Listed companies are the weathervane of their industries. In the newly released semi-annual report, six listed chain pharmacies in China continued to trot forward, with a steady increase in the number of stores and a revenue growth rate of more than double digits. This is still achieved under objective unfavorable conditions such as repeated epidemics, which led to the irregular suspension of sales of "four types of drugs", the closure of stores and the reduction of passenger flow. The revenue of six chain pharmacies for half a year is based on the company's announcement that it is normal for the company's living environment to be turbulent due to changes in the external environment. Enterprises must respond to the uncertainty of the external market with the certainty of the business model and the certainty of the company's internal operating mechanism. It may be worth studying how chain pharmacies respond to environmental changes and gain such growth. In the past, the development model of chain pharmacies was large-scale expansion, but with the development of the industry, the break-even point was constantly improving. Due to the epidemic situation and other factors, many chain pharmacies have set the break-even period to 2 years, while the shortest before was only 6 months. External expansion has to continue, but it should change from the rough way in the past to high-quality expansion, and pay attention to endogenous growth with refined management. Arterial Network hopes to explore the semi-annual reports of six chain pharmacies to understand the secret of maintaining high growth of chain pharmacies from the three dimensions of "people", "goods" and "field" and what kind of partners chain pharmacies need now. "People": Fine Operation Insight into Potential Demand "In the past, there was a view that the pharmaceutical retail industry was not afraid of the Internet because customers needed services to buy medicines. But in recent years, the development of medical e-commerce and the services provided have far exceeded imagination. If the traditional pharmaceutical retail industry does not change, the outcome is self-evident. " An industry insider told the arterial network. In the direction of reform, one point is highlighted by six listed chain pharmacies-private domain operation. With the diminishing marginal effect of Internet expansion, the traffic dividend is disappearing, and there is a lack of traffic both offline and online. The quality of future development depends not on the flow, but on the "retention" quantity. The amount of "leaving" is the private domain. ■ Building a segmented membership system For chain pharmacies, whether doing offline activities, cooperating with third-party platforms, or even their existing members can only be regarded as traffic rather than "retention" in essence. Pharmacies also need a private domain operation system to upgrade them to private domain "retention" in order to become the engine of development. And the membership system is the foundation of all this. Take the data of the semi-annual report of Laobaixing Pharmacy as an example. As of June 30, 2022, the total number of members was 66 1 1 10,000, of which 5.06 million were added in the first half of the year, and the number of active members was14/80,000, accounting for 6.3% of members' sales and1visitors. It can be seen that the operation of members is still in a relatively primary stage. The establishment of membership system is a gradual process, which needs to be carried out around four scenarios: membership renewal, retention, access and transformation. It is necessary to innovate the membership advertisements of offline stores, subdivide the online community, exchange the public domain and private domain, and use digital tools to reach accurately, so as to achieve offline transformation. For chain pharmacies, private domain operation is to upgrade from traditional product operation to member operation and human operation. Private domain not only refers to members, but also includes members' data assets, such as member portraits, crowd attributes, consumption data, consumption characteristics and so on. And carry out accurate digital operation around these data. For example, six chain pharmacies have made a membership system to open online shopping malls and offline stores, and designed hierarchical rights for members. Based on digital tools such as enterprise WeChat, establish the connection between members and stores, and then operate in a targeted manner. The membership size of six chain pharmacies is based on the semi-annual report of the company. In the private domain operation, the establishment of community is an important part, which undertakes the role of establishing close contact with members and excavating value, and is also the core of building a closed loop of private domain. The times are progressing. If we just pull members into a group to release promotional information or send some innocuous marketing words, it is obviously not a refined operation. A valuable community needs to organize a group of people with the same value orientation (health needs, hobbies, etc.), consumption concepts (price sensitivity, promotion sensitivity, etc.), and even humanistic feelings (filial piety, parent-child, etc.), so that group members have the same goals and meet their social needs. Only in this way can the group produce vitality and high-quality transformation. ■ Chronic disease management has become a breakthrough. With the aging trend strengthening, patients with chronic diseases have also increased year by year. In the semi-annual reports of six chain pharmacies, chronic disease management was highlighted without exception. For pharmacies, chronic disease management has become an important sector contributing to revenue, and it is also an area that will continue to exert its strength in the future. The six chain pharmacies have different ways of dealing with chronic diseases, and each is committed to creating its own service model. People's Pharmacy: Hardware+Software+Service "Mode People's Pharmacy has set up Bluetooth smart devices for self-test of chronic diseases such as blood sugar, blood pressure, heart rate, blood uric acid and blood lipids in 65 million stores nationwide. From 2020 to June 30, 