Marketing your products and services
Market entry
Importation of nutritional supplements can be difficult in Taiwan. All registration documents will be in Chinese, therefore, it is suggested that Australian exporters should find a local business partner as an agent or distributor to handle the import procedure and registration. Many established importers are very interested in the private label method for sales and not in being an agent or representative for a foreign supplier.
Many vitamins, dietary supplements and tonics and bottled nutritive drinks manufacturers have set up online shopping websites, such as Tai-Sugar (Taiwan Sugar Corp), Unimall (Uni-President Enterprises Corp) and Sentosa, to stimulate Internet retailing sales. An online shopping website, authorised by the Biotechnology and Medicine Industry, was created in November 2007. The nutritional products for sale on http://shop.snq.com.tw all have Symbol of National Quality (SNQ) certification to assure consumers of product quality.
Products, such as vitamins, dietary supplements, tonics and bottled nutritive drinks and herbal/traditional products, are sold at lower prices than those found in store-based retailers. Promotional activities, such as free trial packs and price promotions, are often carried out online. Some chemists/pharmacies and parapharmacies/drugstores also have Internet retailing websites, such as City Care Pharmacy, Woodpecker Pharmacy and Tin Tin Drugstore.
Distribution channels
The 1992 Free Trade Law allowed the practice of so-called parallel importing. This enabled trading companies to import any brand of nutritional supplements products, no longer limiting imports to the principals’ local agent. In addition, sales channels for nutritional supplements expanded to department stores, chain drugstores, specialty stores, hospitals, multi-level marketing (MLM), and home shopping. MLM is commonly used in Taiwan and companies such as Nuskin, Amway, and Sunrider have been active in the Taiwan market for years.yes
Herbal/traditional products are sold at chemists/pharmacies, parapharmacies/drugstores and through direct sellers. Direct sellers are mainly contributing to the sales of herbal supplements in herbal/traditional products.
For sub-sectors such as herbal analgesics, herbal cough, cold and allergy remedies, as they are considered to be drugs and, consequently, have to be under the supervision of pharmacists.
Other channels of sales for non-drug items include supermarkets/hypermarkets, convenience stores and health food shops and sometimes Internet retailing.
Direct selling is expected to decline unless agents stock new star products that will arouse consumer interest. Direct selling players and store-based retailers will possibly also set up Internet retailing services too, in an effort to boost sales. Store-based retailers will have more in-store promotions and marketing activities, such as free product trials, to attract consumers. Internet retailers will offer more exclusive brands to differentiate themselves from other distribution channels.
Retailers and manufacturers will invest more money in advertising in health magazines or on health-focused websites. Nutritionals manufacturers will also advertise their products during health-conscious TV programs to increase brand awareness. Furthermore, organising health talks will be another way for manufacturers to impart health and product information to consumers.
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