Abstract

The market size of top 100 China's chain drugstores (by sales) got continuously expanded in 2005, increased to RMB 34.42 billion from RMB 23.24 billion in 2004. By 2005, the shops number of top 100 enterprises totaled 36,240. The potential advantages of chain and scale  in China's pharmaceuticals retail industry are becoming apparent.

It has been discovered that great changes have taken place in China's pharmaceuticals market structure by 2004. Over the past years, 90% of drugs are sold by hospitals and only 10% in drugs retail market. Nowadays, the shares of drugs in retail market are up to 20% to 30%. 

Based on a great deal of data from National Bureau of Statistics, National Development and Reform Commission, China Association of Pharmaceutical Commerce, State Food and Drug Administration(SFDA), Chinese Pharmaceutical Association, Southern Medical Economic Institute, China Chain Store & Franchise Association, China Business Information Center, China Drug Store Magazine, China Pharmaceutical Intelligence and other relevant resources, this report analyzes the status quo of development, investment characteristics, industrial trend of China pharmaceutical chain industry, focusing on analyzing competition of leading pharmaceutical chain enterprises, status of foreign capitals,  entry mechanisms to pharmaceutical chain industry and investment opportunities. It also describes market competition pattern in pharmaceutical chain industry, China's industrial policies and policy trend, giving full details about status quo of pharmaceutical chain industry in key regions, like Beijing, Shanghai and Guangzhou.

Table of Content

1. Status quo of development of China's pharmaceutical industry
1.1 Status quo of development
1.1.1 Increasing market demand
1.1.2 Fierce market competition
1.1.3 Integration of pharmaceutical industry
1.1.4 Construction of logistic & distribution center speeds up
1.2 Analysis on economic benefits of China's pharmaceutical industry
1.2.1 Analysis on overall operations, 2005
1.2.2 Analysis on supply and demand, 2005
1.2.3 Analysis on market operation, 2006
1.3 Market status quo of China's pharmaceutical industry
1.3.1 Analysis on demand and structure
1.3.1.1 Growth trend of market demand for pharmaceuticals
1.3.1.2 New changes of drug consumption structure
1.3.1.3 Diversification of pharmaceutical market structure
1.3.1.4 Development trend of blockbuster drugs
1.3.2 Analysis on drug price
1.3.2.1 Drug price turns out to be reasonable
1.3.2.2 Key factors to lower drug price
1.3.2.3Trend of drug price cut, 2006
1.3.3 Analysis on OTC Consumption
1.3.3.1 Analysis on consumer behavior in OTC market
1.3.3.2 Large potential of OTC 

2 Status quo of China's pharmaceutical chain industry
2.1 Status quo of development
2.1.1 China pharmaceutical retail industry overview
2.1.2 Development dilemma of China's pharmaceutical chain industry
2.1.3 Development review of pharmaceutical chain industry, 2005
2.1.4 10 key words about industrial development, 2005
2.1.5 Threshold to restrict the development of pharmaceutical chain industry
2.1.6 Foreign capitals move into pharmaceutical chain industry
2.2 Status quo of policies of China's pharmaceutical chain industry
2.2.1 Policy background for rapid development of China's pharmaceutical chain industry
2.2.2 Guidance on deepening pharmaceutical circulation system reform 
2.2.2.1 Guiding ideology
2.2.2.2 Reform objectives
2.2.2.3 Policies and measures
2.2.3 Online drugstores to pass acceptance inspection
2.2.4 Policy support of pharmaceutical retail industry
2.2.4.1 Policy support
2.2.4.2 Development of pharmaceutical retail industry
2.2.5 Relevant policies to be issued
2.2.5.1 SFDA: issue regulations on setup of medicine cabinet in remote rural areas
2.2.5.2 Ministry of Public Health: reinstate system for doctors to prescribe with generic name
2.2.5.3 SFDA: establish a system for adjusting drug prices biennially
2.2.5.4 Notice of General Office of the State Council on stabilizing housing price to touch medical system
2.2.5.5 National Development and Reform Commission intends to label drug price on external package
2.2.5.6 Policy factors of development dilemma of pharmaceutical industry

