Daewon Pharmaceutical is revamping its health supplement brand, Daewon Health, to accelerate its expansion in the consumer healthcare (CHC) sector. The company is targeting the market by varying its product offerings and marketing strategies based on consumer touchpoints such as home shopping, health and beauty stores, and online platforms.
According to Daewon Pharmaceutical, the company is focusing on a 'channel-customized portfolio' for its health supplement business. This marks a shift from the previous approach of supplying generic products across multiple distribution channels to a more segmented strategy tailored to the characteristics and purchasing motivations of consumers in each channel.
This strategic shift reflects changes in consumer patterns within the health supplement market. The Korea Health Supplement Association reports that over the past five years, the market has rapidly transitioned from family-oriented consumption to individual health concerns. As health supplements become a regular part of daily management, the consumer base and purchasing motivations are becoming more diverse.
Competition in the market has intensified. According to the Ministry of Food and Drug Safety, the number of specialized health supplement distributors has surged from about 3,200 in 2019 to over 5,630 this year, a 73% increase. This indicates that differentiation through generic products alone has become increasingly challenging.
In response to market changes, Daewon Pharmaceutical has refined its product strategies by channel. In the home shopping sector, the company is enhancing its lineup of traditional health supplements focused on high potency and large volumes, targeting middle-aged consumers who prioritize brand trust and functionality. Its flagship high-potency albumin product, 'Albumin King,' sold out during its first home shopping broadcast and has achieved 13 consecutive sellouts. Following this success, offline purchase inquiries have increased, leading to expanded sales channels in major department stores nationwide.
Conversely, in health and beauty stores like Olive Young, the company is focusing on convenient products aimed at younger consumers. It is promoting easy-to-consume items such as 'Honey Sleep Shot,' 'Stress Shot,' and 'Nose Relief Shot' to broaden consumer engagement. Last month, it also operated a pop-up store centered around these products.
For online channels, Daewon plans to expand its portfolio of small-packaged products and customized offerings focused on specific functionalities to meet segmented consumer demands.
A company representative stated, "The direction Daewon Health is focusing on is diversifying product lineups tailored to the characteristics of each distribution channel. We are developing and operating channel-customized products by analyzing channel characteristics and consumer lifestyles." The representative added, "Our core strategy is to expand consumer touchpoints by dualizing the structures of home shopping, offline, and online commerce channels."
The brand strategy has also been revamped. Since entering the health supplement market in 2017 with its probiotics brand 'Jang Daewon,' Daewon Pharmaceutical has expanded its product range and rebranded to 'Daewon Health' last year. This rebranding aims to enhance consumer recognition and provide a more intuitive brand identity.
Based on this strategy, the company plans to rapidly grow its health supplement business. During a recent investor relations meeting, Daewon set ambitious revenue targets, aiming to increase Daewon Health's sales from 8.7 billion won last year to 40 billion won this year, 70 billion won by 2027, and 100 billion won by 2028.
A Daewon representative remarked, "As health concerns become increasingly segmented, we are continuously expanding our product range to address these needs. We are focusing on providing products in optimized forms at the moments consumers need them, rather than simply increasing quantity."
* This article has been translated by AI.
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