Tongrentang to expand retail network globally

Traditional Chinese medicine company Beijing Tongrentang Group said it will open 100 self-operated pharmacies around China and 10 stores overseas this year.

The maker of traditional Chinese medicine has more than 1,500 self-operated pharmacies in China and more than 70 in overseas markets, including the United States, the United Kingdom, Australia, Singapore and Hong Kong.

Mei Qun, general manager of the company, said that despite the high costs, in terms of land, labor and registration, of opening new pharmacies, the company has to do it to build a full industrial chain and guarantee the sustainable growth of the brand, which has hundreds of years of history.

A report from domestic research and consultancy firm China Investment Consulting showed that around 12 to 14 percent of Tongrentang's products are sold in its self-operated drugstores.

The products include TCM, consumer healthcare products and healthy food and medical cosmetics. The prices of the company's products are relatively higher than its counterparts.

The sales revenue from Beijing Tongrentang's key products increased more than 20 percent year-on-year in 2012. The company said its capital strength is enough to support the expansion of its retail chain.