2022, more than 8 million people have filed files, 20 million people have self-tested their services, and 20 million people have returned to visit, and 20,000 people have been taught online and offline. It not only helps customers with chronic diseases to monitor disease indicators and improve medication compliance, but also enhances store passenger flow and customer stickiness. Yixintang: People-oriented, patient-friend mutual aid mode Yixintang's service focuses on people. On the basis of close cooperation with well-known experts in public hospitals, through centralized consultation mode, the demand for interdisciplinary and multi-disease medical care services of patients is targeted, and the personalized, standardized and collaborative management scheme for chronic diseases is realized. In the mutual aid mode, patients are organized by disease type, and they urge and help each other, so as to strengthen self-management and improve the quality of life. At the same time, Yixintang adopts the "five-in-one" mode of chronic disease management, combines medication habits with behavior habits, and cooperates with the use of international standard exercise prescriptions, nutrition prescriptions and psychological prescriptions. By the end of June, 2022, there were 996 chronic health care stations in Yixintang, involving 45 branches, 7 provinces and municipalities directly under the central government. Da Shen Lin and Jian Zhi Jia: Build a specialized chronic disease management system. On the basis of professional pharmaceutical services, Da Shen Lin established a chronic disease management team, established a life-cycle chronic disease management system centered on patients' needs, improved patients' compliance from professional services, and established a chronic disease member welfare system. The chronic disease management specialist provided chronic disease health files, testing, safe medication information, medication guidance and tracking, and complications management for chronic patients. By the end of June, 2022, there were more than 1200 chronic disease service personnel, nearly 1400 chronic disease service outlets and 20 chronic disease management diseases. Jianzhijia has opened 303 medical insurance stores for chronic diseases, and established nearly 700 specialized stores system for chronic diseases such as hypertension, diabetes, heart failure, stroke, sleep health and skin diseases. Through the training and professional guidance of specialized pharmacists, we have established a comprehensive pharmaceutical care plan, health professional knowledge training and patient education plan from disease treatment, symptom improvement, complication treatment, nutritional support and health management. After that, through the pharmaceutical management system, follow up the professional return visits such as customer medication and health consultation to enhance the stickiness of chronic disease members. At present, Jianzhijia has recruited chronic disease members1300,000 people. The number of transactions of chronic disease members is 1.7 times that of ordinary members, and the unit price of customers is 1.3 times that of ordinary members. ■ Summary It can be seen that chain pharmacies are changing from drug-centered to patient-centered, and the management of chronic diseases has changed from a single drug sale in the past to a chronic disease management system covering the whole life cycle of patients. In addition to selling drugs, we also provide them with a series of services such as chronic disease health records, testing, safe medication information, medication guidance and tracking, and complication management. These services also need the participation of external enterprises. For some pharmacies, they are used to taking management as the center, and there are serious injuries in professional services. Even if a membership management system is built, it will not be designed based on pharmaceutical services. It is difficult for such a system to meet the overall needs of chronic disease management. At this time, if there is a one-stop solution for the out-of-hospital market, from pharmaceutical companies to pharmacy terminals, while responding to consumers' demand for emergency and diversified scenarios in time, we will help pharmacies improve their operational capabilities in all aspects by establishing an omni-channel, all-category refined marketing system. For pharmacies, it is very attractive. "Goods": Build a business model to undertake the incremental market. From the perspective of goods, chain pharmacies should be prepared for incremental drugs. In the semi-annual report, the six major chain pharmacies have clearly put forward various measures to undertake the outflow of prescription drugs. In recent years, National Health Commission and Medical Insurance Bureau have successively issued policies to promote "dual-channel" management, establish prescription circulation centers, and bring designated retail pharmacies into the scope of medical insurance drug supply from the national level, thus ensuring the certainty of separation of medicines and outflow of prescription drugs in the future. According to the data of Yifeng Pharmacy's semi-annual report, in the past few years, the sales proportion of retail pharmacies in the three major terminals (public hospital market, pharmacy market and public primary medical institutions) increased by 3.2%, and prescription outflow played an important role in this process. From the retail drug market, the proportion of prescription drugs continues to rise. The proportion of prescription drugs in retail sales is increasing year by year, and the data comes from Zhongkang CMH. According to Zhongkang CMH, the proportion of prescription drugs is increasing year by year. In 20 18, the sales of prescription drugs in the national retail drug market accounted for 38.4%, and by 2022Q 1, the proportion had increased to 45.5%, up by 7. 