For "look-alike drugs," tourists are the biggest market, and tour groups are the primary sales channel. In response to the recent online buzz about cheap Hong Kong tour packages with prices as low as 18 yuan (RMB) per person, a Wen Wei Po reporter recently signed up for a budget day tour to Hong Kong departing from Shenzhen. The reporter was taken by the tour guide to a designated pharmacy in To Kwa Wan for shopping, where they were subjected to high-pressure sales tactics pushing various "look-alike drugs" priced at several thousand yuan each.
These look-alike drugs are not available in other pharmacies on the market and are suspected to be products specially supplied for tour groups. The tour guide also chimed in throughout, endorsing the medicines, which attracted many tourists to make purchases, with some even spending tens of thousands of yuan – enough to cover the losses of the cheap tour that included one meal and transportation.
The reporter's in-depth investigation further revealed a subtle relationship between these travel agencies and the agents for several heavily promoted look-alike drugs, leading to suspicions that the group operates under the guise of running cheap tours but is actually focused on selling look-alike drugs.
To investigate the unbelievably low cost of these budget tours, the reporter previously posed as a mainland tourist and signed up for a day tour to Hong Kong from Shenzhen. The pre-distributed leaflet listed one of the itinerary items as "free time at a local Hong Kong pharmacy/cosmetics store," but did not specify the exact location. The morning schedule mostly involved staying in areas like Tsim Sha Tsui and Hong Kong Island. However, after lunch, the group specifically made a detour to the designated pharmacy in To Kwa Wan.
Upon getting off the bus, the reporter found that the pharmacy had a separate entrance and exit, enforcing one-way flow. Several staff members wearing fluorescent vests were outside maintaining order and preventing non-tour group members from entering. Although it was the first day after a holiday and not peak tourist season, the pharmacy was still crowded with tourists.
Promoting two "flagship" look-alike drugs
Several staff members in white coats speaking Mandarin warmly surrounded the group as soon as they arrived. The staff focused on promoting two "flagship" look-alike drugs, whose packaging and names were similar to well-known products.
The staff went to great lengths to promote these two products. No matter how the reporter expressed interest in other medicines, the conversation was always steered back to those two items. When the reporter showed a photo of the genuine original product and asked why the packaging didn't match, the shop assistant explained that the version in the store was "for export only," met "international standards," had "higher purity," and emphasized that "these goods are only available in Hong Kong, you can't buy them elsewhere."
Besides counter staff, there were also mobile staff moving around the store. Seeing the reporter hesitating to order, they proactively struck up conversations. Their tactics were even more intense than typical hard selling.
While they smiled throughout and maintained a friendly attitude, there was an underlying strategy – seizing every opportunity and tailoring their pitch. Noting the reporter's relatively young age, the staff frequently linked medicine purchases to filial piety, saying things like "Buying those pills for your parents is true filial piety," or trying to build rapport with "You're about the same age as my son, why would I lie to you?"
When the reporter indicated a limited budget, they pushed "more cost-effective" drugs. When the reporter repeatedly stated they only intended to buy everyday medicines costing a few hundred yuan, the staff immediately retorted, "How can that be the same?" They even seemed willing to forgo sales of other products to focus on pushing these two high-priced items.
The reporter also discovered that the two products heavily promoted by the staff were produced by the same agent. Products represented by this agent were never seen in other ordinary retail pharmacies or cosmetic stores.
Aside from the two key look-alike drugs, the reporter noticed that most of the medicines sold in the store were copycats, largely lacking registration numbers. When the reporter asked about the difference between a look-alike drug and the genuine product (shown in a phone photo), the shop assistant claimed the former was a "Hong Kong version" and the latter a "Japanese version." The few genuine products available, like a 7ml bottle of Siang Pure Oil, which typically costs under HK$20 in regular pharmacies, were priced arbitrarily here at HK$43, indirectly enticing tourists to buy the lower-priced look-alike drugs.
