The pharmaceutical retail industry shows a trend of consolidation, and chain pharmacies maintain a rapid growth trend.

According to statistics released by the Chongqing Drug Administration, there were about 16,000 retail pharmacies in Chongqing before 2017, compared with more than 12,000 retail pharmacies in Chongqing as of May 2019In two years, more than 4,000 retail pharmacies have disappearedRetail pharmacies are one of the three major pharmaceutical consumer terminals, upstream are pharmaceutical manufacturers or wholesalers, downstream for consumers to provide pharmaceutical, medical equipment, health care products and other pharmaceutical health productsIt is understood that in recent years, the drug circulation of the chain of more and more stringent, including the fight against the registration, illegal sales of prescription drugs, fraud, so that the survival of retail pharmacies continue to be squeezed, many pharmacies passenger flow, sales, profits are declining, must choose to close the doorAccording to the Forward-Looking Industry Research Institute's Analysis report on business models and investment opportunities in China's pharmaceutical circulation industry, the number of retail pharmacies nationwide by the end of 2019 was 479,800, down 1.9% year-on-yearAccording to the statistics of 2019, the number of retail pharmacies in China has declined for the first time in the last three years, and the industry has shown a trend of integrationAt the same time, due to the chain of pharmacies compared to the single drugstore, the competitive advantage is obvious, in the stock competition market, the number of chain pharmacies has maintained a rapid growth trendIn 2019, the number of drugstore chains nationwide reached 267,500, further raising the proportion of pharmacies to 55.8%Analysis points out that from the development of China's pharmacy industry, in the next few years, the scale of chain operation of pharmacies will continue to improveIn the view of the industry, the advantages of drugstore chain mainly lie in several aspects: First, the cost advantage, chain drugstore sourcing upstream large scale, bargaining power, commodity cost is lower than single drugstore; At present, the entire pharmaceutical retail industry is moving rapidly towards chaining and standardization, from quantity to concentrationWith the promotion of new regulatory policies such as hierarchical management, health insurance co-ordination account sourcomine to social retailing, and reform of individual health insurance accounts, the industry believes that industry concentration will continue to improve, and the advantages of leading pharmacy chains are highlighted, and are expected to usher in more than ten years of high growthIn terms of the number of domestic chain stores, the proportion of stores has been rising in recent years, and the rate of chaining of pharmacies in China has increased to 55.74 percent in 2019However, the average chain size of domestic pharmacies is still small, the ability to resist riskistAccording to statistics, the average number of stores in 2019 was only 44.4, a slight decrease from 2018It is worth noting that the average number of stores owned by the top 100 chains remained on a high-speed upward trend, with a year-on-year growth rate of 12.4%In 2019, the top 100 chains will have more than 1,026 stores on average, about 23 times the industry averageThe industry believes that the top 100 enterprises in terms of size and brand advantages From the domestic pharmacy chain of the top 100 enterprises in the past five years, the compound growth rate of sales has reached 14.42%, significantly higher than the industry average of 9.54% of the compound growth rate in the last five years However, in terms of the proportion, at the end of 2019, the sales of the top 100 chain companies accounted for less than half, the top ten companies accounted for only 20.22%, it can be seen that the future leading companies growth space is still very large