new-found disposable income
to enjoy holidays abroad and growing numbers
of Chinese tourists can be found all over the
world. It is widely expected therefore that a
significant proportion of the burgeoning health
and wellbeing spend will go to the travel retail
sector in China and overseas.
Betser says she can foresee dedicated health
and wellbeing stores thriving in places where
there is a high footfall of Chinese in travel
FRONTIER • OCTOBER 2016 • 25
HEALTH & WELLBEING
retail environments such as airports.
She comments: “There are so many Chinese people in these
environments who will have the disposable income and the interest
to purchase these products. The GTR channel is also the prime
place to get hold of products from overseas.’’
Saba Tahir, vice-president of purchasing at Dubai Duty Free,
agrees and says that in its household and pharmaceutical categories
her organisation stocks a range of health and wellbeing products
such as blood pressure monitors, sugar check monitors, a plethora
of multi-vitamins, food and herbal supplements and probiotics
and it hopes to have an organic food range available in Dubai Duty
Free by the last quarter of this year.
“As we move towards a more health-conscious world, we can
certainlt say that the future looks bright for the health and wellness
subcategory,’’ she says. “The sales volumes may not be huge
enough for travel retail operators to provide dedicated stores at
the present time, but should space permit in certain airports, then
surely we can expect to see specialist health and wellness stores in
the future.’’
China International Duty Free (CIDF), the leading distributor
and marketer of Chinese consumer brands at global duty free
retail, has been supplying Blackmores Health Supplements to
10 duty free locations since April.
These include a number of Starboard cruises, Princess
Cruises, Anway’s duty free shop in Hung Hom station in
Hong Kong, and duty free stores in Malaysia, Laos and China.
CIDF also reports that it has several other retail partners
wanting to list the products and it is working with them to
launch and prepare marketing activities. By the end of the
year it estimates that it will have reached a total of 20
travel retail locations.
“In our experience, in the right locations, this
category has excellent sales potential driven by the
Chinese consumer. And what’s more, it is 100%
incremental for the duty free retailers,” observes
Amy Coghlan, CIDF’s global business development
manager.
“It’s an entirely new
category. If you look
at what’s happening in
Left: Yintong Betser believes
Chinese consumers are taking
a greater interest in their
health than ever before

3. 0 • MONTH 2014 • FRONTIER
SECTION NAMEHEALTH & WELLBEING
Overleaf: CIDF supplies Blackmores health
supplements to 10 TR locations; below:
Dubai Duty Free stocks a range of wellbeing
products at its pharmacy outlets
26 • OCTOBER 2016 • FRONTIER
China you will see that health is already one of the top areas where
the rising middle class are spending their money. The Chinese
consumer is incredibly health conscious.’’
She adds: “All of our locations have a high concentration of
Chinese travellers. They are the main target audience for our
health and wellness portfolio. Another
important factor has been whether
retailers are permitted under their duty
free licence to list health and wellness
products.
“The consumers want them and the
retailers want to please the consumers,
but we are sometimes faced with
antiquated duty free licences that make
it difficult for the retailer to provide
what the modern health-conscious
consumer wants to buy when they are
travelling. Times are changing – it’s
time for travel retail to really get innovative and become much
more consumer-focused.’’
She continues: “Of course we have a wonderful marketing suite
for Blackmores as well. We support each location with health
and wellness training for the staff, white coat promoters, GWPs,
BOGOFFs, custom furniture, and the striking Blackmores identity
system featuring its brand ambassador Lina, the world-famous
tennis star from China.’’
However, CIDF is taking a measured, strategic approach to
expanding the market, ensuring that it has the right products for
the right outlets. Coghlan explains: “We have been approached by
several other potential strategic partners in the health and wellness
industry. We have done something quite incredible with Blackmores
and there has been a huge amount of learning from that which has
set us apart as the preferred travel retail partner for many other
health brands.
“We want to be really sure that, whatever brands and products we
choose to partner with, they are the best choice for consumers and
our retail partners. We have quite a rigorous approach to taking on
new brands and products.’’
Health and wellbeing is clearly a fast-developing market with
new products constantly being introduced, but there is established
demand in a number of sub-categories.
Dietary and health supplements are very popular with the
Chinese health and wellbeing consumer. According to recent
reports, the market has almost doubled since 2008 and was worth
more than $15bn by the end of 2014. Research has shown that two
thirds (66%) of Chinese consumers had used supplements in the
previous 30 days, with most taking a specific vitamin or mineral.
Non-conventional supplements and products are also important
and the Chinese have a long history of incorporating Traditional
Chinese Medicine (TCM) into their health regimes and products
such as herbs, liquids, tinctures and others are commonly used as
alternatives to, or in conjunction with, modern medicine.
According to new research from Mintel on plant protein drinks
(PPD) in China, nearly nine out of ten (87%) Chinese consumers
drink plant-based concoctions, be these soybean drinks, juices or
grain drinks and consumption of coconut water has grown by 30%
over the last year.
Comments Betser: “The pollution and food scandals in recent years
– such as in April 2004, when at least 13 babies in Fuyang, Anhui and
50 to 60 more in rural areas of Anhui died of malnourishment from
ingesting fake powdered milk –have made people increasingly alert to
the quality of their food and wellbeing products.’’
But this has done nothing to affect demand, it has only driven
up standards. Betser says that popular products are those that are
believed to be helpful in reducing the ageing process, losing weight,
keeping cholesterol down, promoting youthful and clear skin,
and those products that protect against common diseases such as
cancer and arthritis.
She does, however add that the Chinese are ready to look at non-
Chinese health and wellbeing products. “I believe many products
from the US are very popular in China, especially among the middle
class, such as Usana and Nu Skin due to the way they are marketed
and sold, for example through direct marketing or pyramid
marketing, selling through friends and relatives,’’ she says.
CIDF’s Coghlan points out that many products that are popular
in the Chinese market are sourced from overseas. According to
her: “Popular products are fish oils, women’s health and heart
health. We base the assortment on the top sellers amongst Chinese
consumers, who order mostly from Australia as such products are
not officially available in China; we also take into consideration
other demographics and the needs of each respective location.’’
With all this demand, can she see any future potential for the
opening of health and wellbeing dedicated stores for the travel
retail market for Asia and beyond?
“Absolutely – the consumer demand is there,’’ she says. “We hope
more duty free licences and agreements will allow for dedicated
health and wellness stores in the future.” F
Amy Coghlan, CDIF’s
global business
development manager