3 Analysis on regional pharmaceutical chain market in China
3.1 Status quo of pharmaceutical chain market competition in Beijing
3.1.1 Different performances 
3.1.2 Beijing chain drugstores return to direct selling
3.2 Overview of pharmaceutical chain market in Shanghai
3.2.1 Fierce competition of out-of-town pharmaceutical chain stores in Shanghai
3.2.2 Shanghai low-price drugstores to suffer loss
3.3 Status quo of pharmaceutical chain market competition in Guangdong province
3.3.1Status quo of pharmaceutical retail market in Guangzhou
3.3.2 GSP attestation of retail drugstores in Guangdong province
3.3.3 Status quo of pharmaceutical retail market competition in Shenzhen
3.4 Overview of pharmaceutical chain market in Hunan province
3.4.1 Pharmaceutical chain stores in Changsha no longer only play price war game
3.4.2 Analysis on outstanding performance of "Laobaixing"
3.5 Status quo of pharmaceutical chain market competition in other cities
3.5.1 Analysis on retail drugstores competition in Fuzhou
3.5.2 Market analysis on chain drugstores in Harbin
3.5.3 Overview of retail drugstores market in Shenyang
3.5.4 Overview of retail drugstores market in Chengtu
3.5.5 Overview of retail drugstores market in Hangzhou
3.5.6 Market analysis on retail drugstores in Lanzhou
3.5.7 Market analysis on retail drugstores in Haikou

4 Analysis on China's leading pharmaceutical chain enterprises
4.1 Overview
4.1.1 Development status of China's chain drugstores, 2004-2005
4.1.2 Status of listed pharmaceutical companies to operate pharmaceutical chain business
4.2 Analysis on relevant listed pharmaceutical companies
4.2.1 Neptunus
4.2.2 Guangzhou Pharmaceutical Company Limited
4.2.3 Shenzhen Accord Pharmaceutical Co., Ltd.
4.2.4 Tianjin Zhongxin Pharmaceutical Group Corporation Limited
4.2.5 Chongqing Tong Jun Ge Co., Ltd.
4.2.6 Shanghai Pharmaceutical Group Co., Ltd.
4.2.7 Shanghai Fosun Pharmaceutical (Group) Co., Ltd.
4.2.8 LIVZON Pharmaceutical Group Inc.
4.2.9 Harbin Pharmaceutical Group Co., Ltd.
4.2.10 Jiuzhitang Co., Ltd
4.2.11 Beijing Tongrentang Co., Ltd
4.3 Strategy analysis on listed companies' investment into pharmaceutical chain industry
4.4 Analysis on large-sized enterprises in pharmaceutical chain industry
4.4.1 China Nepstar Chain Drugstore Ltd. 
4.4.2 Hunan Zhilin Pharmaceutical Chain Stores Co., Ltd
4.4.3 Jilin Pharmacy Chain Co., Ltd
4.4.4 Yixintang Pharmaceutical Chain Co., Ltd
4.4.5 Gansun Zhongyou Pharmaceutical Group
4.4.6 Hunan Laobaixing Pharmacy Chain Co. Ltd
4.4.7 Liaoning Chengda Fangyuan Pharmaceutical Chain Co., Ltd
4.4.8 Hubei Tongjitang Pharmacy Co., Ltd
4.4.9 Guangdong Bencao
4.4.10 Shanghai Huashi Pharmacy Co., Ltd
4.4.11 Shenzhen Accord Pharmaceutical Co., Ltd
4.4.12 Beijing Golden Elephant Pharmacy Chain Stores Co. Ltd
4.4.13 Guizhou Yishu Pharmaceutical Chain Stores Co., Ltd
4.4.14 Jiangxi Kaixinren Pharmaceutical Chain Stores Co., Ltd
4.4.15 Tongrentang
4.4.16 Tongjunge
4.4.17 Shenzhen Zhonglian Chain Drugstores Co., Ltd
4.4.18 Hunan Jinsha Chain Drugstores Co., Ltd
4.4.19 Sanjiu Chain Drugstores Co., Ltd
4.4.20 Medicine Shoppe

