The number of pharmacies across the country continues to grow, and the market concentration is increasing

Medical Network reported on July 29 that we know ourselves and our opponents, and there is no end to all battles
.
The list of top 100 chain pharmacies in China was released again, and the industry benchmarked time
.
In response to market concerns, the Vice President of Punctuation and the Executive Chief Programmer of the 21st Century Pharmacy News delivered a blockbuster report entitled "Analysis of the Structure of the Top 100 Pharmaceutical Retail Markets and Chains in 2021" at the Mi Si meeting on July 23
.
After introducing the basic overview of national pharmacies in 2020, Cheng Mou took the newly released "Top 100 Chinese Chain Pharmacies in Comprehensive Strength from 2020 to 2021" as a starting point, and through first-hand detailed data, he showed everyone a picture of pharmaceutical retail It is a realistic picture that enterprises are competing against each other
.
In the report, Cheng Mou expressed concern about the continuous increase in operating costs in the industry, the unabated increase in excessive competition, the intensified internal volume, and the intensified destructive reconstruction of the retail ecology, and put forward his personal opinions and targeted suggestions.

.

The basic situation of the country: The number of pharmacies continues to grow, and the market concentration increases.
The
number of pharmacies nationwide will continue to grow in 2020, reaching 553,000, an increase of 30,000 compared with 2019, a growth rate of 5.
4%; chain stores and single pharmacies will grow together , But the growth rate of chain stores was 7.
9%, the number increased from 290,000 by 23,000 to 313,000; the growth rate of single stores was 3.
0%, and the number increased from 234,000 by 7,000 to 241,000
.
The number of pharmacies has increased, and the chain rate has also increased to 56.
5%; however, mergers and acquisitions have reduced the number of chain companies from 6,701 at the end of 2019 to 6,298, a decrease of 403
.
According to the latest census data, the census population has increased, but the number of stores has increased even faster.
The average number of people served by stores has further dropped from about 2,700 in 2019 to 2,552
.
In terms of distribution, Guangdong, Sichuan, and Shandong have the largest number of pharmacies, with 53,672, 46278, and 41017 respectively
.
The chain rate is highest in Shanghai and Sichuan, 92.
05% in Shanghai and 87.
08% in Sichuan
.
In terms of average number of people served in stores, Tibet and Shanghai have the largest number of people, each with more than 6,000 people.
Except for the sparsely populated areas of the three eastern provinces, Inner Mongolia, and Ningxia, Sichuan stores have the lowest average number of people, with only 1,808 people
.
Due to the large differences in the state of chain survival in different regions, their competitive strategy choices are different
.
Among the many provincial markets, the "Sichuan characteristics" are particularly prominent
.
The number of pharmacies is large, second only to Guangdong, and second in the country; the chain rate is high, second only to Shanghai, which also ranks second; but in stark contrast to the "many" and "high", it is the "low" number of services per store "It's pitiful, the fierce competition can be imagined
.

　　Perspective of the top 100: Behind the top 100 is the word "not easy.
"
Comparing this year's and last year's list of the top 100 Chinese chain pharmacies in terms of comprehensive strength, it can be found that the top 5 rankings remain the same.
Then came the common people, Yixintang, and Yifeng Pharmacy
.
Neptune, who has undergone bone scraping, has gone through a period of lows and has continued to improve in recent years, ranking sixth this year
.
DTP pharmacies occupies a relatively high chain ranking, such as the new large pharmacy of China Resources Beijing Dexinxing Medical Insurance, which has increased more than last year
.
"As the outstanding representatives of the 6,298 chain enterprises in the country, the top 100 companies mostly have positive ideas for expansion
.
However, even among the top 100, some of the top 100 chains are seeking to be acquired by larger chains due to competitive pressure or in order to seek greater development.
Or cooperation
.
" Cheng Mou's words revealed the hard work and hard work behind the top 100 glory
.

　　The
number of pharmacies in the top 100 chain regions , the level of economic development, and the concentration of factor resources brought about by the pharmacy business atmosphere, etc.
, have a common effect on the distribution of the top 100 chain regions
.
In general, there will be more top 100 chain stores in large provinces with pharmacies, such as Guangdong, Shandong, and Zhejiang.

