Distribution Of Listed Pharmacies Internet Hospital Online Incremental Market Competition Intensifies

However, under the background of marketization of medical value and promotion of industry concentration degree online and offline, chain drugstores are also faced with multiple adverse factors, such as scene reconstruction, low gross competition, flow as the king, and stricter supervision.

Under the epidemic situation, internet medical treatment has become a new outlet, and listed chain drugstores have also begun to speed up admission.

Recently, Yifeng pharmacy initiated the establishment of two wholly-owned subsidiaries, namely Hainan Yifeng Internet hospital Co., Ltd. (hereinafter referred to as "Yifeng Internet hospital") and Hainan Yifeng telemedicine center Co., Ltd. (hereinafter referred to as "Yifeng telemedicine center"). Prior to this, Yixintang also announced the establishment of a holding subsidiary, Yixintang medical and Nursing Service Co., Ltd.

After the completion of the stock market integration, Yifeng pharmacy, Yixintang and other listed chain drugstores are realizing the leap from regional leader to national large chain enterprise. At the same time, in order to undertake the huge incremental market brought by the outflow of prescription, Internet hospital has become the focus of offline pharmacy enterprises competing for layout.

It can be seen that under the new trend, Internet hospital will become an important support for offline chain drugstores to expand to the online market, which will open up new profit space for them. However, under the background of marketization of medical value and promotion of industry concentration degree online and offline, chain drugstores are also faced with multiple adverse factors, such as scene reconstruction, low gross profit, flow as the king, and stricter supervision.

On July 28, Shi lichen, founder of Beijing Dingchen Management Consulting Co., Ltd., pointed out in an interview with 21st century economic reporter: "drug parity can only be used as a diversion means for pharmacies, rather than a source of profits. In the future, pharmacies will not lack diversion commodities, but customer conversion rate. Large chain drugstores enter the Internet hospital, on the one hand, in order to advance the outflow of prescription, on the other hand, it is intended to improve the service quality, so as to improve the customer conversion rate. "

Incremental market

The outflow of prescription drugs or offline chain drugstores are the primary reason for the layout of Internet hospitals.

According to the data of pharmaceutical network, the proportion of prescription sales in domestic public hospitals, retail pharmacies and public primary medical care in 2019 is 72.20%, 12.30% and 15.50%, respectively. At present, public hospitals are still the main channel for drug sales. However, driven by the new policy of "separation of pharmaceuticals", prescriptions continue to flow out to pharmacies. The sales scale of prescription drugs in domestic pharmacies increased from 57.9 billion yuan in 2011 to 132.1 billion yuan in 2017. In the long run, it is expected to continue to expand.

Under the continuous promotion of the policy, the outflow of prescriptions is accelerating. From August 2019 to now, internet medical policies have gradually improved the basic closed-loop policy system of "medicine", "medicine" and "insurance". In March 2020, the policy allows Internet medical institutions to issue electronic prescriptions and open medical insurance settlement; in April, the national development and Reform Commission first proposed that the first diagnosis should be included in internet medical treatment.

From the perspective of development trend, both offline and online pharmacies are important carriers for prescription outflow, while online drugstores have become a new direction for the distribution of offline chain drugstores. At present, chain drugstores try to sell drugs in the mode of "Internet + medical treatment", mainly through the way of "online ordering store delivery" and "online ordering store taking". The headquarters will audit the electronic prescription and coordinate the dispensing and distribution of drugs among chain stores, so as to realize the drug taking and delivery nearby, so as to meet the drug demand of customers and give full play to the intensive advantages of the headquarters.

At that time, the development mode of geographical expansion and merger and acquisition was the common means for chain pharmacies to make large-scale enclosure, but now the benefits are not as good as before.

According to the statistics of MI Nei net and prospective industry research institute, there are 480000 pharmacies in China in 2019, a decrease of 1.89%, and a net decrease of 9220. The number of retail pharmacies decreased for the first time in nearly three years, and the trend of industry integration appeared. At the same time, the average service population of retail pharmacies in China also decreased, but it was relatively stable, maintained at about 3000 people. It can be seen that the retail market of drugstores in China has been saturated.