5 Development trends of chain drugstores
5.1 Diversification of chain drugstores
5.1.1 Status quo of diversification of China's chain drugstores
5.1.2 Difficulties of diversification of China's chain drugstores
5.1.3 Directions of business choice of drugstores' diversification
5.2 Chain drugstores enter Post Economic Times in 2006
5.3 Merger and integration of chain drugstores to accelerate
5.3.1 Merger of chain drugstores in international market
5.3.2 Merger of China's chain drugstores
5.4 Development trend of pharmaceutical retail industry
5.4.1 Next stop of professional drugstore-medicine cosmetics store
5.4.2 Pharmaceutical tycoon to be optimistic of medicine cosmetics

Selected Figures

Production growth of sub-industry in pharmaceutical manufacturing, 2004- Dec.2005
Production proportion of sub-industry in pharmaceutical manufacturing, 2005 
Growth of economic benefits of pharmaceutical enterprises by ownership, 2005
Analysis on overall economic benefits of pharmaceutical manufacturing, 2004-2005
Profit growth of pharmaceutical manufacturing and sub-industry (1), 2004-2005
Profit growth of pharmaceutical manufacturing and sub-industry (2), 2004-2005
Analysis on profit margin of pharmaceutical manufacturing and sub-industry (1), 2004-2005
Analysis on profit margin of pharmaceutical manufacturing and sub-industry (2), 2004-2005
Economic benefits data of pharmaceutical manufacturing and sub-industry, Jan. 2005-Dec.2005
Accumulated profits and growth of pharmaceutical manufacturing and sub-industry, 2005
Rankings of Gross output value of China's pharmaceutical industry by region, 2005
Top 10 China's pharmaceutical enterprises by sales, 2005
Top 10 China's pharmaceutical enterprises by profits, 2005
Cost analysis on pharmaceutical manufacturing and sub-industry (1), 2004-2005
Cost analysis on pharmaceutical manufacturing and sub-industry (2), 2004-2005
Profit margin of cost and expenses pharmaceutical manufacturing and sub-industry (1), 2004-2005
Profit margin of cost and expenses of pharmaceutical manufacturing and sub-industry (2), 2004-2005
Indexes of expenses of pharmaceutical manufacturing and sub-industry, 2005
Growth of administration charges and financial expenses of pharmaceutical manufacturing and sub-industry, 2005
Assets-liability ratio of pharmaceutical manufacturing and sub-industry, 2004-2005
Growth of account receivable of pharmaceutical manufacturing and sub-industry (1), 2004-2005
Growth of account receivable of pharmaceutical manufacturing and sub-industry (2), 2004-2005
Growth of assets-liability ratio and account receivable of pharmaceutical manufacturing and sub-industry, Dec. 2005
Cash ratio of pharmaceutical manufacturing and sub-industry, 2004-2005
Year-on-year growth rate of chemical raw material medicine output, 2004-Dec.2005
Year-on-year growth rate of Chinese patent drugs output, 2004-Dec.2005
Sales and storage of pharmaceutical industry, 2004-2005
Sales revenue and profit concentration ration of pharmaceutical manufacturing and sub-industry, 2005
Growth of economic benefits of enterprises in pharmaceutical manufacturing and sub-industry (by scale), 2005
Sales proportion of enterprises in pharmaceutical industry by ownership, 2005
Proportion of total profits of enterprises in pharmaceutical industry by ownership, 2005
Development status of pharmaceutical industry, Q1 2006
Exports of pharmaceutical industry, Q1 2006
Economic benefits of pharmaceutical industry, Q1 2006
Statistics of economic benefits of 22 leading state-owned pharmaceutical enterprises, Q1 2006
Major 10 blockbuster drugs in China, 2004
Major 10 blockbuster drugs worldwide and sales, 2002
Major 10 blockbuster drugs worldwide and sales, 2003
Major 10 blockbuster drugs worldwide, 2005
Information source of OTC consumption
Growth of total sales of Top100 pharmaceutical chain enterprises (1), 2002-2005