.
Zhejiang has a developed economy and has more top 100 chains; however, it may be related to the operating cultural atmosphere of different regions.
The same economically developed Jiangsu has fewer top 100 chains; Henan, Jiangsu, Hebei, Liaoning and other major drugstores in large provinces also have more top 100 chains.
Less, the competitive landscape is relatively fragmented
.
Development history and cross-regional operations Among the top 100 chains, the longest has a 40-year development history, and the shortest is 3 years, with an average of 17.
73 years
.
More than 20 of them have undergone more than 20 years of long-term precipitation and accumulation
.
At the beginning of this century, a number of private chains emerged intensively, followed by the establishment of a number of state-owned enterprises, and then a number of them were created with the help of industrial capital and private equity consortia
.
Consumption habits, market competition, and policy differences make inter-city and inter-provincial operations within the province the two key thresholds for chain expansion; inter-city, inter-provincial operations, and national layout within the province are not strict pre- and post-steps.
The top 100 chains are based on where they are located.
Different stages of development and different strategic choices may be applied across steps or at the same time
.
With the help of capital, focusing on the market level rather than geographic regions to quickly grab the site and then do share penetration is also an option to compete with opponents for time, but it poses a greater challenge to digestion
.
Without the support of group resources or the intervention of external capital, the most common and stable mainstream expansion path is to focus on the region to deepen, to penetrate and then to go out (deep and then expand)
.
Store concentration and expansion methods The top 100 stores have expanded significantly faster than other chains
.
Stores are rapidly concentrating on top 100 chains, and the industry concentration is further improved
.
In 2020, the top 100 chain stores will have a total of 101,300, accounting for 18.
3% of the total number of 553,000 stores nationwide, and 32% of the total number of chain stores of 313,000
.
The top 100 chains present a pattern of strong ones, and the stores are further concentrated on the top chains
.
The 9 chain stores operating across 10 provinces increased by more than 7,800, accounting for 49% of the total number of new stores in the top 100; based on the basic volume, the growth rate was 19%
.
More than 4,800 new stores were added to 22 inter-provincial chains, accounting for 30% of the total number of new stores in the top 100, and the growth rate was as high as 29%
.
69 chains in the province added more than 3,300 stores, accounting for 21% of the total number of new stores in the top 100, and the expansion speed was relatively slow, with a growth rate of 12%
.
For the top 100 operating companies in the province, 70% of them are self-built when they expand their stores.
The top 100 chains that start cross-provincial operations but have not yet covered the whole country are pursuing higher efficiency.
When they expand their stores, they use More ways of acquisition
.
Almost coincidentally, the top 100 chains in 2020 have adopted more franchise methods to expand the market
.
Proportion of store closures and medical insurance fixed-point situation It is common for pharmacies to open and close, but the pharmacy circle in 2020 is very lively
.
On the one hand, there are new store openings and growing numbers, on the other hand, there are more and more store closures
.
The market is ups and downs, and you know how warm and cold you are
.
The data shows that the more extensive the regional coverage of the chain, the higher the proportion of closed stores
.
While the top 100 chains quickly opened stores through self-construction or mergers and acquisitions, they also closed a number of stores with poor operating conditions
.
In general, the proportion of closed stores of the top 100 chains dominated by the province is significantly lower than that of the chains that have expanded nationwide
.
The high proportion of chain stores with extensive regional coverage is also due to the rational layout of M&A stores in the coverage area
.
The fixed-point rate of medical insurance for top 100 chains has further increased, and the rate of fixed-point medical insurance for new stores is significantly higher than that of existing stores
.
