How Will Aumake Capitalize on China’s $230 Billion OTC Medicine Boom?
Aumake Limited has obtained a Hong Kong pharmaceutical wholesale licence, enabling it to launch up to five online over-the-counter medicine stores targeting Chinese consumers. This strategic move positions the company to tap into China’s rapidly expanding OTC market.
- Obtained Hong Kong pharmaceutical wholesale licence for OTC medicines
- Authorized to open up to five online OTC stores on major Chinese e-commerce platforms
- Option to acquire a second licence for further expansion
- Targets China’s $230 billion OTC medicine market with rising online sales
- Leverages established cross-border e-commerce expertise and logistics
Strategic Entry into China’s OTC Market
Aumake Limited has taken a significant step by securing a Hong Kong pharmaceutical wholesale licence, allowing it to establish up to five online stores selling over-the-counter (OTC) medicines to Chinese consumers. This licence is a crucial regulatory milestone that opens the door for Aumake to participate in one of the fastest-growing segments of China’s healthcare market.
The OTC medicine sector in China is estimated to be worth over US$230 billion annually, with online sales surging to approximately 30% of the market, up from just 8% in 2020. This growth is driven by shifting consumer habits, regulatory reforms, and the expansion of cross-border e-commerce platforms such as Tmall Global, JD Global, and Douyin.
Favourable Market Dynamics and Regulatory Tailwinds
China’s healthcare system is undergoing a transformation, moving away from a hospital-centric model towards encouraging self-medication and outpatient care for mild ailments. This shift has led to hospitals reducing medication provision for minor conditions and increased demand for safe, high-quality imported OTC products. Regulatory updates have further supported online drug sales, creating a fertile environment for companies like Aumake to expand their footprint.
Aumake’s new licence not only allows the launch of five online stores but also includes an option to acquire a second licence, potentially doubling its online presence. This scalable approach aligns with the company’s strategy to diversify into higher-margin product categories and accelerate growth in 2026.
Leveraging Established Capabilities for Growth
The company brings to this venture a strong foundation in cross-border e-commerce, having achieved over AUD 39 million in sales in the last financial year. Its operational expertise includes direct sourcing agreements with leading international OTC brands, bonded-warehouse logistics in Hong Kong, and management of over 100 stores across major Chinese platforms with annual gross merchandise value exceeding RMB 1 billion.
Non-Executive Chairman Dr Anthony Noble highlighted that the OTC segment complements Aumake’s existing business units by adding a more profitable product line without increasing the company’s cost base significantly. This expansion is expected to contribute to a faster-growing and more profitable Aumake in the coming year.
Looking Ahead
As Aumake prepares to open its initial online OTC stores, investors will be watching closely for operational milestones and sales performance. The company’s ability to navigate regulatory complexities and capitalize on evolving consumer trends will be critical to securing a lasting position in China’s competitive OTC market.
Bottom Line?
Aumake’s new licence marks the start of a promising chapter in China’s booming OTC sector, with growth and profitability on the horizon.
Questions in the middle?
- When will Aumake launch its first online OTC stores and report initial sales figures?
- How quickly can the company secure the second pharmaceutical wholesale licence and expand its store network?
- What competitive challenges might Aumake face from established Chinese and international OTC sellers?
