The three pharmaceutical terminal markets are facing remodeling the pharmaceutical circulation seat or change

, 2018 China's pharmaceutical circulation industry wholesale enterprises in the main business income ranking of the top 100 enterprises list announced, the table was updated again, China Pharmaceutical Group Co., Ltd. remains firmly in the first place in pharmaceutical circulation.
2017 rankings, China Resources and Shanghai Pharmaceuticals ranked in tune, Ruikang Pharmaceuticals and Shenzhen Hai wang Galaxy Pharmaceuticals for the first time in the top 10. Kyusju Tong, as the only private enterprise among the top five pharmaceutical circulation enterprises, still ranks fourth, as in 2017.Kyusju Tong how to play its own advantages in grass-roots channels and market-oriented operation, further grasp the policy dividend, expand the terminal market, may provide the pharmaceutical circulation industry with new development ideas."After the 'two-vote system', the company's control over the terminal increased and the industrial chain extended further." On May 21, Lin Xinyang, director and secretary of the board of directors of Kyusju Tong Group, said, "Kyusju Tong helps single-body pharmacies connect short boards, and enhance the ability of single-body pharmacies to dock manufacturers by building a unified platform to focus on infesting." " high growth of the primary medicine market China's pharmaceutical consumption market is experiencing high growth.2018, drug sales in the three end markets of public hospitals, retail pharmacies and public primary medical institutions reached 1713.1 billion yuan, up 6.3% YoY. In terms of market share, the public hospital market has been declining in the past three years, at 68.38 percent, 68 percent and 67.4 percent, respectively, and has been transferred from urban public hospitals to county-level public hospitals.development of the primary medicine market is the result of the medical reform policy to promote the sinking of medical resources. In September 2015, the State Council promulgated the Guidance on Promoting the Construction of a Hierarchical Diagnosis and Treatment System, and in 2018 this policy was further opened up, coupled with the gradual implementation of medical reform measures such as the "two-vote system", the zero-rate ratio and the proportion of medicines, and major changes have taken place in the drug circulation market - from public hospitals to hospitalside shops, and slow-disease drugs to primary medical institutions in large numbers from secondary and above medical institutions.drug sales channels then sank, the grass-roots pharmaceutical market was stimulated, to Kyusju Tong, for example, the company's 2018 sales of primary medical institutions below the second level reached 11.539 billion yuan, an increase of 49.55 percent year-on-year.At the same time, under the influence of the increase in business reform and the "two-vote system", retail pharmacies to regional small wholesalers without tickets low-cost procurement model can not be sustained, "reverse ticketing" model brought about by the gradual elimination of unequal competition, Kyushua Tong such a large-scale, standardized business enterprises are good.Lin Xinyang said that after the two-vote system, the enterprise's control over the terminal increased, the industrial chain further extended. At the same time, some enterprises previously adopted the regional subcontract sales system is no longer applicable, the dependence on pharmaceutical circulation enterprises further strengthened.in the policy-advantaged development opportunity period, primary medical institutions and OTC pharmacy market has gradually become the target market for pharmaceutical circulation enterprises.take Kyusju Tong as an example, its long-term use of market-based distribution business model, that is, to primary medical institutions, private pharmacies, retail pharmacies, downstream distribution market and other customers as the main sales target.as a grass-roots medical institutions and OTC pharmacy market industry leader, upstream suppliers more than 10,000 to maintain cooperation, downstream customers nearly 200,000, product varieties statute more than 350,000 ... Kyushu Tong is currently one of the most extensive enterprises in the marketing network of pharmaceutical circulation enterprises in China.Lin Xinyang believes that the secondary and above high-end hospital market due to the early development, large number of customers, in the overall market accounted for a relatively large, about 67%, but the growth rate gradually slowed down. Although the number of customers in the grass-roots market, especially retail pharmacies, is small, but in recent years the growth rate has accelerated, according to the estimates of 224,500 single pharmacies and 215.7 million clinics, the market size of 112.3 billion yuan and 107.9 billion yuan, respectively, still has great potential for development.FBBC new modelIn order to give full play to the advantages of grass-roots channels, while complying with the general trend of Internet and medical care, Kyushuan put forward the "FBBC business model", "F" that is, upstream pharmaceutical production enterprises, the first "B" that is Kyushua Tong, the second "B" that is, terminal pharmacies and clinics, "C" that is, consumers, and try to gradually integrate all transactions upstream and downstream of the pharmaceutical industry into the "FBBC" platform system, to establish a complete pharmaceutical circulation closed loop.galaxy securities research, the FBBC model has helped Kyushe to achieve from "industry concentration improvement" to "bargaining power improvement."this model, Kyusju to package the needs of more than 100,000 single pharmacies, with upstream manufacturers to bargain, improve the profit margins of pharmacies also for the company to bring higher gross margins. During the reporting period, Kyuscom's B2B online business achieved sales of 8.205 billion yuan, up 156.30 percent from a year earlier. , in addition to being able to quickly occupy the market, but also has the advantages of low cost, large up-payment ratio and short account period. The net cash flow from Kyustom's operating activities improved significantly in 2018 to RMB1,222 million, an increase of RMB2,234 million year-on-year over the same period in 2017, mainly due to the increase in account collection efforts by companies and subsidiaries at the end of the period, the increase in hospital sales with longer control periods, and the increase in the proportion of cash payments and settlements for downstream customers, reflecting the higher operating quality. 　　"Kyusju Tong helps single-body pharmacies to connect short boards, through the construction of a unified platform to focus on the purchase, enhance the ability of single-body pharmacies to docking manufacturers." Lin Xinyang said. in its 2019 business plan, Kyusju Tong also proposed to further expand the FBBC terminal business, promote the cloud pharmacy platform 500, through the cloud ERP deep operation, to build 50 model stores, while introducing third-party partners, expand big data and AI technology, strict risk control and other aspects of further planning and upgrading. Kyusyuso's FBBC model appears to have achieved remarkable results at this stage, but the main business is still limited to medicine, whether the future can open up the medical, pharmaceutical, medical insurance industry chain, has yet to be developed. (CIC Investment Advisory Network)