Due to tight regulations, businesses in the pharmaceutical/functional food industry are facing difficulties selling on channels like Facebook and Google. Consequently, many businesses are shifting their focus to selling on E-commerce platforms - where policies are more suitable for this specialized industry. In this article, UpBase Blog will introduce Sun Warehouse - a Case Study of a successful customer in the functional food industry on E-commerce platforms. UpBase will outline what they have done together with the business to overcome the unique challenges of this industry!
Specifics of the Pharmaceutical/ Functional Food Industry
The Ministry of Health reports that domestic production of functional foods and dietary supplements (TPCN) is undergoing significant positive changes. A large variety of products with different functions have been exported to the international market. This information comes directly from the Ministry of Health.
- Domestic Products
- Imported Products
More than 70% of the dietary supplements consumed in our market are domestically produced, while over 30% are imported from well-known markets such as the United States, Germany, Canada, South Korea, and Japan.
This is an industry related to the safety and health of consumers, hence the origin and quality of products are strictly controlled. This is also one of the factors that make the functional food industry:
- Difficult to Advertise on Facebook
- Advertising on Google Incurs Extremely High Costs
About Sun Warehouse
Sun Warehouse is one of the online sales channels under Sun Pharma Joint Stock Company – a company specializing in wholesale and retail of healthcare products and medical equipment. With the motto "Only selling genuine products," Sun Warehouse has become the top choice for Vietnamese consumers.
The current status of the store when UpBase takes over
Before coming to UpBase, Sun Warehouse already had a store on the Shopee E-commerce platform, but encountered several difficulties:
Problem
- Products were frequently suspended due to the specific nature of the industry
- Low click-through rate (CTR) and conversion rate below 0.5%
- Running Shopee ads but not generating any orders
- Lack of price competitiveness due to the company's non-discounting strategy
Advantages: The store offers a diverse range of products from well-known and popular brands. - Ngô Thu Hương, Upbase
Upbase's solution for Sun Warehouse
Leveraging the existing advantages of Sun Warehouse and the functional food industry, UpBase proposed to develop the store focusing on product quality and service. They recommended not competing by lowering product prices.
All the solutions provided by UpBase were aimed at helping the store develop sustainably. And after 3 months of operation, Sun Warehouse's store has shown very positive changes:
- The revenue reached 170,000,000 VND per month
- Achieved 5,100 followers on the E-commerce store
- Marketing budget accounted for only 15%.
- The store received a 5-star rating.
Businesses can completely trust the expert operational team and End-to-End Solution provided by Upbase!
