Medicine B2C top three mountains

First, when winter comes, can spring be far behind?

The recently draft "2010-2015 National Pharmaceutical Distribution Industry Development Plan" encourages drug distribution companies to merge and restructure, encourage the development of retail chain operations, and foster state-level, prefecture-level leading aircraft carrier companies, which will become the "Twelve Five" period. The focus of work in the field of pharmaceutical circulation. With the booming of mergers and acquisitions of pharmaceutical commercial distribution companies and pharmacy terminals, pharmaceutical circulation reform is advancing in depth, and the role of medical e-commerce plays an increasingly important role. Medical e-commerce is expected to take the policy spring breeze to become a new round of e-commerce hotspots.

Second, the layout decided to end, pharmaceutical B2C accelerated staking in recent years, rapid development of e-commerce, Internet users have been expanded to 338 million people, online shopping is being accepted by more and more people. According to statistics, the online pharmacy in the United States has accounted for nearly 30% of the entire pharmaceutical market in the United States. In 2009, the market for medicine, drug and cosmetic products, adult products, and health products outside the hospital in China was around 500 billion yuan. If the online pharmacy circulation is estimated to account for only 5% of the market, there will be a scale of nearly 25 billion yuan.

Jianke.com is the first country in Guangdong Province to approve an online pharmacy. After the first round of financing, Jianke.com has reached a cooperation with a heavyweight VC and the accumulated capital investment will reach 300 million yuan. The website of the website was set clearly and clearly. The traditional classification model was broken down and the key commodities were divided into 6 categories, namely Chinese and Western Medicines, Maternal and Child Health, Beauty Skin Care, Adult Products, Health and Health Care and Medical Devices. At the same time, it also opened service areas such as health quiz, health information, health topics, and health videos to provide customers with comprehensive health information.

Ping An Insurance has entered the pharmaceutical B2C to obtain an online retail license. Ping An Insurance's layout acquisition of No. 1 shop to build a medical B2C platform set off a hot wave of online pharmacy competition.

Third, the top three B2C medicines Dashan 1, a high policy threshold: In 2005 Jingwei pharmacy network was the first to obtain "Internet drug trading service qualification certificate." In 2006, there were 5 enterprises that passed the examination and approval, 6 in 2007, 13 in 2008, and 14 in 2009. In 2010, only 9 of them passed through 9 months. Although the approved enterprises this year have been considered to be a substantial increase, the difficulty in applying for online drug sales licenses is obvious. The relevant terms and conditions show that the application for a license is more difficult. Applicants must have certain qualifications for entry. Must be a nation-wide pharmaceutical chain company, a fully-market-compliant logistics system, a GSP-standard quality system, qualifications for qualified physicians and pharmacists, and assessment and approval. In addition, you must have an internet information business license and hold the license for 2 years.

2. Low industry concentration: The concentration of the domestic pharmaceutical retail industry itself is relatively low. There is no real national large-scale chain pharmacy in China. Even the domestic retailers with B2C licenses have limited coverage in stores across the country. In the United States, RiteAid, Walgreens, and CVS have monopolized more than 60% of their drug retail markets. Their relatively complete store coverage network provides a convenient basis for the offline distribution of their B2C businesses. In addition, the level of informatization in the pharmaceutical retail industry is relatively low. Most e-commerce business concepts of pharmaceutical retailers are lagging behind, lacking professional information technology research and development teams and feasible distribution solutions.

3, consumer groups and psychological maturity: China's online shopping population is the vast majority of young people, they are not the main consumer groups of drugs, drug consumption, the target customer group is for the lower level of awareness of the elderly. Consumer psychology may also lead them to eventually refuse to buy drugs online. For example: 1 Habitually think that buying drugs is going to hospitals and pharmacies; 2 Drug quality and sources on the Internet; 3 Worries about being deceived; 4 Uncertainty in the distribution process, such as whether on time and in the distribution process Damaged etc.

Fourth, VC "push" "retreat" dilemma?

Pharmaceutical B2C is also subdivided by e-commerce. The services provided by them include seeking drugs, ordering medicines and so on. At present, there are a number of medical B2Cs that have been approved by the State Food and Drug Administration, such as answering health malls and Jiuzhou Pharmacy. Online pharmacies, pharmacy networks, Beijing Weifang pharmacy online pharmacy, drug guide and other 27 pharmaceutical online shop in the field in a leading position. Due to the restriction of entry barriers, it is doomed that only a small number of pharmaceutical websites exist, which avoids vicious competition and also helps to occupy a huge market. It is expected to gain recognition and favor of venture capital.

However, judging from the current situation of China's operating pharmaceutical websites, as the country's first approved medical B2C, Jingwei University pharmacy network monthly sales in 2006 were only 400,000 yuan. In the first half of 2007, the monthly sales reached 1.2 million yuan, an increase of 9%, but the share of the company's overall sales was also minimal. Online pharmacies have their own politics and failed to produce synergies. The medical B2C model has not yet been verified in China.

VC focuses on several issues:

1. Why is the online pharmacy more complicated?

The current online pharmacies are almost doing some related sales. Many medical B2Cs have focused on non-medicine products such as health products, cosmetics, and adult products. Although the current online pharmacies also operate a wide range of products with pan-health concepts such as health foods, cosmeceuticals, and baby products, professional drug operations remain their greatest strength. It is understood that up to 2000-3000 kinds of drugs in traditional stores, and online pharmacies because of space-free restrictions, drug types can reach nearly 10,000 species. Is it a high profit temptation? Or for the sake of avoiding business risks!

