The cold wave of drug circulation hits the drugstore

Source: China Securities News 2015-01-06 2015, it may not be easy for pharmaceutical distributors Bidding for basic drugs and non-basic drugs in various regions is moving forward rapidly, bidding for medical insurance drugs is stagnant, distribution rate is not up to standard, blacklist system is implemented, online prescription drugs are lifted What's more tragic is that the growth of the overall sales scale of the industry hides water, and the growth rate of the industry has declined year by year These factors have forced the industry to speed up the reshuffle: in terms of hospital terminals, it is not easy for those small and scattered distribution enterprises to snatch food from the big and all-around giant bowl in the future; in terms of retail terminals, the lifting of the ban on online sales of prescription drugs may smash the job of physical retailers The decline of growth rate forced the pharmaceutical circulation industry to shudder at the blue book of pharmaceutical circulation issued by the Ministry of Commerce In 2013, the total sales volume of the pharmaceutical circulation industry was 1303.6 billion yuan, an increase of 16.7% year on year, down 1.8 percentage points from the same period of the previous year The scale growth of the pharmaceutical terminal market is the main driver of the growth of the circulation industry Although the total sales volume of the pharmaceutical circulation industry has increased, the growth rate has declined, making the competition among 16000 distributors in the industry more fierce According to xianxiaobo, marketing director of Sichuan Kelun new light Pharmaceutical Co., Ltd., the decline of industry growth can best reflect the current situation of the industry First wavelet explained that the year by year decline in growth rate proves that the circulation industry is gradually shuffling, and the industry began to develop towards collectivization, refinement and specialization "In the process of shuffling, circulation enterprises without their own characteristics and whose profits only come from ticket fees will be gradually eliminated That is to say, the development of the circulation industry will conform to the "28 law" of Commerce, that is, 20% of large-scale circulation enterprises will control 80% of the market share, so the phenomenon of many, disorderly and miscellaneous circulation industries will be gradually improved " The data of the Ministry of Commerce confirms the view of xianxiaobo, and the "28 laws" of the circulation industry is developing According to the research results of the Ministry of Commerce, pharmaceutical circulation has become the sub industry with the fastest concentration increase in the pharmaceutical industry In 2013, there were 12 drug wholesale enterprises with main business income of more than 10 billion yuan, 11 enterprises with 5-10 billion yuan and 75 enterprises with 1-5 billion yuan Among them, the top 100 wholesale enterprises accounted for 64.28% of the total market size in the same period Industry insiders also revealed that the seemingly rising industry sales scale actually contains water "It may be a fake that the total sales volume increases year by year For example, the ex factory price of a certain drug is 5 yuan, and it can be sold to an agent for 8 yuan, and then it can be sold to two agents for 14 yuan If a drug passes through five or more circulation enterprises, the sales will increase several times Therefore, the total sales volume of the industry does not represent the real content, on the contrary, the sales volume in these years should be declining " At present, the competition pattern of drug distribution industry has basically formed According to the strength of domestic pharmaceutical distributors, the top three in the industry should be Sinopharm holding, Shanghai Pharmaceutical and Jiuzhoutong, followed by Guangzhou Pharmaceutical, Beijing Pharmaceutical and Nanjing Pharmaceutical According to the analysis of the insiders, the situation that the strong will always be strong will lead to the acceleration of industry differentiation, small and scattered distributors or no rice to cook Sinopharm holdings is the first pharmaceutical distributor in China with sales of over 100 billion yuan As a subsidiary of SASAC, Sinopharm holding has a good advantage of government resources It is the general distributor of most imported drugs in China It is mainly positioned to be a distributor of high-end drugs, seizing the most profitable cake in the field of pharmaceutical distribution With the promotion of medical reform policy, since 2009, relying on good government resources, powerful Sinopharm group behind and the funds raised by listing, Sinopharm Holdings has been accelerating the pace of acquisition of provincial distributors, and stepping up cooperation with major hospitals in "pharmacy custody" business The leading position in the future is hard to be shaken Next to Sinopharm holdings is Shanghai pharmaceutical, which has formed a whole industry chain business including R & D, manufacturing, distribution and retail, of which pharmaceutical