Eu Yan Sang Report
Eu Yan Sang was founded in 1879 and specializes in Traditional Chinese Medicine. It evolved from a small shop in Malaya selling traditional Chinese herbal remedies, to a global healthcare company manufacturing and retailing traditional Chinese medicines and herbs. It was listed on SGX in 2000 with operations in Hong Kong, Malaysia, Singapore, Australia, Macau and China, giving it a strong foothold all over the Asia Pacific region.
Ranked 16th in consumer health in Singapore in 2011 and 7th in herbal/traditional dietary supplements, Eu Yan Sang’s success can be seen from its market presence. Moreover, the company’s overall share price increased steadily over the years due to product expansion and increase in retail outlets. Its market positioning as a middle-market brand, with an emphasis on the traditional fused with “modern and scientific approaches” has promoted widespread customer confidence. The company is also a leader in terms of controlling its entire supply chain, from the sourcing of raw materials to production, distribution and even treatment.
Based on its Annual Report, Eu Yan Sang’s international performance and long-term sustainability looks very encouraging. However, upon closer examination, the reliability of some of the figures in the Annual Report is a cause for concern as the annual report lumps the data of China and Macau with Hong Kong, casting a shadow on the company’s performance in each of the regions. This was further supported by various sources citing poor performances in China, which has led to our topic of focus on Eu Yan Sang in China.
Our project seeks to examine and analyze the applicability of Eu Yan Sang’s successful business model in Singapore and Hong Kong into the Chinese market.
We first will identify the operating model in China and analyze challenges it faces in entering the Chinese market. We will also compare the Eu Yan Sang’s China business model with that of other countries, highlighting some of the
Ranked 16th in consumer health in Singapore in 2011 and 7th in herbal/traditional dietary supplements, Eu Yan Sang’s success can be seen from its market presence. Moreover, the company’s overall share price increased steadily over the years due to product expansion and increase in retail outlets. Its market positioning as a middle-market brand, with an emphasis on the traditional fused with “modern and scientific approaches” has promoted widespread customer confidence. The company is also a leader in terms of controlling its entire supply chain, from the sourcing of raw materials to production, distribution and even treatment.
Based on its Annual Report, Eu Yan Sang’s international performance and long-term sustainability looks very encouraging. However, upon closer examination, the reliability of some of the figures in the Annual Report is a cause for concern as the annual report lumps the data of China and Macau with Hong Kong, casting a shadow on the company’s performance in each of the regions. This was further supported by various sources citing poor performances in China, which has led to our topic of focus on Eu Yan Sang in China.
Our project seeks to examine and analyze the applicability of Eu Yan Sang’s successful business model in Singapore and Hong Kong into the Chinese market.
We first will identify the operating model in China and analyze challenges it faces in entering the Chinese market. We will also compare the Eu Yan Sang’s China business model with that of other countries, highlighting some of the
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