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The archive · Marketing & Growth · Strategic decision · 2019–2020

Tongrentang turns its 351-year-old pharmacy into goji-latte 'Zhima Health' cafés

Beijing Tongrentang Health opens Zhima Health concept stores where goji lattes and herbal drinks lure young customers; TCM clinics and retail sit upstairs.

Tongrentang Health (同仁堂健康)

The ideaRebuild the pharmacy as a wellness café: goji lattes and herbal drinks make 'medicine' a daily ritual for the young, with diagnosis, therapy and TCM retail upstairs.substantial

What it had to solve

Tongrentang Health, part of the 351-year-old Beijing Tongrentang group, faced sliding retail sales and a store model that younger urban shoppers no longer visited. Its CIO, Yu Ruixuan, led a multi-year project to rebuild the brand around high-frequency health products.

How it works

Tongrentang (同仁堂), the Beijing medicine brand founded 351 years ago, had spent decades as a purveyor of traditional remedies. By the late 2010s its health-products arm faced the same problem as many Chinese heritage brands: sales were sliding, and young urban consumers associated it with their grandparents' pharmacy, not with their own lives. Tongrentang Health's CIO, Yu Ruixuan, concluded that the fix was not a new product line but a new kind of store.

In October 2019, the first Zhima Health (知嘛健康) store opened in Shuangjing, Beijing. It looked like a modern café — coffee bar, pastry case, clean lines — but the decor was made of herb jars and walls of TCM ingredients, and staff in white coats moved between the counter and consultation rooms upstairs. The menu pushed 'medicinal foods': goji berry lattes, monk-fruit americanos, cinnamon cappuccinos, herbal soups and teas, all built on the Chinese idea of shiyao tongyuan (food and medicine share one source).

The store was deliberately layered. A 500 sq m ground floor carried roughly 1,000 products and made drinks the affordable, daily reason to enter; the second floor held TCM consultation, prescriptions and physiotherapy, the high-value services the group knew how to deliver. A membership program and a menu that changes every 15 days were designed to turn one-off novelty visits into a health routine — coffee as the loss leader, care as the margin.

The bet paid off in attention first. Zhima Health became a 'new internet-famous store', with long queues, influencers filming goji latte pours, and coverage across Xiaohongshu, Dianping and national media. By August 2020, weekend traffic reached 1,000–1,500 visitors a day, daily revenue hit around ¥100,000, and revenue since opening surpassed ¥7 million against a build cost of about ¥6 million. Three Beijing stores were operating, and the team spoke of standardizing the format for wider expansion.

Why it lands

  • High-frequency drinks give young people a daily reason to enter a 351-year-old brand that they previously approached once a year, if at all.
  • Layering a low-barrier café over high-value TCM services gives novelty traffic a natural upgrade path into consultations and products.
  • Mixing modern café codes with visible heritage — herb walls, white coats, traditional recipes — makes the contrast itself the story people share.
  • Grounding the menu in shiyao tongyuan lets the new format borrow the parent brand's medical credibility, which imitators cannot easily copy.

What it did

By mid-2020 the café was a social-media 'check-in' hit: weekend traffic hit 1,000–1,500 visitors a day with revenue around ¥100,000, goji latte alone sold over 200 cups on busy days, and revenue since opening passed ¥7 million against a ¥6 million build cost. Three Beijing stores operated by August 2020, with 20 planned that year.

Write-upPhoto feature: inside the Shuangjing Zhima Health store

What you can take

A heritage brand turns expertise into a daily habit: pair a cheap, high-frequency product such as coffee with authentic high-value services, so novelty traffic has an upgrade path.

Since then

By August 2020 only three stores were open against an ambitious rollout target, and executives said the number mattered less than a standard, replicable model built on service procedures. Media commentary cautioned that 'check-in' crowds do not guarantee lasting custom in a crowded coffee market. Zhima Health nonetheless became the media archetype of the heritage-brand 'guochao' café experiment — a 351-year-old pharmacy selling goji lattes was retold across Chinese business pages as proof that old brands could re-enter young lives through daily, low-threshold products.

Sources

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