Essay about Competitors
2.1 Direct Competitors
Being part of the Traditional Chinese Medicine (TCM) market, Eu Yan Sang faces direct competition from large chain retailers like Hockhua and neighbourhood medical halls like Yan Chai Tong Medical Hall. They are direct competitors because they compete in the same market sector of TCM retailing and also offer a similar product range.
2.2 Indirect Competitors
Indirect competitors will include Western pharmacies like Watson and Guardian, supermarkets carrying healthcare products, various health treatments, like acupuncture, reflexology and health spas. They are indirect competitors because they compete for the same consumer dollar and are able to satisfy the same needs.
Figure 2.1 …show more content…
2.3.2 Yan Chai Tong Medical Hall
Single unit retailers like Yan Chai Tong Medical Hall is located in the neighbourhood area. They are owner- and family operated and tends to have more harder working and motivated employees as compared to Eu Yan Sang. These neighbourhood retailers are more service oriented and better attuned to their customers’ needs. Furthermore, they are able to spot emerging customer desires sooner and respond to them faster than a larger chain retailer. Located in the neighbourhood area, it is more convenient for customers living around the area and the retailers are generally very familiar with their customers. These retailers are better able to tailer their services according to customer's various needs. For example, some elderly are only able to understand dialects and these retailers are able to understand and communicate with them better. Thus, a stronger customer relationship is built with them. The customers are then more likely to believe in the recommendations of their products. Neighbourhood retailers are also able to customize the quantity of the herbs needed, unlike large chain retailers like Eu Yan Sang as their products are all in standard packaging.