Original Minai release
Highlights
The 2024 MISI Conference has come to a successful conclusion! At the dinner exchange meeting with the theme of "Top 100 Chain Incremental Night" held on the evening of June 26, the 2023-2024 list of China's top 100 chain pharmacies was officially released; On the morning of June 27, Cheng Mou, vice president and general manager of the resource platform of Minenet, interpreted the strength, operation strategy and development trend of the top 100 chains from multiple angles and at a deep level.
Cheng Mou, Vice President and General Manager of the Resource Platform of Minenet
The head chain position is stable and firm, and the big ginseng forest and Yifeng ...... Another great achievement
For the top 100 chain pharmacies in China, Cheng Mou pointed out that in 2023, the number of top 100 chain stores and sales scale will maintain growth, and there are two categories that will significantly improve their rankings compared with 2022: first, the rapidly expanding listed "upstarts" with the help of capital power; The second is to benefit from the overall planning of outpatient clinics, and the chain with a substantial increase in revenue.
According to the hierarchical characteristics of the list, the top 100 chains can be divided into four layers: K1, K2, K3 and K4. K1 is the absolute head, mainly large-scale listed chains and private equity consortiums in the country, with a total of more than 10 companies at present, and 10 billion revenue is the threshold. Among them, Dashenlin jumped to the first place on the list (revenue in 2023 will reach 24.53 billion yuan and the total number of stores will exceed 14,000), and Yifeng and Quanyi will climb to the third and seventh places respectively. On the whole, the top 10 chains are developing, their status is relatively stable, and their rankings have not changed much.
K2 is the provincial leader, listed upstart and quasi-listed company, most of the stores are more than 1,000, and the revenue threshold is about 2 billion yuan, and the representative chains include Anhui Guosheng, Zhang Zhongjing, Yikang, etc. Among them, Guosheng, the regional leader in Anhui Province, will successfully IPO in 2023, with the help of capital advantages to achieve a surge in the number of stores; Huang Qingrenzhan, a leading company in Jiangxi Province, has made efforts in the field of DTP pharmacy and outpatient co-ordination, and its revenue in 2023 will increase by more than 59% year-on-year. The rankings of the two provincial leaders have improved significantly.
K3 is the leading chain in the city and some of the DTP advantages, the total number of stores is mostly between 500-1000, Shaanxi Guangjitang, Parknshop Huiruifeng, Tongfang, Sichuan Xinglin, Intel (pharmaceutical retail), etc., 1 billion yuan is the revenue threshold. K4 is the leading first- and second-tier cities or third- and fourth-tier cities, with a total of more than 200 stores and a revenue threshold of 400 million yuan, representing the chain of Minxin, Kangquan, Foxin, Jiaxing People, Longma Pharmaceutical, Hengkang, etc.
315.2 billion revenue hit a new high! Full analysis of the top 100 chain operation indicators
In 2023, the number of stores and revenue of the top 100 chains will still show a trend of "single stores are concentrated in chains, chains are concentrated in the top 100, and the top 100 are concentrated in the head". Among them, the revenue and market share of the top 100 chains continued to rise, with sales reaching a record high of 315.2 billion yuan, accounting for more than 50% of sales. It is worth mentioning that the proportion of the single pharmacy market is "stable" and the vitality is tenacious; The proportion of the top 100 is concentrated, and the non-top 100 has declined.
Revenue and proportion of the top 100 chains
The number and proportion of pharmacies
The top 100 new stores are mainly from listed chains, listed upstarts and some regional leaders. Due to high prices and reduced acquisitions, in addition to self-built stores, the way to join in 2023 is "popular". Among them, Dashenlin, Yifeng, Laobaimin and other chain new stores increased the most, with more than 1,000 self-built and franchised stores respectively. The total number of new stores of the above three listed chains reached 10,874.
In 2023, the expansion of the top 100 franchises will be significantly increased, with the top 100 chain franchise stores accounting for 28.8%, an increase of 15% year-on-year; The construction of the top 100 medical insurance stores increased steadily and slightly, basically flat, and the proportion of the top 100 chain medical insurance designated stores reached 89.83%, a year-on-year increase of 0.28%; The expansion of the top 100 stores carrying out chronic disease management has been further strengthened, and the proportion of stores carrying out chronic disease management has reached 43.99%, an increase of 8.15% year-on-year, indicating that the top 100 chains pay more attention to the improvement of professional service capabilities; Most of the top 100 single stores have seen their average daily sales decline, but they are still on a downward trend overall.
