From retail cross-border services, how chain drugstores with private domain operation to break the game

Listed companies are the wind vane of the industry, in the newly released half-yearly report, six domestic listed chain drugstores continue to trot forward, the number of stores grew steadily, the revenue growth rate are in the double-digit or more. This is still in the recurrence of epidemics, resulting in "four types of drugs" from time to time off the shelves and stop selling, store closures, reduced customer traffic and other objective unfavorable conditions to achieve results. 6 chain drugstores half-yearly revenue, the data from the company's announcement of the changes in the external environment so that the survival of the business environment turbulence is the norm, the enterprise must be certainty of the business model and the internal operation mechanism of certainty, to cope with the business model and the internal operation mechanism of certainty, the business model and the internal operation mechanism of the company. The certainty of the business model and the certainty of the company's internal operating mechanism to cope with the uncertainty of the external market. It may be worthwhile to study the ways in which chain drugstores have responded to changes in the environment to achieve such growth. In the past, the development mode of chain drugstores was based on scale expansion, but with the development of the industry, the break-even point has been increasing. Due to the impact of the epidemic and other factors, a number of chain drugstores have set the break-even cycle for 2 years, while the previous minimum of only 6 months. External expansion will have to continue, but it will have to change from the rough way of the past to high-quality expansion, focusing on endogenous growth with refined management. Arterial Network hopes to dig through the half-year report of six chain drugstores, from the "people", "goods", "field" three dimensions to explain the secrets of chain drugstores to maintain high growth, and chain drugstores are now What kind of partners are needed. "People": refined operation insight into potential demand "In the past, there is a view that the pharmaceutical retail industry is not afraid of the Internet, because customers need service to buy drugs. But in the past few years, the development of pharmaceutical e-commerce and the services provided have far exceeded the imagination. If the traditional pharmaceutical retail industry does not change, the end is self-evident." An industry insider told Arterial.com. Among the directions of change, there is one point that all six listed pharmacy chains have highlighted - private domain operation. With the marginal effect of Internet expansion diminishing, the traffic dividend is disappearing, and there is a lack of traffic, both offline and online. The future development of good or bad, not by the flow but by the "retention" amount. "Retain" the amount of private domain. Pharmacies also need a set of private operation system to revitalize and upgrade them to private "retain" volume, in order to become the engine of development. And the membership system is the foundation of all this. Take the half-yearly report of the People's Pharmacy as an example, as of June 30, 2022, the total number of members was 66.11 million, of which 5.06 million were newly added in the first half of the year, with 14.18 million active members, accounting for 6.3% of the sales of members, and 1.9% of the customers coming from members. It can be seen that the operation for members is still in a relatively elementary stage. The establishment of the membership system is a gradual process that needs to be centered on four scenarios: member recruitment, retention, reach and conversion. It is necessary to do offline store membership advertising to attract new members, online community segmentation, public domain and private domain interoperability conversion, the use of digital tools to reach the precise, and then reach the offline conversion. For chain drugstores, private domain operation is to upgrade from traditional product operation to member operation and human operation. The private domain does not only refer to the members, but also includes the data assets of the members, such as member profiles, crowd attributes, consumption data, consumption characteristics, etc. And around these data, accurate digitalization is carried out. And around these data to carry out accurate digital operation. For example, six pharmacy chains have made a membership system that connects the online mall and offline stores, and designed graded rights and benefits for members. Based on digital tools such as enterprise WeChat, the connection between members and stores is established, and then targeted operations are carried out.6 Chain Drugstore Membership Scale, Data from Company Half-Yearly ReportsIn private domain operations, the establishment of communities is an important part, which assumes the role of establishing intimate contact with members, tapping into the value, and is the core of building a closed loop of private domains. Times are progressing, if you just pull members into a group for promotional information release or send some painless marketing words, obviously