Sports nutrition firm enters lucrative Chinese market

Juan Matta, of Manchester United

Sports nutrition business Science in Sport (SIS) is moving into the Chinese market.

The business, which has a manufacturing base in Nelson, Lancashire, offers improved athletic performance through the application of effective sports science.

It is to launch an online store on Alibaba’s TMall Global Store, China’s leading and rapidly growing cross-border B2C (business to customer) platform.

SIS launched the online store on Monday this week with 27 products from its popular GO Energy, GO Hydro and REGO Rapid Recovery ranges.

TMall Global Store has 576 million active consumers and a 25% market share in China.

TMall Global Store’s customer base is made up of 50% of consumers that are born between 1990 and 1999.

This presence in China enables SIS to access its rapidly growing sports and fitness market which is predicted to exceed £550bn in value by 2025, more than triple the £164bn it was worth in 2016, and has significant support and incentives from the Chinese Government.

The timing of the launch also allows SIS to participate and focus on 11.11, the biggest day by volume globally in the e-commerce calendar.

In 2017 £19.19m of sales were achieved, with 325,000 orders per second.

SIS already sells its market-leading endurance products in more than 100 countries with its key markets being UK, Italy and USA, the world’s largest sports nutrition market.

More than half of SIS products are sold through online channels including its own website www.scienceinsport.com, giving customers global access.

In the UK alone, currently its core market, the value of the sports nutrition market is anticipated to grow by nearly 50% from £626m in 2017 to £932m in 2022.

SIS has partnerships in high profile sports such as cycling and football including: Team Sky, USA Cycling, British Cycling and Manchester United, to build awareness of its brand and products.

Sir Chris Hoy, 11-times world champion and six-times Olympic champion, Mark Cavendish, winner of 30 Tour de France stages and Adam Peaty, 2016 Olympic Champion and five-time World Champion, are all brand ambassadors.

SIS has taken advantage of its strong brand, high quality products and grown revenues rapidly by 24% on a compound basis since 2016 and is continuing to invest in its range of elite, endurance sports nutrition products and in expanding its geographical reach in a fast-growing global market.

Salient features of its model are that it enjoys high gross margins and generates significant amounts of cash, which is utilised to invest and develop new markets overseas.

Stephen Moon, SIS chief executive said: “We are excited to be launching online in the world’s largest e-commerce market.

“Through TMall we now have access to one of the fastest growing markets in a low-risk way.

“It extends our reach to an enormous, young consumer base where fitness is a priority and is being promoted by the Chinese Government.

“Our products appeal to elite and endurance athletes globally and we will continue to forge partnerships to build our brand, expand geographically to reach customers and provide retail channels to enable purchase and use.

“We are confident that our strategy will deliver consistently rapid sales growth in years to come.”

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