Home Alibaba Health and Tmall Medical Launch 'Nourish China' Initiative to Restore Trust in the Tonic Market

Alibaba Health and Tmall Medical Launch 'Nourish China' Initiative to Restore Trust in the Tonic Market

Oct 09, 2016 14:14 CST Updated 14:14

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As domestic residents’ incomes rise and health-consciousness grows, the tonic supplement market has entered a period of rapid expansion. However, irregular practices and even counterfeiting have gradually come to light, posing risks not only to consumer health but also to the industry’s sustainable development. Addressing this challenge tests the wisdom of both government regulators and industry stakeholders.


On October 9, the “Nourish China” Brand Strategy Launch Event, co-hosted by AliHealth and Tmall Pharmacy, was held in Hangzhou. VCBeat (WeChat ID: vcbeat) provided comprehensive coverage of the event. The conference attracted hundreds of attendees, including government officials from regions renowned for authentic nourishing tonic production and professionals from the tonic industry. Stakeholders across various sectors hope that the establishment of the “Nourish China” initiative will eradicate chaos in the tonic market and steer the industry back onto a path of healthy development.


At the press conference, Kang Kai, General Manager of Tmall’s Medical and Health Division, signed strategic cooperation agreements on authentic tonic products with government representatives from the core producing regions in Liaoning, Jilin, Ningxia, Yunnan, Shandong, Zhejiang, Anhui, and other provinces, jointly launching the “Nourish China” brand initiative.


Notably, the press conference also announced the establishment of the “Nourishing China Traceability System.” Leveraging Alibaba Health’s “Code for Confidence” platform, this system enables item-level traceability (“one product, one code”) for relevant nourishing health products. Consumers can scan the codes using the Mobile Taobao, Tmall, or Alibaba Health apps to verify product authenticity, marking a major highlight of the “Nourishing China” brand initiative. Currently, dozens of companies, including Tasly and Baihua, have confirmed their participation in the “Nourishing China Traceability System.”


At the press conference, Ali Health introduced the “Nourish China” brand initiative, a collaborative effort with local governments, brand enterprises, and industry associations to label recommended high-quality nourishing products, thereby facilitating consumer identification and selection on the Tmall Medicine platform. Furthermore, the initiative aims to enhance the service value associated with products bearing the “Nourish China” mark, including value-added services such as complimentary shipping insurance and authenticity guarantees, providing consumers with greater convenience and protection throughout the purchasing process.


According to the eligibility criteria obtained by reporters, merchants shortlisted for “Nourishing China” must be Tmall sellers with a record of honest operations that specialize in traditional nourishing health products. In terms of branding, eligible brands include those with geographical indication certification, time-honored brands (such as provincial-level and national-level time-honored brands), and organic certification, among others.


In recent years, the tonics market has been frequently plagued by chaos reported in the media. For instance, there have been repeated reports of adulteration in Cordyceps sinensis, including water spraying, gluing, and the addition of flour or even metal powder. Safety hazards have also been successively exposed in other products such as deer antler velvet, Ganoderma lucidum (Reishi mushroom), snow clam (Rana chensinensis oviducts), and ginseng. Industry insiders are concerned that if the phenomenon of "bad money driving out good" is allowed to persist, it will not only jeopardize the safety of food and drugs but also threaten the long-term development of the industry.


“Authentic quality is paramount for tonic products, and the market demands a mechanism that ensures full traceability. While we may not be able to transform the broader ecosystem overnight, we have set a modest initial goal: to start with Ali Health and Tmall Pharmacy,” said Wang Lei, CEO of Ali Health, in his speech at the press conference. “We are committed to establishing a series of standards, supplemented by rigorous implementation and regulatory measures, to drive the tonic industry back onto a path of healthy development.”


Wang Lei specifically pointed out that “Nourish China” is the first brand strategy launched by Tmall Pharmacy, following its integration into the Alibaba Health ecosystem, to drive the transformation and upgrading of China’s traditional tonic industry. Moreover, the launch of the “Nourish China” brand coincided with Alibaba Health’s announcement of its inaugural participation in the 2016 Tmall “Double 11” Shopping Festival, offering a significant gift to consumers during the event.


“‘Nourish China’ brand initiative has established clear and reasonable rules of engagement to foster the healthy development of the online retail market for traditional nourishing products. Therefore, upon learning that Alibaba Health was launching the ‘Nourish China’ brand initiative, Tongrentang Health responded proactively and became one of the first strategic partner brands to sign on,” said Wang Jiliang, Vice President of Tongrentang Health, at the press conference.


Participants reached a consensus that the tonic market is jointly composed of multiple stakeholders, including regulatory authorities, platforms, merchants, and consumers. Only through the joint efforts of regulatory authorities, platforms, and merchants under the “Nourishing China” brand initiative can robust management standards and norms be established, thereby ensuring consumers a high-quality and stable consumption experience and achieving healthy, sustainable market development.