Science in Sport PLC Launch into Chinese market
October 17 2018 - 1:00AM
RNS Non-Regulatory
TIDMSIS
Science in Sport PLC
17 October 2018
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 GBP626 million in
2017 to GBP932 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.
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END
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