Core Insights - The company, Xiangyi Bencao, highlighted the challenges in modernizing and scientific validation of traditional Chinese herbal medicine during the 2025 China Fragrance and Cosmetic Industry Annual Conference [1][3] - The external challenges include intense market competition and a growing focus on effective ingredients, necessitating differentiation in the herbal product offerings [1][3] - Internally, the company faces challenges in product planning, balancing the use of traditional herbal ingredients with modern scientific components [3] External Challenges - The market environment is highly competitive, with consumers increasingly focused on effective ingredients such as niacinamide, leading to a need for differentiation in herbal products [1] - The emphasis on understanding the mechanisms and targets of herbal ingredients poses a challenge for the company in standing out in the crowded market [1] Internal Challenges - Product planning involves deciding between combinations of traditional herbal ingredients or integrating them with modern scientific components, requiring clear strategic alignment [3] - The technical difficulties in understanding the mechanisms, extraction processes, and formulation of herbal ingredients complicate product development [3] Differentiation and Competitive Advantage - Xiangyi Bencao has committed to a long-term strategy focused on traditional herbal medicine, facing numerous challenges in this path [3] - The brand's differentiation lies in its core product lines, utilizing key active ingredients like Rhodiola, Camellia, and Gentian, and exploring synergistic effects between different plants [3] - The company draws inspiration from traditional remedies and verified formulas, translating them into innovative products [3] Technological Integration - The company employs AI-driven precision development, leveraging nearly 20 years of research on Rhodiola to enhance the R&D process from raw materials to formulation [3] - AI technology significantly improves efficiency in matching ingredients with efficacy mechanisms, streamlining the experimental validation process [3][4] - Future R&D will focus on deep exploration of herbal materials and the integration of AI in plant research, alongside interests in synthetic biology and biopharmaceuticals [4]