One box of "health supplement" costs thousands
The group stayed in the pharmacy for about 40 minutes. During this time, the reporter observed a large number of other budget tour group members entering and exiting. Many, worn down by persistent persuasion, purchased some medicines and left carrying large and small bags. A single box of health supplements often costs several thousand yuan, and spending over ten thousand yuan is not uncommon.
After leaving the pharmacy, the tour guide and leader continued to endorse the medicines. On the tour bus, they scarcely introduced Hong Kong's landmarks but instead talked about Hong Kong medicines, for example, vigorously promoting the copycat Angong Niuhuang Wan just sold at the pharmacy. They claimed the product was jointly produced by Hong Kong and Beijing, with the Hong Kong version being superior to the Beijing version because "the mainland uses artificial musk, Hong Kong uses natural musk, (the medicinal) effect is vastly improved."
The tour guide even used "Hong Kong law explicitly prohibits selling fake goods" as a guarantee, emphasizing that "Hong Kong tour guides operate differently from those on the mainland. If I take you shopping, I'm not worried you'll come after me. If you paid too much or bought fakes, call me."
Complex profit chain
The Hong Kong day tour the reporter joined cost only 40 yuan per person in a group purchase, but some tour members said they signed up for less than 20 yuan through other platforms. The tour included 8 free admission attractions, lunch, and transportation, making it more economical than visiting Hong Kong independently.
For the travel agency, the cost for a group of 54 people – covering transportation, lunch, and the guide's salary – amounts to at least HK$5,000. With a maximum fee of 40 yuan per person, the total income for the whole group is only 2,160 yuan (around HK$2350) at most. How do they make a profit? The investigation found that the tour group appears to be a front, aiming not to profit from the tour fees but from the copycat medicine profit chain behind it.
The budget tour the reporter joined was organized by a Hong Kong travel agency, which is a member of the Travel Industry Council of Hong Kong. The two products heavily promoted at the pharmacy are exclusively distributed by [X] Pharmaceutical Company Limited. Furthermore, the pharmacy also sells several medicated oils not seen in other pharmacies, also distributed by [X].
One industry insider revealed that the "one-stop" model involving travel agencies, pharmacies, and look-alike drugs is not uncommon; it's even an open secret within the industry. Low tour fees cannot cover costs, so travel agencies rely on high-profit items to offset expenses. Besides traditional shopping items like jewelry, look-alike drugs have become a popular choice in recent years due to their low cost and high return characteristics. These products often mimic the packaging and names of genuine products to confuse consumers, making slight alterations to circumvent legal risks.
Subsequently, the reporter compiled information on look-alike drugs and found that there are at least twenty to thirty major distributors and agents operating them in Hong Kong. They discovered these entities have close relationships, and some even have travel agency backgrounds. For example, a man surnamed Chow owns K Pharmaceutical Company, which produces a large number of look-alike drugs.
Seeking responsible person
The reporter then went to K Pharmaceutical Company's address as listed on the product, only to find it was a travel agency at that location. Taking a chance, the reporter asked the travel agency staff, "Is this K Company?" Unexpectedly, the answer was affirmative. When the reporter stated they wanted to speak with the person in charge of K Company about business cooperation, the staff said the responsible person was not there and the reporter needed to arrange a meeting via email.
However, the email address provided was not the one listed on K Company's official website. The staff mysteriously wrote down a different email address and handed it to the reporter.
Puzzled and curious, the reporter continued investigating and found that the travel agency's director and K Pharmaceutical Company were indeed both owned by the same man, Chow. Public information shows Chow comes from a family of traditional Chinese medicine practitioners and is also a committee member of an industry organization for mainland tour groups to Hong Kong. Coupled with a travel agency, he has no worries about sales channels, making his business landscape quite comprehensive.
(Source: Wen Wei Po; Journalist: Li Qianxun, Guangji; English Editor: Darius)
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