Development Status of Drug Stores in East China
At a pharmacy summit forum in September 2006, Shuma CEO Wang Chunlei, Hangzhou Wulin Deputy General Manager Wu Yangxian, General Manager of L’Oreal (China) Active Health Cosmetics Department Lu Xiaoming, Tongrentang Technology Xu Hui, etc.The experimental significance of the makeup store and the concept of drug makeup had a full and detailed exchange with the participating drug store executives.
The author recognizes from this forum that the practitioners and promoters of these domestic drugstore stores have achieved considerable gains. It is just that the road to drugstore in the retail and retail industry seems to be still in “darkness before dawn”.The dawn dawned.
Observation In order to understand the actual development of drugstores, the author recently conducted a rough survey of selected locations in East China.
Step 1: Hangzhou Wulin Drug Store ‘s cosmetics business has shrunk sharply. The Wulin Drug Store, No. 435 Wulin Road, Hangzhou, is located north of the well-known local women ‘s clothing street.between.
This location is regarded as the best location in Hangzhou’s business district, with a large number of target customers and dense crowds (there is also a mobile phone street and a shoe industry street nearby); the branch here is the largest of the Wulin chain drug stores, according to this report, With an average daily turnover of more than 6 million.
The storefront is about 40 meters wide. The sliding glass door surface is full of advertisements and is very atmospheric. The products and brands of the advertisements include Cai Tongde, Tiepi Fengdou, Shouxing (Hangzhou famous trademark, ginseng supplements), Zhengguanzhuang,Gesbao, American ginseng (Daewoo wild ginseng, Cordyceps sinensis, white bird’s nest), desert ginseng velvet flower, Cistanche deserticulata, Vichy, Omron, La Roche-Posay, etc., replace high-end goods.
In the Wulin store of more than 400 square meters, half of the area is reserved for Shanghai Cai Tongde, East China Medicine, Hongkong Longbao Ginseng and a local brand of Ginseng and other local brands, and another 1/5 of the area is reserved forcosmetic.
The author injected it. The brand cosmetics in the cosmetics area are only Avene, La Roche-Posay, and Vichy (about 95 specifications), and the rest of the non-brand products (including medical equipment, personal care products, etc.), the overall number is small.
The Bofu, Marubei, and elegant body products that were once able to be purchased from the headquarters of Wulin Chain are no longer here. The operating area of cosmetics, product specifications, and sales proportion are the same as the previous Wulin ‘s publicity in the media reports, showingA considerable shrinkage (I estimate that the proportion of its cosmetics sales now does not exceed 1/10).
Less than half a year before the peak summit in September last year, why did the drugstore experiments in Hangzhou Wulin change so much?
According to people familiar with the matter, just across the street from this store, a large cosmetics consortium is under renovation and will soon open.
The reason why Wulin Pharmacy gradually weakened its cosmetics business is definitely related.
In order to avoid competition risks, the substitution of medicines and high-end fitness products has become the main business category of the store.
Step 2: Shanghai Fahrenheit Pharmacy Nanfang Mall has made a big achievement in a small area. Take the light rail in Shanghai and get off at Lianhua Road Station, you can reach the Nanfang Mall at an accelerated speed (gradually renamed as Bailian Nanfang Shopping Center).
Fahrenheit Pharmacy is on the first floor of the mall.
This Fahrenheit pharmacy has a small business area of less than 40 square meters and employs 15 people (including cosmetics promotion commissioners and consultants).
However, you must not underestimate it.
Fahrenheit South Mall is the store with the highest efficiency in the entire Fahrenheit system.
Although there are only 4 brands of cosmetics operating here, including Vichy, La Roche-Posay, Avene, etc., each brand has an average of nearly 100 product specifications. In addition, there are more than ten brands such as non-branded Qingjiao.10% of the total number of stores, but sales accounted for at least 60%.
This store has never publicized its positioning as a drug store, but the author believes that this Fahrenheit store, established in 1999, has formed a unique set of cosmetics management ideas due to its special store-in-store business format and time accumulation.And has achieved good results. The influence of its stable operation on the business circle and customer reputation are also worthy of further research in developing countries.
Next to Fahrenheit South Mall, there is an omey (Europe and America) drug store competing with it.
This shop is the first franchise store that I officially identified as a pharmacy store and not part of the pharmacy system. It operates a wealth of series of plantesystem, uriage, and Gaolun Yafu (proactive) and other brands.
European and American drugstores have a business area of less than 20 square meters and only one salesperson.
It is understood that European and American drugstores have 20 branches in Shanghai, and the daily turnover of this store next to Fahrenheit South Mall is about 5,000 yuan. At present, it does not pose a major threat to cosmetics operations in Fahrenheit.
Step 3: Shanghai Fahrenheit Pharmacy Jing’an Temple shop customers do not know how to make medicines. From the entire CIS system (including VI, BI, MI) to locate the drugstore, Hua’s Cosmeceuticals (232 Yuyuan Road, Jing’an Temple, Shanghai)HealthStyle).
From logo design, facade decoration (including color background, facade advertising), to space management in the store, lighting, category identification, floor cleaning, professional services, etc., the impression of Fahrenheit Cosmeceutical is professional and standard.
Taking category identification as an example, Fahrenheit drugstore’s choices are: anti-tumor drugs, cardio-cerebral vascular drugs, etc. in the prescription drug counter area; gastrointestinal drugs (2 rows) in the OTC shelf area, antipyretic and analgesic drugs (3Rows of noodles), respiratory medications (two rows of noodles), tonic drugs (two rows of noodles), and men’s medications, gynecological medications, Chinese medicine anti-inflammatory medications, dermatological medications; facial medicine medications are placed in glass cabinets;Chuanwei medicine is also placed in a vertical cabinet; others include family planning medicine, wound treatment, refined decoction pieces, health food, ginseng decoction pieces, mobility aids, home health equipment, etc.
