It's a great partnership because SiCap can make quality products at a good price, and Yin Po can expand the market and branding in China. Because Yin Po is in China, they can also work directly with the SFDA and the trademark and patent offices to protect the brand so we can get a solid foothold in the Chinese market
Albany, NY (PRWEB) October 27, 2007
America's trade deficit with China has been a hot topic on the 2008 presidential campaign trail, but the tide appears to be turning thanks to consumer demand for healthcare products made in the United States. SiCap Industries, a natural medicine manufacturer in upstate New York has already begun producing Chinese versions of their products aimed at a variety of health categories. SiCap specializes in natural remedies using Capsaicin, the chemical responsible for the thermal heat of hot peppers. The company is best known for their flagship brand "Sinus Buster", billed as the world's first hot pepper nasal spray and sold in thousands of North American retailers.
"SiCap is paving the way for a new trade relationship with state sponsored Chinese pharmaceutical distributors. The market is huge for American medicines in China, but in order to launch a successful product you've got to package it with cultural differences in mind. That means Chinese and English language labeling along with the right colors and marketing concepts. By partnering with Chinese companies to create successful branding, we're forcing the market to open bigger and faster for all U.S. healthcare companies," says Wayne Perry, president of SiCap Industries, LLC.
SiCap recently inked a deal with Yin Po Global Media to distribute a Chinese version of their Sinus Buster product line. The company is packaging their exclusive formulas for Yin Po's new brand "Bye Bye Sinus", the first capsaicin nasal sprays available in China. The product line includes nasal sprays aimed at a variety of categories including pain relief, sinus & allergy, weight loss, menstrual health and cough & cold. The plan is to distribute Bye Bye Sinus in supermarkets, health food shops and big box department stores throughout China's largest cities.
Each Chinese product is produced in SiCap's FDA registered facility. According to Wayne Perry, it was important for Yin Po to have products with National Drug Code numbers as proof of American quality for Chinese consumers.
"It's a great partnership because SiCap can make quality products at a good price, and Yin Po can expand the market and branding in China. Because Yin Po is in China, they can also work directly with the SFDA and the trademark and patent offices to protect the brand so we can get a solid foothold in the Chinese market," says Perry.
As China's consumer base of 1.3 billion people continues to grow economically, the demand for American products is skyrocketing. According to the U.S. Census Bureau, America's goods and services deficit with China decreased nearly 4 percent from $23.8 billion in July to $22.5 billion in August. This is a significant decline for any single month period, a trend SiCap Industries is working hard to sustain.
A recent study by TNS, an international market research firm confirms Chinese consumers are clamoring for American made health care products at unprecedented rates. According to the study, 30% of consumers are demanding health care products made exclusively in the USA.
Many experts believe Chinese consumers are replacing their distrust for health products made in China with a new thirst for American made brands. Worldwide media exposure has recently pressured China into addressing the issues of counterfeit drugs, unregulated medicines and hazardous products. In July, China executed Zheng Xiaoyu, the former head of its State Food and Drug Administration (SFDA). Zheng was sentenced to death for taking bribes to approve substandard medicines including an antibiotic blamed for atleast a dozen deaths. While the new leaders of the SFDA have vowed to address internal problems, many Chinese citizens have completely lost faith in domestic healthcare products.
As China struggles to overcome enormous public health issues due to pollution and overcrowding, consumers are in dire need of over the counter medicines, particularly in the sinus, allergy and headache categories. With the first shipments of Bye Bye Sinus already on their way to China, SiCap Industries is projecting a 600% increase in overseas sales for 2008 which could boost total company revenues by more than 100%.