There are a number of reasons why GNC may have decided to sell its business to a Chinese pharma company.
First, GNC is struggling to keep up with rival retailers in the United States. According to CNN Money, sales at traditional supermarkets (like Walmart and Kroger) outpaced those of GNC by 2.8% and 3.5% respectively in 2018. This is likely due to the fact that these companies can offer lower prices on fuller lines of store-brand products than can GNC, which focuses primarily on supplements.
Second, although sales in China remain strong, they represent only a small portion of GNC’s overall revenue. The company generates around two-thirds of its income from domestic sales. Selling 40% of its business to a Chinese pharma company would presumably allow it to invest more resources into growth in the US market where it currently has less presence and face competition from brands like Amazon and Walmart that are doing better than G