Pictured above: Julia Matthews.
New Zealand health and wellness brand Two Islands has taken a significant leap onto the global stage, expanding into the Chinese market through a strategic partnership with Sibote Biotech Group. Founder Julia Matthews shares insights into the journey, challenges, and future vision for the brand’s international growth.
For many Kiwi businesses, international expansion can be a daunting prospect, particularly in complex and highly regulated markets like China. But for Two Islands, the opportunity to enter China came at the right time with the right partner.
Julia Matthews, Founder of Two Islands, reflects on this milestone as the result of years of careful planning, resilience, and strategic decision-making. While China had been on their radar since the brand’s early days, the recent partnership with Sibote Biotech Group (SBT) provided the expertise and alignment needed to make the move a reality.
Your expansion into China is a huge milestone. Can you take me through the journey – why China, and why now?
China has always been on our radar. In the early days of Two Islands, we explored opportunities there but quickly realised that success in this market required the right partner. With the golden era of the daigou market behind us, we knew a direct-to-consumer approach would be challenging without strong local expertise.
As we worked through our export strategy with NZTE, we made the decision to focus on more familiar markets first, ensuring we built a solid international foundation before re-engaging with China. Our partnership with SBT actually came about quite serendipitously – they reached out to us, and while we receive many enquiries like this, it’s often difficult to gauge their legitimacy. Meeting them in person while they were in Auckland changed that. It sparked what became a 14-month journey of evaluation, learning, negotiation and due diligence.
This wasn’t part of a structured execution plan, we were focused on other markets, but sometimes the best opportunities come when you least expect them. The more we engaged with SBT, the more we saw how aligned our values and ambitions were. Their expertise in e-commerce and deep understanding of the Chinese consumer made it clear that this was the right time, with the right partner, to enter China.
For many, the current economic climate doesn’t lend itself to decent business growth. Has Two Islands had a different experience – how as the past 18 months been in terms of business growth locally?
The past 18 months have certainly been challenging, and like many businesses, we haven’t been immune to the economic climate. Growth has been elusive, but it’s also been a time of resilience and adaptation. We’ve had to double down on communicating our values and why customers should choose Two Islands, while also leaning more into value messaging and value-adds than we have in the past.
At the same time, we’ve taken the opportunity to focus on new product development that suits this climate, like our electrolytes, which, much like protein powder, are a highly consumable product at a very accessible price point. This has been a key part of keeping momentum.
Beyond that, we’ve remained close to our community of other small businesses who are navigating similar challenges. Supporting each other in various ways has been invaluable and it’s something we plan to continue even beyond the current climate.
This partnership with Sibote Biotech Group took 14 months to finalise. What were some of the biggest challenges and learning experiences along the way?
Finalising this partnership was a long and considered process, and rightly so. Signing a 10-year deal meant ensuring the right foundation was in place for both parties. One of the biggest challenges was navigating the complexities of negotiations while making sure we had the right support and advice from people who truly had our best interests at heart. Due diligence was crucial, not just in understanding the commercial aspects, but in taking the time to get to know the Sibote Biotech team on a personal level. That relationship-building outside of the business side was invaluable and gave me confidence in moving forward.
Timing was another factor. I paused discussions with SBT while I bought out my last shareholder because I needed clarity on the bigger picture before committing to such a significant partnership. The process also came with its fair share of logistical challenges, from the language barrier to lengthy legal calls, but ultimately, every step was necessary to ensure we were making the right decision.
How did New Zealand Trade and Enterprise (NZTE) support Two Islands in navigating the complexities of entering the Chinese market?
NZTE’s support was absolutely invaluable – without it, we likely wouldn’t have been able to progress this partnership. Their legal team, our customer account manager and the broader resources they provided were all instrumental. But most notably, working with one of their Beachhead Advisors, Damon Paling, made a significant impact.
Damon brought an incredible depth of knowledge, not only about the Chinese market and how it has evolved over the past couple of decades but also about the cultural nuances of doing business there – expectations, relationship-building, negotiation styles and the overall approach to business. His insights helped us navigate each step with confidence, and he played a pivotal role throughout the entire negotiation process (it also didn’t hurt that he speaks some of the language)!
