Until now,the company has been able to sell its products only through cross-border e-commerce,which represents only 20 per cent of the entire Chinese infant formula market.
“This has been a barrier to entry for us in China for the last six years,” said Bubs Australia CEO Kristy Carr.
The baby formula sector in Australia is “very different” to that of China,where more than half of all infant formula is sold through dedicated mother-and-baby stores,Carr added.
The ASX-listed company is also hoping to capitalise on Chinese consumers’ increasing preference for locally made products,rather than international brands.
Bubs investors cheered the news,with the company’s shares closing Wednesday’s session more than 5 per cent higher to 52 cents.
The new range of goat milk dairy products have been formulated specifically to meet China’s new stringent regulatory standards for infant formula,which kick in on February 22,2023.