In the Wuling Mountain area at the junction of Hubei and Chongqing, a local traditional Chinese medicine (TCM) company named "Youyoucao Eyü" is quietly sparking an internet revolution. This traditional pharmaceutical enterprise, deeply rooted in the Eyü region for years, recently announced that within the first month of its digital platform launch, online orders accounted for over 30% of total orders, marking a shift for this regional leader from the "depths of the mountains" to the "cloud."
"We are not simply opening an online store; we are using the internet to restructure the entire industry chain," said Zhang Zhenhua, CEO of Youyoucao Eyü, during an interview at the company’s digital command center in Enshi, pointing to real-time data flashing on a large screen. On the screen, every link is clearly visible—from the Coptis chinensis base in western Hubei to the Coptis chinensis trading market in Shizhu, Chongqing, from farmers receiving orders on their phones to the real-time tracking of logistics vehicles.
This transformation began two years ago. Facing pain points in the traditional TCM circulation chain—such as multiple intermediaries, information asymmetry, and difficulty in quality control—Youyoucao Eyü decided to build a full-chain digital system covering "planting, processing, trading, and traceability." In several core production areas along the Eyü border, the company equipped contracted farmers with smart agricultural recorders that use AI recognition technology to monitor the growth environment of medicinal herbs in real time. Meanwhile, a blockchain traceability platform developed in collaboration with Chongqing University of Posts and Telecommunications ensures that every batch of herbs can be traced from harvest to terminal pharmacy.
"In the past, farmers had to rely on middlemen to sell their goods. Now, through our 'Eyü Bencao' mini-program, prices are transparent, and they can directly connect with pharmaceutical factories and chain pharmacies nationwide," explained Li Min, who oversees supply chain operations. Since its launch three months ago, the platform has attracted over 2,000 registered farmers, with an average daily transaction volume exceeding 800,000 yuan.
On the marketing front, Youyoucao Eyü has also taken an unconventional approach. Partnering with local cultural and tourism authorities, the company launched a live-streaming project called "Cloud Tour of the Eyü Medicine Valley," focusing on the herb planting bases and traditional processing workshops in the Wuling Mountains. One live-stream session on "Coptis chinensis harvesting" attracted over 500,000 viewers, driving a 170% year-on-year increase in sales of Coptis chinensis products. This "content + e-commerce" model has given herbs from the deep mountains a new brand premium.
"The internet is not a panacea, but for regional enterprises like us—with resources and quality but lacking channels—it offers an opportunity to overtake on a curve," Zhang Zhenhua admitted. The transformation has faced its share of challenges: some older farmers are not comfortable using smartphones, logistics costs remain high, and there has been resistance from traditional wholesalers. However, the company has gradually overcome these issues by setting up village-level service stations, forming a strategic partnership with SF Express, and launching a "Farmer Partner" program.
Industry observers note that the case of Youyoucao Eyü is emblematic. Against the backdrop of the TCM industry’s overall online penetration rate below 15%, this company has used internet tools to bridge the "last mile" from production areas to consumers, while leveraging digitalization for quality control and brand building. This provides a replicable model for the internet transformation of traditional agricultural enterprises.
Currently, Youyoucao Eyü is planning to export this digital system to surrounding areas near Eyü and is exploring deeper collaborations with platforms such as JD Health and Alibaba Health. Against the backdrop of a recovering TCM market in 2024, the internet journey of this regional pharmaceutical company may just be beginning.