Tongrentang Goes International

By+SUN+LI

THE time-honored Beijing Tongrentang brand has achieved its longstanding goal to go global. The leading Chinese pharmaceutical company has opened 95 stores in 17 countries and regions out of the mainland， as well as a research and development center in Hong Kong.

The Test of Time

“Tongrentang has faithfully observed business ethics throughout its history of over 340 years. It has proved through facts its quality and market credibility，”said Ding Yongling， general manager and executive director of Beijing Tongrentang Chinese Medicine Co.， Ltd.“When tap water in Macao became salinated due to the impact of a salt tide， Tongrentang insisted on using distilled water to process medicine for four months， but did not raise its prices.”Ding added that as a brand of broad recognition， Tongrentang is under constant scrutiny of consumers and public opinion generally. This， she believes， is essential for the brands development.

IPO Miracles

Beijing Tongrentang Chinese Medicine Co.， Ltd.， the third listing under the Beijing Tongrentang Group， went public in Hong Kong on May 7， 2013. Tongrentang shares first appeared on the Shanghai Stock Exchange in 1997. The groups Technologies Co.， Ltd. was listed on the Hong Kong Growth Enterprise Market in 2000 and appeared on the main board of the stock market in 2010. Beijing Tongrentang Chinese Medicine Co.， Ltd. shares soared from the initial offer price of HK $3.04 to a record high of HK $14.9 – an accumulated growth of around 390 percent. With a market value of more than HK $10 billion， it became one of the most popular IPO stocks in 2013.

The release of this new stock has helped Tongrentang build a higher platform on which to develop its overseas business. Beijing Tongrentang Chinese Medicine Co.， Ltd. now acts as the brands overseas capital running center， intangible assets management center， R&D & manufacturing center， import and export business center， personnel development center and culture promotion center. The outstanding performance of its stock is testament to the confidence investors have in Tongrentangs future growth.

Spreading Tongrentang Culture

Tongrentang is distinctive in serving as both an economic entity and a Traditional Chinese Medicine （TCM） cultural ambassador on the global market.

“In addition to selling our products， each of our overseas branches organizes lectures on how to preserve health through TCM concepts. To help foreign consumers understand and accept our culture we also set up TCM museums in bigger stores and cultural corners or cultural walls in smaller ones，” Ding said.endprint

Last year Beijing Tongrentang jointly founded with APT Satellite Holdings Limited Asia the Beijing Tongrentang Mass Media （Hong Kong） Co.， Ltd.， which runs an international channel to spread Tongrentang culture and TCM concepts， covering around 70 percent of countries and regions of the world. The channel started pilot transmissions in 2014.

Oversea Opportunities and Challenges

“Currently， most of Tongrentangs overseas pharmacies are in Southeast Asia， but there are others in Australia， the U.K.， Poland， Canada and the UAE，”Ding Yongling said. “We insist on the operation model in our pharmacies that puts equal emphasis on medical services and medicine products. We set up TCM health centers that provide all-round services to foreign consumers and enable them to experience treatments available in China.”

Tongrentangs overseas development plan is to expand its presence in the global market by 2015 by opening at least 100 retail outlets in 22 countries and regions. In particular it looks forward to cracking the European and North American markets through its operation in Poland.endprint