Health Care (+1%)
Health care reform and heavy competition were among the factors that slowed value growth of the health care category and drove expansion into lower tier markets as well as increased merger and acquisition activity.
These corporate hook-ups often provided Chinese brands with resources and advanced technology, along with insight about the pharmaceutical business in developed markets. Brand extension opportunities also resulted.
Tong Ren Tang, a traditional Chinese medicine brand, purchased a major stake in Yaokang International, a medical center. Yunnan Baiyao, another traditional Chinese medicine brand, acquired Qingyitang, a feminine hygiene brand.
Both Yunnan Baiyao and Tong Ren Tang offered cosmeceuticals, cosmetics with pharmaceutical ingredients. CR Sanjiu, another traditional Chinese medicine brand, also continued to extend into new categories including over-the- counter remedies.