Newly opened stores are usually opened in accordance with conditions that are more in line with the requirements of fixed-point medical insurance, and it is easier to obtain fixed-point qualifications
.
The proportion of medical insurance stores shows a situation of "mainly in the province> cross-provincial operation> national layout"
.
Whether or not they have the qualifications for designated medical insurance is one of the considerations for the top 100 chains to screen and evaluate the targets of mergers and acquisitions
.
2020 hundred the number of chain stores closed shop proportion of the total number of
　　staffing and turnover, licensed pharmacist with
nearly 70 hundred stores are set up 4-5 employees
.
Depending on the store size, store format, location, etc.
, the top 100 chains set up 3-8 formal employees for a single store, but some chains have informal employees and manufacturers dispatching promoters to reduce labor costs
.
The average turnover rate of pharmacies is 9.
56%, which is much higher than that of other service industries
.
The wider the scope of operations across regions, the lower the turnover rate; from the perspectives of salary level, labor efficiency, province, etc.
, no significant correlation with the turnover rate has been found; from the training point of view, the higher the proportion of trained employees, the lower the turnover rate The lower
.
However, on the whole, the top 100 chains attach more importance to training investment, and the employee training rate is generally above 95%, and the employee turnover rate may be related to the content and effect of the training
.
More than 70% of the top 100 chain licensed pharmacists are equipped with more than 1 person/store
.
The top 100 chain stores such as Zhejiang Yingte Yinian, Ningbo Siming, Chengdu Quanyuantang, Jiaxing Laobaixing, etc.
are equipped with more than 2 licensed pharmacists.
Their common feature is that DTP pharmacies account for relatively high sales; Sichuan, Guizhou, Xinjiang, Yunnan and other regions also There are a few top 100 chain licensed pharmacists with a rate of less than 0.
5 per store
.
It is understood that these regions have "remote reviewers" and other similar platforms to solve this demand, and the time window is generally up to 2025
.
2020 hundred different chain staff turnover and training proportion
　　shop floor efficiency and yields are human efficiency
hundred chain area of focus, shop yields are relatively high
.
The top 100 chain stores have an average output of 2.
2 million in 2020, which is more than twice the national 1 million; the larger the span of the business area, the lower the average output of their stores; most of the top 100 chain stores have a yield of 100-300 Between ten thousand
.
The average daily ping efficiency of the top 100 chains is 52.
42 yuan
.
Based on the statistics of the headquarters location, the average daily floor efficiency in Beijing is the highest, which is mainly raised by DXN Medical Insurance
.
The average daily ping efficiency of the top 100 non-provincial enterprises is 48.
68 yuan, which is less than that of large inter-provincial chains
.
Excluding inter-provincial chain operations, the Shanghai area has the highest average daily ping efficiency
.
The high proportion of DTP pharmacies, hospital-side stores, and developed main business areas can greatly increase the overall efficiency of the chain
.
Zhejiang Yingte Yinian, which has the highest floor efficiency, has DTP pharmacies accounting for 30% of the total number of stores, and courtyard stores accounting for 66% of the total number of stores
.
DXN, Wanze, Jiaxing ordinary people, Zhejiang Huatong, etc.
all have a relatively high proportion of courtyard stores or DTP pharmacies
.
In addition, Shanghai Fahrenheit is located in Shanghai, which has the highest number of stores in the country and the most developed economy
.
Both passenger flow and high hair can improve floor efficiency
.
The 20 chains with the lowest gross profit margins far exceed the average ping efficiency, which is related to the high proportion of DTP pharmacies; the distribution of gross profit margin and ping efficiency is "u"-shaped
.
In terms of human efficiency: the labor efficiency of the top 100 chains is quite different, with an average labor cost of 8.
5%, and the average output of more than half of the top 100 employees is less than 500,000
.
The two chains with a staff yield of more than 3 million are mainly DTP pharmacies; excluding the two chains with a high proportion of DTP pharmacies, the remaining 98 chains have an average staff yield of 547,800 yuan
.

