China Medical Sales Channel Report, 2006-2007
  • Mar/2007
  • Hard Copy
  • USD $800
  • Pages:50
  • Single User License
    (PDF Unprintable)       
  • USD $900
  • Code: DY002
  • Enterprise-wide License
    (PDF Printable & Editable)       
  • USD $1,800
  • Hard Copy + Single User License
  • USD $1,000
      

In the first three quarters of 2006, the total sales value of top seven medicine merchandises in China amounted to RMB 211.838 billion, up by 8.07% year-on-year, among which, the total sales value of drug reached RMB 156.805 billion, increased by 7.34% over the same period of 2005; total sales value of Chinese traditional patent medicine totaled RMB 37.205 billion, up by 10.06% compared a year earlier.

As for the major sales channels for drug, there are now following four forms: regional general agency, exclusive agency, multi-dealer agency and sales channels established by drug manufacturers. The sales terminals include hospitals at all levels, health centers/clinics and retail drugstores, etc.

Proportion of Sales Revenue by Drug Terminal, Jan-Nov 2006
 

At present, the profit margin of drug wholesalers in USA is very low, the average gross margin, expense ratio and net profit ratio are 4%, 2% and 1.6% respectively, but they can still make profits as a whole owing to the large scale on the average. Nevertheless, for Chinese drug circulation enterprises, the average gross margin is 8.21%, but the average expense ratio is rather high, reaching 7.65%, so the net profit margin is as low as 0.57%, all of which are also ascribed to enterprises lacking of scale effect plus poor management.

Profitability of Drug Wholesalers between China and USA
 

As the emerging medium and low-end drug markets, both rural drug market and urban community medical institutions can bring great opportunities for drug circulation enterprises. Since 2006, China has improved the subsidy standard for the farmers who participate in the new-type rural cooperative medical system, where the central finance has allotted RMB 20 per person per year against RMB 10 in 2005, the local finance has also increased the subsidy by RMB 10, and meanwhile, the personal charging standard of farmers still keeps unchanged at RMB 10. What's more, according to the plan, the test regions of new-type rural cooperative medical system will cover 40% of the counties (cities, districts) all over China in the year of 2006 and will reach 60% in the 2007. Moreover, it will be introduced to all around China in the year of 2008 and then will basically achieve the goal of covering the rural areas by 2010. And this indicates that the launch of the new-type rural cooperative medical system will bring a drug market potential of approximately RMB 45 billion in the next 5 years.

The supervisory and administrative departments of food & drug have established the so called Blacklist System for commercial bribery enterprise in April 2004, which can help to control the distribution of the prescription drug in China. The individual drug distributors with 70% of market shares were forced to retreat from this drug sales channel (hospitals). In order to succeed in the change for marketing mode of prescription drug from traditional brokerage sales to brand building that takes time and energy, the drug enterprises have to take the lead in launching new products by innovation so as to maintain stable profit margins. As a result, the drug enterprises advantageous in sales channels may first get out of the depression.

Based on the advantages and disadvantages of traditional sales channels, the report brings forward some suggestions for the drug makers, distributors as well as the sales terminals. Besides, it gives a research on the new-type drug sales channels and models such as cosmetic drugstore, medical e-commerce, self-established sales channel, and predicts the development trend of sales channels in pharmaceutical industry. Therefore, the report is of great reference value for enterprises that are engaging in or interested in drug production and sales as well as the related enterprises & organizations.

1. Overview
1.1 Sales Channel of Drug
1.2 Drug Producers and Operators
1.3 Supervision Organization and Management Laws & Regulations

2. Current Status of China Drug Sales Channel
2.1 Development History and Trend
2.1.1 Development History
2.1.2 Development Trend
2.2 Forms of Sales Channel
2.2.1 Regional General Agent
2.2.2 Exclusive Agency
2.2.3 Multi-dealers Agency
2.2.4 Direct Marketing by Drug Producer
2.3 Problems and Causes
2.3.1 Lack of Products and High-quality Services
2.3.2 Serious Problem Exist in Drug Distributors
2.3.3 Construction on Sales Terminals Should Be Strengthened
2.3.4 Severe Conflicts among Drug Sales Channels

3. Industry Chain of Drug Sales Channel
3.1 External Environments
3.1.1 Economic Environment
3.1.2 Politics and Laws
3.1.3 Social Culture
3.1.4 Market Competition
3.2 Internal Environment
3.2.1 Drug Producers
3.2.2 Drug Distributors
3.3.3 Drug Consumers
3.3.4 Drug Marketing Staff

4. Key Enterprises Involved in Drug Operation in China
4.1 China National Medicines Corporation Ltd
4.2 Shanghai Pharmaceutical Co., Ltd
4.3 Huadong Medicine Co., Ltd
4.4 Jinling Pharmaceutical Co., Ltd
4.5 Wuhan Jianmin Pharmaceutical Group Co., Ltd
4.6 Dalian Merro Pharmaceutical Co., Ltd
4.7 Zhejiang Int'l Group Co., Ltd

