Cellmid (ASX: CDY) has launched into Europe after securing a distribution agreement with Douglas GmbH for its evolis professional anti-aging hair care and hair loss products, while at the same time collaring a distribution agreement in China with Aeon International for the same products.
Douglas is a leading German beauty retailer and will initially focus on e-commerce sales of evolis over the first six months.
As part of the agreement, Cellmid received its first orders from Douglas and has shipped the products to the distributor’s warehouse in readiness for online sales to begin in the next few weeks.
Douglas has about 2,400 stores across 26 European counties in addition to its fast-growing online presence.
The company employs 20,000 dedicated beauty experts and has a portfolio of 50,000 high-quality products from 650 brands, with products including perfumes, cosmetics, skincare, food supplements and accessories.
During the 2017-2018 financial year, Douglas achieved €3.3 billion in sales.
To promote Cellmid’s evolis products, Douglas and Cellmid will develop sampling, competition and gift with purchase campaigns that will then be pushed through social and digital channels to promote awareness.
In addition to the deal with Douglas, Cellmid anticipates further partnership opportunities will arise in Europe after it attended an event in Amsterdam last month.
At the event, Cellmid introduced multiple distributors and retailers to its evolis range. As a result, discussions have begun with potential partners in the UK, Baltic States, Eastern Europe and other EU countries.
evolis enters China
As well as the distribution agreement with Douglas, Cellmid has also secured an deal to sell evolis through e-commerce channels in China.
Cellmid will be partnering with China-based Habesul’s subsidiary Aeon International.
Habesul has more than 30 years’ experience in international trade and distribution and has offices in Hangzhou, which houses multiple e-commerce businesses including the renowned Alibaba.
Aeon/Habesul will carry out a consumer experience study to refine strategies for promoting evolis to the Chinese market.
Habesul works with a network of 150 beauty spas, a further 300 premium supermarkets and 500 high-end hair salons.
Commenting on the new distribution agreements, Cellmid chief executive officer Maria Halasz said the company was “delighted” to be working with “quality partners”.
“As we continue to work with our new and existing partners worldwide, 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,” she added.