Original title: Analysis of the current development status and competitive landscape of China's online pharmacies in 2021, policy uncertainty is the main contradiction in the future. "Picture"
1. Online pharmacies industry overview
1. Application conditions
With the development of Internet commercialization, the Internet drug trading model has gradually emerged. In 1994, the online pharmacy business model appeared in the United States for the first time, and the first batch of online pharmacies began to sell drugs online and developed rapidly. Enterprises that provide Internet drug trading services to individual consumers should meet the following conditions:
Conditions that enterprises that Internet drug trading services should meet
Source: Public information sorting
2, sales model
my country's existing online drug sales model includes online retail self-operated models, such as Alibaba Health Pharmacy , JD Pharmacy; offline physical retail pharmacies self-operated e-commerce model, such as National Pharmacy , Laobaixing Pharmacy; O20 model, such as Dingdang Express Pharmacy ; B2B model, such as Yaojingcai.
Sales model of online pharmacies in my country
Source: Public information sorting
2. Relevant policy documents of online pharmacies in China
my country Medical e-commerce started relatively late, and the relevant policies for online drug transactions were issued. It is also basically concentrated in the past 20 years. In 2021, the "Implementation Opinions of the General Office of the State Council on Comprehensively Strengthening the Construction of Drug Supervision and Management Capacity" issued by General Office of the State Council requires further improvement of the application service level of " Internet + drug supervision", and promote the integrated application of industrial Internet in the fields of vaccines, blood products, special drugs, etc., and further strengthen the supervision and inspection of online sales behaviors and strengthen the quality supervision capabilities of online drug transactions. It can be seen that my country's policies for online pharmacies are gradually relaxed, which closely combines with the actual situation of my country's social development and drug supervision, and has gradually promoted the development of online drug transactions in my country.
Relevant policy documents for online pharmacies in my country
Source: Websites of various government departments, compiled by Huajing Industry Research Institute
3. Analysis of the market status of China's online pharmacies industry
1, Pharmaceutical sales scale of physical pharmacies
From the perspective of various categories of physical pharmacies in China (including drugs and non-drugs), physical pharmacies are still mainly drug sales, with a proportion remaining above 70%. Affected by medical insurance policies, national centralized procurement and prescription outflow, the proportion of drugs continues to increase. According to statistics, as of 2021, the sales volume of drug sales in my country's physical pharmacies was 440.5 billion yuan, and the CAGR from 2015 to 2021 was 6.15%.
2015-2021 drug sales scale and growth rate of China's physical pharmacies
Source: Minnei.com, compiled by Huajing Industry Research Institute
2, online pharmacies market size
With the combination of the Internet and traditional medical care, online pharmacies sales have developed rapidly, and the proportion has increased year by year. In addition, the 2020 COVID-19 epidemic catalyzed the rapid development of online pharmacies, the sales scale of my country's online pharmacies (drug + non-drugs) has grown rapidly. According to statistics, the sales scale in 2021 reached 223.4 billion yuan, a year-on-year increase of 40.2%, and the CAGR from 2015 to 2021 was 57.9%.
2015-2021 sales scale and growth rate of online pharmacies in China (drug + non-drugs)
Source: Mine.com, compiled by Huajing Industry Research Institute
Among them, the scale of online pharmacies in my country has grown rapidly. As of 2021, the sales scale reached 36.8 billion yuan, a year-on-year increase of 51.44%. The CAGR from 2015 to 2021 was 50.24%. Under the low base and new retail trend, the growth rate of online pharmacies' drug sales scale is significantly faster than that of physical pharmacies.
2015-2021 online pharmacies drug scale and growth rate
Source: Mine.com, compiled by Huajing Industry Research Institute
From the perspective of the sales trend of my country's physical pharmacies and online pharmacies (including drugs and non-drugs), the proportion of online pharmacies in my country grew rapidly from 2015-2021, with a proportion of increasing from 3.2% to 28.1%, an increase of 24.9 percentage points.
2015-2021 trend of the scale of online pharmacies in China
Source: MiNei.com, compiled by Huajing Industry Research Institute
3, online pharmacy drug structure
From the perspective of drugstore drug structure at night, chemical drugs have the largest market share, accounting for 60.5% in 2021, Chinese patent medicines account for 29.8%, and drug combinations account for 9.7%.
2021 online pharmacy drug structure (unit: %)
Source: Mine.com, compiled by Huajing Industry Research Institute
From the perspective of online pharmacy drug attributes, prescription drugs (RX) have the largest market share, with sales in 2021 of 20.4 billion yuan, accounting for 65.4%, and OTC/double cross-span sales were 13.3 billion yuan, accounting for 34.6%.
2019-2021 online pharmacies sales by drug attributes
Source: MiNei.com, compiled by Huajing Industry Research Institute
4, sales of major online drugs
Specifically, in terms of the sales scale of major categories of online drug market in my country, the sales scale of digestive system and metabolic drugs, reproductive urinary system, sex hormone drugs and cardiovascular and cerebrovascular system drugs ranked among the top three, with sales of 5.6 billion yuan, 3.2 billion yuan and 2.5 billion yuan respectively, a year-on-year increase of 19%, 67.8% and 85.8% respectively.
Scale of major categories of online pharmacies and chemical drugs market in China in 2021
Source: MiNei.com, compiled by Huajing Industry Research Institute
From the sales scale of various categories of Chinese patent medicine market in my country, among which, the sales scale of digestive system diseases drugs, Card and cerebrovascular diseases drugs and urinary system diseases ranks among the top three, with sales of 2.2 billion yuan, 1.7 billion yuan and 1.7 billion yuan respectively, a year-on-year increase of 152.0%, 94.1% and 23.7%, respectively.
