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200 billion! In 2021, the pharmaceutical e-commerce market will reach a new high, and the big guys will play the era of social new retail

author:Minenet

Original Unsheet White Feather Minnet

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On July 23, 2021, the 2021 Rice Conference ushered in the second day of the conference, in the afternoon "Rice Wisdom Sharing: Wisdom Empowerment New Growth - Pharmaceutical Internet Development Forum", Minnei Network exclusively released the "2021 Pharmaceutical E-commerce Market Insights" report. In recent years, the scale of the pharmaceutical e-commerce market has soared, with health care products, health food, medical devices and other products selling best, and over-the-counter drugs also showing a rapid growth trend. To cope with the growing traffic, the platform operation has played a key role, the conference also invited representatives of B2B, O2O platforms to support the participants, how to make good use of the platform to empower products.

200 billion! In 2021, the pharmaceutical e-commerce market will reach a new high, and the big guys will play the era of social new retail

The whole conference was presided over by Zhao Biao, chairman of Yunnan Jianjin Pharmaceutical Co., Ltd., who mentioned that the current pharmaceutical industry is undergoing profound changes, in addition to the impact of policy changes, Internet companies are also increasing the layout of the pharmaceutical field, in such a era of change, we need everyone's exploration, share everyone's judgment, experience, and gain new insights.

In 2021, the pharmaceutical e-commerce market will exceed 200 billion, and big brands will stimulate new vitality

200 billion! In 2021, the pharmaceutical e-commerce market will reach a new high, and the big guys will play the era of social new retail

Jiao Qiming, secretary general of CPMC Pharmacy Management School, mentioned that the sales scale of China's online pharmacies in 2020 was 159.3 billion yuan, an increase of 59.0% year-on-year, which is the high point of growth in the past four years. The epidemic has catalyzed the rapid development of online pharmacies, accumulated health traffic, technology and distribution resources, and is expected to exceed 200 billion yuan in 2021. Judging from the situation of several major platforms, Tmall Pharmaceutical's platform transaction volume in 2020 is as high as 123.2 billion yuan, and JD.com also exceeds 50 billion yuan, and on different platforms, the situation of best-selling categories is also very different, and differentiated competition has been formed.

In 2020, in the top 5 sub-categories of over-the-counter drugs on the Ali platform (including Taobao, Tmall, Ali health data, etc.), the sales of gastrointestinal drugs were the highest, nearly twice the sales of the second place tonic and tranquilizer, and orlistat, as the most popular over-the-counter drug on the Ali platform, accounted for more than 80% of the sales of over-the-counter gastrointestinal drugs. In 2020, among the OTC drugs on the Jingdong platform (including self-operated and non-self-operated, Jingdong Health, etc.), the top 5 categories of sales are supplemental drugs, vitamin calcium nutrition, digestive system drugs, skin drugs and rheumatic bone trauma drugs.

In the list of prescription drug subdivisions on the Ali platform in 2020, the sales of andrology drugs ranked first, followed by cardiovascular and cerebrovascular drugs, skin and VE drugs. In the prescription drug category of Jingdong platform in 2020, the top 5 categories of sales are cardiovascular and cerebrovascular drugs, andrology specialty drugs, hepatobiliary drugs, nervous system drugs, and rheumatic bone surgery drugs.

In 2020, among the health care products on the Ali platform, the sales volume of the subdivision category ranked first in household health care equipment, followed by moxibustion and wormwood products. In 2020, the top 5 categories of JD.com platform sales were masks, plasters (instruments), nose and throat care, eye care, and eye masks/earplugs.

With the improvement of people's awareness of health care, health food/dietary nutritional supplement food has also been very hot in the pharmaceutical e-commerce market in recent years, with sales on the Ali platform reaching 23.74 billion in 2020, of which the highest sales are other dietary nutritional supplements. In 2020, the sales of Jingdong platform were 8.43 billion, of which the Top 5 categories were infant nutrition, bone health, immunity enhancement, antioxidants, and bird's nest.

For the research and judgment of China's pharmaceutical e-commerce trends, Jiao Qiming believes that The cultivation of pharmaceutical e-commerce in China has gradually matured. Pharmaceutical e-commerce companies are paying more and more attention to new special drugs, rare disease drugs, and cross-border drugs, or will become the preferred channel for enterprises with volume procurement. Pharmaceutical e-commerce enterprise services will also gradually extend to service links, such as the life and health full-cycle management of patients with chronic diseases. At present, the main force of prescription drug sales in China is still in the hospital channel, but the outflow of prescriptions will become a new growth point for pharmaceutical e-commerce. The access online channel of medical insurance payment is a great benefit to the development of the pharmaceutical e-commerce market, and at the same time, it further promotes the accelerated outflow of prescriptions. In general, Jiao Qiming believes that pharmaceutical e-commerce is not just moving to online pharmacies, nor is it "grabbing" market share with offline channels, it is not just a stock switch, but an incremental entrance, a new "terminal", and the in-depth construction of "professional service pharmaceutical retail" will be promising.

