Analysis of Pien Tze Huang's Overseas Business Status and Challenges in Traditional Chinese Medicine Internationalization

Based on the collected data and market information, I will provide a detailed analysis of Pien Tze Huang’s overseas business status and the challenges faced by Traditional Chinese Medicine (TCM) internationalization.

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According to the latest market data, Pien Tze Huang’s current market capitalization is

, share price is 170.20 yuan, and price-to-earnings ratio is 42.44 times. The company’s performance has been under significant pressure in recent years:

Indicator	Value	Market Performance
Year-to-Date (YTD)	-18.59%	Significant Decline
1-Year Return	-21.94%	Sustained Weakness
3-Year Return	-41.12%	Long-Term Correction
Net Profit Margin	24.74%	Still Strong Profitability
ROE	16.51%	Good Shareholder Return

, reflecting that the company’s internationalization process is seriously lagging behind.

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is the primary obstacle to TCM internationalization:

• Current Status
  : To date, no TCM has passed the U.S. FDA approval as a
  drug
• Result
  : Most TCM products can only enter the U.S. market as
  dietary supplements
• Impact
  : Failure to obtain drug status means inability to enter the mainstream medical system, limiting both brand premium and market share

According to academic research, the core regulatory challenges faced by TCM include:

Challenge Type	Specific Performance
Technical Standard Differences	Western medicine emphasizes single active ingredients, while TCM mostly uses compound preparations
Clinical Trial Requirements	FDA requires strict double-blind randomized controlled trials, which are difficult for TCM to meet
Approval Process	TCM lacks complete chemical composition and mechanism of action data

The

faced by TCM internationalization is reflected in multiple levels:

• Cognitive Model Differences
  : Western medicine emphasizes “evidence-based medicine”, while TCM focuses on “holistic concept” and “syndrome differentiation and treatment”
• Different Philosophical Foundations
  : TCM’s “Yin-Yang and Five Elements” theory is difficult to explain in modern scientific language
• Efficacy Cognition
  : Western patients tend to prefer fast-acting drugs, while TCM emphasizes “treating both the symptoms and the root cause”

• Quality Control Issues
  : Complex sources of Chinese medicinal materials, and safety hazards such as pesticide residues and heavy metals affect international reputation
• Low Standardization
  : Lack of unified international quality standards
• Impact of Negative Events
  : Safety issues of some TCM products in history have been amplified by international media

According to the latest 2024 data:

Category	Export Volume	YoY Growth Rate	Characteristics
Chinese Patent Medicine	400 million USD	+10.6%	Slow Growth
Health Products	660 million USD	+20.9%	Fast Growth
Chinese Medicinal Materials and Decoction Pieces	Significant Decline	-45.6% (Vietnam Market)	Traditional Channel Decline

:

• The global TCM market size is expected to exceed 200 billion USD
• However, Chinese patent medicine accounts for only 8% of TCM exports
• Most exports are still raw materials and primary processed products

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As a

, Pien Tze Huang faces special challenges:

• Core Ingredient Confidentiality
  : The formula contains precious ingredients such as natural musk, facing restrictions from international wildlife protection laws
• Product Form
  : The traditional pill form does not conform to Western patients’ medication habits
• Price Positioning
  : High-end positioning limits penetration into the mass market

Market	Main Competitors	Pien Tze Huang’s Disadvantages
Southeast Asia	Japanese Kampo, Korean Ginseng	Insufficient Brand Awareness
Europe & America	German Herbal Medicine, U.S. Dietary Supplements	Lagging Channel Construction
Domestic	Tong Ren Tang, Yunnan Baiyao	Insufficient Overseas Layout Investment

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1. Leverage Cross-Border E-Commerce
   :
   • Platforms like TikTok Shop in Southeast Asia are growing rapidly
   • TCM-related health products have become one of the fastest-growing categories
   • Can expand through channels like Alibaba International Station

2. Focus on Niche Markets
   :
   • Focus on overseas Chinese communities
   • Target Southeast Asian markets with some awareness of TCM culture

1. Promote International Certification
   :
   • Strive to pass the FDA’s “Herbal Drug” channel certification
   • Establish clinical trial data that meets international standards

2. Improve Product Standardization
   :
   • Establish a traceable quality control system
   • Obtain international certifications such as ISO

3. Prioritize Cultural Communication
   :
   • Cultivate the market through TCM cultural experience centers and educational programs
   • Collaborate with international research institutions to conduct basic research

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The problem that Pien Tze Huang’s overseas revenue accounts for only 3.93% is essentially a microcosm of the

. This predicament is caused by multiple factors such as regulatory barriers, cultural differences, quality standards, and channel construction.

From an industrial perspective, TCM internationalization is not just a commercial issue, but a comprehensive challenge involving

. To achieve a breakthrough, it requires collaborative efforts from enterprises, governments, and industry organizations, with continuous investment in product research and development, quality improvement, cultural communication, and international cooperation.

For Pien Tze Huang, while maintaining its domestic market advantage, it needs to formulate a more proactive internationalization strategy and gradually increase its overseas revenue share to achieve more balanced and sustainable development.

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[1] Research on the Path of Cross-Border E-Commerce in the Internationalization of TCM Health Care Products (https://pdf.hanspub.org/ecl_2316614.pdf)
[2] TCM Faces Great Challenges: Revealing the Truth Behind the Failure to Obtain FDA Certification (https://www.wenxiaobai.com/api/expends/detail?article=004bfaf9-a484-4248-9726-8acf3f16c95a)
[3] Current Situation and Internationalization of TCM from the Perspective of Chinese Culture and System (https://etd.ohiolink.edu/acprod/odb_etd/ws/send_file/send?accession=osu1396967860&disposition=inline)