The selection of the "2024 Health Industry Brand List" was officially launched, and the brand power helped the new growth of the health industry.
The report of the 19th National Congress of the Communist Party of China proposed the "implementation of the Healthy China Strategy", while the report of the 20th National Congress of the Communist Party of China further emphasized "promoting the construction of a healthy China". In the "2024 Government Work Report", "new quality productivity" is clearly proposed, which drives the core of industry development through innovation, through technological breakthroughs, optimization of the allocation of production factors and the deep transformation and upgrading of the industry, and the three work together to depict a clear path for the high-quality development of the health industry.
Through technological innovation and industrial upgrading, the new quality productivity provides a strong impetus and support for the brand building of the pharmaceutical industry. As the core competitiveness of the pharmaceutical industry to build its own barriers, the strengthening of the construction has in turn promoted the improvement of new quality productivity. The new quality productivity directly determines the height that the brand can achieve, and the deep integration and interactive development between the two will inject new vitality into the development of the mainland health industry.
Source: Zhongkang CMH database, compiled by Zhongkang Industry Research Institute
Zhongkang Industry Research Institute has reviewed the brand development of the health industry in the past five years, and the contribution of the head brand to the industry is still important and prominent, and the proportion is growing. According to the CMH database of Zhongkang, whether it is retail or hospital channels, the sales of TOP500 brands will account for more than 50% in 2023, of which the sales proportion of TOP500 brands in hospital channels will increase by 13 percentage points in 5 years, and the retail channel will increase by 4.4 percentage points, and the concentration effect of head brands will be strengthened.
According to the Zhongkang CMH database, the national retail pharmacy market has reached RMB539.9 billion in 2023. In this year, the brands selected for the "2023 Health Industry Brand List" achieved annual sales of 152.9 billion yuan, accounting for 28.3%, an increase from the previous year, and the growth rate was also 2.1 percentage points ahead of the entire retail pharmacy market, showing the strong growth momentum of the top health brands. With their dominant position in the market, these leading brands are leading the way in the development of the pharmaceutical industry through high-quality product competitiveness.
From the perspective of brand drug categories, the sales growth of antiviral drugs, tonic qi and blood and enteritis antidiarrheal drugs was particularly significant. This growth trend is related to the diversification and frequency of respiratory diseases in the last year, and also reflects the increased awareness of health and wellness. With the growing consumer demand for health products, new consumer drug trends are taking shape, which will drive the growth of related drug sales.
In order to highlight the industry benchmark and present the competitive advantage of the leading brand. The annual selection of health industry brand list is officially launched! Zhongkang Industry Research Institute adheres to a professional, standardized and scientific attitude as always, takes "public welfare, openness, fairness and justice" as the principle, and uses a systematic and scientific 4D-BES system to scan and evaluate the brand from the four dimensions of "product value, market value, profit expectation and user praise", and compiles the "2024 Health Industry Brand Development Index" to reflect the comprehensive competitiveness of the brand. The "2024 Health Industry Brand List" is a list generated by scientific quantitative evaluation with reference to the "2024 Health Industry Brand Development Index".
Product value is a comprehensive indicator to measure the basic strength of the brand, which shows the basic ability of the brand. Market value evaluates the competitiveness and growth of the brand, which reflects the brand's position and influence in the market. Earnings expectation is another key metric used to assess a brand's future profitability, revealing a brand's spending premium power, channel bargaining power, and trends in earnings growth. User praise refers to scientifically measuring the brand's consumer experience and quantifying consumer satisfaction, which is an important indicator for insight into consumer trends.
1. Selection rules
- The branded product must have been on the market in China for more than 3 years (≥ 3 years);
- In the past 3 years (2021 to present), there have been no drug quality accidents and false advertisements for brand products (subject to the bulletins of regulatory authorities at all levels);
- Toxic, narcotic, refined and radioactive drugs, injections (except insulin) are not eligible for selection.
Second, the selection of categories
The categories include drugs (including prescription drugs and over-the-counter drugs), traditional Chinese medicine decoction pieces, health products and health foods, and medical devices listed in China.
Pharmaceuticals (43 categories)
Nutraceuticals and health foods
The selection is based on health products and health food brands of all functional types that have obtained the National Health Food Certification (SC certification).
Medical Devices (2 Categories)
The selection is aimed at medical devices that have obtained the national drug and device standard.
Chinese herbal decoction pieces
The selection is aimed at producing refined decoction pieces that meet Good Manufacturing Practice (GMP) standards.
3. Selection process
China Health Industry Index (CHI Index): Adhering to the purpose of promoting the high-quality development of China's health industry, Zhongkang Technology launched the China Health Industry Index in 2021: based on a wide range of industry data accumulation and standardized evaluation models, through a full data quantitative and multi-dimensional index method, comprehensively, intuitively, objectively and rigorously evaluate the development status of the pharmaceutical industry, retail industry and head brands, reflect the development status of the industry and the competitiveness of the main enterprises, and gain insight into the development of the health industry. At present, the China Health Industry Index is composed of three series of indexes: the Pharmaceutical Industry Development Index (including the Pharmaceutical Industry Comprehensive Competitiveness Index), the China Retail Pharmacy Development Index (including the Comprehensive Competitiveness Index of Pharmaceutical Retail Enterprises) and the Health Industry Brand Development Index.
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