From the above market analysis report, it can be seen that at present, big health products are selling hot in the pharmaceutical e-commerce market, and the nutritional drugs of Qingdao Double Whale Pharmaceutical are also loved by netizens, how to enhance the value growth of big health products from professional leadership? Chai Yuli, chief medical consultant of Qingdao Shuang whale Pharmaceutical Co., Ltd., pointed out that nutritional drugs have broad prospects in the OTC market due to their rich product types, wide range of applications and huge population market. In the future, the demand for great health will lead the nutritional drug market, at the level of national policy, has gradually shifted to the treatment of diseases as the center to the health and prevention of diseases as the center, to maintain the health of individuals and family members, is the current and future life of the rigid needs; on the other hand, to correct sub-health, cure diseases, prevent the health awareness is constantly improving, delaying the reduction of aging and degenerative diseases has become more and more a strong consumer desire.

However, where are the advantages of the growth, increment and value-added of nutritional drugs, and how can they be converted? Chai Yuli said that from consumer science education to professional training of pharmacy staff, from academic support, professional guidance, health national policy to people's needs, it is necessary to lead the market through "academic professional + science popularization" in order to enhance the value space of nutritional drugs.

Hong Kong Aomei Pharmaceutical, which also focuses on the retail market, recently vigorously promoted Aosong Pills, at the conference, the "Magic Aosong Pills Jianghu To Rescue" Wandian Line Theme Activity was officially launched, and the retail market ushered in the gastrointestinal medicine market gold explosive - Aosong Pills.

However, what products can be made into gold blockbusters? Yang Weijie, vice president of BG of Hong Kong Aomei Pharmaceutical Retail, said that there is a market, a difference, a profit, and a support, and this "four haves" product can become a gold explosion. Aosong pills are a highly differentiated and competitive gold explosive product, the product is domestic exclusive, effective treatment of abdominal pain and diarrhea, indigestion, loss of appetite, cold and other symptoms, its fast, safe and full effect is expected to obtain long-term support from consumers. In addition, professional sales team services, clerk education, clerk incentives, in-store display, consumer promotions, theme market activities, etc. will also provide all-round market support to help product sales take off.

How to "play" the platform, various experts to support

In addition to relying on products to drive traffic in the pharmaceutical e-commerce market, platform operation is also an important link, as a new retail model, how to efficiently "play" various platforms to drive product sales? Experts are here to help!

200 billion! In 2021, the pharmaceutical e-commerce market will reach a new high, and the big guys will play the era of social new retail

Bai Dawei, senior expert of Alibaba's local life medicine and health, mentioned that in the new retail era, it is necessary to conform to the trend of online and offline integration and create a new user experience. Ele.me Health is a pharmaceutical module of Alibaba's local life, which constitutes a pharmaceutical O2O ecosystem through users, platforms, pharmacies, and logistics. With the cooperation model of "Ele.me Medicine and Health + Pharmacy Chain", it provides professional services such as online traffic import, online accurate promotion, fast delivery, accurate matching of users/merchants/goods, and 7*24-hour drug delivery. Judging from the data of the platform cooperative stores, the number of settled chains has grown strongly, with nearly 180,000 cooperative stores and more than 1,200 chain pharmacies so far in 2021, and the number of merchants settled on the platform has increased year by year, and the big battle covered by the whole country is expected to end at the end of this year.

"At present, factors such as the acceleration of homogenization of industry competition, the low degree of digital intelligence, the lack of cross-border talents, and the immature online service model have made pharmaceutical O2O groping forward." Bai Dawei pointed out that for the industry competition to accelerate the homogenization of serious, one is that the KA chain joined the track, the price adjustment frequency is very high, the competition is very fierce; the second is the increase in subsidies, expanding the investment in people, finance and materials; third, the unit price of customers continues to decline. For the degree of digital intelligence is not high, on the one hand, the platform industry and pharmacy chain as a whole have not yet transformed into digital intelligence operations; on the other hand, the digital supply chain is insufficient, and the matching of people, goods and fields is still being explored.

Zhou Kai, deputy general manager of pharmacy network mall, said that 70% of the pharmacies in the retail market are small and medium-sized pharmacies, with the continuous growth of large chain mergers and acquisitions, the traditional living space of small and medium-sized pharmacies has been squeezed, the average annual sales of offline stores are gradually declining, competition is becoming increasingly fierce, small and medium-sized pharmacies have a strong embrace of Internet demand, but in e-commerce capabilities, information capabilities, financial strength, procurement capabilities and other aspects, are in urgent need of empowerment, and traditional e-commerce platforms and information service providers have large chains as the main service objects. Ignoring the real needs of small and medium-sized pharmacies.