1 percentage point. OTC accounts for a relatively stable proportion during this period, maintaining at around 34-35%. According to Ai Kunwei's data, in 20 18 years, the market share of prescription drugs in hospitals in China was 7 1.8%. There is still room for the outflow of prescription drugs, which will be gradually released in the next few years. Also from 20 18, provincial units actively set up prescription circulation platforms to promote prescription outflow. With the rapid progress of national drug talk and dual-channel management of drug circulation, it will bring income increase to pharmacies in the short term. What pharmacies need to do is to reach cooperation with pharmaceutical companies to ensure the supply of related drugs. To this end, the six major chain pharmacies have invariably increased the proportion of stores near the hospital, and the professional allocation of undertaking the outflow of prescription drugs has been gradually strengthened. Yifeng Pharmacy has set up a strategic leading group for prescription outflow and a professional prescription drug division to undertake prescription outflow through all channels. For offline, relying on various professional pharmacies, we have deepened cooperation with relevant manufacturers. At present, we operate 200 drugs negotiated by the national medical insurance agreement, and nearly 650 kinds of hospital prescriptions are exported, and we have established in-depth cooperative partnerships with more than 150 suppliers. For online, Yifeng Pharmacy has laid out the electronic prescription business. At present, as the first listed company to access the prescription circulation platform in Hunan Province, it has successfully completed the electronic prescription circulation to its own stores. Shuyu Civilian Pharmacy also stated in the semi-annual report that it will continue to strengthen the construction of hospital-side stores, dual-channel qualified stores and standard pharmacies. By the end of the reporting period, Shuyu civilians had set up 57 designated specialty pharmacies for serious diseases, more than 270 roadside stores and 8 standard pharmacies in Shandong Province, and DTP sales including tax exceeded 570 million yuan, up 84. 13% year-on-year. In the first half of 2022, the proportion of hospital-side stores, dual-channel qualified stores 168, DTP pharmacies 15 1 home, DTP sales 10% and prescription drug sales/37%. In the future, we will further give full play to the advantages of the layout of hospital-side stores, and promote the acquisition of medical insurance qualifications for DTP pharmacies, "dual-channel" stores, Mente and Menman, so as to meet the outflow of prescriptions. In the layout of Chinese medicine business, according to public information, chain pharmacies have sorted out Chinese medicine products with relatively high gross profit margin in addition to the incremental market of prescription outflow, which is also a large incremental space. In recent years, many documents have been issued to liberalize the sales of Chinese herbal pieces in retail pharmacies. In addition, with the aging of the population and the further improvement of residents' health awareness, the sales market of Chinese herbal products is expected to be further opened, and many chain pharmacies have long been laid out. ■ Summary Around the element of "goods", the six major chain pharmacies have made a lot of layouts around the incremental market, and these layouts have also brought revenue growth from the sales side. With the increase in the sales scale of prescription drugs in chain pharmacies, the supply of prescription drugs will gradually change from distributors to pharmaceutical companies in the future. Cooperation between pharmaceutical companies and chain pharmacies with scale effect is a win-win situation for both parties. The purchasing cost of pharmacies can be reduced, and the new products of pharmaceutical companies can open the market more quickly under the impetus of large-scale storefronts of chain pharmacies. "Market": Diversified management to create a "big health entrance" model According to the health care prospectus, in 20 16 years, in the sales composition of Japanese retail pharmacies, drugs accounted for only 32.2%, cosmetics accounted for 2 1. 1%, and daily groceries and other products accounted for 46.8%. In addition, American chain pharmacies have long adopted a diversified business model of pharmacies and convenience stores, expanding their business categories to health and beauty-related products. Therefore, based on the experience of the United States and Japan, domestic chain pharmacies have been actively trying to diversify their operations. Yinxintang has expanded its "single-minded convenience" business and increased the promotion of lottery tickets and personal beauty products, hoping to attract and expand more potential consumer groups through diversified business models. In the first half of 2022, the sales of Yixintang personal beauty products involved 36 kinds of products. In Yunnan Province, 657 counters were set up to promote personal beauty products. In only half a year, sales have exceeded 100 million yuan. Shuyu Civilian Pharmacy is aimed at the aging customers in the store, speeding up the online and offline layout of aging products, and at the same time developing the layout of online O2O aging products area to create aging-friendly fine services within a radius of 3 kilometers. For young consumers, we will speed up the diversified layout of healthy snacks and imported nutrition products, and rapidly increase the categories of eye protection, small household appliances and household cleaning products under the normalization of the epidemic. Taking the creation of aging-suitable product areas as the breakthrough point, implementing aging-suitable or barrier-free transformation in stores will not only make the shopping experience of the elderly better, but also improve the store-entering experience for customers of all ages. In addition, a number of chain pharmacies are still exploring the "medical+medicine +X" format integration model. With the improvement of health awareness, the general public's awareness of health began to change from disease treatment to disease-free prevention. Drugstores have also explored the development mode of "medicine+medicine +X", hoping to build a complete medical service system from prevention to treatment and play a supplementary role outside the hospital scene. Chain pharmacies gradually realized the empowering value of commercial insurance to their own business and began to explore this aspect. For example, the