In the “make-up area”, in addition to the counters of La Roche-Posay, Avene, Phoebe, Simple, Eucerin, Filuze, etc., other category logos also include skin care (Didou, eye pattern elimination, ice king series, etc.), Maternal and infant care (Johnson & Johnson baby series, Liushen series, etc.), beauty skin care, medical skin care, men’s skin care, etc.
The operating area of Fahrenheit Pharmacy is about 150 square meters, with a total of more than 3,000 products.
The author roughly estimates that the cosmetic product specifications should be more than 1,000, which is in line with 40% of “international practice”.
It is understood that the store averages about 200 transactions per day, but most customers come for medicines, and not many people actually buy cosmetics.
After many discussions with salespersons, the author learned that the current business status of Fahrenheit Cosmeceuticals is not ideal, so the store’s previous positioning was professional drug sales. After the renovation at the end of last year, the doorway was changed to become a drugstore, Jing’an TempleCustomers in the area are not expected to adapt to the change. In addition, the nearby Leiyun Shangyaocheng also adopts large-scale cosmetics operations, grabbing Fahrenheit’s market share.
Step 4: Shanghai No. 1 Medicine Store “just don’t say it,” quietly transformed Shanghai’s No. 1 Medicine Store on Nanjing East Road last year’s ranking.
500 million US dollars, the single throne in the country’s single store sales is probably no one can shake.
According to some public reports and several years of rumors, the two first pharmaceutical stores have quietly begun their business models and the profit model has changed. Their non-drug and drug ratios have reached the highest level in the country at 8: 2.
The first-floor lobby of the First Medicine Store, in addition to Beijing Tongrentang’s specialty area of about 80 square meters, has a strong “medicine taste”, and most of them are ginseng and other high-end health products counters, the country’s famous Tonghan Chuntang, Shanghong Pharmaceutical,More than a dozen brands such as idols gathered here.
In addition, it is the world of cosmetics-French L’Oreal (Vichy, La Roche-Posay) covers an area of at least 100 square meters and has a double-sided counter; Avene also has a special counter that covers an area of about 20 square meters;There are many brands such as Yiquan, Ou Cuibi, Eucerin, Yingquan.
If you look closely, you know that this is actually a large-scale drug store with high specifications and high standards of “just say nothing”. In the main business hall on the second floor of the store, there is also an optional drug makeup area.
The most conspicuous are the four cosmetic shelves with advertising surfaces, such as Zhangguang 101, Rosemiss (Australia) series and so on.
I roughly point out the types of these cosmetics and care products, about 400.
There are an estimated 6,000 OTC drugs in other open shelves.
On the periphery of the open shelf drug makeup area is the medical equipment counter area, China’s import and export cosmetics boutique counter and so on.
To sum up, we can derive the following basic indicators-The location of the business district determines the success or failure of a drug store as a business format. At present, it is still in the exploratory stage.
For this uncertain and mature industry, what models can be copied and what needs to be further tested are still inconclusive.
The location of a drug store will directly determine its success or failure.
Site selection has a lot to do with business districts.
In the established or even changing business district, cosmeceuticals should be formulated in accordance with the changes in consumer demand in the business districts, and the performance of the cosmeceutical stores can be supplemented.
What is the scientific and reasonable ratio of unilaterally training target customers with unrealistic cosmetics and pharmaceuticals or other health products?
How to attract brand cosmetics into the store and jointly promote effective promotion with non-brand cosmetics?
The author believes that this is an urgent problem to be solved in the current drug cosmetics business.
The expression is more straightforward, which means that there are too few cosmetic products in drugstores, and brand cosmetics have used drugstores as their main battlefield (this is different from brand drugs).
In this case, in addition to attracting customers through the established drug advantages, can pharmacies find other ways to attract target customers to enter the store, change their strategies, and test the ability of pharmacy makeup operators tactically.
The industry generally believes that drugstores should strengthen their professionalism (clinical efficacy of cosmetics, etc.) to highlight the operating advantages of drugstores.
In fact, some foreign cosmetics containing active pharmaceutical ingredients are listed as OTC products, but the current cosmetic management policy has been promoted by cosmetics. Consumers are also very vigilant about the effectiveness of cosmetics’ promotional drugs.The future of drugstores is critical.
If this problem is not solved, drug stores will be at a disadvantage in competition with beauty salons, specialty stores, supermarkets and shopping malls.
To put it another way, it is very difficult for a pharmacy to unilaterally cultivate the target consumer’s consumption concept of cosmeceutical products.
In the face of higher segmentation (especially competitors in the same business district), it is wise to carry out differentiated competition with weaker tactical adjustments (such as Hangzhou Wulin Store).
However, from a strategic point of view, how to link the various tactical behaviors of the current pharmacy system operating cosmetics with the company’s long-term development strategy is worthy of all participants to discuss together.
At present, many pharmacies are relying on leasing cosmetics counters or special areas to manage drug cosmetics. In view of this, the author believes that each pharmacy should make some adjustments according to its own situation.
To make a suggestion, if a pharmacy can work with a cosmetics supplier, the leasing fee of the cabinet area will be used as an operating resource of the company to divide the operation plan of the pharmacy and make up a new investment to optimize and improve the marketing costs and consumption of the supply chainSpecial surveys, such as consumer surveys and consumer training programs, are likely to steadily expand the product’s product regulations and sales ratio step by step.