Herbalife pins hopes on dual-circulation

Herbalife Nutrition, the United States-based global nutrition company, will continue to increase its investments in China to tap growth opportunities arising from the new dual-circulation development pattern, a top company executive said.

Thomas Harms, senior vice-president and managing director of Herbalife Nutrition China and Asia-Pacific, said consumption upgrade and domestic demand expansion, which are included in China's development plan for the 14th Five-Year Plan period (2021-25), will help the country to grow its consumer base under the dual-circulation development plan, providing huge growth potential for foreign enterprises.

Uncertainties from COVID-19 and Sino-US relations will not change expectations on the China market, not only for Herbalife, but for any foreign company, he said.

"We are committed to the China market and have huge aspirations here," the executive said, adding that it would be the company's second-largest market. Currently, China is Herbalife's third-largest market, after the United States and Mexico.

"Quite honestly, I think everybody understands the long-term opportunity and the long-term strength of China."

He made the remarks during a recent interview in Beijing, after the company and the School of Sport Science, Beijing Sport University, jointly unveiled a sports nutrition study.

Present in China since 1998, the company operates in about 250 cities and has been accelerating product launches since the second half of 2019.

It has also been stepping up investment in recent years and opened its first global product research and innovation center, the Herbalife Nutrition China Product Innovation Center, in Shanghai.

Harms said the company plans to localize production in China. It plans to localize the entire production and supply chain of tea products in China, he said.

The younger generation will also be a major focus for the company, as it believes these customers are more interested in better nutrition at a much earlier age than the previous generation, he said.

According to the Ministry of Commerce, China's actual use of foreign investment hit 302.47 billion yuan ($46.5 billion) during the first quarter of this year, up 39.9 percent on a yearly basis, while in US dollar terms, the figure reached $44.86 billion, up 43.8 percent on a yearly basis.

Experts said China's continuously improving business environment and encouraging economic performance have helped foreign investors to sustain their investments in China.

Despite the COVID-19 epidemic, Herbalife launched 18 new products in China last year, setting a record in the company's history. The new products have all been selling well, with sales registering double-digit growth on a yearly basis during the first six months of last year.

To better meet demand from Chinese customers and promote nutrition and sports knowledge, the company has been collaborating with Chinese academics on nutrition and winter sport research.

In September 2019, it donated $1.5 million to the Beijing Sport University Education Foundation to establish the Herbalife Nutrition Winter Sports Development Fund.

The Herbalife Nutrition Winter Sports Nutrition Research Center was established to study the role of sports nutrition in winter sports.