Top 5 TCM Brands in China
While westernization is growing and getting more important in China, there is still room for traditional market in China. Traditional Chinese Medicine are one of these markets which show positive evolution and great potential in the very near future. According to market research from the China’s National Bureau of Statistics, the TCM market totaled more than ¥515 billion yuan in 2012, accounting for 31.24% of the total medicine industry. Our focus is on the top 5 TCM Brands in China
TONGRENTANG has been one of the most prestigious brands in the TCM industry. Its products have a wide reputation both in global and domestic market. As the first well-known trademark in China, TRT has exceptional advantages while exploring the market. Also, it was protected by many international organizations. Its products enjoy a high prestige in the global view and are sold to over 40 countries and regions.
2. YUNNAN BAIYAO
YUNNAN BAIYAO has been founded in 1902. It is one of the most well-known TCM brands in China, and has always been honored as “the treasure of China”. Yunnan Baiyao is a Class-1 protected traditional medicine in China.
3. PIEN TZE HUANG
PIEN TZE HUANG is one of the most famous traditional Chinese medicinal material and TCM brands in China，famous for its unique and evident effects as antiphlogosis, detoxication,analgesia, and liver protection. PIEN TZE HUANG has a large export volume in Southeast Asia, Japan, Korea, Canada and etc, ranked as No.1 in the field of TCM products exportation.
DEEJ honored as “Best Hematinic Medicine” “Nutritious Treasure”.It has nearly 2500 year’s history and its significant effects of replenishing blood, anti-fatigue, promoting white blood cells, immune system improvement and etc are well-known by consumers all over the world.
Tasly has been founded on May 1994. Through decades of development with Great Health industry as guideline and pharmaceutical industry as its center, Tasly has become a hi-tech group whose scope of business includes modern TCM, chemical medicine, biological medicine, healthcare products, functional food, covering the fields of research and development, planting, manufacturing and distribution.
Market research showed that these brands are popular with consumers and ranked as top 5 in the market because of the following reasons:
Health Consciousness Drives Increasing Demands of TCM in China
Patients are paying more and more careful attention to the medicines they choose. As a matter of fact, western medicines contain lots of chemical components which have certain side effects to human body in the long term of using them. On the contrary, TCM is milder than western medicine and aimed at regulating the body function with fewer side effects in the long run.
All these 5 TCM brands have something in common, one is they combine TCM culture with modern pharmaceutical technology. Culture of TCM itself is quite an attractive and competitive point. Taking advantage of this cultural effect can make a difference while launching the products. Nowadays, more and more young people in China are influenced by Traditional Chinese Medicine Culture. However, just relying on the culture is absolutely not enough.
Although TCM has a long history in the whole world, it still has to be purified or experimented to be proven so that it can be accepted by market, especially from the perspective of going global. They all have modern technologies applied to the TCM materials, including the whole R&D experimental process. In a word, “Based on TCM, Beyond TCM” is what they believe.
Market Segmentation conducts Marketing Strategy for TCM brands in China
According to the market research, the scale of TCM industry in the hospital market will exceed 500 billion RMB in 2014. And the five brands above gain their large market shares in the different segments. Obviously, they are aware of how important it is to identify the right target instead of following the trend. Only by combining the mature technology with accurate marketing positioning can one product has the possibility to win the market. To initial a new project, lots of market research work has to be done which is vital as guidance to the TCM enterprises. They know exactly how they can take advantages of their technologies to fulfill client’s needs based on the market research (market scale of target symptoms, target consumers, entry barriers, policies, etc.). Then they are able to objectively make corresponding marketing strategies (as internal and external analysis, competition analysis, and other key factors play a essential role in gaining the market share or managing the whole operation)
Systematic Industry Chain
Under the strict management of systematic industry chain, these products can be produced and delivered effectively and efficiently to the end-users. These five companies all have their own planting, manufacturer, good relationship and excellent co-operation with distributors. All that could result in well controlling the variable costs, indirectly contributing the revenue. In fact, it is exactly one of the reasons why these TCM products are ranked in the top 5 list. With the scientific method of management in field operation, these brands are not only well known for long history and evident effects, but also for the reasonable price and good quality of delivery.
Powerful Distribution Network
All these 5 TCM brands have established a large network of products distribution. Most of these brands have sales network all over the country and even some regions outside the country. More importantly, they have successfully managed distribution channels which are stable and effective to constantly generate the great outcomes. For example, Tasly group has 6 subsidiary corporations, 26 sales territories, 254 agencies in the world.
Intellectual Property Protection
IP Protection is another factor why they are widely famous in the industry. In fact, some of them have a permanent secret composition protected by nation. Along with increasing competitive market circumstances, IP could be an exceptional edge for while launching the products, especially in the patent protection duration. This is crucial for these TCM Brands in China.
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