　　The
average customer unit price and member sales accounted for the top 100 customer unit prices at an average of 146 yuan, 70-90 yuan is the intensive range of the top 100 chain customers' unit price .
The highest customer unit price is nearly 800 yuan, from two chains with a high proportion of DTP pharmacies; the unit price of more than half of the top 100 chain customers is 50-100 yuan, of which 36 are between 70-90 .
The sales of more than 70% of the top 100 chain members accounted for more than 50% .
Eight top 100 companies including Shandong Yanxitang and Hebei Tangren have achieved good results in cultivating member loyalty, with member sales accounting for more than 85%; most of the top 100 chain members account for 58%-80% of sales; Shang A small number of chain members account for less than 10% of sales, which may be related to member file formation and imperfect management .

　　Gross profit margin and net profit margin, own brand　





Affected by comprehensive factors such as centralized procurement and self-owned brand expansion, the average gross profit margin of the top 100 chains was 32.
08%, a year-on-year decrease of 0.
16% (arithmetic average)
.
The top 100 chains are basically industrial KA, and there is not much difference in supply prices.
The gross profit margins of inter-provincial operations and intra-provincial operations are not much different; the gross profit margins of nearly 70% of the top 100 chain chains are between 30% and 38%; the gross profit margin is mainly It is related to the selection of chain variety structure
.
The top 100 chains have an average net profit margin of 5.
03% (arithmetic average), and the effect of scale can increase the net profit margin
.
Chains operating across regions usually have an advantage over regional chains in terms of cost sharing, and their net profit level is 1.
5% higher; the difference in net interest rates starting from across provinces and across more than 10 provinces is not large, indicating that the cost sharing has reached The critical value
.
The proportion of private label sales can significantly increase chain gross profit margin
.
The top 100 private brands accounted for 11.
8% of the total sales; the gross profit margin is closely related to it.
Generally speaking, the higher the private brand, the higher the gross profit margin
.
However, in terms of the ultimate goal of the company's total profit growth rate, the top 100 chains that have achieved positive profit growth generally show that the higher the proportion of their own brand sales, the profit growth is unsatisfactory
.

　　Total profit growth, gross profit margin, and store expansion ratio
.
The top 100 chains with gross profit margins below 20% (DTP pharmacies account for a high proportion) have achieved extremely high total profit growth; the top 100 chains with gross profit margins of 20%-30% (DTP pharmacies) , Online, medical insurance accounted for a relatively high proportion), and the total profit growth was also higher
.
The total profit growth depends more on the flow brought by various factors
.
It is the best choice to choose a suitable gross profit interval according to the operating characteristics to balance the flow with the flow .
In general, expanding the number of stores can increase the overall profit of the chain
.
In the range where the total profit growth is less than 20%, the total profit growth rate is lower than the store expansion speed, indicating that the profit of the chain stock stores in this range is declining; even some chains are affected by factors such as expansion after the integration, and the total profit is reduced; the profit growth ratio The main growth of the highest chains does not come from store expansion.
Most of these chains are actively transforming.
They account for a high proportion of new business models such as DTP pharmacies, hospital-side stores, e-commerce, and docking prescription circulation platforms, but at the same time they have low gross profit margins.

.

　　The source and drainage of prescriptions, and the situation of new retail.

Hundreds of top chains have cooperated with various Internet hospitals or are negotiating cooperation to comply with the source of prescriptions; cooperation with third-party prescription sharing platforms is also increasing; however, the situation of docking prescription circulation platforms Only one third is due to the immature environment of the prescription circulation platform
.
The 56 top 100 online chains with feedback have an average increase of 106% in their online business scale, which is much higher than offline; the average gross profit margin is 19.
03%, which is much lower than offline
.
The 26 companies with a growth rate of over 100% include Qingdao Tongfang, Yixintang, Dashenlin, Jianzhijia, and Shuyu Pingmen.
These 26 companies have increased by an average of 184%.
According to different partners and cooperation methods, the platform fees of 56 companies will be paid.
The proportions vary greatly, ranging from 1% to 30%
.

　　Thoughts and Suggestions
After a comprehensive interpretation of the top 100 chains, Cheng Mou solemnly reminded pharmaceutical retail companies to have a deep understanding of the industry situation, do something and not do something, and make correct choices and decisions
.
He put forward specific suggestions on how to solve the intensification of the industry's internal volume and how to conduct capital planning for pharmacies, and put forward bold ideas for the solution of the problem of chain and platform "public domain" and "private domain" traffic
.

　　How to avoid falling into the quagmire of "involution" At
present, the industry has intensified involution, and low-level disorderly competition is outstanding.

