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Singapore, for instance, prohibits the use of coptis chinensis, an ingredient in Dahuoluo pills that treats rheumatism and strokes. In an effort to enter the Singaporean market, Tongrentang had to restructure components of the pills.
"Every country has its own unique standard for regulating TCM, and all we can do is to tailor-make our products," said Ding. "That strategy has, however, led to an increase in costs."
While Tongrentang fared well in Asia, its journey into Western markets has been a bumpy one.
In the United States, the Food and Drug Administration recognizes some TCM products as "dietary supplement" while Australia only acknowledges some as healthcare products. That means Tongrentang products are not covered by medical insurance programs, posing an acute impediment to its acceptance and accessibility.
On top of those stumbling blocks came the EU's ban on TCM. In May 2011, all unauthorized TCM products were pulled from shelves in the EU. Under a directive announced in 2004, a seven-year grace period was given to manufacturers of herbal medicines to register their brands. No Chinese TCM producers were able to obtain a license due to high costs and difficulties meeting the EU's stringent criteria.
As the world's biggest herbal medicine market, the EU accounts for more than 40 percent of the world's herbal medicine sales.
"Tongrentang was less affected because of its limited presence in the EU," said Ding.
Despite the setbacks, Tongrentang remains committed to the European market, she added. "The next step is to reinforce consumer education about TCM and lay a solid groundwork for future development."
The real dilemma is that Chinese people have been using TCM for thousands of years, but most Westerners know next to nothing about this ancient medicine, said Ding.
Efforts to boost global recognition of TCM are already underway. Tongrentang has spared no effort to make its products and packaging more user-friendly and has added detailed instructions in local languages. But what set Tongrentang apart from competitors were attempts to lure customers with its cultural attractiveness.
Ding said Tongrentang is making preparations to launch a Chinese culture center in Warsaw, capital of Poland. The center plans to host exhibitions to display traditional elements of China's culture, such as TCM, paper-cutting, tea and martial arts.
In another move, the Tongrentang store in Dubai has joined hands with the Confucius Institute to hold seminars and lectures about TCM. In Australia, the company invited local primary school students to visit TCM stores and hear stories about the history of Tongrentang.
"Those stiff efforts are part of our deep commitment to sparking customer interest with the charm of Chinese culture and increasing their understanding about TCM," said Ding.
For Chinese firms eyeing global markets, lack of experience can undermine cross-border operations. Managing an overseas workforce and dealing with local unions also proved a challenge that Chinese companies did not anticipate and have been unable to handle. Tongrentang is no exception.
"It takes only three months for Tongren-tang to open a new store in China. But outside the country, it takes at least half a year," said Ding.
The cultural sensitivity needed to establish a global footprint can not be achieved overnight. But when it comes to decision-making in joint ventures, Tongrentang has tried to have a greater say. The company has a 51-percent stake in joint ventures in Malaysia, Indonesia and Canada.
"Maintaining a majority stake is the only way to ensure that our overseas stores retain the original Tongrentang characteristics, no matter how far away they may be from China," said Ding.
Although it has been cautious, Tongrentang faces looming risks overseas, such as local economic downturns, higher labor costs, fake and counterfeit products, as well as intensifying competition.
"With strong brand influence and superior medicine quality, we have confidence to overcome those challenges and become a real global player," Ding said.
Tongrentang
The prestigious family business of Tongrentang was established in 1669 during the Qing Dynasty (1644-1911). In 1723, it was appointed as the sole supplier of medicinal herbs to the royal court.
Tongrentang has more than 19,000 employees at home and abroad. It owns 64 overseas chain stores in 16 countries and regions, as well as 18 wholly owned or joint venture companies handling export businesses.
The company has maintained double-digit growth in exports in the past 15 years. In 2011, Tongrentang exported $33.92 million of TCM products, accounting for nearly 20 percent of the country's total and making it the largest TCM exporter of China.
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