With his background at PwC and NZTE, and years of experience supporting New Zealand businesses entering China, Damon’s perspective was invaluable in helping us assess this opportunity and move forward strategically. NZTE’s support went beyond just market insights, it gave us the expertise, connections and guidance we needed to make this deal a reality.
Many Kiwi businesses find international expansion daunting. What key factors made this possible for Two Islands?
Expanding internationally is daunting for any brand, but even more so in a highly regulated category like dietary supplements. The complexity of compliance alone is enough to deter many businesses, and when you add in the nuances of China’s market like cross-border e-commerce and the even more challenging general sale registration, it can feel like an uphill battle before you’ve even begun.
What made this possible for us was the structure of our partnership. Instead of a traditional distributorship, we entered into a licensing agreement with SBT. This approach has allowed us to bring Two Islands to China while leveraging SBT’s deep expertise in the market. They’ve already proven themselves in this category and they understand the consumer, the regulatory landscape and the path to purchase. Their experience has made what could have been an overwhelming venture feel far more achievable and strategic for us.
Having the right partner, one who truly understands the market and has a strong track record, has been the biggest factor in making this expansion a reality.
With China being a highly competitive market, what is your strategy for ensuring Two Islands stands out?
Two Islands is in a unique position in China as we’re entering the market through a licensing agreement with SBT rather than a traditional distributorship. This means that while our brand will be available in China, we’re able to rely on SBT’s deep market expertise to navigate the complexities of launching and growing in this space. Given the regulatory challenges and competitive landscape, having a partner like SBT, who already has a proven track record in this category, is invaluable.
SBT’s success in the Chinese market comes down to their deep understanding of the consumer and their ability to create strategies that meet market demand. Their approach for Two Islands will be no different. With the brand’s strong foundations in quality and efficacy, SBT will focus on amplifying these strengths while ensuring we’re positioned in a way that resonates with local consumers. Their insights into the path to purchase, evolving consumer preferences and competitive landscape will be key in driving awareness and growth for Two Islands in China.
You mentioned co-developing new products tailored for Chinese consumers. Can you share some insights into the differences in consumer preferences and how you’re adapting your products?
China’s market dynamics and consumer preferences differ significantly from those in New Zealand and we’re fortunate to be working with SBT, who have extensive experience in navigating these nuances. A key focus for our expansion is the maternity category, where we see strong demand for high-quality, science-backed nutritional support tailored to women throughout their pregnancy journey.
With SBT’s deep understanding of the local consumer, we’re co-developing products that meet the specific needs of this segment, ensuring they align with both cultural preferences and the latest advancements in maternal nutrition. Building trust and connection with consumers is crucial, especially during this important life stage, and by delivering products that resonate with their values and expectations, we’re confident that Two Islands will establish a strong presence in this space.
Maternity is an area we’re passionate about, both in China and at home. Our Milk Maker supplement – designed to support lactation and increase milk supply—is one of our best-sellers, and we see real potential in expanding this category further. The insights we gain from the Chinese market will only help strengthen our understanding of how to best support mothers globally.
What role does e-commerce and livestreaming play in your China strategy, and how different is it from your approach in New Zealand?
E-commerce and livestreaming are fundamental to our China strategy, given how deeply ingrained these channels are in consumer shopping habits. Unlike in New Zealand, where digital and outdoor advertising play a larger role in how we reach our audience, the Chinese market operates very differently. Consumers there rely heavily on platforms like Tmall, Douyin and Little Red Book for product discovery and purchasing, and there is a strong preference for real-time engagement through livestream shopping.
A key difference is also how trust is built. In China, Key Opinion Leaders (KOLs) hold significant influence, with consumers looking to them for product recommendations and credibility. While influencer marketing exists in New Zealand, large-scale influencers don’t always carry the same weight in driving purchasing decisions as KOLs do in China. This is why our approach, led by SBT, will focus on working with KOLs who align with Two Islands’ brand values, my own vision and purpose, as well as a wider community of elite female professionals.
By tailoring our strategy to the behaviours and expectations of each market, we can ensure that Two Islands resonates with consumers in the most meaningful way.
When you founded Two Islands, was global expansion always part of the plan, or did this vision evolve over time?