2021 China's online pharmacies Chinese patent medicine market scale in various categories
Source: Mine.com, compiled by Huajing Industry Research Institute
4. Analysis of the competitive landscape of China's online pharmacies industry
1, Online pharmacies OTC/double-span Top20
my country's pharmacies online channels have advantages such as complete categories, low prices, convenient payment and logistics, attracting young customers and price-sensitive customers. With the support of traffic operations, big data and artificial intelligence technology, it is easier to attract traffic and precise marketing, forming dynamic sales. In 2021, my country's online pharmacies OTC/dual cross-span drugs will grow steadily, and new retail channels/new consumer groups will bring new categories and opportunities, such as health care products, mineral maintenance, pharmaceutical cosmetics, devices and other health-beauty related products are rising. In terms of products, high-maturity products and brands have more advantages in sales and profitability.
2021 China's online pharmacies OTC/double cross-TOP20 brand scale, share and growth rate
Source: Mine.com, compiled by Huajing Industry Research Institute
2, online business proportion of leading enterprises
From the perspective of the proportion of online business of leading pharmacies in my country, Yifeng Pharmacy, Yixintang , Laobaixing and Dasanlin online businesses accounted for 7.4%, 2.6%, 5.0% and 4.8% respectively, respectively, which increased by 2.2pct, 1.0pct, 2.9pct and 1.9pct respectively compared with 2020.
2020-2021 online business share of leading domestic enterprises
Source: Company announcements, Huajing Industry Research Institute compiled
5. China's online pharmacy industry development suggestions
1. Improve relevant laws and regulations, increase legal support
The country should increase legislation and issue laws and regulations on the sales entities and behaviors of online drug transactions, and further refine industry guidelines.For example, the " Internet Drug Information Service Management Measures " and " Internet Drug Trading Service Interim Provisions " have too generalize the business standards of online pharmacies, and they also need to make specific supplements in terms of pharmacies access, drug distribution, logistics and distribution, self-supervision, information disclosure, advertising release, etc.
2. Strengthen government supervision and ensure drug safety
. Supervision and management of online pharmacies require joint action between drug supervision and administration departments and other departments (such as industry and commerce, industry and information technology, public security, etc.) to work together to supervise. To form an effective regulatory cooperation mechanism, first, it is necessary to determine the specific regulatory subjects based on different regulatory contents; secondly, it is necessary to clarify the specific division of labor of each department in regulatory activities, and it is recommended that relevant departments establish and standardize the handling process of Internet drug business cases and specific handling rules as soon as possible; finally, various departments need to strengthen communication, promptly sort out the problems existing in the joint supervision process, discuss response measures, and establish a long-term cooperation mechanism. In addition, the drug supervision and administration department needs to issue policies and regulations on the implementation of management of third-party drug retailers such as Taobao, , JD.com, , WeChat, etc. as soon as possible, and regulate the business behavior of such online pharmacies as soon as possible.
3. Use industry power to standardize drug network business behavior
my country can learn from the industry supervision forms of the United States, Britain and Germany, establish relevant industry associations, assist drug supervision and administration departments in approving the qualifications of online pharmacies and conducting regular reviews, providing unique logos for qualified pharmacies to help consumers quickly and accurately identify legal online pharmacies. It is recommended that industry associations take the lead in producing page layout specification templates for online pharmacies, refine relevant regulations to the operation level, so that enterprises and consumers have evidence to rely on; at the same time, add a verification system to the web page to facilitate relevant departments to verify information such as practicing pharmacists, and drugs. In addition, in order to ensure high-quality online pharmacy services, it is recommended that industry associations can build a sharing platform for practicing pharmacists and include excellent practicing pharmacists to jointly provide pharmacological services to consumers in online pharmacies, save resources, reduce costs, and improve the quality of pharmacological services.
4. Establish a third-party transaction platform and promote medical insurance payment
The inability to use medical insurance payment is one of the important reasons hindering the development of online pharmacies in my country. Considering the regional policy differences in medical insurance payment in my country, it is recommended that the State Council’s drug supervision and administration department establish a third-party online trading platform. In the early stage, the platform can be further refined in the province as a unit, and strictly restrict the entry of designated medical insurance pharmacies can only be added to the online pharmacies platform of the province and city where the registration is located, and the scattered online pharmacies across the country are divided into provincial-level sections and managed separately; at the same time, it is stipulated that the payment location of consumers using medical insurance funds is limited to the online pharmacies platforms of the province and city, and the medical insurance funds are strictly managed; in the later stage, the management policies of the online platform can be adjusted according to the dynamic changes in the national medical insurance payment policy. In addition, fingerprint verification, iris verification and other technical means can be used to approve consumer information to ensure the authenticity of medical insurance identity.
Original title: Analysis of the current development status and competitive landscape of China's online pharmacies in 2021, policy uncertainty is the main contradiction in the future. "Picture"
Huajing Industry Research Institute conducted an in-depth analysis of the current development status of China's online pharmacies industry, upstream and downstream industrial chains, competitive landscape and key enterprises, etc., to minimize corporate investment risks and operating costs and improve corporate competitiveness; and use a variety of data analysis technologies to predict the industry development trends so that enterprises can seize the market opportunities in a timely manner; for more detailed content, please pay attention to the "2022-2027 China Online Pharmacy Market Competition Trend and Industry Investment Potential Forecast Report" published by Huajing Industry Research Institute.