2, only sell OTC to make medicine B2C lost the biggest cake In order to strengthen the professionalism of drug business, almost every online pharmacy is like a real pharmacy, equipped with a range of licensed pharmacists, practicing physicians, responsible for answering and guiding consumers in the purchase Various professional issues in the drug process. However, at present, the professional competence of online pharmacies is rather “heroes are useless” because the “pharmaceutical drugs” prescribed by pharmacists are the most important, and online pharmacies simply cannot operate.



In fact, the biggest difference between medicines and ordinary products is that the main decision to purchase what medicines is in the hands of doctors, not patients. And according to the relevant provisions of the Drug Law, prescription drugs can only be purchased by a doctor's prescription. At present, there are few prescriptions that can be flown to retail pharmacies, which are almost negligible, let alone online pharmacies. Without a doctor's prescription, online pharmacies would not be able to run prescription drugs, which would mean losing the largest piece of cake on the drug market.

3, medical B2C model potential geometry?

The B2C model has the greatest development potential and is currently the fastest growing. In foreign countries, the development of the B2C model has been quite mature; in China, the application of the B2C model in other fields is also relatively mature. In the pharmaceutical retail sector, there are not many B2C businesses currently under development, which shows that there is greater potential for development. As of September 6, 2010, there were 2409 websites that could provide Internet drug information service through the review and approval of SFDA. There were 50 service websites that could provide Internet drug trade, including 29 online pharmacies targeting consumers.

In China's pharmaceutical distribution and retail markets, pharmacies are the most liberalized in the market, and the future of pharmaceutical e-commerce will inevitably appear in pharmacy e-commerce.

4, logistics and distribution to become a bottleneck in the development of pharmaceutical B2C According to the relevant provisions of the Chinese Drug Law, drugs as a special commodity related to people's lives, is not allowed by mail order. Because third-party delivery can not avoid problems such as contamination, damage, and exchange of drugs during distribution. Because of this, one of the prerequisites for operating an online pharmacy is that it must have a physical store chain store. "Online orders, store delivery" is the only legitimate business model of B2C.

Some online pharmacies have local order stores for delivery, and foreign orders still go for postal or courier companies; others outsource online pharmacies to professional e-commerce service companies and become a single marketing platform, with stores as distribution centers, and sales based on sales. Situation and network companies are divided into; some online pharmacies and strategic alliances with pharmacies in the field, their orders can not be delivered to the pharmacy to commission delivery, and then according to the order to extract points. The legitimacy of these practices is probably only the regulatory authority can make accurate judgments. The only thing that can be affirmed is that, if the distribution problem is not resolved well, online pharmacies have difficulty in achieving rapid growth.

It is very difficult to unite brand-name drugstores across the country to distribute orders in different places. With the gradual maturity of regional pharmacy alliances, B2C is a good time for medicine.

Fifth, investment bank guess: Who is the next medical B2C?

In 2010, investment institutions favored pharmaceutical e-commerce for a year, which may also become a watershed in the field of pharmaceutical e-commerce. Professional e-commerce e-commerce sites have emerged late and are more homogenous, although there are no big leading companies. There are also several companies with more potential in the direction.

1. Drug retail chain retailers: The B2C model of the US pharmaceutical retail industry is based on the increase in the concentration of online entity stores. In contrast, in China, there is almost no individual pharmaceutical retail chain with a high concentration of physical stores. In the next decade, China's pharmaceutical retail chain enterprises will further develop in the direction of scale and chain. A certain amount of pharmaceutical chain retail enterprises have certain first-mover advantages.

2. Comprehensive online mall: We are more optimistic about Jingcheng Mall and Dangdang.com, which have mature online mall operation experience and logistics distribution system, and they have pharmaceutical companies or drug chain companies with Internet drug information and transaction service licenses. With strategic cooperation, this model has the opportunity to be the first to build an aircraft carrier in the medical B2C field.

3. Traditional pharmaceutical companies: Due to the uniqueness of the pharmaceutical industry, the process of selling drugs to patients should not be completed by pharmaceutical companies. An important concept of e-commerce is that enterprises can effectively use external resources and use outsourcing business, so that enterprises can concentrate on their main business and greatly promote the leap-forward development of enterprises. Because it takes a lot of cost to develop e-commerce, it is very stressful for the small and medium-sized pharmaceutical industry. Therefore, hosting a large-scale pharmaceutical e-commerce network company may be an effective way to develop medical B2C.

4. Pharmaceutical wholesale enterprises: Relying on the strong corporate resources of pharmaceutical wholesale enterprises to introduce e-commerce. The good customer channels that pharmaceutical wholesalers generally have are the most advantageous advantages of introducing e-commerce.

5. Medical insurance companies: Larger online pharmacies in the United States have been developed by medical insurance companies because insurance companies have many medical customers in their hands. With the resources of customers, it is relatively easy to sell products. Therefore, such online pharmacies are in the United States. The fastest growing. Domestic Ping An Medicine Network takes the lead in exploring its localization applications and is worth looking forward to.

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