5 years after launching the product, it is now list on the emerging stock market! How does Daiken Biomedical act as a "wishing fountain" for customers and quickly develop 40 products?

For a company that was established in 2018 and only launched its products in 2019, the launch of health food company Daiken Biomedical list on the Taiwan Emerging Stock Market  in October 2024 has been very fast. Compared with the speed of listing, its financial performance is not inferior. Revenue in 2023 will grow by 34.52% to 1.19 billion yuan, with gross profit margin approaching 70%.

Chairman Zhang Jiaming said with a smile that the parent company is Sunfun Info, a dating platform i-Part. After more than ten years on the market, its market value was only 9 billion yuan. The market value of Daiken Biomedical exceeded 10 billion yuan on the first day it was launched (it is now stable and higher than 9 billion).

Daiken Biomedical's main products, including fish oil, lutein, etc., were originally developed to solve the "three highs" and "eye" problems of team members. Zhang Jiaming said that the company's original intention was to "solve the problems of himself and his family." ", just don't lose money.

From solving my own problems to wanting to help more people

Starting from taking care of the needs of colleagues and family members, what's next? Daiken Biomedical asks consumers to make wishes and solve problems, and collects these problems every six months to decide the products to be launched next.

For example, the beauty series of collagen drinks, children's fish oil gummies, good sleep sesamin, etc. are all the results of wishes coming true. Children's fish oil gummies have received feedback from users that adults' fish oil can't be swallowed by children, so they have developed small particles and gummies packaging.

Daiken Biomedical has developed more than 40 products so far. An important factor in being able to play the role of "wishing fountain" is a solid product development path. First, the product requirements (problems to be solved) are confirmed, and then the R&D team reads journals and cooperates with domestic and foreign research institutions such as the University of Illinois in the United States and Taiwan's International Medical University for clinical experiments.

After designing a formula that is effective in clinical trials, we then go around the world to find raw materials. "It's a lot like being a treasure hunter." Zhang Jiaming said that General Manager Lin Dongqing, who has a pharmaceutical background, visits pharmaceutical factories around the world and participates in biotechnology and medical exhibitions. "You have to be diligent and conscientious enough to find raw materials, and you have to go all over the world." The current fish oil products are cooperated with German pharmaceutical companies, the children's fish oil gummies are imported from Norway, and the partner of lutein is an American company that treats macular degeneration. The largest pharmaceutical company.

After you have the raw materials, you can find a foundry to produce samples for tasting. Suppose there are three fish oil factories. Everyone will say that they are very good, so they have to open samples for testing and report back every day or every week. For example, after trying lutein, the company borrowed a multi-million dollar instrument to measure lutein under the eyes. We are also collaborating with a medical university to test the moisture content of tears in eyes with dry eye syndrome. Zhang Jiaming said that it usually takes about three months to test, but changes can often be seen in two weeks. "That's why we dare to guarantee to consumers that refunds will be issued within 30 days if the product is invalid."

"Effect" is the best marketing, bringing Taiwanese brands to the world

Zhang Jiaming emphasized that the company does not have a pipeline (schedule) for launching new products, because if there is, there will be pressure to launch the product, and if the results are not good, it will still be launched. The purpose of establishing a brand is that the product must be effective. There are also products that have been promised on the first day but have not yet been commercialized. They are stuck in the "effective, but not effective enough" stage.

At first, Fish Oil quickly expanded its popularity by recruiting artist Chen Meifeng as an endorser and spending a large marketing budget. Zhang Jiaming said that the total marketing budget has not increased in the past few years, which means that the proportion of marketing relative to revenue has declined. Because it is effective, consumers will recommend and give feedback, so revenue and profits continue to increase, and the net profit margin will increase from 2021 to 2021. It will jump from 4% in 2022 to 10% in 2022 and 13% in 2023. Zhang Jiaming said half-jokingly and half-seriously, "I think good deeds are rewarded, and everyone really recognizes and loves you."

When it comes to being on the market, Zhang Jiaming said that when he thinks of health food now, he doesn't think of Taiwan. He may think of Japanese medicinal health products and Australian natural foods, so he wants to spread his products around the world. Japan's Daiken Biomedical, established in 2024, is a 100% subsidiary of Taiwan's Daiken Biomedical. Japanese products have zero tariffs in Southeast Asia and will be more competitive in terms of brand or price. On the other hand, we also go to these markets to find more good raw materials, bring them back to Taiwan, and take them out to the world.

Finding raw materials is a lot like being a treasure hunter. You have to be hardworking and serious enough, and you have to go all over the world.