Cellmid Ltd’s (ASX:CDY) subsidiary Advangen International Pty Ltd has entered into new distribution and supply agreements for its évolis® anti-ageing hair care and hair loss products serving German and Chinese markets.
The company has signed a supply agreement with leading German premium beauty retailer Douglas GmbH with the first six months focusing on e-commerce sales of the évolis® professional products on Douglas’ German language platforms.
Cellmid has received the first orders and shipped products to the Douglas e-commerce warehouse in readiness for online sales early this month.
In addition, Cellmid has also entered into an exclusive distribution agreement for 12 months with Aeon International Pty Ltd for évolis® professional products to be sold in the Chinese cross-border e-commerce market.
Agreements with "quality partners"
Chief executive officer Maria Halasz said: “We are delighted to announce these new distribution and sales channels with quality partners around the world.
“As we continue to work with our new and existing partners world-wide, it strengthens our confidence in the robust, omnichannel model and growth profile of our consumer health division.
“We look forward to expanding our product sales in FY2020 and beyond as a result.”
European market expansion
Douglas is the leading premium retailer in the European beauty industry providing consultation and a range of unique services across 26 European countries.
Other European retail opportunities are expected to emerge following a one-on-one partnering event in Amsterdam in September, where the évolis® Professional products were introduced to several distributors and premium retailers.
Negotiations have since commenced with potential partners in various European countries including the UK, Germany, the Baltic states and Eastern Europe.
Aeon International is the Australian subsidiary of Chinese e-commerce company Habesul, which has more than 30 years’ experience in international trade and distribution.
The company has a strong import and export pedigree, having first helped Chinese brands access the international market before moving to facilitate the entry of international brands.
Aeon/Habesul will begin selling the products via the cross-border model, making use of ‘bonded warehouses’ in mainland China. Cellmid has already secured registration to sell its évolis® Professional product line through this channel.
As part of this distribution agreement, Aeon and Habesul will conduct a consumer experience study to refine strategies for the Chinese market and will apply for local registration of the évolis® Professional range as cosmetic products within the first six months of the agreement.