EXPANSION TO AUSTRALIA
As a part of our expansion plans, we have established sales companies in Romania and Shanghai, China. We are already have some export sales in both Romania and China, but having our own company in these two countries will help further market penetration and growth. Our launch plans in Australia is moving forward and we have now obtained registration with the Australian Health Authorities, TGA, on several of our key products.
In general, the international dietary supplement industry is not as badly affected as many other industries and we expect demand to return to the earlier growth curves relatively quickly when life returns to normal under the continued but hopefully reduced COVID-19 threat. We see 4 major trends for our business. 1: Despite our customers being able to move around again like before COVID-19, many have become anxious and it will probably take a long time before they move around again and shop as much in stores as earlier. 2: Before COVID-19, we sold about 33 percent of our goods through e-commerce. That share has risen to 45 percent or more now and it will probably remain close to 50 percent in the future. 3: Our dealers are uncertain about the
future and are usually not prepared to incorporate new products into their range at present. It greatly disrupts our planned innovations and will dampen our growth prospects in the short term. 4: Our dealers are squeezed on their liquidity which reduces their purchases and inventory, and increase the risk of losses on debtors.