According to the public data, from 2019 to 2020, there are 6266, 3894, 4702 and 4366 stores of Yixintang, common people, DASHENLIN and Yifeng pharmacy, respectively. Among them, Yixintang, with the largest number of stores, did not perform well. In the first quarter of 2020, Yixintang achieved revenue of 3.087 billion yuan, ranking the third among the four major chain pharmacies, with a net profit of 205 million yuan, the lowest growth rate. In the store expansion, the marginal revenue of geographical expansion gradually decreases.

Yu Wenxin, an analyst at Haitong international, pointed out in his research report: "the mode of online traffic expansion and global competition will become the key for pharmacies to seize the incremental market. In the drug market, steady growth, prescription outflow linkage OTC, 2025 online drug market size is expected to reach 209 billion yuan

Service upgrade

Whether it is to develop online or offline pharmacies, service quality will become the key to the development of pharmacies in the future.

In fact, the online and offline pharmacies are mainly concerned about the impact of online and offline pharmacies on the online and offline pharmacies. The coordinated development of online and offline pharmacies can jointly erode the market share of small and medium-sized pharmacies and promote the improvement of concentration. "

Prior to this, the people's pharmacy announced the introduction of Tencent, a strategic investor, and the two tried to make further progress in the new retail strategic layout.

It should be noted that this is not the first test of Tencent's investment in chain drugstores. In 2019, Tencent invested about $500 million in Gaoji medical, a retail pharmacy management platform of Hillhead capital. By integrating its own retail network and efficient supply chain capability, Tencent explored the industry + Internet model. But its value-added services, after-sales services are far less than the operation and reputation of the people.

At present, 12 free services have been set up in the offline stores of ordinary people, including tea, height and weight measurement, blood pressure measurement, blood glucose measurement, oxygen absorption, decocting traditional Chinese medicine, pulverizing traditional Chinese medicine slices, and door-to-door delivery within one kilometer, etc. these free services have become the highlights in the homogenization competition of pharmacies, and have enhanced the advantages of ordinary people in the industry competition. According to the data, from 2016 to 2019, the number of active members of the common people increased from 9 million to 16.16 million, and the sales ratio of members and the proportion of visitors increased steadily. This is why Tencent will choose to inject capital into the layout of ordinary people's chain drugstores.

Shi lichen pointed out that the business strategy of the common people is changing from the traditional medicine retail to the business form with higher service stickiness. In his opinion, chronic disease management, community health and disease public welfare will become the three major development directions of drugstore services, and doing well in these three services will also bring real growth in the revenue of pharmacies.

According to a foreign study, it is very serious that patients do not take the doctor's prescription to the pharmacy to dispense drugs according to the instructions. As a result, the pharmacy's revenue loss is as high as 8 billion US dollars a year. In the survey of hypertension drugs, the average annual revenue loss of each pharmacy is 7402-9528 dollars due to the patients' non repeated dispensing or delayed re dispensing. The annual profit loss of the pharmacy is estimated as 15.1% of the prescription drugs and 30% of the gross profit of the sales. Therefore, it will bring considerable benefit for patients to buy medicine on time and make patients take medicine on time.

In the two hospitals set up by Yifeng pharmacy, online hospitals and physical hospitals operate simultaneously, providing integrated diagnosis and treatment services based on the Internet, providing online follow-up and prescription renewal services for patients with chronic diseases and common diseases, online consultation and offline drug taking, so as to realize online and offline collaborative development. At the same time, Yixintang also put forward in the announcement that it will set up Yixintang medical and nursing service with the business scope of hospital management, with retail pharmacies as the fulcrum, and provide medical services, rehabilitation management, health management, pension services and other businesses related to medical care.

Wang hang, founder and CEO of gooddoctor online, also said in an interview with the 21st century economic reporter that Internet medicine has had an impact on drugstores with high gross profit, which has promoted the development of drugstores from high gross profit products to high flow services. "When pharmacies provide Internet medical services, the platform needs to continuously optimize the inquiry process, train doctors to skillfully use online consultation tools, and monitor and intervene in the quality of online medical services. Only when the internet medical enterprises on the track work together to improve the service quality, can people be willing to use it continuously and form habits, and the market can really expand. "

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