Hydralyte

Hydralyte: Structuring Market Success and Exit in China’s Health & Wellness Category

Summary

• #1 Hydration Brand in Australia – Entered China with strong category leadership in oral rehydration solutions (ORS).

• Multi-Phase Market Strategy – Spanned CBEC, B2B, and general trade to maximise reach and mitigate risk.

• eCommerce Execution – Launched Tmall Global, activated JD Direct, VIP Shop, and partnered with Taobao sellers.

• Offline Distribution – Expanded into high-end supermarkets, gyms, and specialist retailers.

• Strategic Exit – Successfully sold China IP and market assets to Care Pharmaceuticals.

1. Market Objectives

Hydralyte—Australia’s leading hydration brand—set its sights on China to expand its international footprint and replicate its category dominance. The challenge: build a scalable, diversified market presence while navigating complex compliance requirements and consumer education hurdles in the ORS category.

2. Entry Strategy & Channel Design

We developed a multi-layered go-to-market roadmap that allowed Hydralyte to scale with precision:

• Cross-Border E-Commerce (CBEC): Opened and operated a Tmall Global Flagship Store, supported by a network of Taobao sellers

• Online Marketplace Expansion: Activated on JD Direct and VIP Shop to build digital shelf presence

• Wholesale General Trade: Facilitated import registration and supply into physical retail, including gyms and wellness outlets

The model provided flexibility and broad exposure while managing compliance and risk.

3. Brand Activation & Growth Execution

To support commercial activity, we activated the brand across China’s digital platforms and consumer touchpoints:

• KOL and influencer campaigns aligned with health and fitness audiences

• Digital marketing mapped to high-volume sales festivals and hydration-related health conversations

• Tactical partnerships with distributors to enable quick stock turnover in priority channels

Hydralyte’s functional positioning and clinical credibility were core to building trust and accelerating trial.

4. Commercial Impact & Long-Term Positioning

Hydralyte quickly established itself as a credible category entrant in China’s premium hydration market. Within months:

• The brand built an omnichannel presence across CBEC, general trade, and sub-distribution

• Drove performance through a tightly managed SKU portfolio optimised for the China consumer

• Created brand traction and engagement across both digital and physical sales environments

5. Strategic Exit & IP Monetisation

With commercial infrastructure and consumer momentum in place, The Hydration Pharmaceuticals Company Limited (HPC) executed a strategic sale of its China IP and market assets to Care Pharmaceuticals. The exit marked:

• A successful monetisation of brand equity in-market

• De-risked China expansion for the parent company

• A seamless handover to a new brand steward with local scale

Outcome

Hydralyte entered the China market with discipline, expanded with agility, and exited with confidence. Through a structured approach to channel design, compliance, and activation, the brand created commercial value and delivered a textbook strategic exit in one of the world’s most complex health markets.

Note: The case studies presented on this website highlight projects led by Jonathan Cox, Stratforms and the China execution team over the past 25 years. They include both current and former client work, and in some cases, projects undertaken in partnership with other entities or collaborative teams. These case studies are shared strictly for historical and illustrative reference, and do not imply ongoing client relationships, endorsements, or current affiliations unless explicitly stated.