TRT International Building an Ecological Platform for a Healthy World Dr. Jipu “Dan” Wen 闻集普 Vice President (Phoenix, Arizona & Beijing) TRT INTERNATIONAL
Can Chinese consumers enjoy the quality dietary supplements produced by manufacturers around the world? 2
• Rapid growth of health wellness industry in China • Background of TRT Health Int’l • Become a strategic partner with TRT Int’l • Our plan to grow with our partners 3
Health wellness industry will become the national strategic pillar industry in China • In December 2011, the National Development and Reform Commission and Ministry of Industry and Information Technology jointly issued the "12 th Five-Year Development Plan for Food Industry", which for the first time included “ Nutrition and Health Food Manufacturing Industry ” into the National Development Plan. This plan set an ambitious goal for China’s nutrition and health food industry: one trillion yuan in value by 2015. Today, this goal has already been exceeded. • Due to the massive demand of healthcare services by Chinese consumers, the total size of China’s health industry is expected to exceed 8 trillion yuan in 2020. • Furthermore, the development of the health services industry has recently become a priority of the Chinese government. In 2015, China’s Premier Li Keqiang proposed making the health industry a national strategic pillar industry. 4
Explosive growth of China’s personal consumption of healthcare products Chin a’s healthcare consumer market is expected to exceed 400 billion yuan in 2020 By 2020 , China’s consumer healthcare market is expected to exceed 400 billion yuan in total sales. According to conservative estimates, e-commerce will account for 120 billion yuan, 30% of the healthcare market. We believe there is enormous potential in the e-commerce health industry; currently, e-commerce only accounts for a modest 4.8% of the healthcare market. China’s per capita consumption of medicine is only 1/30 to 1/40 of that of developed Western countries. China’s per capita spending on healthcare services is only 1/20 of the United States and 1/15 of Japan. These figures indicate significant potential in the Chinese medicine and health product markets.
The rapid growth of China’s middle class and the increasing demand for high-quality health wellness products • In a published report by Credit Suisse, the number of mainland Chinese whose assets exceed more than one million US dollars is expected to double in 2019, reaching 230 million, which exceeds the growth rates of the United States and India. The mainland household wealth is expected to grow 11% annually over the next five years to reach 36.2 trillion USD in 2019. • Credit Suisse expects China will become the world’s second wealthiest economy behind the current leader, the United States. • The Associated Press reports, with the greater injection of money from the middle class into the industry, branding has become integral in the Chinese consumer market. “ The increasing potential for goods that embody quality of life is significate in the fast-growing Asian region. ”
• Rapid growth of health wellness industry in China • Background of TRT Health Int’l • Become a strategic partner with TRT Int’l • Our plan to grow with our partners 7
Tong Ren Tang International ’ s strategic goals fall into the new national guidance for the health wellness industry As a newcomer in China’s health wellness industry, TRT International is currently China’s only integrated health industry ecommerce platform and is strongly supported by its parent company and national trade associations. • TRT International has acquired its senior team and expertise support from TRT’s 6 largest business groups and 3 partnered institutes as well as experts from the Chinese Nutrition Society. More than 130 prestigious health industry experts will lead the future direction of TRT International. • China’s Chamber of Commerce for Import & Export of Medicines & Health Products and China Healthcare Nutrition Council also provide consultation regarding domestic and foreign trade, logistics and fulfillment service. 8
