China's health care products on the brand extension Reflections

[Abstract] Health care Industry is a sunrise Industry, analysis of the status of Health care products Industry and the application of the brand extension strategy, to promote the development of China's Health care Industry has a positive meaning.

[Keywords] Health care products, brand extension, brand extension strategy

A conceptual analysis of Health care products

Health care products Industry in the 21st century on behalf of human social and Economic development of the sunrise industry, is currently being developed rapidly worldwide. With the rapid development of China's market economy and the urban and rural residents rising level of consumption, China's Health care products industry also has a very broad space for development.

Health care is a variety of beneficial health food, supplies, equipment, special cosmetics in general. Broad Health care products, including: health food, health medicines, health supplies, health equipment, and special cosmetics, etc. Many people think that Health care is health food, or the health food that is health care, it is not accurate and it is unscientific, it is in fact the two are different. health care is a human body have some secondary role and regulation of food, supplies, equipment and cosmetics collectively. health food called functional foods, is that foods with specific health functions in China approved by the national authorities the production and sale, with a specific health foods, which apply to specific food groups, with adjustment body function, not for therapeutic purposes in food. among health care products health food is important part of the historical development of health food products can be roughly divided into three stages: the first generation of health food products including various types of fortified foods, functional foods are the most primitive , based only on various types of nutrients or nutrient functions enhanced the food's nutritional infer features without any experimental test second-generation health foods must be animal and human experiments, proved to have a physiological function, the third generation of health Food not only need to use animal and human studies to prove that a particular function, but also to ascertain the efficacy of the active ingredient with (or functional factor) in the structure and content of the third generation of health food in China is booming, on behalf of future development trend of the four characteristics of China's health food: ① producing concentrated. Beijing, Guangdong, Jiangsu, Shanghai and other Economically developed regions the proportion of large, Yunnan, Tibet, Qinghai, Xinjiang, Guizhou and other Economically developed regions are also positive developments. ② reporting similar functions, mainly concentrated in the immune regulation, regulate blood fat, anti-fatigue 3, accounting for about 62.2%. ③ duplication of development and more, mainly concentrated in Spirulina, melatonin, fish oil, ganoderma, shark cartilage, Cordyceps, crustaceans quality, and ginkgo. ④ product formulations to pharmaceutical formulations based mainly take capsules, tablets, oral liquid, granules (granules) and other formulations, improve the health food science and technology.

Chinese health food also includes a class to supplement a variety of vitamins, minerals products, as nutrient supplements, there are no uniform national standards, the major areas included in the management of health food.

Health drugs are approved under the symbol "key word health medicine" health care products due to health is not easy to distinguish between the pharmaceuticals and health food, the management is also likely to cause confusion, the state had decided to withdraw care drugs. 2000, the state promulgated removed "drug key word "batch file, requires that all" medicine key word "in the December 31, 2002 to stop production, January 1, 2004 onwards shall not be circulating in the market." drug key word 'product must be in the "medicine" and " food "to make a choice between: drug approval by the strict verification of compliance with the conditions, was replaced by drugs," quasi "number, formally incorporated into the pharmaceutical distribution system, drugs do not meet the conditions, but consistent with the current condition of the approval of health food, was replaced by food" health "word symbol, both inconsistent to remove the symbol, to stop production and sales, while in fact, the National Bureau of doping back in January 2001 began to publish the revocation of approval of the" drug key word 'product , revoked the species was announced immediately discontinued.

Rising health care products is quite difficult for the drugs not only the approval of new drugs to a long-time pre-clinical trials, and health care products and drugs, a far cry from the approval process, not only to add large amounts of data, but also to meet the <<Good Manufacturing Practice>> need to spend huge costs and long cycle of clinical trials, compared with "drug key word" out the pharmaceutical industry, to health care products to be easier.

Care cosmetics with cosmetics, nature, not only the local modification, and there is transdermal, topical effect within the role, such as health perfume, cream paste, mouthwash, etc., health care with the nature of daily necessities, such as fitness, massage , magnetized water, health sachets, clothes and shoes, the carpet and so on.


Two of China's basic situation of health care products industry

According to statistics, the whole food health food sales accounted for 5% of sales, reaching $ 200 billion, and every year to a high growth rate. China's consumer health care products market in two groups: "white market" and "silver market" the demand for health care products are becoming strong, very strong because of their purchasing power, has become a force in the domestic health care market.

Relevant data show that consumers in Europe and the United States the average cost for health care products accounted for more than 25% of total expenditures, while only 0.07% of China's per capita health care spending is only 31 yuan / year, the United States 1 / 17, Japan 1 / 12. This shows that the health care market has great potential to the current global health care products accounted for 5% of the entire food marketing to project China's health care spending will grow substantially.

From the development strategy, it is essential to nurturing health care industry in this emerging industry and a sunrise industry, the health care industry has become a growth point of national economy. Strive to 2020, per capita consumption reached 300 yuan, the market capacity exceeded 450 billion yuan. China modern health care industry about the 1980s after a slow start and quick rise to the vicious 1990s expansion and disorderly competition, to reshuffle the cards since 2000 and gradually for a few standards of several down.

