echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Medical News > Medical World News > Many pharmacies announced a big move involving Yifeng, the common people, Dashenlin...

    Many pharmacies announced a big move involving Yifeng, the common people, Dashenlin...

    • Last Update: 2022-04-24
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    A number of chains are accelerating the deployment of pharmacy franchises, involving Yifeng, Common People, Dashenlin, Good Pharmacist.
    .
    .
    Pharmacy franchises are accelerating Recently, many well-known domestic chains have been moving continuously, and it is clear that they will vigorously deploy "pharmacy franchises".
    Complete statistics: On March 18, the People's Pharmacy launched the 2nd Franchise Investment Promotion Festival.
    Chairman Xie Zilong signed the sale online for the first time, helping the company's franchise business, attracting more than 6 million people to watch online
    .
    On March 16th, Dashenlin held an online live broadcast event for joining, and 500 intended customers placed orders in the live broadcast room and became the quasi-franchisee of Dashenlin
    .
    Compared with the annual reports of major listed chains, the net profit of Dashenlin has reached the top in recent years, and its "profitable champion brand" is worthy of its name
    .
    On the same day, Yifeng mentioned in the investor relations event meeting that the company will increase the expansion of franchise business in 2022
    .
    Jiuzhoutong, the largest private pharmaceutical distribution company in the country, recently mentioned that the company's Haoyaoshi retail chain has 5,412 stores, and the type of stores is mainly in the form of franchise.
    It is expected that by the end of 2022, the total number of stores will exceed 10,000
    .
    From the above, it is not difficult to see that the franchise business is still the expansion focus of large chains, and its process will be greatly accelerated
    .
    National chain, regional leader, who to join? The reason why large-scale pharmacy chains speed up the deployment of franchise business is mainly related to the fierce competition in the industry
    .
    Li Feng, the national marketing director of Shaanxi Guangjitang Pharmaceutical, pointed out that from the current market environment, joining is a pretty good expansion choice for large chains
    .
    Why do you say that? He gave 3 reasons: first, there are many domestic pharmacies, and the competition is fierce, and the good spots are almost completely divided; second, the large chain stores have been staking their land in recent years, mergers and acquisitions have been fierce, and the assets of high-quality chain stores have been "robbed" There is not much land left; third, the cost of cultivating stores by the company is getting higher and higher, such as rising labor rent funds, difficulty in recruiting pharmacy personnel, etc.

    .
    Since big chains are rapidly developing franchise business, should small and medium pharmacies "hold their thighs"? In this regard, Li Feng believes: "National policies such as centralized procurement and dual channels are the general trend of the pharmacy industry, and the relevant dividends will definitely fall into the hands of large chains with rich resources, and the state also supports the chain to become bigger and stronger.
    To survive, joining a big chain is the most suitable path
    .
    " "Looking at the moment, if small and medium-sized pharmacies have a local competitive advantage, they can choose to develop independently, and the problem of joining can be moved later.
    If the development is good enough, they will naturally receive large numbers in the future The 'olive branch' of chain mergers and acquisitions
    .
    " He went on to say that for stores with average performance, the days will only get worse, and there may be vitality in choosing to join
    .
    Many small and medium-sized drugstore operators have doubts.
    If they choose to join, how should they choose a franchise brand? Is it a reliable national chain, or is it a regional leader? "There is no absolute superiority or inferiority of the two
    .
    " He said that when small and medium-sized pharmacies join large chains, the conditions to consider are nothing more than bright spots: one is commodity resources, and the other is management and operation.
    The former is obviously dominated by large national chains, but The franchising management team of large chains varies from place to place, and the effect of store franchising also varies from person to person.
    There is no uniform answer to this
    .
    However, from a long-term perspective, the franchise potential of large national chains is better than that of regional leaders
    .
    According to the latest statistics released by the State Food and Drug Administration, as of the end of September 2021, there were 586,530 pharmacies in China, with a chain rate of 57.
    17%
    .
    According to the Ministry of Commerce's "Guiding Opinions on Promoting the High-Quality Development of the Drug Circulation Industry during the "14th Five-Year Plan" Period", by 2025, the drug retail chain rate will be close to 70%
    .
    According to the above data conservative calculation, in the next three years, there will be more than 75,300 single drugstores in China facing various choices such as transformation, elimination, mergers and acquisitions, and franchising
    .
    "The replacement of a large number of single pharmacies with the 'franchise' brand will inevitably breed more chaos in the industry
    .
    "The owner of a single pharmacy in Fujian issued a warning that only for now, many chain franchises are misappropriating money and charging management fees, but there is almost no service support, and there is no substantial change in the operation of the pharmacy
    .
    A single pharmacy owner in Henan talks about It turns out that pharmacy franchises are very popular in the county market, and the brands are very mixed, but the vast majority of entrepreneurs who join are not industry professionals, they are basically novices, and it is easy to step on the trap and be deceived
    .
    Standardized, support services are wider, if there is local support for their joining, small and medium-sized pharmacies can be given priority
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.