Eys Analysis – Key Characteristics of the Industry
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Key Characteristics of the Industry
The primary mission of EYS is to “Care for Mankind” by providing a means of alternative treatment so that patients are able to cure or prevent themselves from any diseases or ailments. This means of alternative treatment is introduced as Traditional Chinese Medicine (TCM). Singaporeans, being modern and cosmopolitan would seek modern medicine as their first step to healing as it is scientifically proven and highly trusted due to the strict standards set by the Health Promotion Board (HPB), however this does not mean that they do not seek traditional medicine as a complimentary or alternative treatment.
The Global Market International Database (2010) reported that the TCM industry in Singapore has seen positive growth in popularity as well as a 3% value growth in 2009. It was also forecasted that the herbal/traditional products sales would grow by 21.7% in 2014. This is attributed by the growing acceptance of TCM products and the change in target markets from the old to the young generation. Intensive marketing efforts to redesign the image of these products to appeal to the young consumers through attractive packaging have proven successful. In addition, the fast growing economy has enabled consumers to acquire a higher percentage of disposable income, thus increasing their expenditure. Furthermore, the less invasive nature of the treatment encourages consumers to purchase these products especially those in liquid, pills and tablet forms.
The main distribution channel of TCM products are through direct selling usually in a physical retail outlet or clinics that allow the pharmacist to provide consultation and customize the herbal concoctions based on the consumers health conditions. To keep up with the digital life, online stores provides similar services as the physical store. However, the online store provides advice only on basic and popular health concerns such as insomnia, diarrhea and fatigue. To increase the distribution of its products, pharmacies and drugstores such as Guardian and Unity are used to carry these products. These channels contributed to 53%of the overall sales of the TCM industry. Non-specialist channel such as supermarkets, however, contributed a small percentage to the sales of these products. To date, Singapore has 30 licensed TCM manufacturers, 170 importers and approximately 800 TCM retailers.
There are three key types of products that are observing high growth trends: Child-specific dietary supplements, Herbal/Traditional Analgesics and Tonics and Bottled Nutritive drinks.
Child-specific dietary supplements projected the highest growth as parents were seen purchasing these products to enhance their childrens learning ability in order for them to perform exceptionally well in Singapores highly competitive educational environment. Analgesics help to relieve the aches and pains of shoulders