The Hainan-based firm recently conducted a livestreaming session for selling GoldMax’s Love, a grass-fed stage-3 toddler formula developed by GoldMax and Fonterra at the Haikou Integrated Free Trade Zone (FTZ).
According to the firm, the livestreaming session has sent online sales of Goldmax Love to over RMB$10m (US$1.4m), attracting a total of 4.57m online views.
The event was broadcast by Xinhua Silk Road – the platform supporting China’s ‘Belt and Road’ initiative, as well as key e-commerce platforms in China, such as JD, Taobao, kuaishou, and vzan.
Although the product is already available in China via e-commerce platforms and physical retail, GOVKING intends to push sales further via the livestreaming channel.
It announced the launch of a cross-border e-commerce livestreaming incubator with Haikou Integrated FTZ during the livestreaming. The incubator will be based at the FTZ and goods ordered will be delivered straightaway from the FTZ.
As part of the initiative, the firm has planned for 1,000 sessions of livestreaming sessions and will partner with Taobao, Tiktok, Little Red Book, Tencent, said Wu Suguo, who is the president of GOVKING Group and oversees the GoldMax business.
“Moving forward, GoldMax will activate a series of key investments,” Wu said.
He explained that the aim was for GoldMax to be seen by more consumers via short videos, livestreaming marketing. It is also to cultivate a marketing ecosystem made up of celebrities and social media influencers.
He added that the incubator would accelerate the digitalisation of the entire supply chain, starting from the product suppliers to physical retailers in order to provide customised service to consumers.
Party secretary of the Haikou Integrated FTZ, Lu Min, who also attended the event, said that the FTZ would continue to bring in the best products from overseas into China.
The Chinese government has been emphasising the need to bolster trade by bringing more foreign goods into the country. Last August, it announced six new pilot FTZs, bringing the total number of FTZs to 18.
Grass-fed formula the up-and-coming trend?
GOVKING Group believes that grass-fed formula is an up-and-coming trend and will follow the same level of market success that organic food has seen.
Wu said that conservative estimation has shown that the three-year CAGR growth of grass-fed formula in China has reached 30% and was expected to grow further.
According to the firm, grass-fed formula differs from other types of formula in that the cattle are not fed with antibiotics and growth hormone.