More than 1000 Chinese retail outlets will open stores-in-stores for Australian health products, packaged food and wine during the next two years.

The initiative is expected to generate A$100 million (US$74.9 million) in sales in the first year, which will lift to A$800 million annually in five years. Total pharmacy sales across the Chinese market currently exceed A$300 billion a year.

Thanks to Australian products being highlighted at the Qingdao International Health Products Expo, agreements have been signed with 28 major pharmacy chains across China. These chains control more than 10,000 stores.

Initially, each themed outlet will be within a pharmacy. The concept will then be rolled out through other retail chains. Outlets will vary in size between 100 and 300 sqm.

There were 42 Australian suppliers at the Qingdao event, including Ageless Products, Blackmores, Ferndale, Herbal Fix, Nature’s Way, Optislim, Purafine Nature, Pure Aussie Made and Sigma, plus honey producers Honeylife and Pure Peninsula Honey and Di Giorgio wines.

“Chinese people want Australian items because they are produced and manufactured under extremely strict health regulations,” says Australia New Zealand Health Products CEO Sunny Sun.

“China is reducing the red tape on importing packaged food products, and as a result registration and approval, which was difficult, is now quite simple.”

Australian China Business Council (Victoria) chairman Ken Smith, who attended the expo as the head of delegation, says the Australian-themed retail concept will “throw open” the door to dozens of Australian producers and manufacturers.