From "Medicine"
to "Lifestyle"
How Wang Lao Ji grew profits by 15.87% in a saturated market—and the exact roadmap Singapore SMEs can copy.
"Most Singaporean brands fail overseas because they try to export their product exactly as it is. They refuse to adapt."
In 2025, Wang Lao Ji—a 197-year-old brand synonymous with "traditional medicine"—did the unthinkable. To break into Western markets, they didn't just translate their name; they reinvented their identity to "WALOVI."
The result? A 15.87% increase in net profit in H1 2025 and successful entry into Costco and Amazon US. Below is the strategic breakdown.
The "Localization Paradox"
For decades, Wang Lao Ji’s selling point was "curing internal heat" (shanghuo). This works in China and Singapore. It fails in Europe, where consumers don't understand TCM concepts.
The Strategic Pivot
Instead of educating the West on "internal heat," they rebranded to "WALOVI" and positioned the drink as a "Natural Plant-Based Functional Beverage." They aligned with the global wellness trend (like Kombucha) rather than the medical trend.
The SME Takeaway
Don't force your Singaporean context on a foreign market. If your "Unique Selling Point" requires a 10-minute explanation, it will fail. Pivot to a universal value proposition.
Supply Chain as a Weapon
Exporting heavy liquid from China (or Singapore) is a margin-killer due to logistics and tariffs.
The SME Takeaway
You cannot scale physical products globally by shipping from Tuas forever. You need a Decentralized Strategic Roadmap.
Innovation via Occasion
Traditional herbal tea is heavy and sweet. It doesn't fit the "casual Friday" or "nightlife" vibe.
The Pivot:
They launched "Sparkling Herbal Tea" and "Sugar-Free" variants. This allowed them to enter:
- Fine Dining: Paired with spicy food (replacing wine/Coke).
- Nightlife: Used as a mixer in cocktails.
The SME Takeaway
Is your product format limiting your usage occasions? Changing the form factor (e.g. from liquid to sparkling) can unlock entirely new markets. This is key to unlocking new Intellectual Property value.
Unlock the Full Strategic Report
The complete 20-page document includes the Financial Trajectories, International Can Matrix, and Museum Diplomacy Model.
Available exclusively to Singapore Registered Businesses.