The integration of new retail platform services can reach the whole network position of consumers, establish a full-link, all-media, all-data, all-channel marketing system, accurately target all-network users, online and offline drainage, and help small and medium-sized pharmacies achieve digital new retail through systematic solutions. The traditional supply chain of pharmacies can be upgraded to a collection supply chain, becoming a member of the online collection alliance, reducing procurement costs; pharmaceutical companies can directly reach pharmacies in small batches and batches through grid sales management, accurately control products, and reduce sales costs. The pharmacy online mall will help small and medium-sized pharmacies to fully promote digital transformation and seek new development.

How can B2B platforms empower small and medium-sized chains? Zhang Yunbin, head of the pharmacist help small and medium-sized chain project, analyzed at the meeting that the current pharmacy circle has entered the era of top 100 competition, mergers and concentrations are the industry trends, and large chains have formed a "dimensionality reduction attack" situation on small and medium-sized chains; in addition, the traditional business model is facing the impact of the Internet, under the classification and grading management, the retail pharmacy format has gradually transformed into specialization and diversification; in recent years, the market gross profit has continued to decline, and the traffic competition around the price is the only way out.

The value empowerment of the B2B platform is mainly reflected in giving full play to its own advantages, opening up external resource empowerment, integrating upstream resources, and building a safer and more efficient pharmaceutical circulation network. Pharmacist Gang is China's largest comprehensive service platform for the intelligent supply chain of medicine, bringing together upstream superior resources to create exclusive products for small and medium-sized chains; and with the help of supply chain financial products, it can revitalize the capital pressure of small and medium-sized chains and make payment easier. It is reported that Pharmacist Gang has 1500+ chains to open preferred channels, 800+ chains to open account period products, will continue to focus on small and medium-sized chain product empowerment.

Play with the era of "social new retail", efficient drainage, open up the market...

The outbreak of the new crown epidemic in 2020 has allowed social new retail to take root in the retail field, which has largely made up for the shortcomings of the reduction of customer flow in stores, in the face of new challenges, how will chain pharmacies and industries work together for a win-win situation? In the interactive forum session at the end of the conference, the celebrities shared their views.

200 billion! In 2021, the pharmaceutical e-commerce market will reach a new high, and the big guys will play the era of social new retail

Interactive Host:

Xu Xiaoliang, executive editor of Physician Online magazine

Interactive Guests:

Xu Jianping, chairman of the Hubei Council of mifanghui and general manager of Wuhan Mayinglongda Pharmacy Chain Co., Ltd

Zhong Yi, chairman of Pharmacy Online Mall

Alibaba's senior expert in local life medicine and health, David Bai

Li Zhong, deputy general manager of Guangyu Yuanguo Pharmaceutical Co., Ltd

Ouyang Yurui, vice president of Jiangxi Huiren Health Technology Co., Ltd

For social new retail, Xu Jianping said that online and offline integration, industrial entry, business empowerment, interlocking. Third-party platforms are an important supplement to retail physical pharmacies, to make full use of the influence of the platform, but can not rely on, must have their own resources, to firmly grasp the core of social change - that is, customers, in-depth study of customer needs.

Zhong Yi mentioned that the market environment in the past few years has not been fully opened, and the supply capacity of small and medium-sized chains of drugs is slightly insufficient, and if this status quo can be improved, the future is still very promising. He suggested that small and medium-sized chains can rely on omni-channel cooperation, and focus on category selection, such as potential varieties such as chronic disease drugs, and practice basic skills; at the same time, Internet hospital empowerment is also a direction worth referencing.

Bai Dawei believes that social new retail has two characteristics, one is communication, the other is marketing. In fact, last year, live broadcasting and community group buying were very hot, and these are part of the social new retail. Everyone can do more experiments, and only continuous innovation can inject fresh blood into social new retail.

Li Zhong mentioned that the current well-known marketing model is also being transformed, and he believes that as long as the positioning is clear and adheres to the high-end route of high-quality products, it can also go out of the road of differentiated success. He mentioned that during the epidemic, the company has increased online marketing, while also continuing to maintain offline services, he believes that exposure and conversion rate are complementary, and multi-faceted promotion can also get good results. At the same time, the company is also laying out the big health category to set off the main products. Li Zhong also said that the company has its own Internet hospital, and from the data, the effect is still very obvious.

"After 2015, the national micro-business was in turmoil, and in recent years, there has been a differentiation, and social new retail is one of them." Ouyang Yurui is deeply touched by this, he said that traditional enterprises need brands to get involved in new retail, to create their own brands or sub-brands; choose products and platform channels suitable for their own enterprises to do branding. As long as you have the courage to take the first step, you are not afraid of falling behind others.

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