not talk about refined operation. Valuable community needs to organize a group of people with the same value orientation (health needs, hobbies, etc.), consumption concepts (price sensitivity, sensitivity to promotions, etc.), and even humanistic sentiments (filial piety, parenthood, etc.), so that members of the group have the *** same goals, to meet their social needs, so that the group will produce a viable adhesion and high-quality conversion. ■ Chronic disease management has become a breakthrough With the aging trend strengthening, the number of patients with chronic diseases is also increasing year by year. In the six chain drugstore half-yearly report, without exception, focused on chronic disease management. For pharmacies, chronic disease management has become an important segment of revenue contribution, but also in the future will continue to make efforts in the field. 6 chain drugstores in the management of chronic diseases on the method of play is also different, each is committed to creating their own characteristics of the service model. The People's Pharmacy: Hardware+Software+Service" Model The People's Pharmacy has set up Bluetooth smart devices for blood glucose, blood pressure, heart rate, blood uric acid, blood lipids and other chronic disease self-tests in 6,500+ stores nationwide, and has cumulatively built up a file of more than 8 million people from 2020 to June 30, 2022, and has cumulatively provided services for self-tests for more than 20 million people, and has cumulatively made more than 20 million visits, and has held online and offline meetings with patients. The company has also held more than 20,000 online and offline patient education sessions. The program not only helps chronically ill customers monitor disease indicators and improve medication adherence, but also enhances store traffic and customer stickiness. Yixintang: People-oriented, patient support model Yixintang's service focuses on people. In close cooperation with a team of renowned experts in public hospitals, through a centralized consultation model targeted to address the interdisciplinary, multi-disease medical care service needs of patients, to achieve personalized, standardized, collaborative basis of chronic disease management program. In addition, the mutual assistance model will be patients to disease as a unit to set up a patient organization, supervise each other, help each other, *** with enhanced self-management, improve the quality of life. At the same time, Yixintang adopts a "five-in-one" approach to chronic disease management, combining medication habits with behavioral habits, along with the use of international standard exercise prescriptions, nutritional prescriptions, and psychological prescriptions. As of the end of June 2022, Yixintang had 996 chronic disease healthcare stations*** in its stores, covering 45 divisions, 7 provinces and municipalities directly under the central government. Dashenlin and Jianzhijia: Creating a Specialized Chronic Disease Management System Dashenlin has set up a chronic disease management team on the basis of its professional pharmacy services, established a chronic disease management system that focuses on the needs of patients throughout the entire life cycle, and started to improve patients' adherence from professional services, and created a chronic disease member benefit system, whereby chronic disease management specialists provide the chronic disease population with chronic disease health profiles, testing, information on the safe use of medication, guidance and tracking, and medication management, and complication management. guidance and tracking, complication management and other services. By the end of June 2022, the number of chronic disease service personnel reached more than 1,200, the number of chronic disease service outlets was nearly 1,400, and the number of chronic disease management diseases reached 20. Jianzhijia has opened a total of 303 chronic disease health insurance outlets and established a system of nearly 700 specialized chronic disease outlets for hypertension, diabetes, heart failure, stroke, sleep health, skin and other diseases. Through the training and professional guidance of specialist pharmacists, we have established a full range of pharmacy care programs, health professional knowledge training and patient education programs, from treatment of diseases, symptom improvement, treatment of complications, nutritional support and health management. Afterwards, through the pharmacy management system, we follow up on customers' medication, health consultation and other professional return visits to enhance the stickiness of members with chronic diseases. Currently, Jianzhijia has recruited 1.3 million chronically ill members, and the number of transactions of chronically ill members is 1.7 times higher than that of ordinary members, and the customer unit price is 1.3 times higher than that of ordinary members. In addition to selling drugs, they also provide them with a series of services such as chronic disease health records, testing, safe medication information, medication guidance and tracking, and complication management. These services also require external companies to get involved. For some pharmacies, they are already