RM Group enters China via Shanghai Dong Jiao partnership

HONG KONG-listed health and beauty supplements company, RM Group Holdings Limited (HKSE 8185) and its subsidiaries have recently signed a distribution agreement with Shanghai Dong Jiao Industrial Company Limited for the distribution and sale of the Group's products in China.

 

Under the terms of the agreement, Shanghai Dong Jiao will distribute and sell several of the Group's products in China apart from Zhuhai UShopin Trading Co. Ltd, another distributor. Shanghai Dong Jiao will purchase the Group's products for sale in China and will not appoint any third party as distribution agent unless with prior written approval of the Group. It will also handle advertising and promotion, and shoulder the corresponding expenses for these activities.  

 

The Group grants Shanghai Dong Jiao the rights to use its trademarks in China in accordance with its duties to distribute the Group’s products.  

 

RM Group specializes in the formulation, marketing, sales, and distribution of health supplements and beauty supplements and products. It carries proprietary brands, including the Royal Medic, and private label brands specifically developed for and owned by a renowned retail chain of health and beauty products in Hong Kong and Macau. 

 

The Group ranked third as a PCM health supplements provider in Hong Kong in 2012 with a market share of 10.4% in terms of retail sales value, according to a report from Ipsos Hong Kong Limited. Its best-selling product, the Royal Medic Cs-4, ranked first in sales value in the Cordyceps market in Hong Kong for six consecutive years ending August 2014, based on a report from the independent global marketing research company. 

 

Shanghai Dong Jiao, which is incorporated in China, focuses on promoting, distributing, and selling prepackaged foods. An independent third party, it is not connected with any director, chief executive, or substantial shareholder of the Group.