Drug retailers watch tomorrow in saturation

“Science development ultimately also speaks of scale, but this scale is based on quality and efficiency and sustainable development. There is no basis for this. Large scale is not development, but surplus, waste, and destruction.”

In the past decade, various localities have loosened the artificial control over the establishment of retail drugstores in different degrees. The phenomenon of supply shortages has improved, and the number of retail pharmacies has grown exponentially. However, in recent years, the supply and demand of pharmacies across the country have been basically balanced, and the growth rate has gradually slowed down and gradually becomes saturated.

Facing a gradually saturated market

From the perspective of government supervision, what should be done when the pharmacy market becomes saturated? One idea is to stop approving new pharmacies, including total limits, new volume restrictions, regional restrictions, and other restrictions, and maintain supply exceeding demand to achieve industry protection. Another idea is to continue to examine and approve new pharmacies, and to use pharmacies to saturate and supply precious time that has been demanded, strictly supervise according to national regulations, be unconstrained, conduct fair competition, and promote non-compliance, non-compliance, and management. Not lawful pharmacies exit the market.

Undoubtedly, the former approach is the remnant of the planned economy. The latter is scientific and reasonable, in line with the principles of a market economy, and it also conforms to the state’s policy of liberalization and strict management. At present, the country is implementing the second line of thought.

It is on this premise that the era of making money at a pharmacy is gone forever! The reform of retail pharmacies can only take advantage of the situation, adjust the structure, and “best choice for survival and survival of the fittest”.

How to adjust? The first is to adjust the geographical structure and to open pharmacies in areas where pharmacies are relatively scarce. Second is to adjust the operating structure, increase the variety according to the needs of surrounding areas, and improve services. Third, adjust the structure of personnel, configure licensed pharmacists as required, and improve the professional quality of employees. And practicing ethics. The fact that the total number of pharmacies does not increase or decrease does not mean that pharmacies cannot be newly established. Nor does it mean that pharmacies cannot develop. It simply means that competition will intensify, and pharmacies that exit the market will increase. This is still an opportunity that can be exploited and developed.

Complying with the journey of scientific development

There is a distinction between traditional development and scientific development. The traditional development is to look at the industry from the industry, that is, increase capital investment, increase employment, build more companies, especially large enterprises, and increase the output value or sales. The emphasis is on the scale and the number of large-scale development. Scientific development is based on the society, market-oriented, demand-satisfied, and corporate autonomy. It emphasizes quality, resources, and environment. It emphasizes quality, sustainability, and quality development. Scientific development ultimately also speaks of scale, but this scale is built on top of quality and efficiency and sustainable development. There is no basis for this. Large scale is not development, but it is surplus, waste, and destruction. The current scientific development of the pharmaceutical retail industry includes:

Big adjustment

All said that pharmaceutical companies now have a small scale, low chain rates, and a small rural and remote mountainous region layout. They may be poorly adapted to the potential future separation of medicines. They all say that the pharmaceutical industry's commodity structure, corporate structure, and industrial structure are backward, and in the face of these dilemmas, there is no adjustment. how to change? If it is adjusted or changed, how can it not be considered development?

In the future, the pharmaceutical retail industry will not only eat big, but will not be strong and weak, and the elimination of advanced advanced elimination will inevitably proceed. Strong and strong alliances and great alliances will continue to emerge, and the new business models will continue to “take the lead” and grow. The main signs for the pharmaceutical retail industry to continue to develop in the future are the large adjustments in business operations, major adjustments in the corporate shape, and major adjustments in regional structure. On the overall scale, if there is no government taking a separate action for medicine, growth will tend to increase. smooth.

2. Big increase

The new version of the GSP was seen as a fearful way by some companies and exclaimed that "the wolf has come!" In fact, this is the wolf of the Qing Dao that eliminates old and sick animals and forms the wolf for the survival of the fittest.

The new version of GSP will not only promote drug management in line with quality management practices, improve drug quality and drug safety, but will also encourage strong companies to take a higher level, and weak companies will withdraw early, prompting an increase in industry concentration. There is strength to be merged and valuable to be merged. We must not only favor the merger of strong companies, but also applaud the merger of weak and small enterprises. If there is no cheating, there can be no great improvement in the quality of the company. There can never be a big norm of market order, and there can never be the scientific development of the industry.

3. Great satisfaction

The necessary prerequisite for any industry or company to base itself on the market is to meet market demand. The scale of product varieties and business service models operated by pharmaceutical retail companies, the use of information technology, and the value-added services of the entire industry chain must all be aimed at satisfying market demands and industry development, so as to enhance their reputation and establish their own image. Adjusting the structure to meet market demands is an inevitable prerequisite for scientific development, and it is also the ultimate pursuit of scientific development.

4. Large expansion

The large expansion mentioned here refers to expansion that may not yet occur and may occur in the future. If we say that advancing into the big health industry is a big expansion of the entire pharmaceutical industry (including pharmaceutical retailing), then the possible separation of medicines in the future will be a large expansion of drug retailers that have yet to come.

Although it is difficult for medicines to be separated, the country has already sent a signal. The author firmly believes that this universal model of medicine in the world will surely realize the dream of taking root in China. Even if the primary medical institutions are piloted only at the primary level, it is a great social progress. The drug retail company's current task is to gradually improve its ability and quality from its own reality according to the requirements for the separation of medicines, and make preparations to meet the opportunities. It is necessary to recognize the predicament of survival caused by current pharmaceuticals, and to understand the future prospects for the expansion of medicines in the future.

In addition, the simplification of government administration, liberalization, and strict management, and the gradual standardization of industry organizations, will also promote the scientific development of pharmaceutical retail companies. In this regard, companies must not be indifferent or too idealistic. They must be prepared to meet this great change.