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ยท Posted on
February 21, 2024

Swisse sales are soaring, so now they're boosting immunity AND their bottom line

The vitamin lords have learned that diversifying distribution channels = $$$.

What's the key learning?

  • As businesses become more global, they need to diversify distribution channels.
  • Swisse did this by focussing on supermarkets and Chemist Warehouse.

๐Ÿ‘‰ Background: Swisse is a vitamin, supplement and skincare brand founded in Melbourne back in 1969. You've probs seen Nicole Kidman and Chris Hemsworth on billboards and TV holding shiny Swisse bottles ๐Ÿ“บ.

๐Ÿ‘‰ What happened: Swisse was sold to Chinese company Health & Happiness in 2016 for a solid $1.7 billion. In the few years since, Swisse has struggled to grow due to the loss of daigous in Oz. Now it's on the up, with sales up over over 29% in the first three months of this year.

๐Ÿ‘‰ What else: The company's putting it down to people frothing over immune-boosting' vitamins... and its renewed focus on supermarket chains like Woolies, Coles and Chemist Warehouse.

๐Ÿ”” What's the key learning?

๐Ÿ’ก Product distribution is the process of selling products and services from the manufacturer to the customer. As businesses become more global, it's important to diversify those distribution channels ๐ŸŒ.

๐Ÿ’ก Diverse distribution allows businesses to grow more, because they're selling more - and often to new demographics and regions. In the past, Swisse relied heavily on the daigous market where shopping agents in Oz would purchase products on behalf of Chinese customers, or re-sell them online.

๐Ÿ’กBut around $200 million disappeared from the daigous industry thanks to COVID. So, by doubling down on supermarket distribution, Swisse has managed to boost immunities and sales!

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