Wellness trend opens
Aging population represents market potential
Following a 12 percent drop in value a year ago, healthcare experienced a 27 percent decline, the second greatest decrease among the 24 categories studied in the BrandZ™ China Top 100 report. Two of the five brands present in the category ranking a year ago dropped out.
Two of the three remaining brands—Yunnan Baiyao and CR Sanjiu—increased in value. After the COVID-19 pandemic, almost 80 percent of Chinese consumers said they would pay attention to personal hygiene and health, according to Kantar China MONITOR.
Over time, the consumer health business is well positioned to enjoy sustained growth for several other reasons, including the aging of China’s population, consumer concern for health and wellness, and government promotion of sports and fitness. To align with these developments and benefit from higher margin products, the healthcare brands are expanding into the wellness business.
Because Traditional Chinese Medicine views the body holistically, people are willing to take multiple products to improve nutrition, digestion, and other functions. Over a fifth of Chinese currently take health supplements, according to Wavemaker, and half of that group is taking more supplements than three years ago.
Two of the health care brands that specialize in Traditional Chinese Medicine—Yunnan Baiyao and Tong Ren Tang—have expanded into new categories, including cosmetics. Created over a century ago as a natural healing product, Yunnan Baiyo has introduced toothpastes with beneficial ingredients. Tong Ren Tang marketed beverages in 2019, the year of its 350th anniversary since being founded in 1669.
The brand, which derived most of its revenue from mainland China and Hong Kong, also pursued overseas expansion in Belt and Road Initiative countries. CR Sanjiu expanded into the cosmetics business with a line of lipsticks.