Blackmores wants to make deep inroads into Asia

“We would like to see our future in Asia. Today, at least half of our employees are in this part of the world. In the next 10 years, at least 80 per cent of staff will be in Asia,” chairman Marcus Blackmore said during his visit to Bangkok last week.
The growth will be driven by the company’s expansion into promising markets within the region, especially China, Vietnam and Indonesia.
Asia is now the source of about 25 per cent of the company’s business, while 70 per cent comes from the home market. The region should account for half of its business in a few years.
Blackmores has been in Thailand for 25 years and the country is now the biggest market for it outside Australia. It also trades in many other markets in Asia, including Taiwan, Hong Kong, Korea, Singapore and Malaysia.
Last year, the food supplement industry here grew by 6-7 per cent, but Blackmores did much better at 25-30 per cent.
“Thailand is our most successful market,” Blackmore said. “A lot more Asian consumers learning about health. Women have also driven our business,” he said.
In Australia, 70 per cent of Blackmores’ customers are women.
Many markets in Asia, such as Thailand and Malaysia, have been learning about herbs for thousands of years. The company does not have to educate consumers in those countries about herbal medicine because it is a part of their life.
“The competitive advantage of Blackmores is the intellectual capability of my staff, who are enthusiastic and passionate. We are in the health business and our focus is on people and their value. We have very strong scientific and institutional connections such as in product design and use of ingredients,” he said.
The keys to success at Blackmores are people, product and passion.
“We get the right people engaged with the right job. Our product is right. We have also people with passion, who are happy, proactive and creative,” he said.
In the dietary supplement industry, consumers will have absolute confidence in the company that makes the product. They will have very strong trust with the brand.
Everything the company has been doing in its business is about the brand.
“Trust is not something you can buy, you have to earn it. Blackmores has a strong heritage of more than 80 years. We built the brand presence and strong trust in the brand,” he said.
Blackmores is in the communications business rather than the product business. Social networking gives the company and consumers a chance to talk and build on information, he added.