.
For example: the business model of others is eager to imitate and copy at a low level; a competitor opens a new store to engage in opening activities, and other pharmacies reduce prices; still buying medicines to give eggs and changing tricks to buy gifts and so on
.
"This is a very regrettable thing
.
" Cheng Mo believes that opening up and leveraging external resources is an effective means to break the "involution
.
" While carrying out internal reform and professionalization of the entire system, enterprises should adhere to external openness, team up with their peers, and integrate resources from top to bottom and from left to right
.
Gather the power of upstream industry and agency , brand co-construction, product co-construction, customer co-construction, model co-construction; various ways of diversion, docking and sharing of traffic (OTO platform, BTC platform, electronic prescription platform, Internet hospital, community, Clinics, live broadcast platforms); embrace various enabling organizations, such as training institutions, data information companies, etc.
; respond to calls and assume social responsibilities, such as health education, chronic disease management, and community services organized by the government and associations; with the help of capital, Obtaining funds provides support for mergers and acquisitions and operations, access to various resources such as Internet hospital docking and merger opportunities brought about by capital integration, and access to reference business management concepts and high-end management talents brought by capital
.
For corporate internal reforms, he believes that the reform focused on enhancing the customer experience optimization of the whole system is the priority objectives and strategic priorities
.
Efforts should be made in the fields of multi-point customer acquisition, offline and online integration, consumer analysis and insight, digital precision marketing, customer experience improvement, etc.
; professionalization should be turned into productivity, professional services should be carried out, professional image should be improved, and customer stickiness should be strengthened , To create private domain traffic; carry out chronic disease management, file, track, formulate and carry out chronic disease management plans for chronic disease patients; national will and social consensus bring unlimited prospects for Chinese medicine , and it is necessary to do a good job in Chinese medicine education and expand The Chinese medicine product line of pharmacies uses Chinese medicine thinking to guide the professional sales of Chinese medicine
.

　　Careful capital planning & the inevitable trend
plan recommends that pharmacies carefully choose funding sources based on development needs
.
Is it to get financial support? Or is it sharing the supply chain, purchasing prices, unique product regulations, and promotional policies? For background blessing, the reputation of small and micro enterprises' taxation and acceptance bills? Or is it resource synergy, regional M&A platforms, Internet resources, and some high-end talents? ……Should choose carefully and make decisions based on needs, and make an agreement with the investor
.
Is it currently available in pharmacies? Sell ​​all or part of it? Many small and medium-sized pharmacy owners have to think about it
.
No matter what choice is made, Cheng Mo believes that there is nothing wrong with it
.
But he suggested that the pharmacy owner should take a look at his current state, think about future trends, and think about his own response
.
Cheng Mou pointed out that it is an inevitable law to further concentrate the industry structure
.
Regulations are further regulated, operating costs have increased in an all-round way, mass purchases have brought price squeeze, e-commerce, department stores, petrol stations, postal and other outsiders have entered into competition across borders, and capital coveting has brought huge challenges to the drugstore industry.
Large chains have comparative advantages over small and medium chains
.
In addition, winner-take-all is the only way to be standardized, reproducible, and without significant core differences.
The history of the development of the 3rd chain in the United States occupying more than 70% of the market share can be used for reference; the proportion of China's top 100 chain TOP10 increased from 10% to 20 %, the increase in stores accounted for more than 40% of the total increase in stores, which fully illustrates this point
.
"A pharmacy without core competitiveness has no future
.
" He said
.

"Public domain" and "private domain" traffic problems are solved.

As for the problem of chain-to-platform "complex emotions" caused by online and offline cooperation, Cheng Moo said that his biggest concern is: the so-called "public domain traffic" is all The "private domain traffic" of the platform .
The “public” of “public domain” faces all the needs of consumers, and is open to all pharmacies and self-operated; in the current industry competition pattern, self-operated platforms occupy the main traffic, and the “private domain” traffic space of pharmacies is Seriously squeezed, and the cost of obtaining is too high; in recent years, the "30-minute delivery" of pharmaceutical O2O has better met the needs of "urgent customers" and has supported the rapid rise of pharmaceutical O2O　　

.
In the early stage of the development of pharmaceutical O2O, the platform mainly relied on a wide range of physical stores as distribution points.
However, with the development of the platform’s self-operated business, the continuous opening of front-end warehouses has reduced the platform’s dependence on pharmacies to a certain extent and further strengthened Its advantage in public domain traffic has made it a competitor to physical pharmacies
.
In this regard, Cheng Mo put forward his personal thinking and bold ideas: "The offline and online are driven to the same track by the big waves of the times.
The giants turn around and have pain, and the latter waves are also injured! In preventing the disorderly expansion of capital and the anti-monopoly background Next, is a real "public domain" dominated by the government feasible?"