Why did the green students enter the OTC market? Independent research and development capabilities questioned

Editor's note: Recently, the news of the advertising violation of the green source was again exposed by the media, causing a stir. Although the company explains the issue before the IPO, it is widely watched by consumers. Sichuan News Network Financial center found that the current bi-source products constitute a few single, but before, the green students have vowed to enter the OTC market, but now have not heard. What is this? Hi-Tech Dream 2011, Zhao Yihong, Chairman and CEO of the Green Source, said in an interview with China Economic Weekly, "it is very likely that the bi-source students will be able to introduce a blood pressure-lowering tea bag in the year, which means that the green source would span both the health care and OTC (over-the-counter) markets "The reason that the green students stare at the OTC market is because of the vast space in the OTC market." In 2010, China's OTC market was close to 130 billion yuan, according to the CIC consultant, and at the beginning of this century it was only more than 20 billion yuan, which means the OTC market expanded 5 times times in less than 10. "This is our first step into the OTC market" in December 2009, when the company bought a pharmaceutical factory in Zhuhai to make tea bags and moved its production line to Beijing. "At present, our preliminary preparation has been completed, the production line is ready to be issued, as long as the FDA approval, the product can be quickly to the market." Zhao Yihong that new products are likely to show up during the year. Green source this time to play "High-tech", "into the higher technology level of the OTC market, but only to do bag tea dosage forms and instant granules." "Bi-source view of the OTC (over-the-counter) market for a blue sea, Zhao Yihong confident that" OTC products and health care, the winning point is marketing, and the strength of the green source is marketing. Bi-source Marketing network construction is very successful, it will be China's health care products from the marketing era to lead to the era of rapid sales, OTC product once launched, this large network will be in the national rapid delivery of goods, the introduction of new products, to seize market share. New products But the reality is, from last year's high-profile threat to enter the OTC market, the green students have not yet launched OTC products. The top of the green source also did not have any explanation. In fact, the new product development mentioned recently in the bulletin is "although some progress has been made in the pilot work on the new product, the time lag has been introduced". and "Mei-an granule", just a improve sleep, freckle health products. Slimming tea, Chang, Mei-An granule, is now a mature "two-half products", the last one is still pilot sales, in the green source shop goods channel difficult to see products, the network is only "out of stock" status. Core competitiveness is advertising? Why is the new product difficult to dystocia? Where is its core competency? Sichuan News Network Financial Center found that advertising is a big "weapon". "Bi-source often run tea, clearing the bed, run the intestine, bowel poison, let your intestines wash the bath bar." "This is a well-known advertising word, the bus in Beijing, bus TV over and over again broadcast the advertisement, the ad at the end ofAlso with a slightly playful tone said: "Do not too thin oh." "People who are suffering from obesity are bombarded with advertisements and have to devote some attention to the product," he said. What is the core competitiveness of the product of bi-source products? Perhaps a paragraph in the prospectus of the green source can explain some of the problems. "The group sees advertising as an investment to boost future sales and profitability," the prospectus said. "The main methods of advertising and promotion in the group include television commercials and television program sponsorship, which is the responsibility of the media advertising team." "The company's advertising typically selects different media combinations in the target market, including newspapers, magazines, public transport displays, elevator lobbies and other public areas, such as flat-panel displays, the Internet and radio," the group's prospectus shows. "The group sees advertising as an investment that promotes future sales and profitability growth." "Independent research and development capacity of almost 0?" Apart from the advertising bombing, what about the research and development ability of the green students? Information from HKEx shows that the Chang and the Green students ' slimming tea were outsell in 2001 and 2004. The bulk of the sales from the two products, from 2007 to 2010 June, Chang and bi-source slimming tea accounted for the total turnover of about 62.9% and 23.9%,62.0% and 34.0%,57.7% and 41.1%,48.3% and 50.9%. It can be said that the performance of the bi-students depends on the extent of the two products demand and profitability. But each product has its life cycle, and once demand declines, pricing pressures, competition intensifies, sales or promotions are limited, the company's turnover and operating performance will be significantly affected. Moreover, the formula of these two products is not the independent research and development team of the company, but the purchase of products developed by other companies. Bi-source Chang 2001 to a one-time transfer fee of 500,000 yuan to buy from Huaiyin Chinese medicine, green tea in 2004 to 10,000 yuan to buy from Beijing, the latter for Zhao Yihong owned company. Industry insiders pointed out that the future of the green students depends on the development of new products and the opportunity to launch. At present, the research and development team of the bi-source students are not familiar with the consumers ' preferences and the judgment of the market trend, and they do not have the ability to deal with the market alone. In addition, the research and development of new products has a certain cycle, the market also needs the state Food and Drug Administration and other regulatory authorities approval, access to effective approvals, market advertising needs to be approved, these will take time. If the new product can not be launched in time, the green brand may be downhill, also can not give investors a good account. The cost of research and development of bi-source products is low, 2008-2010 is 900,000, 1.9 million and 1.3 million respectively, so low research and development costs are negligible. and its production lead time is only about 10 days, greatly improve the market speed and reduce inventory risk. In all walks of life complain about the rising cost of raw materials prices, the cost of the green students to envy the industry and abroad, a dose of "mild laxative" sold to nearly 40 yuan a boxThe high price is also one of the factors that its profits are rising every year. (Editor: Yulong) noun explanation: OTC: Over-the-counter drugs (referred to as OTC drugs) are those that consumers can buy directly in pharmacies or pharmacies without a doctor's prescription. Over-the-counter drugs are made from prescription drugs that are used for a long period of time, with proven efficacy, stable quality, and safe use by non-medical professionals.