LKK Health Products Group: Fair operations to promote industry healthy development

Company Profile

LKK Health Products Group (LKKHPG) is part of the century-old Lee Kum Kee Group. Headquartered in Hong Kong, LKKHPG is a large-scale enterprise specializing in R&D, production and sale of Chinese herbal health products. LKKHPG consists of 4 divisions with a total of over 3000 employees: Infinitus (China) Company Ltd, Infinitus (Hong Kong) Company Ltd, Infinitus International Company Ltd, and Infinitus (Malaysia) Sdn Bhd. The China division was established in Guangzhou in 1992 and has since then set up 36 branches, 28 service centers and nearly 5000 exclusive stores in Mainland China.

Challenges

In the context of faster changing world and fierce market competition, that people are eager to ignore rules becomes a outstanding problem. For Infinitus Company, the first challenge to achieve sustainable business is, how to realize a strict self-discipline through its own standardized management, and further promote the healthy and orderly development of the industry.

Solutions

Standardized management and fulfillment of social responsibility is a necessary condition for enterprise sustainable development. Infinitus sets“Si Li Ji Ren” (Considering Others' Interests) as its corporate culture and code of conduct, and under the guidance of “Si Li Ji Ren ", the company adheres to standardized management. Infinitus holds that fair operation strategy mainly is embodied in the following three aspects:

Establish order and create environment for standardized management

As a socially responsible direct-sales company, Infinitus (China) Company Ltd has been consciously abided by the laws and regulations since its inception in 1992, and to safeguard the industry order, and set the correct behavior norms to mold harmonious market management atmosphere.

since 2007 when Infinitus got the direct –sales business license, it has introduced various management systems and rules when developing the market, such as "regulations for direct sellers”, “dealer codes” and “specific regulations on standardized management “, which plays a positive role in purifying the environment of direct selling and regulating the behavior of dealers .In order to implement these measures, the company also specially took effective measures to guarantee the result.

Infinitus cooperated with Hongdun Information Technology Center to compare the business licenses provided by dealers in order to ensure their business licenses are true and effective. 

Infinitus also launched cooperation with China Higher Education Student Information and Career Center sponsored by the Ministry of Education to strictly verify the business qualification of applicants, so as to prevent the full-time college students to be qualified as a business.

Respect and protect intellectual property rights of IT

Infinitus attaches great importance to the intellectual property of IT,and has hired professionals to set clear software management system to clarify the rules on obtaining and using intellectual property rights, and conduct regular check for the use of intellectual property rights. Before installing or using any software soured from informal channels, it must be assessed by the direct manager, and written approved by department heads and then reported to the ministry of science and technology.  The ministry of science and technology will assess the levels of risk.

Infinitus advocates the reasonable allocation of resources and makes it maximize the benefit. When the IT Department established "second generation distribution center" project in the user department, they needed to use a drawing software for reading charts, and drawings, but the software is not in the list of the office standard software, so the IT Department applied to the company's Finance Department to buy the software copyright, and recommended to buy the online version after compared and analyzed the online and the stand-alone version , making full use of the intellectual property license and improving the flexibility of use.

 

Establish management mechanism of intellectual property rights R&D for self-protection 

Infinitus pays greater attention to cultivating talents, and has established a complete system in talent introduction, training and incentive. The company rewards anyone who has contributed to the innovation and intellectual property protection work, fully arousing the enthusiasm and creativity of the developers and patent management. Infinitus also values the patent training for R&D technical personnel. The regular and irregular patent trainings in different levels improve the awareness for protecting intellectual property rights, and integrate the knowledge popularization and intellectual property protection into the research and development, production and market.
 

Achievements

In the IT service satisfaction survey in 2011, the option "I clearly know the company does not allow to use the pirated software," scored 4.13 points (five-point system), showing that Infinitus has improved the employee's perception of IT intellectual property protection, created the conditions to use IT software and equipment lawfully, and improved the staff awareness of the legitimate use of software.

 

From 2008 to 2011, Infinitus conducted over 60 herbal health products research, of which a total of 13 science and technology plan projects and more than 40 independent projects were approved by the state, Guangdong province, Jiangmen and the Xinhui District,  and over 30 of them were transformed into new products, 13 of them passed the health food approval and 7 passed the functional cosmetics - domestic cosmetics for special use approval; A total of 21 products were identified as "high-tech products in Guangdong province". There are 30 patents for invention (including 1 US patent ), and 13 have been authorized. Among the 12 patents for utility model,9 of them have been authorized and 3 were authorized as the patent for design. The company also actively participates in the formulation of national standards and industry standards. Now it is participating in the formulation of 12 national standards and 3 industry standards.

In terms of fair operation, Infinitus’s efforts shape the good brand effect and corporate image. Infinitus brand  has awarded the “Top Ten Most Credibility Brand" award issued by China Health Care Association from 2005 to 2007;In 2011, Infinitus brand   won the " China's 500 Most Valuable Brands " issued by World Brand Lab honor, with the 19.558 billion yuan brand value , ranking as the 49th.
 

Prospects

The fair operation of enterprise is the cornerstone of a harmonious society. Infinitus will adhere to the core values of “Si Li Ji Ren” (Considering Others' Interests) and set “carry forward the Chinese excellent culture, and create balanced, prosperous and harmonious healthy life "as its mission. It will also adhere to the “to do”concept of corporate social responsibility to promote the healthy and orderly development of the industry while strengthening the standardized management.