5. Suggestions and Market Opportunity of China Drug Sales Channel
5.1 Suggestions
5.1.1 Improvement of Drug Producers
5.1.2 Improvement of Drug Distributors
5.1.3 Improvement of Retail Terminals
5.1.4 Solutions to Problems related to Channels in the Bidding System
5.2 Market Opportunity
5.2.1 Rural Drug Sales Channels
5.2.2 Online Drug Sales
5.2.3 New Drug Sales Channels
Sketch Map of Drug Sales Channels
Operating Performance of China National Medicines Corporation Ltd, 2001-2006
Profitability of China National Medicines Corporation Ltd, 2001-2006
Operating Performance of Shanghai Pharmaceutical Co., Ltd, 2001-2006
Profitability of Shanghai Pharmaceutical Co., Ltd, 2001-2006
Operating Performance of Huadong Medicine Co,, Ltd, 2001-2006
Profitability of Huadong Medicine Co,, Ltd, 2001-2006
Operating Performance of Jinling Pharmaceutical Co., Ltd, 2001-2006
Profitability of Jinling Pharmaceutical Co., Ltd, 2001-2006
Operating Performance of Wuhan Jianmin Pharmaceutical Group Co., Ltd, 2001-2006
Profitability of Wuhan Jianmin Pharmaceutical Group Co., Ltd, 2001-2006
Operating Performance of Dalian Merro Pharmaceutical Co., Ltd, 2001-2006
Profitability of Dalian Merro Pharmaceutical Co., Ltd, 2001-2006
Operating Performance of Zhejiang Int'l Group Co., Ltd, 2001-2006
Profitability of Zhejiang Int'l Group Co., Ltd, 2001-2006
Development Trend of Cooperation between Upstream and Downstream Enterprises of Drug Marketing Channel
Enterprises with Business Volume over RMB 10 million at the 2nd National Pharmaceutical Product Trade Fair, 2006
Main Economic Benefit Indexes of Key Drug Sub-industries, 2006H1
Drug Purchase and Sales Value of Hospitals in China, 2003-2005
Distinct Difference of Consumer Behaviors between Prescription Drug and OTC

China Blood Product Industry Report, 2020-2027

With the adjustment in the catalog of medicines covered by national medical insurance system, the scope and reimbursement ratio of almost all blood products for clinical use grow tremendously, which h...

China Medical Robot Industry Report, 2020-2026

Medical robot is the most promising segment of service robot market. By one estimate, globally 7,200 units of medical robots were sold and valued at $2.58 billion in 2019, compared with 5,100 units (u...

China In Vitro Diagnostic (IVD) Industry Report, 2019-2025

In vitro diagnosis (IVD) as a good way to make a rapid and definite diagnosis of diseases early, plays an increasingly crucial role in clinical medicine and related medical research fields. China’s IV...

China Aged Care Industry Report, 2019-2025

China’s society has aged before it gets rich. By the end of 2018, people aged over 60 had numbered 249.5 million in the country, or 17.9% of the total population, of which those aged over 65 were 167 ...

China Dental Industry Report, 2019-2025

Nowadays, the Chinese people have a growing awareness of oral health and healthy behaviors. 60.1% of residents have knowledge about oral health; 24.1% of 5-year-old children and 31.9% of 12-year-old c...

China Hospital Industry Report,2019-2025

The people’s growing awareness of health care and the acceleration of population aging have brought prosperity to China’s hospital industry. As of February 2019, there had been a total of 33,000 hospi...

China Dental Industry Report, 2017-2021

As living standards continue to improve and the awareness of oral health grows, consumers’ demand for dental services has kept increasing and the dental industry in China has witnessed robust developm...

China Interferon Industry Report, 2016-2021

Interferon is mainly used for the treatment of hepatitis B, hepatitis C, multiple sclerosis, condyloma acuminatum and other diseases. Wherein, IFN-α is mainly suitable for curing hepatitis B and hepat...

China Hospital Industry Report,2016-2020

In recent years, "Opinions on Promoting the Development of Health Service Industry" and other related policies, the people’s growing awareness of health care and the acceleration of population aging h...

China Aged Care Industry Report, 2016-2020

China entered the aging society early in 1999. By the end of 2015, China’s population aged over 60 reached 222 million and the old-age dependency ratio 13.9%. By 2020, China’s population aged over 60 ...

China Medical Robotics Industry Report, 2016-2020

Medical robotics can be used in surgery, rescue, transport, care, rehabilitation, dispensing and so on for the sick and wounded. Especially, surgical, rehabilitation and dispensing robots are the R &a...

China Dental Industry Report, 2016-2020

The dental industry refers to medical industrial chain on the basis of oral medical consumption, consisting mainly of dental apparatus (equipments and consumables), dental medical services, etc. With ...

China Medical Imaging Diagnosis Industry Report, 2015-2019

Against the background of a surge in social demand, handsome profit and the favorable opportunity brought by health care reform, the medical imaging industry, especially medical imaging equipment indu...

China Heparin Industry Report, 2015-2018

As the world's largest heparin API producer and exporter, China seizes about 80% share of the global heparin API market. After the explosive growth in 2008-2010, the stagnant international market and ...

Global and China Stem Cell Industry Report, 2015-2018

Stem cells are undifferentiated biological cells that can differentiate into specialized cells and can divide (through mitosis) to produce more stem cells. Currently, stem cells are used to treat hund...

China Hospital Industry Report, 2015-2018

Stimulated by the demand, the number of hospitals in China rose from 21,979 in 2011 to 26,479 at the end of May 2015, an increase of 4,500 in total. Among them, public hospitals showed an overall decl...

China Independent Clinical Laboratory Industry Report, 2015-2018

The independent clinical laboratory originated from the U.S. and is relatively mature in developed countries/regions like North America, Europe, and Japan, whose independent clinical laboratory market...

China Medical Robot Industry Report, 2014-2018

Medical robots can be applied to surgeries, rescue, transport, nursing and rehabilitation of the sick and wounded. Wherein, surgery and rehabilitation robots are two striking market segments. Due to ...

2005- www.researchinchina.com All Rights Reserved 京ICP备05069564号-1 京公网安备1101054484号