used to being business-centered and are hardwired for professional services. Even if they build a membership management system, they will likewise not consider designing it based on pharmacy services. It is difficult for such a system to meet the overall needs of chronic disease management. At this time, if there is a one-stop solution for the out-of-hospital market, from drug companies to pharmacy terminals, in a timely response to consumer emergency, diversified scenarios of the purchase of drugs at the same time, through the establishment of an omni-channel, all categories of refined marketing system, to help the pharmacy from the acquisition of customers, conversion to retention, and all-round improvement of the pharmacy's operational capacity in various aspects. It is very attractive for pharmacies. "Goods": build a business model to undertake the incremental market From the perspective of the goods side, the chain drugstores should be prepared for the incremental drugs. In the half-year report, the six major pharmacy chains have clearly put forward various measures to undertake the outflow of prescription drugs. The National Health Commission and the Medical Insurance Bureau have issued policies in recent years to promote the "dual-channel" management, the establishment of prescription flow centers, and from the national level, the designated retail pharmacy into the scope of the medical insurance drug supply guarantee, the future of the pharmaceutical separation, the certainty of the outflow of prescription drugs can be guaranteed. According to the half-yearly report of Yifeng Pharmacy, in the past few years, the sales ratio of retail pharmacies in the three major terminals (public hospital market, drugstore market and public primary healthcare institutions) has increased by 3.2%, and the outflow of prescription drugs has played an important role in this process. In terms of the retail drug market, the proportion of prescription drugs is continuing to climb. The sales share of prescription drugs in the retail side has increased year by year, data from Zhongkang CMH According to Zhongkang CMH, the share of prescription drugs has been increasing year by year.In 2018, prescription drugs accounted for 38.4% of the sales in the national retail drug market, and as of 2022Q1, the share had risen to 45.5%, an increase of 7.1 percentage points.The share of OTC has been relatively stable during this period, remaining at 34 to 35% or so. According to Aikunwei, in 2018, China's prescription drug in-hospital market accounted for 71.8%. There is still a large space for prescription drug outflow, which will be gradually released in the coming years. Also since 2018, provincial units have actively built prescription flow platforms to promote prescription outflow. With the faster progress in promoting the flow of state-talked drugs and dual-channel management drugs, it will bring incremental revenue for pharmacies in the short term. What pharmacies have to do is to reach cooperation with drug companies to ensure the supply of relevant drugs. To this end, the six major pharmacy chains have coincidentally increased the proportion of hospital-side stores, to undertake the specialized configuration of prescription drug outflow has been gradually strengthened. Yifeng Pharmacy has set up a prescription outflow strategy leading group and a specialized prescription drug division to undertake prescription outflow through all channels. Offline, based on various professional pharmacies, Yifeng Pharmacy has deepened its cooperation with relevant manufacturers, and currently operates 200 drugs negotiated under the National Health Insurance Agreement and nearly 650 varieties of hospital prescription outflow, and has established in-depth cooperative partnerships with more than 150 suppliers. For online, Yifeng Pharmacy layout of electronic prescription business, at present, as the first batch of access to Hunan Province prescription flow platform of listed companies, has successfully completed the electronic prescription flow to their own stores landing work. Soyo Pharmacy also indicated in the half-year report that it will continue to strengthen the construction of hospital-side stores, dual-channel qualified stores, and standardized pharmacies and other projects. As of the end of the reporting period, Soyu Civil opened 57 designated special drug pharmacies for major diseases, more than 270 hospital-side stores, and 8 pharmacies up to standard in Shandong Province, with DTP tax-inclusive sales exceeding 570 million yuan, an increase of 84.13% year-on-year. In the first half of 2022, the People's Pharmacy accounted for about 10% of hospital-side stores, 168 stores with dual-channel qualification, 151 DTP pharmacies, about 10% of DTP sales, and about 37% of prescription drug sales. In the future, we will further utilize the advantages of the layout of hospital-side stores, promote the DTP pharmacy, "dual-channel" stores, special stores, slow stores and other coordinated medical insurance qualification, and docking prescription outflow. Chain drugstores in the Chinese medicine business layout, according to public information in addition to prescription outflow of this incremental market, gross margins are relatively high Chinese