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    Home > Medical News > Latest Medical News > Characteristics of the Japanese drugstore market: oligopoly, professionalism and convenience

    Characteristics of the Japanese drugstore market: oligopoly, professionalism and convenience

    • Last Update: 2021-11-05
    • Source: Internet
    • Author: User
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    As of January 2021, there are 21,284 drugstores in Japan
    .


    Unlike prescription pharmacies, Japanese drugstores not only sell drugs, but also other non-drugs.


    According to the "Japanese Pharmacy Survey" released by the Japan Drug Store Association (JACDS) in 2021, in 2020, there will be 388 companies and 21284 pharmacies in Japanese drugstores.
    The total market size is 8 trillion yen, an increase of 4.
    6 year-on-year.
    %
    .


    In terms of categories, affected by the epidemic, the market size of cosmetics has declined to 1.


    The data of the Japan Chain Pharmacy Association is based on a survey of member companies, including 17,773 pharmacies under 101 companies, and its accuracy rate is relatively high
    .


    From the data point of view, due to the large number of sales categories, Japanese drugstores are mainly large stores, with an area of ​​more than 300 pings (992 square meters) accounting for 17.


    Different from the highly fragmented prescription drugstores, the market concentration of drugstores is increasing.
    According to the Yano Research Institute's survey of Japanese pharmacies, Hokkaido has the highest concentration of pharmacies, and the top three companies have a high market share 86.
    1%, Kyushu, Okinawa and Shikoku also exceeded 70%
    .


    However, in the Kinki, Kanto, and Central regions, market competition is incentivized, and the top three companies have only 36.


    Figure 34: Japan's drugstore sales scale in 2020

    Data source: Japan Association of Chain Drug Stores (JACDS), Latitude Health analysis

    As the market continues to consolidate, the number of Japanese drugstores has dropped from the peak of 671 in 2004 to 388, but the number of drugstores has continued to rise, from 11,787 in 2000 to more than 20,000 in 2018 Home
    .


    Market integration is mainly accomplished through new store openings and mergers and acquisitions.


    With the iteration of user needs, Japanese drugstores are mainly for working women and middle-aged men, but in commercial stores, they are more focused on professional women, while in community stores, they are mainly elderly and women
    .


    According to a survey of 1,000 users by J-Net21 in 2019, more than 20% of men aged 30-50 and about 30% women aged 20-60 go to drugstores every week.


    There are three main directions for Japanese drugstores: first, to vigorously develop the prescription drug business, to compete with prescription drugstores; second, to provide more value-added services and products for professional women; third, to provide families and families in the community The elderly provide comprehensive nursing and health care services
    .

    First of all, as far as the prescription drug business is concerned, this market mainly relies on the relationship with hospitals and clinics to expand, so they are all opened on the side of medical institutions
    .


    In terms of depth, the advantages of pharmacies are not as good as professional prescription pharmacies.


    Secondly, professional women are increasingly becoming one of the most consuming groups in Japan
    .


    Although the proportion of female employment in Japan has always been considered low, in fact, among Japanese workers aged 15-64, the female labor force participation rate has increased year by year since 2012, reaching a level of 69.


    Finally, with the deepening of Japan’s aging, the demand for nursing and family medical care is increasing.
    Pharmacies located in community stores can provide more services to individuals and families in need, from 24-hour business to health consultation, from medication guidance to medication History management, etc.
    , especially in home medication management, pharmacies can provide corresponding services
    .
    However, with the increase in prescription drug business and nursing demand, the role of pharmacists in drugstores is far more important than before.
    This has led to the need for drugstores to recruit pharmacists vigorously, which triggered a battle for pharmacists, which put pressure on small and medium-sized pharmacies.

    .

    As pharmacists have become the key hub of pharmacies, the professionalism of pharmacies has been clearly highlighted, which has also boosted their sales in other categories
    .

    In addition to expanding prescription drugs and intensive care strategies, drugstores are also trying to open stores in combination with convenience stores, and large chain convenience stores such as Lawson and FamilyMart also welcome this cooperation model
    .
    Convenience stores and drugstores are combined to open stores.
    It is relatively easy to meet the qualification requirements of pharmacists and professional sales personnel.
    Drugstores can also share the traffic of convenience stores.
    This is a mutually complementary method, which will expand the future of domestic pharmacies.
    It is very valuable
    .

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