It is undeniable that the pharmaceutical retail industry has too much space for mergers and acquisitions, and the largest companies account for only 3% of the entire market. Under the tide of capital, the main focus of large-scale chain pharmacies is integration of mergers and acquisitions. Small and medium-sized pharmacies are fighting for survival. The breakthrough of new retail may require new forces or third parties in foreign industries. It is difficult for traditional pharmacies to subvert themselves. Internet, artificial intelligence, telemedicine , supply chain management, chronic disease management and other explosions.

A good industry is more than twice the growth rate of GDP. A good company is more than twice the growth rate of the industry.

According to the data of Zhongkang Information, the pharmaceutical retail market is expected to have a total scale of 364.8 billion yuan in 2017, an increase of 8% year-on-year, which is 0.5 percentage points lower than the 8.5% growth rate in 2016. According to the National Bureau of Statistics, the GDP growth rate in 2017 is close to 7%. The domestic retail pharmacy industry is slightly higher than the GDP growth rate. From a numerical perspective, this is an "ordinary" industry.

After talking with a number of pharmaceutical retail practitioners, it was found that everyone's operating pressure is greater year by year, the indicators are difficult to complete year by year, and the anxiety of survival and development is everywhere.

However, from the appearance, this industry is really too hot, mainly due to the hot capital, the four listed companies (one heart hall, the people's large pharmacy, Yifeng pharmacy, Dashenlin), four private fundraising consortium (Da Mo , Huatai, base stone, sorghum) are insane mergers and acquisitions. Take Yifeng Pharmacy as an example. The latest announcement on January 5, 2018 shows that it originally planned to build 1,000 stores in three years, but only 392 have been completed in the past two years. To this end, Yifeng Pharmacy decided to change “Build” to “Accept” and announced the acquisition of three companies, including Jiangxi Tianshun Pharmacy, which will be integrated into 244 pharmacies.

It is undeniable that the industry has too much space for mergers and acquisitions, and the largest companies account for only 3% of the entire market.

Where will the industry go in the future? The following four factors have a decisive effect on the production and development of domestic retail pharmacies: First, the medical reform policy determines the upper limit of the industry; second, the external environment, especially the rise of new retail, brings new opportunities to the industry; Third, the industry's management level is a limiting factor that can reach the upper limit; fourth, mergers and acquisitions dominate the industry's competitive landscape.

Retail pharmacies will carry prescription drug outflow requirements

In 2017, the pharmaceutical retail industry has indeed ushered in a number of positives, the comprehensive reform of public hospitals, the acceleration of separate medicines, and the expansion of prescriptions, but these favorable policies have not brought explosive growth to the pharmaceutical retail industry in the short term.

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A veteran of the pharmaceutical industry once said to the author: "When I first entered the pharmaceutical retail industry, I heard that medicine should be separated. However, after more than 20 years, the medicine has not been sold yet, and the medicine has not been separated!"

However, as the policy of separation of medicines continues to advance, the author firmly believes that the terminal value of retail pharmacies will become increasingly prominent.

Zero-addition of medicines in medical institutions has had a tremendous impact on retail pharmacies, greatly reducing the price advantage of pharmacies. The price of medicine in public hospitals has indeed been squeezed out a lot, but the price advantage of pharmacies does not exist. Previously, pharmacies had a price advantage of more than 30% compared with hospitals, and now many hospitals are cheaper than pharmacies, especially brand prescription drugs are almost upside down. In addition, the country has vigorously developed community health services in recent years, and the rise of community medical institutions has also weakened the convenience advantages of pharmacies.

Someone asked before, what opportunities can the grading clinics bring to the drugstore? Industry insiders agree that retail pharmacies will be the carrier of prescription drug outflow and grading diagnosis and treatment. Some experts believe that chronic disease management is the key to graded diagnosis and treatment. Indeed, those who just go to the hospital to prescribe drugs should be diverted to the community. And chronic disease management is a popular word in the pharmacy circle for two years. If the pharmacy can manage the chronic disease, it can still eat some cakes, but due to medical insurance policy restrictions (most pharmacies can only brush personal accounts), the upper limit is not high.

For the big dividends in which medicines are separated, pharmacies can only rely on “squatting”. Of course, they have to be “strong and strong” in order to survive. At the same time, they have to rely on their own performance and be “followed” by policies. In the process of separating medicines, there are still many problems that need to be overcome, such as prescription sources, professional pharmacy services, and medical insurance payments, from the full acceptance of out-of-hospital prescription services by retail pharmacies.

"Pharmacy + new retail" has come

Looking back over the past ten years, pharmacy innovation has experienced three stages: 2008-2011, “pharmacy + diversification”. In that era, pharmacy operators explored drugstores, maternal pharmacies, health supermarket pharmacies, home care pharmacies. Such as the innovative format; 2011-2016, "Internet + pharmacy", online pharmacies have become the weapon of many latecomers to overtake the corner.

Unfortunately, pharmacy diversification cases have failed, online pharmacies continue to be hit by policies, and the hope of pharmacy circle innovation can only be pinned on new retail.

What is new retail? At the Ali Yunqi Conference in October 2016, Ma Yun first proposed new retail in his speech. Ma Yun pointed out: “In the next ten or twenty years, there is no e-commerce, only new retail. New retail from this Replacing O2O has become the representative of the most advanced production methods."

In the past two years, the topic of new retail is inevitably mentioned in all pharmacy meetings. But the reality is that new retail is still at the conceptual stage for pharmacies. The pharmacy industry is not an ordinary retail industry, so the new retail in this industry is not simply a technology-driven, not just learning new promotion methods, display technology, CRM management can do a good job in pharmacies, after all, drugs are not impulse consumption, in “stimulating consumption” "There is no more supermarket industry in the industry."

Over the past decade or so, domestic pharmacies have been too addicted to “takenism” and have been paying attention to how to sell drugs, rather than focusing on how to serve customers.

Before the friend circle popular one paragraph, it can explain the problem. In ancient times, pharmacies would hang a pair of couplets: I hope that there will be no disease in the world, and it is better to put medicine on the dust. But now, the pharmacy will hang a big banner: buy medicine for 38 yuan and get 6 eggs.

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