medicine products, is also a piece of incremental space. In recent years, many places issued a document to liberalize the sale of Chinese medicine in retail pharmacies, in addition, with the development of the aging population and the further enhancement of residents' health awareness, the sales market of traditional Chinese medicine products is expected to further open, and a number of pharmacy chains also have early layout. ■ Summary around the "goods" element, the six major drugstore chains around the incremental market to do a lot of layout, these layouts also from the sales side of the revenue growth. With the growth of chain drugstore prescription drug sales scale, in the future, the supply of prescription drugs from the circulation of the gradual change to the pharmaceutical companies, pharmaceutical companies and have the scale effect of chain drugstore cooperation, for both sides is a win-win situation. The purchase cost of the drugstore can be reduced, and the new products of the pharmaceutical company can open the market more quickly under the impetus of the chain drugstore's large-scale stores. "Field": diversified management to create a "big health entrance" model According to the prospectus of JianZhiJia, in 2016, Japan's retail pharmacy sales composition of commodity categories, drugs accounted for only 32.2%, cosmetics accounted for 21.1%, daily groceries and other products accounted for 46.8%. products accounted for 46.8%. In addition, U.S. drugstore chains adopted a diversified business model of drugstores plus convenience stores at an early stage, expanding their business categories to include health and beauty-related products. Therefore, based on the experience of the U.S. and Japan, domestic drugstore chains have been actively trying to diversify their business. Yixintang has expanded its "Yixin Convenience" business and increased the promotion of lottery and personal care and beauty products in the hope of attracting and expanding more potential consumer groups through the diversified business model.In the first half of 2022, Yixintang's sales of personal care and beauty products involved 36 types of products. In Yunnan Province, 657 counters were set up to promote personal care and beauty products. In only half a year, sales have exceeded one hundred million yuan. Soyu Civil Pharmacy, on the other hand, is targeting the store's aging-oriented clientele, accelerating the online and offline layout of matching aging-appropriate commodities, and at the same time, carrying out the layout of the online O2O aging-appropriate product zone to create aging-appropriate fine services within a 3-kilometer radius. For young consumers, we will accelerate the diversified layout of healthy snacks and imported nutritional products, and rapidly increase the number of eye care products, small home appliances and household cleaning products under the normalization of the epidemic. To create a special area for aging-friendly products as a breakthrough point, the implementation of aging-friendly or barrier-free renovation in stores will not only make the shopping experience better for the elderly, but also enhance the experience of all-age groups of customers entering the store. In addition, a number of chain drugstores are also exploring the "medical + medicine + X" mode of business integration. With the enhancement of health awareness, the general public's knowledge of health began to shift from disease treatment to disease prevention. Pharmacies have also explored the "medical + medicine + X" integration mode of business development, hoping to build a complete pharmaceutical service system from prevention to treatment, and play a complementary role in addition to the hospital scene. Drugstore chains have gradually realized the value of commercial insurance to their own business, and have begun to explore in this area. For example, the specialty pharmacy business mentioned above relies on third-party commercial insurance to connect drug companies, pharmacies, doctors and patients. Commercial insurance for pharmacies has three main roles: to increase categories, maintain the viscosity of existing customers, and publicize and attract new customers. In its half-yearly report, the People's Pharmacy proposed to build a multi-level medical payment system and service of "basic medical insurance business + commercial insurance", explore various possibilities of cooperation with insurance companies, seek new business growth points, and create a development model of "medical + pharmaceutical + insurance". Dasherin will actively explore the possibility of cooperation with insurance companies to seek new business growth points and create a development model of "medical + pharmaceutical + insurance". Dasherin will actively explore the model of "medical + pharmaceutical + health care + inspection + insurance", provide one-stop health services in the form of continuous innovation, assume social responsibility, expand the scope of business, serve a large customer base and enhance customer stickiness. insurance business. Yixintang, on the other hand, went even further, realizing sales of 371 million yuan in the third-party insurance business in the first half of 2022, an increase of 33.11% year-on-year, and the proportion of