Eu Yan Sang boosts marketing and store upgrades
Year-on-year revenue increases despite a challenging economic environment.
Although the Covid-19 pandemic has dampened Singapore’s retail market, Eu Yan Sang Singapore (EYSS) was able to achieve high year-on-year revenue and profit growth from its traditional Chinese medicine (TCM) business. Following its rebranding and modernization effort six years ago, the company has strengthened its business model and fulfilled its promise to provide the best of healthcare products and services to its customers. For this reason, EYSS earned the International Retailer of the Year trophy at the Retail Asia Awards 2021, which honours outstanding retail companies across Asia region.
EYSS’s initiatives have been focused on three aspects. First is the sale of new differentiated products needed by those who stay at home or work from home during the pandemic. Specifically, EYSS introduced products to boost a person’s immune system and protect one’s eye health from the effects of using mobile and desktop gadgets.
The second initiative is a 360 omnichannel marketing approach with an emphasis on digital and social marketing. This strategy gives customers easy access to essential products and services during Singapore’s circuit-breaker lockdown. By using in-built technology and redeploying retail staff to support the online business, EYSS was able to help customers, particularly the elderly who have limited mobility, through teleconsultation and tele-order, online live chats, WhatsApp order, wireless physical payment with a credit card, and same-day home delivery. Due to customer satisfaction and the increase in the number of customers, EYSS’ online business grew 10-fold during the lockdown, which accounted for more than 60% of its regular business prior to the pandemic. This growth streak continued even after the lockdown.
The third initiative is upgrading stores to improve service for affluent target customers. Before the pandemic, EYSS upgraded some of the stores in its network of already modernised concept shops. The enhanced stores have ID detailing and Digibook panels, which are used for self-help enquiries.
Thanks to these initiatives, EYSS achieved a 2% increase in total revenue and 4% growth in profit for the fiscal year ending 2021, compared with two years ago, despite the reduction of income from tourists who account for 20% of total revenue.
A Blackbox Research survey in 2021 shows that EYSS increased its market share and membership base in the past two years. Furthermore, 83% of the respondents said that EYSS continues to remain innovative and competitive. The herbalists and healthcare advisors at the retailer have been recognised for their dedication to their work amidst the difficulties faced during the pandemic.
EYSS has been through the most interesting times since it was founded in 1873 by Eu Kong, an immigrant from Guangdong, China. He opened the first shop in 1879 in Gopeng, Perak, and called it Yan Sang, a Chinese term that meant “caring for mankind”. His only son, Eu Tong Sen, inherited the family business, which ultimately became the current global enterprise. EYSS carries this heritage into the future by offering the best and most effective products that can help families and communities protect their health.
Watch the interview below to know more about their winning project: