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Dr. Chen Has Big Plans for Sunrider and the Sunworld Dynasty™ Hotel Taipei
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Source: China Times
Title: Sunrider’s Business Transformation is Successful; Focus is now on the Future of Dynasty™ Hotel.
Date: 9-19-2009
TAIPEI – In response to the speculation that Sunrider will expand into the real estate business after its involvement in the hotel industry, Dr. Tei-Fu Chen, Sunrider’s chairman of the board, said, “Right now there is no such plan.” Because of the internal renovation of the Sunworld Dynasty™ Hotel Taipei, which will start next year and is expected to be completed in two and half years, the hotel is forecast to become a shining example in the hotel industry. Dr. Chen will use this project to quell rumors that he’s expanding into the real estate industry.
Last year, Dr. Tei-Fu Chen was honored with a “World Economy Top 10 Lifetime Achievement Award [for] Chinese,” and earlier this year, he was named a “Hero of Philanthropy” by Forbes Asia Magazine. He founded Sunrider in 1982 with his wife Dr. Oi-Lin Chen; today Sunrider does business on five continents, in over 42 countries, and with over 7,000 Authorized Stores worldwide.
Dr. Chen said this company has not only created great wealth for him, it also lets his distributors achieve financial independence and live a stable life. In addition, Sunrider helps enable its loyal customers to receive the most precious gift of all—health.
In 2006, Dr. Chen acquired Abacus Hotel, later changing the name to Sunworld Dynasty™ Hotel Taipei. At that time, industry insiders speculated about this “new face” in the hotel industry. Following the rebound in the real estate market, many outsiders began to wonder whether or not Dr. Chen intended to invest in large-scale land development. In response, Dr. Chen says that at the current stage he’ll focus on operating his hotel business; his goal is “to give everyone a fresh experience with the revitalized hotel.” He emphasized that there are no plans to expand into the real estate industry at this time.
About his own industry, Dr. Chen said, “Opening Sunrider® stores can help highlight the brand name; let the products speak for themselves.” To help the veteran distributors open up their own stores, Dr. Chen set the initial franchise fee at a very low level; headquarters will also supply products and provide a complete package in training and franchise counseling. Based on Dr. Chen’s blueprint, within two years, Sunrider can reach the goal of opening 2,000 stores in Taiwan and reach billions (NT) in profits.
The Sunrider Taiwan branch office opened in 1987, and in the beginning it used direct selling to expand the market. In 2009, Sunrider devoted all its energy into transforming its business model into a franchise-type business, and in less than eight months it has already opened 347 stores in Taiwan—the result shook the industry. Dr. Chen added with a smile, “Actually, to transform our business into franchise stores, in the beginning, the profits will be negative.” He indicated there are about 260 direct selling companies registered in Taiwan, and the number of direct selling distributors is in the millions; however, their combined yearly profit is less then that of the 7-Eleven retail chain store, which has 4,000 stores in Taiwan. The product quality of direct selling companies varies greatly and the market is in chaos. These are the main reasons that caused Dr. Chen to decide to take the short-term loss, and dedicate Sunrider’s efforts into transforming its business.
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