Pharmaceutical retail has been reshuffled, isn’t your pharmacy still transforming?

　　In recent years, many industry insiders think of two words "burning money" when they mention "medical e-commerce". Just as many people think of "unemployed" when they mention "artificial intelligence". However, if you mention "new retail", whether it is a retail chain, a third-party platform, or a capital market, most of them are interested!

　　The reason may be that Jack Ma and a group of Internet giants bring attractiveness, which makes new retail like a discovery of a new world for the many pharmaceutical retailers, attracting the intervention of many capitals!

　　And what is the relationship between new retail and pharmaceutical e-commerce proposed by Jack Ma? Traditional B2B, where is the limitation of B2C, and where is O2O winning? Is there any flaw constraints? Can you see the future development trends based on current development? Will new retail subvert the circulation pattern of pharmaceutical retail? Will practicing pharmacists be unemployed? Can your company survive tomorrow after the circulation reshuffle?

　　Who will break the dilemma of offline physical retail?

　　The retail industry has developed rapidly over the years, but the pharmaceutical retail sector has always been subject to many controls on medical policies. Although there are large retail chains that can be counted, under many factors such as "medical insurance designated qualification", "medical insurance fund limit", and "prescription acceptance qualification", offline physical retail in pharmaceuticals is like a trapped beast. In the Internet era, it will be carried forward by third-party platforms like "coming customers from all directions". Faced with capital injection, technology upgrades, and policy control, retail companies have been panic and confused. Where is the future path?

　　Individuals are always so small before the times, and the path of enterprise development experience is even more impossible. The owner of a single pharmacy is thinking, "If you can't hold on until the end of the year, you may really have to consider whether to sell the pharmacy!" Small and medium-sized chains are firm. Even if the environment is bleak and stormy, they must last until the day the company goes public! Large chains are busy acquiring, and how many stores in a certain province will open this year, of course the cost still needs to be controlled...

　　There are always helmsmen in front of the times. Not to mention that Sinopharm, Yifeng and Yixintang are developing rapidly, third-party platforms have been eyeing new pharmaceutical retail for many years!

　　According to the top 10 of the top 250 retailers in the 2017 2017 released by the US retail industry magazine "STORES" and Deloitte, the highest growth rate is Walgreens, which focuses on the pharmaceutical field and has more than 4,000 chain pharmacies!

　　(Data source: US retail industry magazine "STORES" and Deloitte jointly released the 2017 top 250 retailers rankings, and the 2015 corporate public data (as of the company's fiscal year ending June 2016)

　　The second is Amazon, the only e-commerce background, with its rich online operation experience, and its business continues to advance into offline new retail, achieving a growth rate of 13.1%. Some time ago, according to a report released by LEK Consulting, Amazon, with a keen sense of touch, began to enter the healthcare industry: the second one is the "pharmaceutical mail order and retail pharmacies" scenario.

　　Foreign retail giants have shifted from big supermarkets and hypermarkets to the pharmaceutical sector. Of course, everyone believes that they will not stop at Amazon. It is worth noting that the only one among the top 10 lists focuses on the pharmaceutical field, Walgreens has the highest growth rate in the pharmaceutical field! It is more sufficient to show that the pharmaceutical retail market has unlimited potential. So will the domestic physical offline retail, which is subject to various limitations, be transformed by the Internet platform innovate business formats, reshape the pattern, and be reborn from the ashes?

　　Amid the controversy of hundreds of schools, medical e-commerce emerged

　　From 2001 to 2014, it belongs to the era of B2B and B2C! From its prototype to maturity, pharmaceutical e-commerce has brought a brief prosperity to pharmaceutical retail, and has also touched the nerves of enterprises and capital markets, and has experienced ups and downs in development trajectory.

　　2001-2005, born in the future, and the prototype first appeared!

　　In 2001, the State Administration of Drug Administration issued the "Interim Provisions on the Management of Internet Drug Information Services", which allows service activities to provide information on drugs (including medical devices, sanitary materials, and pharmaceutical packaging materials) to Internet users through the Internet, but cannot conduct drug transactions directly.

　　In 2005, the State Food and Drug Administration issued the "Interim Provisions on Approval of Internet Drug Trading Services", which opens the trading markets of B2B and B2C at the same time, but companies that provide Internet drug trading services to individual consumers must be drug chain retail enterprises.

　　Although the two documents were four years apart, they coincided with the rapid development of China's Internet retail business, and pharmaceutical e-commerce came into being.

　　2005-2014, ups and downs, rapid development

　　In 2005, after the relevant documents were issued, many capitals poured into pharmaceutical e-commerce, and the first B2C license was obtained by Renhe. However, in the next few years, only a few companies have obtained licenses.

　　In 2012, the watershed in the history of Chinese pharmaceutical e-commerce came - Tmall Pharmaceutical Center was launched! With its huge traffic advantages, Tmall Pharmaceutical Center provides technical support and online services to pharmacies that have obtained relevant Internet qualifications, helping them sell related products mainly based on over-the-counter drugs online, and also charges corresponding commissions.

　　In 2014, the leap period of medical e-commerce has arrived! The State Food and Drug Administration issued the "Regulations on Supervision and Administration of Internet Food and Drug Operations (Draft for Comments)" and mentioned: "Internet drug operators should sell prescription drugs based on prescriptions in accordance with the requirements of drug classification management regulations; the standards, formats, validity periods of prescriptions, etc. shall comply with the relevant provisions of prescription management."

　　At this point, not only Internet companies such as Alibaba Health and JD.com, but also full-time medical e-commerce companies such as Kangaiduo and Yiyao.com, retail pharmacies such as Hao Pharmacist and Neptune Xingchen, as well as many parties including Guangyao Baiyunshan and Shenwei Pharmaceutical, have begun to make intensive arrangements in order to undertake the big cake of prescription drugs!

　　Since then, Tmall Pharmaceutical Center has been operated by Alibaba Health, and the policies and environment have improved, and the scale of pharmaceutical e-commerce has also reached a new level!

　　Since 2016, the policy has taken a sharp turn and the policy has been tightened

　　In July 2016, online transactions of OTC on Tmall's third-party platform were suspended, and OTC products listed on the non-self-operated stores of Tmall Pharmaceutical Center cannot be directly traded online.

　　In November 2017, the State Food and Drug Administration issued a draft for soliciting opinions, which mentioned that if online drug sellers are drug retail chain enterprises, they are not allowed to sell prescription drugs online, and websites that sell drugs to individual consumers are not allowed to publish prescription drug information online.

　　The data comes from the courseware of Director Tao Jianhong of the CFDA Southern Medical Economics Research Institute, sharing "How China's pharmaceutical retail releases vitality in the era of great change"

　　With the favorable environment and policies and the multi-party layout is preparing to undertake a larger prescription drug market, the country poured a pot of cold water on medical e-commerce. I don’t know what the final result of this draft opinion is, but what the industry can understand is that no matter how many advantages it has accumulated, as long as this draft opinion is finally implemented, the huge market for prescription drugs will be closed to pharmaceutical e-commerce. Not only will online transactions not be allowed, but information displayed on the platform will not be allowed.