THE colossal Asian market is likely to lift Blackmores into the top five brands selling online in China, according to Credit Suisse financial analyst Ben Levin.
Ongoing growth in Blackmores' sales momentum appeared to have continued through Dec after a strong Nov, Levin is quoted as saying in The Australian.
"In fact, we have seen evidence that Blackmores is firmly in the top 10, if not skirting the top 5, vitamins brands, domestic and international, selling online in China," he said in a client note.
Although Blackmores shares had been trading around 9% below their recent $119 high, they added 4.5% last week.
Levin also said he expected Blackmore's inventory position for the first half of 2017 would improve as retailer/wholesale destocking subsided and sales improved.
While Australian sales were down 40% to $68m last quarter, Blackmores' China business recorded a 220% jump in sales to $31m, as reported in its quarterly results (PD 28 Oct 16).
As well as selling direct to Chinese consumers online, Blackmores is among products sold on Alibaba's T-Mall online marketplace in China by Chemist Warehouse, which set a sales record as the highest selling overseas merchant during the annual 'Singles Day' sales extravaganza (PD 14 Nov).
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