distribution is still its top business, and is now accelerating the layout of the national network According to the analysis of the insiders, in terms of government resources, Shanghai Pharmaceutical is inferior to Sinopharm holdings Its main market is in East China If it wants to go to the whole country, it will take a while for Shanghai Pharmaceutical to be equal to Sinopharm holdings Compared with the above two counterparts, the advantages of kyushutong are being smoothed Its original market positioning and the identity of its private enterprises make it into an awkward situation Jiuzhoutong mainly sells middle and low-end drugs on a commission basis, and takes the channels of grass-roots medical institutions and private hospitals Zhong Xiaoling, an expert in the industry, analyzes that only by knocking the door of a large hospital can Kyushu Tong become bigger How to enter the high-end market will become an urgent problem for Kyushu Tong However, the three giants are still in the stage of "big but not strong" In the background of the new medical reform, the mode of Liutong industry, which used to exist by the price difference and rebate between the sales and the purchase, has been unable to stand on its feet Sinopharm holdings and Shanghai Pharmaceutical are trying new models such as third-party logistics, seeking hospital pharmacy trusteeship, providing information services for upstream pharmaceutical enterprises, and OEM production, especially Sinopharm holdings According to the vision of Sinopharm holdings, its future profit model will mainly have two parts: first, providing logistics services for upstream pharmaceutical enterprises, charging logistics service fees, pharmaceutical enterprises will no longer need to build their own logistics center; second, helping pharmaceutical enterprises sell drugs, completely replacing the role of pharmaceutical representatives According to Sinopharm holdings, pharmaceutical companies are only responsible for making drugs, and others are left to them According to the estimation of Guoyao holding, the transformation is expected to take place in 10 to 15 years Liu Xiaoping, an official of CFDA, said that the measures for the supervision and administration of Internet food and drug distribution, which had previously issued a draft for comments, would be discussed at the recent CFDA director's office meeting If it was approved, the measures would be issued in the form of departmental regulations Industry insiders said that the measures will allow some prescription drugs to be sold online, and in the future, pharmaceutical e-commerce will compete with physical retailers for jobs The following pairs of data may summarize the current dilemma of the retail side In 2014, there were more than 460000 offline physical pharmacies in China, but the daily average traffic of a single store was only 75 people, and the total daily average traffic of the whole country was about 30 million; in contrast, the daily average traffic of 207 online pharmacies was 60000 people, and the total daily average traffic was 12-16 million In terms of customer unit price, the unit price of offline physical stores is 60-80 yuan, and the average annual sales of stores is about 500000 yuan; while the unit price of online drugstores is 150-280 yuan, and the average annual sales of stores is about 50 million yuan In terms of growth rate, the sales growth of offline physical stores was 11% in 2012, down to 9.3% in 2013, and only 8% in the first half of 2014 In sharp contrast, the market share of online pharmacies rose from 400 million yuan in 2011 to 4.26 billion yuan in 2013, and is expected to exceed 12 billion yuan in 2014, with an average annual growth of more than 150% In terms of sales, at present, the online drugstore with the best network has a monthly sales volume of more than 4 million on the mobile terminal alone, and more than 10 Online drugstores with a monthly sales volume of more than 1 million on the mobile terminal In terms of coverage area, online drugstores are also offline physical stores Although online drugstores invest a lot in a single store, the coverage area can cover multiple provinces and cities, even the whole country, with the expansion of the promotion scope, while the coverage of physical drugstores is no more than 5 kilometers, and the actual coverage is no more than 1.5 kilometers Some chain drugstores cover 1000 stores in one province Yu Jia In terms of investment income, take kangaido as an example, with 12 million starting capital, more than 400 employees and 5 stores After three years of rapid growth, the sales volume in three years has exceeded 100 million, and the sales volume in five years has exceeded 1 billion, which is far faster than the traditional store model The above data is only the sales summary of OTC products Industry insiders predict that with the lifting of the ban on prescription drug network sales, pharmaceutical e-commerce will usher in a broader market blue ocean After the logistics distribution, medical practitioners and other supporting systems are mature, the physical retail end may fail the pharmaceutical e-commerce completely.