In 2023, Jianzhijia's online business scale will reach 2.16 billion, with a growth rate of 54.58%; The total sales of people's online channels were about 2 billion, a year-on-year increase of 38%; During the reporting period, the sales of new retail business (O2O + B2C) increased by 45.25% year-on-year......
Organize | Yoshiko
Recently, the 2023 annual report and the first quarter report of 2024 of all listed chains have been released one after another, and the online business has achieved rapid development, accounting for a continuous increase in the proportion of operating income, demonstrating the strong vitality of new pharmaceutical retail.
01
The development momentum of new retail is strong
With the escalation of public health demand, the accelerated development of "Internet + medical health", and the rapid rise of new pharmaceutical retail, especially since the epidemic, consumers have gradually established the habit of buying drugs online, which has promoted the continuous improvement of the penetration rate of pharmaceutical e-commerce.
According to Zhongkang CMH data, the market size of B2C drugs will reach 65.9 billion yuan in 2023, a year-on-year increase of 21.0%, although the growth rate of scale has slowed down compared with the previous year, it is still higher than the growth rate of retail pharmacies (including O2O).
In terms of O2O, according to Zhongkang CMH data, in 2023, the national express store drug market size of O2O channels will be 3.3 billion yuan, and the scale of 70% of core direct delivery stores in 70 cities will be 9.5 billion yuan, both reaching double-digit growth year-on-year. Although the proportion of O2O is small, it has driven the performance growth of offline pharmacies significantly. 70% of the core direct delivery stores in 70 cities, which account for only 4% of the scale, contributed to the performance increase of pharmacies in 70 cities by up to 37%.
Judging from the data performance in January 2024, the B2C drug market size reached 5.4 billion yuan, an increase of 8.9% over the same period. At the same time, from January to February 2024, the market size of Zhongkang CMH monitoring O2O drugs will be nearly 2.2 billion yuan, a year-on-year increase of 42%, of which the scale of direct delivery stores will increase by 63%; In February, O2O direct delivery stores accounted for 4.6% of offline retail pharmacies.
It can be seen that the new retail of medicine is ushering in broad development prospects. However, some industry insiders said that at present, whether it is B2C or O2O, online sales are still difficult to make profits, and enterprises need to focus on ensuring the interests of offline channels, and then gradually increase the share of online sales, and gradually explore a profitable new retail model.
02
The online business of various chains continued to climb
From the financial reports of major listed chains, it can be found that the development of online business continues to rise. Yifeng, Yixintang, Laobaimin, Shuyu Civilian, Jianzhijia and other enterprises actively explore new retail business models to meet the drug purchase needs of various consumers in different channels. Jianzhijia's online business scale reached 2.16 billion, with a growth rate of 54.58%; The total sales of people's online channels were about 2 billion, a year-on-year increase of 38%; During the reporting period, the sales of new retail business (O2O + B2C) increased by 45.25% year-on-year......
According to the 2023 financial report, the new retail business continues to maintain rapid development by relying on digitalization to drive omni-channel, with total sales of online channels in 2023 being about 2 billion yuan, a year-on-year increase of 38%. In terms of the public domain, the company's O2O and B2C sales ranked fifth and third in the market in 2023, respectively. In terms of private domain, the company's "People's Pharmacy" mini program provides 24-hour online services, with sales of about 100 million yuan in 2023 and more than 400,000 annual service users. As of the end of the reporting period, the company had 10,663 O2O takeaway service stores and 626 24-hour stores.
Jianzhijia's new retail performance in 2023 is very bright, with online channels achieving a total operating income of 2.164 billion yuan during the reporting period, an increase of 54.58% over the same period of last year, accounting for 23.83% of operating income, an increase of 5.20% over the same period of last year. According to reports, Jianzhijia mainly meets the multi-level and differentiated needs of customers through traditional e-commerce B2C platforms, third-party platforms O2O, store reservation systems, and micro malls. The third-party platform O2O business relies on offline physical stores to meet the differentiated needs of customers for "lazy night specialization", with a store coverage rate of 89.87%, of which 24-hour and night shift stores account for 15.11%.
Yifeng's 2023 report disclosed that B2C and O2O achieved annual sales revenue of 1.818 billion yuan (excluding tax), of which O2O (excluding franchise) achieved sales revenue of 1.399 billion yuan and B2C achieved sales revenue of 419 million yuan. According to reports, Yifeng O2O has more than 9,000 online direct stores, and more than 600 24-hour business distribution stores, covering all major cities of the company's offline, and can quickly cover M&A projects and franchise project stores, and are at the industry-leading level in picking timeliness, delivery timeliness, order satisfaction rate and human efficiency.
Yixintang's new retail business sales in 2023 will be 876 million, and its O2O channel sales will account for about 74%. The financial report said that in the next step, Yixintang's new retail sector will focus on empowering the main business and achieving high-quality development of the business. Customer-centric, Yixintang will realize the linkage between the public and private domains, and provide professional services through efficient online and offline collaboration. At the same time, relying on technologies such as big data and artificial intelligence, combined with professional pharmacy service capabilities, the new retail sector will further accelerate the process of online business.
During the reporting period, the sales of new retail business (O2O + B2C) increased by 45.25% year-on-year, of which the online rate of O2O drug delivery service covered stores reached 79.17%. According to the financial report, Dashenlin actively explores the new retail business model, and in the O2O business, Dashenlin has established a user-centric, 30-minute home delivery service 24 hours a day. At the same time, Dashenlin also carries out B2C business, using the delivery mode of central warehouse + provincial warehouse + regional warehouse to cover the whole country.
Driven by the troika of B2C, O2O and private domain operations, the performance of Shuyu civilians continued to grow during the reporting period, with sales reaching 1.29 billion, a year-on-year increase of 39.6%. Based on the O2O operation of the large franchise sector, the business developed rapidly, and helped the franchised customers achieve new retail sales of 147 million during the reporting period. In the private domain sector, Shuyu Civilians launched a private domain management platform to complete the collection of various data and realize automatic labeling and automatic reach, so as to improve the operation ability of private domain users. During the reporting period, the cross-border e-commerce model was piloted by the Shuyu civilian, and the Shuyu civilian+ mini program was launched on the "Soyu Cross-border Mall" to provide users with high-quality overseas goods.
With the continuous evolution of consumption habits and the gradual breakthrough of geographical restrictions, the advantage of online business without the limitation of time and space has greatly expanded the service radius of stores and created more possibilities for chains to provide efficient services. Judging from the 2023 financial report, the scale of the online business of each enterprise has grown steadily, and at the moment of fierce competition and price involution, it is worth paying attention to whether the online business can truly continue to bring profits to pharmacies.
Source: Financial reports of the above-mentioned companies
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