同仁堂国际的品牌设计理念 Concepts behind TRT International brand design 品牌造型：天圆地方，天地融合 Brand style: sphere dome, integration of the world 天圆地方本质上是《易经》阴阳体系中对天地生成及其运行的解读，是古代华夏 民族先哲们认识世界的思维方式，标志寓意深远，简洁明了，体现出 TRT 带给人 们东方传统医学及宇宙生命哲学的大健康的品牌核心精神； Sphere dome is essentially derive from “I Chang, Classic of Changes”, which contains the meaning of Yin and Yang, and the interpretation of whole operation in the heaven and earth. This is a way of recognizing the world by the ancient Chinese sages, which comprises of concise and profound meaning, embodies TRT brings the traditional Oriental medicine to the universe as well as reflecting its brand core spirit. 品牌色彩：青碧 Brand color: Azure green 代表沉静、稳重、可信任，是一种沉淀下来的有机色彩，表现了健康及智慧；这 一色彩也象征着水，有时天空也会产生这样的色彩，是一种来自大自然的颜色， 令人产生平和与恬静，沉着大气的色彩体系，展现了品牌不同凡响的境界； Representing tranquility, steadiness, trustworthiness, is an organic color that making your mind settling down, reflecting health and wisdom; azure green is a color that comes from nature, which also symbolizes water and sky, generating an atmosphere of quiet and calm, displaying the extraordinary realm of the brand. 9
Vision: Become the first ecological e-commerce company from China to enter global health wellness industry Mission: Effectively and efficiently integrate global health wellness resources and provide high quality specialized products and services for the consumers around the world 10
• Rapid growth of health wellness industry in China • Background of TRT Health Int’l • Become a strategic partner with TRT Int’l • Our plan to grow with our partners 11
Our Key Elements for Success Trusted Quality “ Tongrentang ” Assurance Brand System 同仁堂百年老店 质量管理体系 Ecommerce Platform: Products & Services 电商销售渠道：产品与服务 12
TRT’s strong brand heritage and influence in Asia and around the world With 346 years of history, Beijing TongRenTang is the core shareholder of TRT International. “TRT Chinese medicine culture” has been recognized as a national intangible cultural heritage. TRT is an organization that embodies centuries of cultural tradition. • Most recognizable and trusted brand in China • Culture of Traditional Chinese Medicine • High standards of quality assurance • Shared global resources • Adherence to traditional business philosophy 13
TRT Quality Assurance Standard (TQAS) All TRT’s world suppliers of merchandise will meet “TRT Quality Assurance Standard (TQAS)”, to ensure our customers enjoy only the best-quality, reliable and safe health products • TQAS Qualified Supplier: meet the basic level quality standards in the origin country • TQAS Silver Supplier: basic quality standards + TRT verified quality of finished products • TQAS Gold Supplier: basic quality standards + third party verified quality of raw materials and finished products 14
Our Goal: Empower Chinese Consumers to Enjoy the Benefits of the World’s Best Dietary Supplement Products at the Same Prices as their Respective Marketplaces 15
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• Rapid growth of health wellness industry in China • Background of TRT Health Int’l • Become a strategic partner with TRT Int’l • Our plan to grow with our partners 17
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The estimated future growth of TRT Int’l: Achieving ￥ 100 million yuan turnover and 10 million registered users in the first year and maintaining 100% annual growth rate 20
The estimated future growth of TRT Int’l: Achieving ￥ 100 million yuan turnover and 10 million registered users in the first year and maintaining 100% annual growth rate • TRT’s official platform enables consumers to buy quality products and access professional health services from around the world; APP • Browser and mobile based platforms expected to carry 10,000 SKUs within 3 years; • Content rich design that displays relevant health information in professional and user friendly manner; • Wide array of social features that promote a responsive and interactive community experience for the consumers. PC 平台 21
Levels of Cooperation with TRT Int’l • Exclusive Business Cooperation TRT International is the exclusive online and retail distributor of the brand • Brand Cooperation Work with TRT International to further develop and expand brand value • Services Cooperation • Technical Cooperation • Strategic Cooperation Work with TRT International in a strategic partnership. Cooperation including but not limited to plant construction, material sourcing, and production. • Other Cooperation Cooperation regarding health commodities, medicine distributions and other logistical areas. 22
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THANK YOU! 谢谢！ 济世养生，百年精湛，自然臻选，悦享全球 24
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