Last checked at 17 Oct 2018 07:00
Science in Sport PLC
Launch into Chinese market on Alibaba's TMall Global Store
17 October 2018
Science in Sport ("SIS"), the sports nutrition business offering improved athletic performance through the application of effective sports science, today announces further progress in its international expansion and entry into the Chinese market. SIS will launch an online store on Alibaba's TMall Global Store, China's leading and rapidly growing cross-border B2C platform.
SIS launched the online store on 15 October, 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 $725 billion in value by 2025, more than triple the $216 billion it was worth in 2016 (source: Economist) 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 $25.3 million of sales were achieved with 325,000 orders per second.
SIS already sells its market leading endurance products in over 100 countries with its key markets being UK, Italy and USA, the world's largest sports nutrition market. Over 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 £626 million in 2017 to £932 million in 2022 (source: Euromonitor).
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 MBE, eleven-times world champion and six-times Olympic champion, Mark Cavendish MBE, winner of thirty Tour de France stages and Adam Peaty MBE, 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, Chief Executive of SIS 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.
About Science in Sport plc
Science in Sport plc is a leading sports nutrition company that develops, manufactures and markets sports nutrition products for professional athletes and sports enthusiasts. SiS is a strong brand in the elite athlete community - in the 2016 Rio Olympics, 34 medal-winning athletes or teams used SiS products (compared with 24 in 2012).
The SiS core product ranges include: SiS GO, comprising energy powders, isotonic gels, energy bars and hydration powders; SiS HYDRO, comprising of hydration tablets; SiS REGO, including protein-based recovery powders and bars; SiS Protein, products specifically designed to contribute to athletes' lean muscle mass growth and maintenance; SiS Athlete Health, comprising of a range of supplements including fish oils and vitamins. SiS products are sold in a range of retail channels, including specialist sport retailers, major grocers, high street retailers and e-commerce websites.
SiS is currently the official sports nutrition supplier to professional cycling teams Team SKY along with national associations British Cycling, Cycling Australia, USA Cycling and USA Triathlon. SiS are sports nutrition partners to Manchester United Football Club. In addition, Olympians Sir Chris Hoy MBE, Adam Peaty MBE and Mark Cavendish MBE are Brand Ambassadors.
SiS was founded in 1992 and is headquartered in Hatton Garden, London. Its manufacturing facility is in Nelson, Lancashire.
SiS shares are traded on the AIM market of the London Stock Exchange under the ticker symbol SIS.
For further information, please visit www.scienceinsport.com or Matthew Smallwood, Instinctif Partners, 020 7457 2020.