Daesang Wellife is expanding cooperation with Chinese pharmaceutical and healthcare company China Resources Jiangzhong from joint product development through to local distribution. The company plans to increase supply of its Nuecare products in China by tapping the Chinese firm's online and offline distribution networks.
Daesang Wellife said on the 29th that it signed an agreement with China Resources Jiangzhong in Nanchang on the 14th of this month covering joint research and product supply for nutrition products aimed at the Chinese market. Seo Hoon-kyo, chief executive of Daesang Wellife, and Liu Weiquan, chairman of China Resources Jiangzhong, attended the signing ceremony along with other officials from both companies.
The agreement follows up on a strategic cooperation memorandum of understanding the two companies signed in June. It turns the relationship established at that time into concrete product research, development and supply arrangements.
China Resources Jiangzhong produces and sells pharmaceuticals and health consumer goods in China. The two companies plan to combine Daesang Wellife's research and development capabilities in nutrition products with China Resources Jiangzhong's local business infrastructure to jointly develop products that reflect the nutritional needs and dietary habits of Chinese consumers.
The partners will also broaden sales channels. Alongside its existing cross-border e-commerce sales to Chinese consumers, Daesang Wellife plans to use China Resources Jiangzhong's online and offline distribution channels to expand local product supply and consumer touchpoints.
The company will also widen its Nuecare lineup in China. It plans to add specialized nutrition products, including nutrition products for cancer patients, to the balanced nutrition formulas and blood sugar management products it currently sells, gradually expanding its local portfolio.
A Daesang Wellife delegation visited China Resources Jiangzhong's production base and research and development center to review local manufacturing and research infrastructure. The delegation also visited major e-commerce companies and offline distribution sites in Hangzhou to examine China's consumption and distribution environment and discuss the direction of future cooperation.
"Through this agreement, we have given concrete shape to joint product development and local distribution plans, and laid the groundwork for a stable entry into the Chinese market," an official at Daesang Wellife said. "Based on the expertise of both companies, we will introduce specialized nutrition products suited to Chinese consumers and steadily broaden our portfolio."
