Winona Debuts at CPEO Summit

Winona Debuts at CPEO Summit

Health is an eternal theme for mankind and a crucial indicator of social progress. At present, China has included health in its basic national policy. The 2018 CPEO Summit officially kicked off on August 11 in Boao Town. The event brought together elite guests from mainstream pharmacy chains, brand-name pharmaceutical enterprises, capital firms, new technology enterprises, and government agencies, who exchanged insights and discussed the future of China's health industry. The theme of this year's summit is "Crossing the 'No Man's Land'", which probably indicates the vital mission of China's health industry for the decade to come.

With the continuous improvement of the self-care awareness among the public, the next decade will be a golden period for the development of the big health industry. On the evening of August 11, Mr. Guo Zhenyu, Chairman of Yunnan Botanee Bio-Technology Group Co., Ltd. and Executive President of the China Nonprescription Medicines Association, attended the CPEO Summit as a specially invited guest and delivered a speech titled "Beauty and Health— Value Depression of the Big Health Industry", pointing out the direction for the future development of the big health industry from the perspective of beauty and health.

Speech by Mr. Guo Zhenyu

The development of big health requires a shift in the concept

The concept of big health entails a shift from traditional disease treatment to life-cycle health management that integrates prevention, treatment, rehabilitation, and health promotion. Twenty-eight days constitute a cycle to develop a habit. A simple disease prevention process involves enhancing the self-care awareness and strengthening the body's immunity by developing a fitness habit in 28 days. The big health industry is characterized by "prevention, treatment, and health preservation", which puts more emphasis on preventing and eliminating diseases from the source. Therefore, the development of big health first requires a shift from the traditional model of merely focusing on treatment.

In the future, the big health industry will not only expand in scale but, more importantly, experience a restructuring. The current inverted pyramid where 80% of expenditure is on pharmaceuticals will undergo a transformation towards a larger allocation for "health and beauty." This necessitates a disruptive understanding of human health and a fresh industry layout. With the development of society, people's demand for health has upgraded from treatment to health management, chronic disease prevention, anti-aging, and beauty enhancement. Therefore, in addition to advancing the medical and pharmaceutical industries, it is also necessary to vigorously accelerate the development of related industries focused on skincare and health foods, as well as industries that provide health management services such as personalized health testing and assessment, consulting, and disease recovery.

With policy support and increasing self-care awareness among the public, the future of big health is full of vitality and hope. Promoting big health is a mission that must be accomplished, yet it is a gradual process. Self-care, being at the core of health maintenance, is fundamental to this process and plays a significant role in building a healthy China. During the process, pharmacy chains also need to evolve and upgrade to become the gateway for consumers to practice self-care.

Group Photo at the CPEO Summit Lecture

Winona's exploration in the "no man's land" of pharmacies

Take Winona as an example. As a core brand of Botanee, it was rarely known 10 years ago. Today, however, you may hear people proudly saying, "I know Winona; it's our local cosmeceutical brand." Winona was developed from the beginning for people with sensitive skin, aiming to assist them in restoring skin health and regaining beauty. Winona's entry into the OTC channel demonstrates its absolute strength and confidence.

In the earlier years, international mainstream cosmeceutical brands flourished in the OTC channel. Later on, they gradually withdrew due to various reasons, leaving no major cosmeceutical brand firmly established in the OTC channel. With deepened reform of the medical and health care system, stricter national supervision over retail pharmacies, and rapid development of the big health industry, it has become an inevitable trend for retail pharmacies to sell cosmeceutical products. This market context provides Winona with opportunities and endless possibilities. The "no man's land" of OTC cosmeceutical products is for the brave to explore. In 2017, Winona cooperated with Yunnan Jianzhijia chain pharmacies. Within a year, it achieved sales of RMB 30 million at Jianzhijia pharmacies, leading their non-pharmaceutical sales.

Products and brands that help maintain skin health and beauty still hold tremendous commercial value and prospects for pharmacies. In China, the core business of retail pharmacies should be focused on "health and beauty", and the first thing to do is to cultivate consumers' habit of purchasing in pharmacies. Guo Zhenyu stated that the market is flooded with products of various brands, and an increasing number of people are faced with skin issues due to the misuse and overuse of products, leading to a decrease in consumer trust in products available in the market. Skincare is a scientific and rigorous discipline, where professional skincare experts play a crucial guiding role. In this context, the advanced concept of scientific skincare is more likely to be accepted by consumers. Gradually, customers will get used to buying healthy and safe products at pharmacies.

Improving professional services has become the core competitive edge, and pharmacies will gradually shift from "selling products" to "providing health services". Furthermore, they must learn to communicate effectively with consumers. In the future, retail pharmacies should extend their function from selling products to linking brands and consumers. Winona offers precise solutions for both pharmacies and consumers through personalized testing and recommendations. Guo Zhenyu said that they plan to gradually expand Winona's market presence and engage in comprehensive and in-depth cooperation with retail chains, helping retail pharmacies achieve transformation and upgrading while enhancing Winona's brand influence.

Adapt to the new era and keep exploring and innovating

The Internet era requires businesses to employ Internet-based thinking, so as to keep pace with the times and embrace new technologies. At the CPEO Summit, Winona utilized AI skin monitoring technology to help visitors better understand their skin conditions. On the site, there was also a Winona robot interacting with guests, enabling them to have an optimal experience in a relaxed and enjoyable atmosphere. In the future, Winona will continue to uphold its professional attitude, refine the brand with craftsmanship, and promote the national brand to truly go global.