sales of third-party insurance business in the total sales of chain stores reached 5.78%. The scale of the third-party insurance business continued to grow. Jianzhijia, on the other hand, started to lay out a diversified community health service ecosystem a few years ago. According to its prospectus, Jianzhijia's business covers community professional convenience pharmacies, convenience stores, traditional Chinese medicine clinics, community clinics, and physical examination centers. On the basis of pharmacy as the main business, Jianzhijia gradually explore "pharmacy + convenience store", "pharmacy + clinic", "pharmacy + medical examination center" mode. In the first half of this year, total revenue of the convenience retail segment amounted to NT$197 million. ■ Summary of longstanding consumer habits make pharmacies throughout the community has become a natural window of health, how to use this window will be purely selling drugs in the past to expand the model for the whole course of the management of the service model, the integration of a variety of formats, prying than the drug larger than the health management market, is the current stage of the chain of drugstores are exploring the path of development. In the case of insurance companies, for example, with the community pharmacy chain as a window, it can more accurately reach the target group, and the pharmacy plays a role in screening, which further reduces the cost of insurance sales. Future Trends: Chain Drugstore New Infrastructure of Digital Intellectualization Capability Whether it is the refined private area operation or the expansion of commodity categories and the development of multi-industry fusion, it cannot be separated from the support of information technology system. At present, the informationization construction of drugstores mainly focuses on inventory management, member management, medical insurance and commodity management, which is still in a relatively elementary stage. In the face of the one-stop health service scenario and digital marketing needs of the future pharmacy, this type of system is not very helpful. According to the stage of development, this type of information technology construction is considered the first step in the digitalization of the pharmacy. Through the six chain drugstore half-yearly report of the business combing can be seen, with the outflow of prescriptions, medical resources sinking, health care combination of the evolution of the external environment, the traditional mode of operation and simple scale expansion has not been able to constitute the core competitiveness of the operation of the pharmacy, the change is an indisputable measure. If in the past, pharmacies mainly sold drugs, in the future, with the intensification of market competition and changes in user habits, the development direction of enterprises is driven by the shift from operating stores to operating users, from traffic thinking to "retention" thinking, and from marketing promotions to customer service, which require enterprises to be driven by digitization and integration of business architecture, All these require enterprises to take digital intelligence as the driving force, integrate business architecture, application architecture, data architecture and technical architecture, and create a digital intelligent big health service platform that is suitable for their own business. In addition, pharmacies need to strengthen their ability to diversify their business and enhance their ability to provide in-depth services such as pharmacy services, in order to provide consumers with more high-quality healthcare services. In the future, pharmacies, as one of the main carriers of primary healthcare resources, will evolve into convenient health centers, providing more diversified medical services. All of this is inseparable from the pharmacy's steps from digitalization to digital intelligence. In this process, who can provide a perfect solution, who will have the opportunity to occupy a considerable share. Just "sell drugs" can support the high-speed development of chain drugstores in the era of the past, in the era of mobile Internet, with the continuous improvement of the pursuit of quality of life, as well as the normalization of the epidemic, consumers, whether in the concept of consumption, consumption patterns or consumer demand, have undergone a sea change. Middle-aged and elderly groups are forced to quickly complete the initiation of online shopping, becoming a new batch of online shopping users; once considered the most difficult to capture the e-commerce brick-and-mortar drugstores began to encounter the plight of the decline in customer traffic; and more enthusiastic than the elders of maintenance, fitness, 95 after the transformation into a new era of health care army. In the face of this big change in the pharmaceutical retail industry, chain drugstores are also actively responding to the situation, they opened the door to attract all possible ****-win partners to participate in it, using their own advantages of penetrating the community, connecting a variety of services and people. Although the final effect remains to be seen, but they make every exploration, are for the industry's future development of solid foundation.