Kyushu Power quotient profit worries online pharmacy is in total deficit

21st Century Web News

China's online pharmacy is experiencing growing pains.

According to the China Online Pharmacy Council report, this year, the size of domestic pharmaceutical dealers will exceed 1.5 billion, the size of 2015 will soar to 15 billion yuan.

But the market cake gan with bitter, the state strictly control the online drug trading qualifications, the establishment of a drug delivery system policy requirements to raise the threshold of entry, Maori and the high price of the prescription drug ban sales, resulting in almost total loss of pharmaceutical business website bleak situation.

Why is the Internet pharmacy so melancholy?

The annual sales of the Beijing East Good pharmacist, is experiencing a loss of worry.

2000, Kyushu Tong set up the Beijing Kyushu Tong Electronic Commerce Co., Ltd., founded Kyushu Tong Medical Network, access to the Internet Drug Trading Service Qualification certificate, nine years later, Beijing Kyushu Tong Pharmaceutical Co., Ltd. through E-commerce certification.

By the end of 2009, Kyushu Power quotient sales reached 1.15 billion yuan, ranked first in the national pharmaceutical manufacturers, but the business was mainly business-to-business.

2010, Kyushu Tong began to try the business, set up a good pharmacist network, but the vertical pharmaceutical manufacturers limited by their own platform scale, so in the next July, good pharmacists choose to cooperate with Jingdong, the establishment of "Jing Dong Good Pharmacist" website, including www.ehaoyao.com Online business and Jing Dong Good Pharmacist Health Museum two major business sectors. Kyushu to the joint venture company 51% of the amount of capital contribution.

Jing Dong Good pharmacist CEO Wei to 21st Century net, estimated that this year's website sales can break billion mark. According to the China Online Pharmacy Council report, this year the industry's total market size will reach 1.5 billion yuan, it is likely to appear four or five sales of hundreds of billions of online pharmacies.

But when asked about profitability, Wei shut up, "the figures are inconvenient to disclose, the company will not expand because of the scale of profit restrictions." ”

Shanghai million-engine Business Consulting Co., Ltd. CEO Ruzenwang to the 21st century network said, "Jing Dong good pharmacist is actually a loss." The pharmaceutical industry's losses accounted for 20% to 30% of sales. Cost input, the highest marketing costs, the second is logistics, the third is customer service costs. Now the age of medical and electrical dealers to burn money is basically the past, the cost of marketing decline, logistics costs naturally become the first place. ”

The professional requirements for the logistics of pharmaceutical and electrical business are high, Wei said that the company has in Beijing, Shanghai, Guangzhou, Wuhan, Chengdu, the establishment of 5 large warehousing centers, management system independent of headquarters, of which Beijing and Shanghai Storage area is the largest, Beijing occupies two to 3,000 square meters, Shanghai area warehouse area of one to 2000 square meters, Warehouse utilization is 100%.

"But logistics costs are high, accounting for 70% of the total quota." Wei admits.

Kyushu Tong Pharmaceutical Group Co., Ltd., vice chairman of the media has publicly stated that now has the quality of the online pharmacy is almost all loss, the most important reason is that when the drug is broken down into a bottle of a box, the decomposition cost is very high.

Zhang Yong, the council secretary of China's online pharmacy, said to the 21st century network that the future of the Internet shopping environment will spur consumption to increase online purchase of drugs, the size of the domestic pharmaceutical manufacturers are expected this year between 1.65 billion to 1.7 billion, the next year will increase to 4 billion, 2015 this number will soar to 15 billion yuan.

"1.7 billion of the number of water is very large, in fact, sales should be seven to 800 million, of which 80% is not drugs, drug sales can barely reach a billion, which compared with 700 billion of the drug market, can be negligible." "Ruzenwang said.

Many electric dealers are hard to resist the huge market temptation in the pharmaceutical industry, but the backward state policy has become a stumbling block.

In 2005, the state stipulated that the online drug sales must have the "Internet Drug trading Service Certificate" and "Internet drug Information Service certification." At the same time, the pharmaceutical electrical business must be "established in accordance with the law of drug chain retail enterprises." "Although there are 370,000 pharmacies nationwide and 15,000 chain pharmacies, only 70 of them have been approved by the beginning of July," said the company.

Transaction Service Qualification certificate approval is very strict, in the examination and approval of the interim provisions of the clear requirements, "to individual consumers to provide Internet drug trading services enterprises, should have with the online transactions with the variety of drug delivery system", pharmaceutical manufacturers must have a GSP certification of drug delivery system.

"Since the construction of the drug delivery system is very difficult, such as to give a batch of orders to Xian, must be set up in the local pharmacy, by the pharmacy distribution, and then from the North China drug wholesale company shipments, generally, Beijing, and can not directly use XI ' an pharmacy inventory." "A senior medical and electronic Business person to the 21st century network said.

He said that the implementation of the above distribution link has two prerequisites, that is, to ensure a certain amount of order and a wide range of pharmacies distribution. This to the small and medium-sized pharmaceutical chain enterprises to enter the electricity business undoubtedly raised the threshold.