No price war!

51 chain pharmacies in Shanghai declare that they will not fight price wars

Recently, the Shanghai Pharmaceutical Commerce Industry Association issued the "Proposal on Strengthening Compliance with Drug Sales Price Regulations" (hereinafter referred to as the "Proposal") to drug retail companies in the city, aiming to regulate the price order of the drug retail market

It is reported that 51 chain pharmacies have responded positively to the "Proposal", including Sinopharm Holding Guoda Forme Pharmacy Shanghai Chain Co.

For pharmaceutical retail companies, the "Proposal" provides provisions in three aspects: pricing, price reduction, and publicity:

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2.

3.

Regarding the rules and regulations of the "Proposal", 51 chain pharmacies unanimously stated that they would abide by them and compete vigorously

The specific list of 51 chain pharmacies is shown in the figure below:

Shanghai will add designated pharmacies, chain enterprises to avoid vicious competition

It is worth mentioning that on June 17, the Shanghai Food and Drug Administration issued the "Several Opinions on Promoting the Healthy Development of Shanghai Pharmaceutical Retail Industry (Draft for Comment)", which clearly stated that pharmaceutical retailers should rationally treat the "removal of the 350-meter pharmacy opening limit".

In addition, the above documents also require a balanced allocation of designated medical insurance pharmacies, and gradually increase the number of medical insurance designated pharmacies based on the permanent population of the medical service circle and the distribution of stores

It can be seen that the cancellation of the distance limit and the increase of designated pharmacies will intensify competition in the industry, which will trigger price wars and reduce the profits of pharmacies.

Chain pharmacies report group to keep warm and stabilize drug prices

Some people in the industry believe that Shanghai chain drugstores "hold together" to resist price wars, partly to resist the impact of Internet platforms

I found out that in the O2O field, chain pharmacies will also implement a strategy of "grouping" to resist price wars

On April 25, the Anhui Pharmaceutical Retail Industry Association organized a local pharmaceutical retail chain company to hold a symposium

Participants all said that when pharmaceutical retail chain companies cooperate with third-party O2O platforms, not only are they unable to grasp consumer data, but there are also problems such as low gross profit

In response to the O2O drug selling predicament of chain pharmacies, the attendees called for suggestions that everyone should sell drugs online in accordance with certain rules and not engage in the vicious competition of "losing money to earn yells", so as to achieve healthy and orderly development of the industry

Finally, the person in charge of the Anhui Pharmaceutical Retail Industry Association stated that through this meeting, the on-site chain pharmacy reached a preliminary consensus on various aspects of online drug sales