Growth of total sales of Top100 pharmaceutical chain enterprises (2), 2002-2005
Sales comparison among pharmaceutical chain enterprises with different ranking, 2004-2005
Share changes of total sales of Top 10 pharmaceutical chain enterprises (1), 2003-2005
Share changes of total sales of Top 10 pharmaceutical chain enterprises (2), 2003-2005
Development status of Hubei Tongjitang Chain Drugstore, 2003-2005
Growth of Top 100 chain drugstores, 2004-2005
Development status of Top 3 pharmaceutical chain enterprises by sales, 2005
Development status of China Nepstar Chain Drugstore Ltd., 2004-2005
Rankings of pharmaceutical chain enterprises, 2005
List of Top 100 China's chain drugstores (by scale), 2005
List of Top 100 China's chain drugstores (by overall ranking), 2006
List of Top 100 China's chain drugstores (by scale), 2006
Profit distribution of Neptunus, 2005-2006
Profitability of Neptunus, 2005-2006
Management competence of Neptunus, 2005-2006
Development capacity of Neptunus, 2005-2006
Profit distribution of Guangzhou Pharmaceutical Company Limited, 2005-2006
Profitability of Guangzhou Pharmaceutical Company Limited, 2005-2006
Management competence of Guangzhou Pharmaceutical Company Limited, 2005-2006
Development capacity of Guangzhou Pharmaceutical Company Limited, 2005-2006
Profit distribution of Shenzhen Accord Pharmaceutical Co., Ltd., 2005-2006
Management competence of Shenzhen Accord Pharmaceutical Co., Ltd., 2005-2006
Development capacity of Shenzhen Accord Pharmaceutical Co., Ltd., 2005-2006
Profit distribution of Tianjin Zhongxin Pharmaceutical Group Corporation Limited, 2005-2006
Profitability of Tianjin Zhongxin Pharmaceutical Group Corporation Limited, 2005-2006
Management competence of Tianjin Zhongxin Pharmaceutical Group Corporation Limited, 2005-2006
Development capacity of Tianjin Zhongxin Pharmaceutical Group Corporation Limited, 2005-2006
Profit distribution of Chongqing Tong Jun Ge Co., Ltd, 2005-2006
Profitability of Chongqing Tong Jun Ge Co., Ltd, 2005-2006
Management competence of Chongqing Tong Jun Ge Co., Ltd, 2005-2006
Development capacity of Chongqing Tong Jun Ge Co., Ltd, 2005-2006
Profit distribution of Shanghai Pharmaceutical Group Co., Ltd., 2005-2006
Profitability of Shanghai Pharmaceutical Group Co., Ltd., 2005-2006
Management competence of Shanghai Pharmaceutical Group Co., Ltd., 2005-2006
Development capacity of Shanghai Pharmaceutical Group Co., Ltd., 2005-2006
Profit distribution of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., 2005-2006
Profitability of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., 2005-2006
Management competence of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., 2005-2006
Development capacity of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., 2005-2006
Profit distribution of LIVZON Pharmaceutical Group Inc., 2005-2006
Profitability of LIVZON Pharmaceutical Group Inc., 2005-2006
Management competence of LIVZON Pharmaceutical Group Inc., 2005-2006
Development capacity of LIVZON Pharmaceutical Group Inc., 2005-2006
Profit distribution of Harbin Pharmaceutical Group Co., Ltd., 2005-2006
Profitability of Harbin Pharmaceutical Group Co., Ltd., 2005-2006
Management competence of Harbin Pharmaceutical Group Co., Ltd., 2005-2006
Development capacity of Harbin Pharmaceutical Group Co., Ltd., 2005-2006
Profit distribution of Jiuzhitang Co., Ltd, 2005-2006
Profitability of Jiuzhitang Co., Ltd, 2005-2006
Management competence of Jiuzhitang Co., Ltd, 2005-2006
Development capacity of Jiuzhitang Co., Ltd, 2005-2006
Profit distribution of Beijing Tongrentang Co., Ltd, 2005-2006
Profitability of Beijing Tongrentang Co., Ltd, 2005-2006
Management competence of Beijing Tongrentang Co., Ltd, 2005-2006
Development capacity of Beijing Tongrentang Co., Ltd, 2005-2006