Consumer products business

Sen is a retailer of TCM based consumer lifestyle products and services in the UK. Since inception in 2001, Chi-Med has focused on brand creation, consumer and geographical market research, product and packaging development, pilot store design implementation and modification, regulatory research and consultation and general development of the "Sen" brand.

The Sen London pilot store, which opened in South Molton Street, Mayfair in December 2002, sells TCM health supplements, a broad range of TCM-based products (such as teas, beverages, vegetarian snacks and foods, toiletries and body care and skin care products) and TCM-based healthcare therapies (such as acupressure, reflexology, Chinese massage and acupuncture). The store also offers personal consultations with qualified TCM practitioners, and houses a "Liquid Health Bar".

Chi-Med believes the TCM concept of natural botanical health can be applied to most consumer products categories such as food & beverage, beauty, and personal cleansing. We intend for Sen to establish a reputation as the leading TCM brand in the West through a one-of-a-kind premium product and service offering.

The Group has expanded its consumer product portfolio to over 250 items in categories such as teas, body care and skin care. It is expected that a further 200 items, in both existing and new related categories, will be needed to support our own standalone shops. In addition to these consumer products, TCM services (e.g. acupuncture, acupressure, reflexology, and facials) represent a key reputation building block and income source.

To start, Sen had to build a reputation as an expert in the field. We believe this is being achieved by continuing to offer sophisticated western consumers high quality TCM products and services, as we have done for the past five years. Given the regulatory constraints surrounding TCM and herbal medicines, as well as our desire to test multiple ranges of consumer products, a retail format has been chosen to start pilot testing the Sen brand and product portfolio. The objective of the Group, however, is to expand beyond our own shops by launching select Sen consumer products internationally through luxury retailers.

At the end of 2007 Sen operated a chain of seven shops in central London including: Mayfair, King’s Road; Knightsbridge (Harvey Nichols); Kensington; Westbourne Grove; Green Park; and the City. The UK strategy of the Group is to continue to open new shops in central London and by end-2008 Sen targets to have twelve shops, allowing for a more aggressive, targeted PR and marketing programmes.

In addition to our own UK shops, the Group is now planning to sell Sen products internationally through luxury retail chains, starting in France. Preparation for this expansion has taken almost two years, involving considerable organisational time and expense. Over 100 Sen consumer products are being registered in France under EU regulations. All product claims have been fully supported, all packaging and marketing materials have been adapted to be appropriate for both English and French markets. Importantly also, both the Sen commercial and product supply organisations have been built up to support this expansion. This investment will enable Sen to expand luxury distribution internationally, thereby transforming the potential scale of the business over the coming five years.

http://www.senhealth.com