Like bees in a flower, venerable brands retain buzz
By Victoria Fei |
December 29, 2012, Saturday
|
Print Edition
Print Edition
OLD brands may lack the chic and pizzazz of newer ones, but they still have a place in the hearts and pocketbooks of consumers.
It's not only nostalgia that keeps them alive. Many venerable old brands in China are reinventing themselves to be more in tune with modern consumerism.
Minhang District is home to several such brands. Let's look at how two of them are staying alive in a competitive marketplace.
TCM manufacturer
Shanghai Hongqiao Pharmaceutical Co began as a maker and purveyor of traditional Chinese medicine, with a history stretching back more than a half century.
What started as a small workshop has grown into a company with annual sales of more than 1 billion yuan (US$160.3 million).
In 1986, when the government undertook to revive the TCM industry, the company took full advantage of the opportunity and transformed itself into a market-oriented business.
Hongqiao Pharmaceutical has grown into a leading company in the industry, operating 61 chain stores in Minhang alone. Its sales comprise about 30 percent of the medicine retailing trade.
The company is the largest supplier for the four biggest TCM hospitals in Shanghai, accounting for about a quarter of that business.
Success has come without a big advertising budget.
"Being low key is our own unique and creative way of brand promotion," said Chairman Tang Dehui.
Since 1997, more than 300 tailor-made counters selling products of the company have been located in drug stores across China. Their distinctive design costs more than usual point-of-sale counters, but Tang said he thinks that adds cachet to the company's business image.
"The TCM industry is facing a lot of difficulties," Tang said. "Adopting a spirit of innovation, we have made efforts to make our products and services creative. We even have a special service to show consumers how they can make their own medicines from herbs. It has been well-received."
The chairman said the company's current success rests on its ability to adapt to changing market conditions. "As an old brand, we had to transform to meet the needs of the market," Tang said.
"A brand can achieve sustainable development only if it reacts quickly and updates its products in a timely fashion."
Bee & Flower
Another venerable old brand indigenous to Minhang is Bee & Flower.
The personal care products line is manufactured by Shanghai Huayin Daily Chemical Co.
In its many years on the market, the company has enjoyed the distinction of being the "first Chinese shampoo brand." It has now branched out into toothpaste, perfumes, skin creams, sun creams and mousse.
A survey by AC Nielsen found that the Bee & Flower brand enjoys an awareness rate of 36.6 percent in China, ranking top among competitive brands.
In the 1990s, more than 4,000 companies making daily personal care products opened in China, with more than 100 involved in hair care products.
As foreign brands entered the Chinese market, only a few old-time products survived the fierce competition.
Bee & Flower has been the exception. It has gone from strength to strength, with products in supermarkets and malls nationwide. The company also has a special "showroom" for its brands in almost all hypermarkets in China, including Wal-Mart, Carrefour, Metro, Auchan, Tesco and Century Mart.
On a daily basis, the company ships nearly 18,000 cases of Bee & Flower hair care products from Minhang to other parts of the country.
"As a Shanghai native, I am always proud when I see our local brand sold in other cities," said Yan Ju, a loyal customer.
It's no surprise that older people tend to stick with older brands, but Bee & Flower has managed to attract younger consumers, too, with innovative product development, packaging and advertising.
"Bee & Flower is cost competitive," said Yan, who is in her 30s. "When I compare it with foreign brands, I still prefer it."
One of the company's best-selling products is Bee & Flower hair conditioner. Last year, more than 30,000 tons of hair conditioner were sold, accounting for 35 percent of the national market and ranking top in China.
Last year, the brand won the designation as a Shanghai Famous Trademark.
It's not only nostalgia that keeps them alive. Many venerable old brands in China are reinventing themselves to be more in tune with modern consumerism.
Minhang District is home to several such brands. Let's look at how two of them are staying alive in a competitive marketplace.
TCM manufacturer
Shanghai Hongqiao Pharmaceutical Co began as a maker and purveyor of traditional Chinese medicine, with a history stretching back more than a half century.
What started as a small workshop has grown into a company with annual sales of more than 1 billion yuan (US$160.3 million).
In 1986, when the government undertook to revive the TCM industry, the company took full advantage of the opportunity and transformed itself into a market-oriented business.
Hongqiao Pharmaceutical has grown into a leading company in the industry, operating 61 chain stores in Minhang alone. Its sales comprise about 30 percent of the medicine retailing trade.
The company is the largest supplier for the four biggest TCM hospitals in Shanghai, accounting for about a quarter of that business.
Success has come without a big advertising budget.
"Being low key is our own unique and creative way of brand promotion," said Chairman Tang Dehui.
Since 1997, more than 300 tailor-made counters selling products of the company have been located in drug stores across China. Their distinctive design costs more than usual point-of-sale counters, but Tang said he thinks that adds cachet to the company's business image.
"The TCM industry is facing a lot of difficulties," Tang said. "Adopting a spirit of innovation, we have made efforts to make our products and services creative. We even have a special service to show consumers how they can make their own medicines from herbs. It has been well-received."
The chairman said the company's current success rests on its ability to adapt to changing market conditions. "As an old brand, we had to transform to meet the needs of the market," Tang said.
"A brand can achieve sustainable development only if it reacts quickly and updates its products in a timely fashion."
Bee & Flower
Another venerable old brand indigenous to Minhang is Bee & Flower.
The personal care products line is manufactured by Shanghai Huayin Daily Chemical Co.
In its many years on the market, the company has enjoyed the distinction of being the "first Chinese shampoo brand." It has now branched out into toothpaste, perfumes, skin creams, sun creams and mousse.
A survey by AC Nielsen found that the Bee & Flower brand enjoys an awareness rate of 36.6 percent in China, ranking top among competitive brands.
In the 1990s, more than 4,000 companies making daily personal care products opened in China, with more than 100 involved in hair care products.
As foreign brands entered the Chinese market, only a few old-time products survived the fierce competition.
Bee & Flower has been the exception. It has gone from strength to strength, with products in supermarkets and malls nationwide. The company also has a special "showroom" for its brands in almost all hypermarkets in China, including Wal-Mart, Carrefour, Metro, Auchan, Tesco and Century Mart.
On a daily basis, the company ships nearly 18,000 cases of Bee & Flower hair care products from Minhang to other parts of the country.
"As a Shanghai native, I am always proud when I see our local brand sold in other cities," said Yan Ju, a loyal customer.
It's no surprise that older people tend to stick with older brands, but Bee & Flower has managed to attract younger consumers, too, with innovative product development, packaging and advertising.
"Bee & Flower is cost competitive," said Yan, who is in her 30s. "When I compare it with foreign brands, I still prefer it."
One of the company's best-selling products is Bee & Flower hair conditioner. Last year, more than 30,000 tons of hair conditioner were sold, accounting for 35 percent of the national market and ranking top in China.
Last year, the brand won the designation as a Shanghai Famous Trademark.
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