professional pharmacy business mentioned above depends on the third party to guarantee the series of pharmaceutical companies, pharmacies, doctors and patients. Commercial insurance has three main functions in pharmacies: increasing categories, maintaining the stickiness of existing customers and promoting new customers. In its semi-annual report, Laobaixing Pharmacy proposed to build a multi-level medical payment system and service of "basic medical insurance business+commercial insurance", explore various cooperation possibilities with insurance companies, seek new business growth points, and create a development model of "medical+medicine+insurance". Dashenlin will actively explore the mode of "medical treatment+medicine+nursing+inspection+insurance", provide one-stop health services with innovative service forms, undertake social responsibilities, expand business scope, serve a huge customer base and enhance customer stickiness. In September last year, it acquired Shankang Henuo Insurance Brokerage Co., Ltd. through its subsidiaries and set foot in insurance business. Yinxintang went further. In the first half of 2022, the sales of third-party insurance business reached 3.7 1 billion yuan, an increase of 33. 1 1% compared with the same period of last year, and the sales of third-party insurance business accounted for 5.78% of the total sales of chain stores. The scale of third-party insurance business continued to grow. Jianzhijia began to lay out a diversified community health service ecosystem a few years ago. According to its prospectus, Jianzhijia's business covers community professional convenience pharmacies, convenience stores, Chinese medicine clinics, community clinics and physical examination centers. On the basis of taking pharmacies as the main format, Jianzhijia gradually explores the modes of "pharmacies+convenience stores", "pharmacies+clinics" and "pharmacies+physical examination centers". In the first half of this year, the total revenue of the convenience retail segment was 1.97 billion yuan. ■ Summary Long-term consumption habits make pharmacies all over the community become a natural big health window. How to use this window to expand the simple drug selling model in the past to the service model of whole course management, integrate various formats, and incite a bigger big health management market than drugs is the development path that chain pharmacies are exploring at this stage. Taking insurance companies as an example, with the window of community chain pharmacies, we can reach the target customers more accurately, and pharmacies play a screening role, which further reduces the sales cost of insurance. Future trend: The digital intelligence ability of the new infrastructure of chain pharmacies, whether it is the refined private domain operation, the expansion of commodity categories and the development of multi-format integration, can not be separated from the support of information system. At present, the informatization construction of pharmacies mainly focuses on inventory management, membership management, medical insurance and commodity management, and it is still in a relatively primary stage. Faced with the one-stop health service scenarios and digital marketing needs of pharmacies in the future, such systems are not very helpful. According to the development stage, this kind of informatization construction is the first step of digitalization of pharmacies. By combing the business of six chain pharmacies in the semi-annual report, we can see that with the evolution of external environment such as prescription outflow, sinking medical resources and combination of medical care and nursing, the traditional business model and simple scale expansion can no longer constitute the core competitiveness of pharmacy management, and reform is an indisputable measure. In the past, pharmacies mainly sold drugs, but in the future, with the intensification of market competition and the change of users' habits, the development direction of enterprises will change from operating stores to operating users, from traffic thinking to "reserving quantity" thinking, and from marketing promotion to customer service. All these require enterprises to be driven by digital intelligence, integrate business architecture, application architecture, data architecture and technical architecture, and create a digital intelligent health service platform that suits their own business. In addition, pharmacies should strengthen diversified business capabilities, strengthen the construction of deep-seated service capabilities such as pharmacy service, and provide consumers with more high-quality medical services. In the future, pharmacies, as one of the main carriers of primary medical resources, will evolve into convenience health centers and provide more diversified medical services. All this is inseparable from the steps of pharmacies from digitalization to digital intelligence. In this process, whoever can provide a perfect solution will have the opportunity to occupy a considerable share. The era of supporting the rapid development of chain pharmacies only by "selling drugs" has passed. In the era of mobile internet, with the continuous improvement of people's pursuit of quality of life and the normalization of the epidemic, consumers have undergone earth-shaking changes in terms of consumption concept, consumption pattern and consumption demand. Middle-aged and elderly people are forced to quickly complete the enlightenment education of online shopping and become a new group of online shopping users; The physical pharmacies that were once considered to be the most difficult for e-commerce to capture began to encounter the dilemma of falling passenger flow; The post-95 s, who are more keen on maintenance and fitness than their elders, have turned into a health army in the new era. In the face of this great change in the pharmaceutical retail industry, chain pharmacies are also actively responding. They have opened their doors, attracted all possible partners to participate, and used their advantages of infiltrating the community to connect various services and people. Although the final effect remains to be seen, every exploration they make is to lay a solid foundation for the future development of the industry.