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Overview of Shandong Dong-E E-Jiao in China

Shandong Dong-E E-Jiao is part of China Resources Holdings Co Ltd, with China Resources holds 23% of the company’s shares through the co-founded company China Resources Dong-E E-Jiao Co Ltd.

With flagship brand E-Jiao, a traditional Chinese medicine-based product, Shandong Dong-E E-Jiao operates business of many kinds, mainly vitamins and dietary supplements, as well as others including biotech medicine, health food and etc.

Shandong Dong-E E-Jiao’s sales network is quite extensive, with over 75,000 points of sales covering 31 provinces and municipalities across China, with 33 branch offices in 10 cities including Beijing, Jinan and Guangdong.

Company Profile of Shandong Dong-E E-Jiao in China

Production of Shandong Dong-E E-Jiao in China

All production and even all the 9 raw material centers of Shandong Dong-E E-Jiao are located within China. The 9 raw material centers are located in Xinjiang, Liaoning, Inner Mongolia, Shandong, Henan, Gansu and Yunnan.

Shandong Dong-E E-Jiao never manufacture products for third parties, neither under license nor as private label for large-scale retail groups.

Market Position of Shandong Dong-E E-Jiao in China

Shandong Dong-E E-Jiao dominated the sales market of the E-jiao market in China, having almost 70% of the total market, owning to its near monopoly in donkey skin resources, the raw materials for E-jiao. Actually, according to a recent conducted market research in China, Shandong Dong-E E-Jiao controls over 90% of donkey skin resources in China.

Shandong Dong-E E-Jiao’s market positioning is at the high-end market and hence its price is much higher than other brands. As is indicated by a market report in China, Shandong Dong-E E-Jiao priced 710 yuan for 500g E-jiao while Fujiao, the second brand in the market of E-jiao in China, only priced 487 yuan in 2011.

Competitive Position of Shandong Dong-E E-Jiao in China in 2011

Strategies and Future Plans of Shandong Dong-E E-Jiao in China

• Shandong Dong-E E-Jiao invested 200 million yuan building 13 donkey farms in China, since raw materials of E-jiao come from donkey skins.
• Shandong Dong-E E-Jiao launched a donkey raising and selling program in the Kashi area of Xinjiang and Qiangyang in Gansu.
• Shandong Dong-E E-Jiao made tis entry into the international market focusing on demand for Chinese herbal products in the international markets.
• Shandong Dong-E E-Jiao established subsidiaries in Germany and Malaysia, exporting products to Southeast Asia, North America and Europe.
• Shandong Dong-E E-Jiao launched 5 new E-jiao products at an international exhibition in Hangzhou in 2010.
• Shandong Dong-E E-Jiao eslabilshed several new production lines to expand its production capacity in order to cater to consumers’ needs.
• Shandong Dong-E E-Jiao started internet retailing by running its B2C platform: www.edongeejiao.cn.

• Shandong Dong-E E-Jiao plans to concentrate on its multi-brand strategy in the coming years.
• Shandong Dong-E E-Jiao has its plan of investing heavily in innovation and new product development for modern female consumers.

Edited by Amy Wang from Daxue China consulting (Focus Groups in China)

Picture source: baidu, baidu, baidu