In terms of OEM, 51.6% of the top 100 chains will carry out their own/OEM business in 2023, an increase of more than 10% compared with last year; The number of self-owned/OEM products accounted for 5.29%, a year-on-year increase of 0.44%. It is worth noting that there is a large difference in the number of self-owned/OEM products among the top 100 chains, with some chains as many as thousands, such as Jilin Pharmacy (5,989), Xinjiang Pujitang (3,900) and Guangdong Love (2,447), while some chains are zero.
In terms of the top 100 "electrocution", the top 100 chain e-commerce business will continue to expand in 2023, with O2O as the main channel and others as supplements; Among them, the number of top 100 chain stores that opened O2O services accounted for 74.31%, an increase of 14.84% year-on-year. On the other hand, in 2023, O2O's sales, gross profit margin and net profit will all usher in double-digit year-on-year growth, with 37.42%, 54.5% and 21.12% respectively.
Top 100 O2O business stores
From the perspective of capital operation, the top 100 chains injected by external funds will account for 22.85% in 2023, basically maintaining the level of 2022. In 2024, the proportion of the top 100 companies that expressed their intention to invest or merge abroad will be 42.85%, an increase of 5.71% year-on-year; The proportion of the top 100 companies that expressed interest in seeking to join other large chains or be acquired was low, at only 8.5%, the same as last year.
Stricter regulation! Four key points to help chain pharmacies break through the predicament and restart a new situation
In recent years, although the growth of China's pharmaceutical industry has been steady but the growth rate has slowed down, the balance rate of medical insurance and the income of medical insurance funds have declined, the inspection of medical insurance violations is frequent, and the implementation of price rectification policies such as "four sames" + "instant price" is superimposed, and the supervision of retail pharmacies will become stricter will be the trend of future development.
In the face of many difficulties, how can retail pharmacies clear the fog and restart a new situation? Cheng Mou shared four directions of concern.
The first is business compliance, as the first priority and eternal theme. Especially since the beginning of this year, the National Health Insurance Administration and the State Administration of Taxation have jointly signed the "Memorandum of Cooperation on Promoting Data Sharing and Deepening Collaborative Co-governance", and 14 departments, including the National Health Commission and the Ministry of Industry and Information Technology, have jointly issued the "Key Points for Correcting Unhealthy Practices in the Field of Pharmaceutical Purchase and Sales and Medical Services in 2024...... The issuance of a series of guidance documents indicates that the state is coordinating the compliance of pharmaceutical operations from multiple fields such as economic investigation, taxation, and medical insurance, and also puts forward higher requirements for the compliance operation of retail pharmacies in the future.
The second is functional reconstruction, rethinking the function and value that pharmacies can play in the cause of national health. On the one hand, it focuses on the functional value positioning of pharmacies in the future society, which can start from chronic disease management, undertaking hospital prescriptions, closed-loop medicine and patients, health science education, pre-disease and health care rehabilitation, and treatment of common minor diseases. On the other hand, it is the upgrading of the profit model of chain pharmacies, such as the construction and use of the "D (channel), T (attitude), P (price)" model, to achieve the marketing purpose of increasing customer flow, improving customer conversion rate and repurchase rate, and fully reflecting the value of products (cost-effective products).
The third is commodity reconstruction, seeking growth from the "category" that contributes value. The focus includes five aspects: professional services ("suitable for the elderly" industry services, meal replacements for specific patients, etc.), "non-drug" products (cosmeceuticals, health products, equipment, etc.), "co-ordination" medical institutions (clinic stores, self-built Chinese medicine halls, etc.), young customer flow (suitable for young people's national tide weak treatment attributes of Chinese herbal medicine tea, etc.), "OEM"/private label (dual-brand operation, co-branding and other models), accelerated circulation of gold single products (chain of products with the most value for cooperation, etc.).
Fourth, customer operation reconstruction is truly "customer-centric". These include, according to the different portraits of customers, stratification, grouping, stage, and special personnel to provide accurate services; Pay attention to the stratification of high-value customers, and accurately organize the provision of products and services with "high repurchase (chronic diseases, maintenance mines, ED, etc.), high customer orders (precious, health care, beauty, etc.)".