The burgeoning middle
class in China has created a growing demand for relatively expensive
imported personal healthcare products by consumers with strong concerns
for individual health. This market already consists of over
300 million people in 100 cities. Consumption is in the billions
of dollars per year and is growing faster than the economy as a
whole, dramatically increasing the potential of this market.
Over the past several
years, Chindex has paved the way into distribution of healthcare
and personal care products through retail pharmacies. Chindex's
business model includes the establishment of strong service-oriented
relationships with a network of
retail pharmacies throughout China, including with
eight of the top 10 phamacy chains and over 1400 stores in 60 cities.
Chindex’s unique ability to closely control both the inventory and
the distribution channels in China, coupled with comprehensive advertising
and promotion programs, has proven successful.
Capitalizing on the distribution
pipeline into China's retail pharmacies established with the L'Oreal
products, Chindex has launched several additional brands of health-related
products, with many more upcoming product additions planned.
Brands currently distributed by the Retail Sales business unit are:
In 2004, Chindex launched its first wholly-owned
brand of consumer products sold via its retail pharmacy partners.
United Family brand of baby care products leverage this well-known
brand which has gained consumer recognition as the name of Chindex's
private hospital network founded in 1997. Chindex plans
to introduce additional product lines in the home health and
personal care sectors under the United Family brand.