1980s, China's health care industry is gradually emerging, the annual output value was less than 20 billion yuan, less than a few years to 300 billion that the development, but the current health care products manufacturer in China, although more than 4,000, but 2 / 3 are SMEs. small listed companies, with annual sales of 1 billion only a few dozen. 2 / 3 of the product features focused on immune regulation, anti-fatigue and regulate blood lipids, and for special populations with little new functional areas companies involved. health care industry are not standardized, the standard is not perfect, and the enterprises of the leading trend in 2035, consumer health care products industry, lack of trust and other defects. Simply put, the following issues:
First, the lack of market development. Fish health products, product authenticity is hard, the market was mixed. Industry as a whole presents the main strength of the weaker companies, products similar functions, low-level redundant serious situation, the business caught in vicious competition homogenization.

Second, product development is weak, uncompetitive companies currently on the market for more than 90 percent of health care products are the first and second generation, low-tech products, companies do not focus on new product development, resulting in the product life cycle short, survival is poor.

Links to free download http://www.hi138.com Third, the management system. Health care products regulatory departments are involved, preliminary statistics, 19 departments, including the eight major sectors from the view of supervision , mainly concentrated in the regulatory approval, while the R & D, production and circulation are the lack of effective supervision because of the lack of uniform technical standards (production standards, testing standards), and therefore the approval nobody, nobody production process, lack of circulation management and other issues.

Fourth, the overall credibility is not high. The strength of light-marketing production company, advertising is often exaggerated, "the concept of speculation" signs are everywhere, so that health care crisis of credibility in the minds of consumers there, so devastating to the health care industry to combat can be said that China's current health care industry is at a crossroads.


3 China's health care products companies applied analysis of brand extension strategy

Since the 1980s, the Chinese health care market, giving the impression that we always come and gone, a product the most popular three to five years, and then quietly exit the market, disappeared soon, another new product instead, become the new chief of market From the sun god, dragon Nobu treasures liquid, turtle essence, a giant brain of gold to three oral liquid, is always "the leading position in 2035 ', Hong Mao, there was another wine, 505 bags of magic strength, Zhou Lin spectrum analyzer and other fad products. into the new millennium, Hearts K, Melatonin, Onlly, his wife and other brands have become the new darling of the market.

Thus, most Chinese health products life cycle is shorter, "the Xing Bo, its sudden," many companies predatory market behavior, so that the whole industry caught a serious credibility crisis, the media often become "pen cutting "the object, too many uncontrollable factors, market risk is not small.

Also, therefore, including Yangshengtang, special health, his wife, including many companies have chosen a multi-brand model, to build one or more specific product brands, to try to avoid using a shared brand, and even companies let the average consumer to know, such as Hainan Yangshengtang launch of the "Turtle pill", "duo", "clean mouth", "grow up happy," and other brand products; Shenzhen wife is under the command of a "wife", "is the source Dan "," Han Lin Ching-fat, "" meaning can be attached to "and other brand, although the Shanghai Jian special" Melatonin "and" gold partner "two well-known products, but rarely mentioned manufacturers.

Even as Johnson & Johnson, SmithKline, Roche, GlaxoSmithKline and other foreign companies, but also the only push such as "domperidone", "Miconazole", "Contac", "Tylenol," "efforts to stretch" "Xenical" and other brands, as an international brand well-known manufacturers are often hidden in the brand, the brand appeared more as an endorsement, in order to avoid brand products affected by factors specific to be "implicated."
Is China's health care products companies can not use low-cost implementation of brand extension brand or shared? Do not be suitable for the use of the Chinese health care brand, can only take the brand line? Market is the most convincing, we might look see the following interpretation of the real case in several markets:
(1) CTQ .2002 November, the "youth treasure" famous Hangzhou CTQ Group, one leg to walk away with the traditional use of "anti-aging film Qingchunbao 'reputation, taking the brand extension, the introduction of their new product - "Qingchunbao beauty capsule." 4 months to get listed more than 2000 million in sales in 2003, annual sales of over billion.

(2) Chiao Tung University. Onlly company since 1989 "Onlly One oral 'inception to Onlly One relies on hopes for the new series Onlly many states, Onlly U.S. know it, Onlly American ginseng, Onlly health wine, Onlly Shu thirsty, Onlly Koji Runtong syrup, etc., virtually every aspect of selling a variety of different groups of health care products, especially Onlly One, the product all over the country, has become the market leader in gastrointestinal brand one Onlly Jiangsu, Zhejiang has become a multi-state market for the modern design of health care professionals, Onlly knowledge of the United States become the duo and, after his wife's well-known female oral beauty brands.

(3) Hong Kong and Shenzhen Wan Kang to the base. Kang to the base with the million health care products also have a large family, starting from ginseng, and then expand to American ginseng, bird's nest, Cordyceps, chicken and other products, and are used corporate brand. Even if the launch of "blood Fall," "brain easily," and other new brands, but also to "Kang to" as a brand endorsement.

(4) Sanjiu Pharmaceutical since competitive products Sanjiuweitai popular Divine, the 999 brands become well-known trademarks, 999 Pi Yan Ping Ointment, 999 Ganmaoling, 999 Cook pediatric quick cold particles, 999 SHL Jiuhua a large number of hemorrhoids suppositories 999 brand drugs put on the market, also made good gains.

Evident that China's health care products industry, not only "Huashan road," brand is not the only way to go independent brand, brand extension strategy used properly, can maintain the health care products brand a lasting competitive advantage, maintaining the brand market position.


References:
Shao Yiming, brand extension strategy of [M]. Beijing: Economic Management Press, 2008. Links to free download http://www.hi138.com