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SAY 'traditional Chinese medicine' (TCM) and, immediately, it conjures up the images of elderly men measuring out dried herbs and bowls of black, bitter soup.
That said, home-grown brand Eu Yan Sang has given TCM a modern spin, since its current group chief executive officer, Mr Richard Eu, 60, came on board.
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Chinese medicine updated
- Mr Eu Kong left his home in Foshan, in southern China, and set up the first Eu Yan Sang store in Perak, Malaysia, in 1879, to help sickly tin mine workers addicted to opium to quit their vice.
- Mr Eu Kong's eldest son, Mr Eu Tong Sen, inherited the family business at age 13, when his father
suddenly died.
- Besides expanding the business into Hong Kong and Singapore, Mr Eu Tong Sen was better known as a
philanthropist and a lover of opera. Singapore's Wayang Street was renamed as Eu Tong Sen Street
in 1919.
- On top of traditional Chinese herbs, Eu Yan Sang now sells other items like dietary supplements and foods
like pineapple vinegar and honey vinegar.
- The Zun Kitchenette in Kuala Lumpur serves 'yao shan' (medicinal food) - a Western-Asian fusion smorgasboard of food made with traditional Chinese herbs.
- Traditional Chinese medical halls used to take on apprentices, who had to do chores such as making tea and serving their 'masters' for years, before they could learn the tricks of the trade.
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His great-grandfather Eu Kong started the business initially in a Perak mining town in 1879, to help opium-addicted tin-mine workers kick the habit.
But times have changed, and the business needs to reflect that, as well as reach out to the younger generations, said the fourth-generation Mr Eu.
'With young people, you have to take a more rational approach,' he said.
Mr Eu started by renovating the flagship Chinatown outlet - giving the store front a complete makeover and replacing the storerooms on the second and third floors with modern offices and boardrooms.
'People thought it was going to be a jewellery store or watch shop,' he recalled.
But besides cosmetic changes, the business has to change 'from the inside', he added.
'You can't say 'I want to modernise' and just change the design of store or packaging, without changing the core business.'
Now, its clinics are connected to a management system that digitises several processes, from registering a patient to ordering herb supplies. The company also uses a herb fingerprinting facility to analyse its products and chemical compositions.
It has repackaged products, such as the Bak Foong tonic - traditionally a bitter soup - into compact, easy-to-swallow pills. One of his biggest challenges was to convince his own staff.
'For someone who has been here 40 years and used to using an abacus, as well as writing purchases in longhand and in Chinese, a (modern) point-of-sale system can be a pretty scary idea,' he said.
Mr Eu, who is also chairman of the SIM Governing Council, says his thinking cap is constantly on, and the business' image is often high on his list of priorities.
He also goes away at least once a year, on courses or conferences, to help him keep up with the latest in the industry.
Why is image important?
That's how the rest of the world sees you, but it cannot be an individual thing. When you project the image of yourself or the company, it has to be something you believe in. You can't just say you want to be whatever you want to be. If you don't have those characteristics, you cannot sustain that image.
How do different geographic regions affect the branding of Eu Yan Sang?
Every market that Eu Yan Sang is in is a bit different even though, racially, we are all Chinese and, culturally, there should be some commonality.
For example, Hong Kong is a lot more Chinese. Its people's knowledge of TCM is a lot deeper, and we don't have to explain so much.
How would you brand your business in order to break into a non-traditional or non-Chinese market?
I don't have the answer yet, and even if I did, I wouldn't tell you (laughs). But looking at the trend, people are looking at more natural products and they are becoming more green. People in the West are more afraid of pharmaceutical medicines, and they are looking for solutions that are less toxic.
Where do you get your ideas for innovation?
I go for retreats, conferences, such as SIM Professional Development's Job Of The Chief Executive course from June 29 to July 4. A week's break to look at the business critically, with help from professors and all, is very refreshing. I also like to go walking about, anywhere, everywhere.
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