From Self-Adherent Bandages to Over RMB 3 Billion in Annual Revenue: The Rise of Sricare Medical

Zhu Zhiyang is like a kite runner, following the kite wherever it goes.

One piece of supporting evidence is that Zhu Zhiyang, who was engaged in medical foreign trade-related work in Shanghai at the beginning of this century, discovered German-imported self-adhesive bandages that were more convenient and practical than traditional elastic bandages through a chance opportunity. Based on the vague yet straightforward assessment that there were no similar products available in China at the time, Zhu recognized the market potential of self-adhesive bandages and subsequently founded Suiqi Medical Supplies Co., Ltd. (hereinafter referred to as “Suiqi Medical”), thereby embarking on an entrepreneurial journey focused on the research, development, and production of medical rehabilitation products.

Another piece of evidence is that, while attending the 2004 Canton Fair, Zhu Zhiyang observed that merchants showed strong interest in his company’s products. He concluded that there were significant dividends to be gained from export trade, so he ramped up production and began venturing into foreign-trade-related business. This move also laid the groundwork for Suruiqi Medical to later catch the fast-moving train of cross-border e-commerce.

The kite has landed. Over the past two decades, Srch Medical has evolved from independently developing and manufacturing self-adhesive bandages to covering a broad spectrum of sectors, including medical supplies, sports products, rehabilitation aids, and veterinary medical supplies. Today, it has grown into a group corporation integrating manufacturing, sales operations, and brand management, with an annual output value exceeding RMB 300 million. Its list of partners continues to expand, featuring renowned sports protection brand Cramer, Fortune Global 500 companies such as McKesson, Cardinal Health, and Owens & Minor, as well as the Chinese Athletic Trainers’ Association (CATA).

In its pursuit of market leadership, what business model has Srithch Medical established to achieve profitability? How does it forge commercial connections with international clients? How has it built competitive moats? What lessons can be drawn from its experience? To address these questions, VCBeat conducted an exclusive interview with Zhu Zhiyang.

As the earliest product developed and manufactured by Suruiqi Medical, does this now-ubiquitous item—the self-adhesive bandage—truly possess sufficient competitive barriers in the market?

Zhu Zhiyang frankly stated that, on the surface, the product’s technical barriers are not high; with sufficient time and investment, a self-adhesive bandage can also be well developed.

However, the crux of the matter is that self-adhesive bandages can be segmented into numerous application areas based on their diverse uses. This results in two major challenges: first, there are thousands of material options available; second, due to the varying fields each type of bandage serves, the technical specifications—such as the optimal levels of pressure, elasticity, and other indicators to meet customer needs—differ significantly. Addressing these nuances requires years of collaborative experience between manufacturers and partners across the upstream and downstream supply chain.

“This is not something that can be achieved overnight.” In Zhu Zhiyang’s view, many entrepreneurs tend to overlook the soft barriers related to product details, an area that Suruiqi Medical has always prioritized. Furthermore, for enterprises, the accumulation over time represents a significant asset, encompassing orders, customer data, and experience.

Based on customer insights, Sereach Medical has proposed a “Three Pillars” strategy for its manufacturing operations. The first pillar is medical consumables; the second is industrial tapes, currently under development; and the third is emergency kits, which are in the planning stage.

Currently, Sruiqi Medical has five flagship products: self-adhesive bandages, kinesiology tape for muscle rehabilitation, medical adhesive tape, athletic protective tape, and functional medical dressings.

The expansion from a single product into a broader portfolio is attributable to Suruiqi Medical’s commitment to meticulous refinement and continuous product polishing, enabling its sustained in-depth development.

For any enterprise, achieving steady growth in profitability is a question that must be addressed. Suruiqi Medical’s solution is to adopt a multi-brand strategy.

This approach has precedents to draw upon. For instance, brands such as Head & Shoulders, Ariel, Tide, Safeguard, Pantene, and Rejoice all belong to Procter & Gamble. The objectives of this strategy are threefold: first, to make it easier for users with limited attention spans to remember brands within a mature niche market; second, to mitigate the risk of brand damage resulting from new product failures by spreading it across multiple brands; and third, to refine the product portfolio and cover a broader market segment.

It was with this consideration in mind that Suruiqi Medical established Shanghai Kangmashi Sports Goods Co., Ltd. in 2007. The company is primarily engaged in the trade of various high-quality healthcare products and the promotion of the Kangmashi sports brand, and in the following year, it established exclusive distributor partnerships for the Kangmashi brand in Germany, Japan, and the United States.

By 2012, the Comax brand had expanded its business to more than 40 countries worldwide, with offices established in Beijing, Guangzhou, and Chengdu in China, as well as long-term collaborative distributors across various regions.

In addition to Kangmashi, Siruiqi Medical has also developed its own brands, including Sanlicao (3H), Glaskin, OK Tape, and Bangdeshi.

The Wind Rises at the Right Time. Just as email gradually led people to reduce their use of faxes and telephones, e-commerce has gradually accustomed people to conducting trade while disregarding spatial distances.

Zhu Zhiyang once again chose to chase the kite.

“Kangmashi’s products were performing well on Tmall, so we enrolled in Taobao University for training. There, we discovered that many high-quality international products had not yet entered the Chinese market. Based on this insight, we established a strategic partnership with Alibaba and began listing several international brands on Tmall. Through continuous optimization, we gradually streamlined the overseas direct-shipping model.”

Business operations are becoming increasingly streamlined. In 2017, Surich Medical’s businesses, including the 3H Apotheke herbal cosmetics line, were steadily implemented. The company established plans for the 3H Global Purchase cross-border platform and brand strategy in Suzhou, marking a comprehensive and in-depth entry into the cross-border e-commerce sector. During the same period, Surich initiated planning for 3H’s cross-border export and AliExpress operations, and launched the 3H Training Academy to strengthen professional skills in e-commerce, English, and other relevant areas.

In addition to seizing opportunities at the right time, Zhu Zhiyang is also highly experienced in dealing with international brands, a critical competency for cross-border e-commerce. For instance, cultural factors always present an unavoidable challenge when negotiating collaborations with foreign teams. According to Zhu Zhiyang, beyond understanding and respecting the cultural perspectives of partners, it is also important to appropriately showcase one’s own national culture. “Once, when we visited a renowned German company for negotiations, the counterpart was well-versed in Chinese culture and greatly appreciated our efforts to share it.”

Looking ahead, Zhu Zhiyang remarked with a smile that this interview coincides with Surich Medical’s transition from Phase I to Phase II. “We have introduced an internal slogan called ‘Second Entrepreneurship,’ which means resetting our mindset to zero, setting aside past achievements, and starting anew.” Specifically, Surich Medical will pursue upgrades in three areas. First, strategic upgrading; second, management upgrading, enhancing team capabilities in terms of mindset and management practices; and third, upgrades to both software and hardware, aimed at improving production efficiency and product quality.

From selling self-adhesive bandages to building multiple proprietary brands, and then venturing into cross-border e-commerce, Zhu Zhiyang, having started anew, will continue to chase the kite that belongs to him.