Insight report on the development trend of prescription drug retail industry in 2021 From Boston Consulting

The following is the Insight report on the development trend of prescription drug retail industry in 2021 From Boston Consulting recommended by recordtrend.com. And this article belongs to the classification: Medical health, Boston Consulting, research report.

Boston Consulting Group (BCG) released the 2021 insight report on the development trend of prescription drug retail industry again today, which focuses on the development status of the prescription drug retail industry in recent years, provides insight into the future trend of the industry, analyzes the development mode and capacity building of enterprises, and systematically establishes the “prescription drug retail development index” to provide effective suggestions and guidance for the development of the industry.

The retail industry of prescription drugs has developed rapidly, and Internet sales have increased rapidly

The new medical reform is an important cornerstone of the healthy China strategy, and its goal is to achieve the rebalancing between low cost, high accessibility and high quality. With the gradual deepening of the new medical reform, three policy pillars of medical separation, hierarchical diagnosis and treatment and intelligent medical treatment have been formed, which put forward new requirements for the future prescription drug retail in terms of efficient coverage, disease management, digital services and so on.

The retail market of prescription drugs in China has experienced a period of rapid growth in the past three years, but the overall market structure has not changed qualitatively. According to the development index of the retail market of prescription drugs proposed by BCG, China is still in the form of “two high and two low” (see the figure below): among them, the proportion and scale effect of retail sales of prescription drugs in China still have great room for improvement, and there is still a certain gap with developed countries, However, the number of retail pharmacies per capita has gradually approached the level of developed countries, and the growth rate of the drug retail market will continue to maintain a high level, and the future development momentum is expected.

At present, with the introduction of policies on Internet + medical insurance services, long-term prescription management, and the standardization of licensed pharmacists, the policy framework of China’s prescription drug retail industry has initially taken shape and has been greatly improved in the past two years. However, some detailed industry support such as employee incentives, pharmacist standardization, and data compliance system construction still need to be improved, and the implementation needs to be further promoted.

From the perspective of industry development, according to the questionnaire survey results of BCG on middle and senior employees in the retail industry, the proportion of general medicine sales in retail pharmacies has been high, while the proportion of special drugs is still generally small. In the future, as the specialization trend of retail pharmacies continues, the proportion of general drugs and special drugs will continue to rise. In addition, as an important channel for the “separation of drugs” of prescription drugs, DTP pharmacy has also continued to develop at a high speed, with a significant increase in the number of pharmacies and the varieties of new and special drugs.

Catalyzed by the COVID-19, online drug purchase has increased rapidly in recent years; With the continuous liberalization of online sales of prescription drugs and medical insurance payment, the number of patients who choose to buy prescription drugs online will also increase steadily. According to BCG research, from 2015 to 2020, China’s online retail prescription drug sales achieved a rapid growth of 53% compound annual growth rate. Among them, the growth rate from 2019 to 2020 is particularly impressive, as high as 79%, and the market scale will reach 25 billion yuan in 2020. It is expected that the online sales of prescription drugs will continue to grow at a high speed with the increase of online consultations in the future.

Three paths lead to the era of Omni channel integration of retail pharmacies

With the improvement of the overall policy and the promotion of external industries, retail pharmacies have developed to a considerable extent. BCG evaluated the whole chain service capacity, online sales proportion, member sales proportion, member repurchase rate and licensed pharmacist allocation, and the Chinese retail pharmacy model and capacity development index (see the figure below). The survey found that at present, the development of China’s prescription drug retail industry in the retail model dimension needs to be further improved, and the gap in retail capacity is small.

From the perspective of prescription drug retail mode, China’s retail pharmacies will gradually enter the era of Omni channel integrated retail pharmacy 3.0 in the future. In this context, retail pharmacies should further provide diversified, intelligent and personalized services for patients on the basis of professional pharmaceutical services, so as to expand the breadth and depth of consumer services. Based on this trend, we believe that the following three paths are the only way for retail pharmacies to move towards the era of 3.0:

01. Through the integrated development of diagnosis, treatment, drug delivery and disease management, a full chain service capability is formed. The survey found that at present, about 25% of pharmacies have laid out a new service mode and formed a full-service mode in the whole process of the above-mentioned patient journey, but the overall ability of retail pharmacies in patient education coverage, special drug counseling, disease service management awareness and professionalism needs to be strengthened.

02. Get through and integrate new online and offline retail business platforms. The survey shows that at present, about 90% of retail enterprises have deployed online sales services, of which only about 40% of retail enterprises have online sales of more than 10%. Looking forward to the future, about 70% of retail enterprises predict that their online prescription drugs will account for more than 10%, of which about 40% believe that it will exceed 20%. Retail pharmaceutical companies generally believe that online platforms have obvious advantages in convenience, price and variety with traffic support, while there are still deficiencies in accurately meeting demand, pharmacist services and long-term management of chronic diseases.

03. Through the above ways of improving the whole chain service ability and integrating online and offline, we can provide consumers with intelligent and personalized disease / health management services, significantly increase the proportion of members and repurchase rate, and improve profitability.

Digital empowerment development, and actively promote the construction of industry ecology

Model innovation also brings new requirements to ability. According to BCG research data, the pain points of the current retail pharmacy capacity development mainly focus on three aspects: the repurchase rate needs to be improved, the pharmacist’s ability is insufficient, and patients’ drainage difficulties (see the figure below).

The application of digital solutions and digital tools is an important means to effectively solve the pain points of prescription drug retail management. Retail pharmacies should actively promote the synchronous optimization of digital tools and digital operations to achieve overall empowerment. Driven by the management, enterprises can start with data governance and analysis, and cooperate with production enterprises and external think tanks to build digital tools and organizations, and realize digital transformation from the dimensions of patient management, category management and so on.

In addition, promoting overall ecological cooperation is also an important cornerstone of the all-round capacity-building of retail pharmacies. It is understood that the current enterprise has actively explored external cooperation opportunities in chronic disease management, member stickiness and expansion, and pharmacist training. However, at present, the cooperation of prescription drug retail enterprises in internet medical and retail connection, insurance expansion, channel sinking and digital transformation is still insufficient. Retail enterprises can realize the benign development of the overall ecological cooperation through multi-dimensional cooperation with pharmaceutical enterprises, associations / think tanks, online platforms, payers, medical service providers, etc., three-dimensional enabling pharmacy pharmacists to provide full chain services, improving enterprise business operation capabilities, and strengthening the overall connection with medical insurance and medical institutions.

With the deepening of medical reform, the pharmaceutical retail industry, as an important part of the national medical and health system, will usher in the next stage of rapid development. In the process of reform and innovation, the development of prescription drug retail is also facing challenges in the whole chain service capacity, pharmacy service and operation capacity. All parties in the industry need to actively promote the overall ecological construction, strengthen external cooperation, and adopt digital empowerment, so as to help the prescription drug retail industry seize opportunities and achieve rapid development under the new medical reform.

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