Artificial intelligence and e-commerce marketer OpenDNA (ASX: OPN) has secured a supply channel agreement with pharmaceutical wholesale company NNM Services which will allow OpenDNA to market health and wellbeing products to China via its RooLife online shopping platform.
Under the terms of the agreement, NNM Services will leverage its network of pharmaceutical suppliers and provide OpenDNA with Australian-made products to be sold on RooLife to consumers in China.
OpenDNA has elected to launch with vitamins, minerals, supplements, skincare and health products based on high market demand.
Annual revenue for this market segment was estimated at US$30 billion in 2017 with projected annual compound growth of 10% through to 2025.
The entire health and wellbeing market, inclusive of traditional Chinese medicine, is forecast to reach US$60 billion by 2020.
NNM Services is a recently-formed pharmaceutical aggregator which has wholesaling agreements and relationships with international and Australian pharmaceutical suppliers.
The company will operate as a supply channel and provide ongoing business development services for OpenDNA on a commission basis by sourcing products and future supply agreements for marketing on RooLife.
“We are delighted to have teamed with NNM Services to provide an avenue for Australian health and wellbeing businesses and brands to be able to meet the significant demand from Chinese consumers for Australian skincare, vitamins, minerals and supplements,” said OpenDNA chief executive officer Bryan Carr.
“With our enhanced combination of online services and our hyper-personalisation
engine, we are uniquely placed to understand consumer buying behaviour and to provide a shopping experience which will deliver products consumers like and want.”
OpenDNA provides fully-integrated digital marketing and customer acquisition services
focused on driving online sales.
Powered by a “hyper-personalisation and profiling” artificial intelligence system, the company is able to provide personalised real-time, targeted marketing for clients.
The agreement with NNM forms part of OpenDNA’s strategy to market and sell high-quality, authentic Australian products and service China’s large and rapidly-growing consumer market.
Last month, the company said its objective was to expand its sales, with a focus on assisting Australian businesses to sell their products online and build brand awareness in Australia and China.
OpenDNA and NNM have commenced working with a range of pharmaceutical
manufacturers and wholesalers with a view to securing additional agreements for the sale of new products on RooLife.
At midday, shares in OpenDNA were up 38.24% to $0.047.