At the very start, global expansion wasn’t front of mind, I was just hoping that at least some people would buy my protein! But as Two Islands grew, so did my passion for creating effective products that not only tasted great but also made a real difference in people’s lives. Hearing feedback from customers about the impact our products were having was incredibly motivating and naturally, that sparked a bigger vision. The idea of helping more people and seeing Two Islands enjoyed not just in New Zealand but around the world became an exciting and natural next step.
What has been the biggest lesson in scaling a business beyond New Zealand, and what advice would you give other entrepreneurs looking to expand?
One of the biggest lessons in scaling beyond New Zealand is just how many factors go into making a product viable in a new market. It’s not just about demand, it’s about ensuring the commercial model stacks up, factoring in everything from regulations and logistics to pricing and margins. It always takes longer and costs more than expected, especially in a highly regulated category like ours.
For entrepreneurs looking to expand, my biggest advice would be to ask for help. Know what you’re great at and bring in the right experts for the areas you’re not – whether that’s legal, regulatory or people with on-the-ground market knowledge. A strong pitch is crucial, but so is resilience. No matter how hard you work, things won’t always go to plan. But each experience is an opportunity to learn, adapt and keep moving forward.
What are the key traits or skills you’ve had to develop as a leader to take Two Islands to this level?
Growing Two Islands to where it is today has required continuously adapting and evolving as a leader. One of the most important traits has been resilience, particularly in navigating the challenges of the current economic climate, as well as the realities of working hard on opportunities that sometimes don’t eventuate. Staying focused and knowing that success doesn’t always come overnight, but that each step forward is building towards our long-term goals, has been crucial.
Flexibility has also played a big role, especially as we’ve scaled and prepared to enter new markets, requiring us to stay open to new ideas and ways of working. At the same time, staying true to the brand’s core values—creating high-quality, effective products that people genuinely love—has been just as important as growth itself. Leading with purpose and making decisions that align with our long-term vision, rather than chasing short-term wins, has been a guiding principle.
Finally, surrounding myself with the right people—both within our team and through key partnerships—has made all the difference. No one builds a brand alone, and having a strong, trusted team has been invaluable in taking Two Islands to the next level.
Looking beyond China, what other markets or opportunities are you exploring for Two Islands?
Alongside the exciting opportunity we have with China, we’re already exporting to Hong Kong and are in the process of expanding into Dubai and the UAE. Australia is also a key focus for us. Each of these markets offers unique opportunities and challenges, and we’ve been strategic about where we focus our efforts.
For us, it’s not just about expanding for the sake of it, it’s about ensuring we have the right partners and the right approach for long-term success. With every new market, we take the time to understand the local consumer, regulatory landscape and competitive environment to make sure we’re setting Two Islands up in the best way possible.
If we were to check in with you a year from now, what would success in China look like for Two Islands?
A year from now, success in China for Two Islands would mean having a strong, collaborative relationship with SBT, where we’re still aligned in our vision and approach. Given this is all so new to us, a key milestone will be gaining a much deeper understanding of the Chinese market, how it differs from New Zealand, what resonates with consumers and how we can best support SBT in positioning the brand.
We also see success in the development of unique products tailored for this market. But most importantly, we want to see Two Islands recognised as a brand that Chinese consumers can trust to be truly effective and live up to its promise.
We know SBT has some ambitious goals, including positioning Two Islands as one of the top five maternity supplement brands in China. They’re working towards meeting the needs of parents from pre-conception through post-pregnancy and establishing the brand as a trusted part of that journey. If they achieve that, we’ll be thrilled, but for us, success also means ensuring we’re learning, adapting and building something long-term that feels right for both our brand and our consumers.
Is taking New Zealand brands to the global market on a larger scale the answer to our stagnant growth as a country?
It really depends on the motives and objectives of individual businesses, continued growth isn’t necessarily the sole focus for every company. That said, for businesses that do want to scale, international expansion is often the only viable path due to New Zealand’s market size. At some point, every brand will reach critical mass here and looking beyond our shores becomes the natural next step.
Beyond individual business growth, there’s also a collective benefit. The more New Zealand brands that establish themselves globally, the more recognition we gain as a country for high-quality products, which in turn strengthens opportunities for others. So while international expansion isn’t the only answer to stagnant growth, it’s certainly a significant part of the equation
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