The latest pharmaceutical O2O market report

Release time:


Over the past two years, the entire pharmaceutical retail market has been hit by the epidemic, with many categories showing relatively low growth. In 2020 compared to 2019, the overall retail industry will grow at only 3.6 percent, and in the first three quarters of this year compared to the first three quarters of 20 years, the overall growth rate will be only 3 percent.

Over the past two years, the entire pharmaceutical retail market has been hit by the epidemic, with many categories showing relatively low growth. In 2020 compared to 2019, the overall retail industry will grow at only 3.6 percent, and in the first three quarters of this year compared to the first three quarters of 20 years, the overall growth rate will be only 3 percent.


The number of pharmacies showed an increase of 6% to more. The low growth rate of the industry offset the rapid growth rate of the number of pharmacies, and the whole industry appeared in the situation of internal volume.


The number of orders per store of pharmacies has continued to decline in the past two years, the number of pharmacies is increasing, and the competition between pharmacies is becoming more and more fierce. The proportion of more and more large packages and treatment packages continues to increase, but in turn, when consumers buy more large packages or treatment packages, it will adversely affect the frequency of consumers going to pharmacies to buy drugs, thus causing the average store order to decline. This is a non-virtuous cycle, and pharmacies urgently need to protect and expand passenger flow.


With the superposition of technology and the promotion of capital influx, chain pharmacies are changing rapidly to B2C, O2O, and even the very popular omni-channel and full link.


O2O has helped the service radius of pharmacies expand from 500 meters to 2.5 kilometers. In 2020 under the epidemic, the rapid development of pharmaceutical O2O, the growth rate of more than 120, 2021 further high-speed growth, the national pharmacy O2O market size has reached more than 19 billion, the future around a quarter of an hour convenient life circle, pharmaceutical O2O is bound to further develop penetration.


The report analyzes the O2O channel around four aspects: consumer end, platform end, chain end, industrial end.


Consumer end


Population differences: The proportion of young people among pharmaceutical O2O purchasers is much higher than that of pharmacies.


Scene difference: the scene of purchasing drugs in pharmacies is different from that of B2C,020. In pharmacies, consumers purchase drugs on regular demand, while O2O is more of a temporary emergency purchase.


These differences make the unit price of consumers in different channels significantly different. The unit price of drugs purchased by pharmacies is about twice that of O2O.


From the time point of view, O2O consumer night purchase scene demand is strong. After 8 p.m., many pharmacies were closed, but O2O showed a peak in demand, and it lasted until 11 or 12 p.m. or even the second half of the night. Such a scenario is conducive to supplementing the operating hours of pharmacies and the demand for drug purchase scenarios.


Nearly 80% of online drug delivery service consumers come from the platform's own traffic. "Urgent, lazy and private" is the main drug purchase scene for O2O consumers. Therefore, the convenience of the channel is the core factor to drive O2O consumers to choose the channel. In addition, compared with pharmacies, complete medicines and cheap prices are also the advantages of O2O. O2O will become the core business source of pharmacies in the future, or competitors.


Platform end


Many platforms have emerged throughout the course of O2O's pharmaceutical development, but our monitoring over the past few years has found that high-frequency driving low-frequency is still highlighting the cost advantage of takeaway platforms as O2O pharmaceuticals. Medicine itself is a relatively low-frequency consumption scene, if we focus on the pharmaceutical O2O platform, whether it is traffic or consumption frequency, or simply to distribute medicine and logistics construction, is very high cost.


Like Meituan, Hungry Noodles and Jingdong's way of driving the whole medicine O2O with high frequency and low frequency is the most important factor that makes them currently in the forefront of the whole medicine O2O.


Throughout 2021, the number of Meituan and Hungry Noodles's entire stores is growing rapidly, and both platforms are shifting their resource investment from the demand side (consumer side) to the supply side (chain store side), with both sides using their respective resource advantages to empower and strengthen the chain's stores. The advantage of Meituan is that it has a layout on the consumer side, the industrial side and the chain side. The advantage of hunger is Ali's ecological advantage.


In addition to O2O business, the B2C distribution business of Meituan platform has been developing rapidly in the past two years. The proportion of B2C business in Meituan has continued to increase, from Q3 2.6 in 2020 to Q4 17.2 in 2021. In the B2C business of the whole US group, the proportion of the US group's own pharmacy platform is relatively low. The platform based on Ali is more cautious about the layout of B2C business, mainly Ali's health self-management, accounting for more than 60% of B2C business on hunger.


chain end


In the past two years, the market size of pharmaceutical O2O has continued to expand, and its contribution to the sales of pharmacies has also continued to increase. By the end of 2021, O2O's contribution to drugstore sales will increase to 4%.


In the first three quarters of 2021 compared to 2020, the size of the entire market grew by only 3%, and inside this 3% increment, the contribution of O2O was as high as 63.4, which means that O2O, although the current sales share is not so high, but contributed to the main sales contribution of pharmacies.


The O2O channel is highly dependent on traffic. 50% of offline pharmacies contribute 80% of sales, but 12% of O2O stores have already contributed 80% of sales.


Judging from the operating time, both Meituan and Hungry are strengthening the layout of 24-hour stores. Although only 2.4 percent of the stores are 24-hour stores, these stores contribute 23.2 percent of the sales in the entire O2O channel.


The output of a single store in a 24-hour store is 50000 yuan a month, while that of a non -24-hour store is only 4000 yuan a month on O2O. However, not all stores are suitable for 24 hours, but only individual 24-hour stores in each region can have high sales. The vast majority of cities are still dominated by non -24-hour stores.


From the perspective of the crowd, the segmentation of the crowd of the pharmacy O2O itself will enable the pharmacy to reach some young people who could not have been reached. From the perspective of operating time, pharmacies can expand the consumption scene touched by new operating time. From the category point of view, O2O can sell some categories that the pharmacy itself does not sell well.

At the same time, the chain is also facing the challenge of reduced gross profit and loss of initiative. Because each order sold on the platform requires a chain payment of 3-4 yuan of basic service fees, plus a 4% commission, the overall average actually requires a deduction of 15%- 18% per order. As a result, chain pharmacies have significantly lower profit margins per order in the O2O channel compared to offline stores, while having low bargaining power in terms of commissions and service fees.


Industrial end


With the liberalization of the online prescription drug policy, the proportion of prescription drugs in the O2O channel has continued to increase in recent years. Comparing the two types of store areas of B2C and O2O, we find that the proportion of prescription drugs on B2C is higher, exceeding 50%.


In terms of categories, the horizontal axis represents the sales scale of each category of O2O, and the vertical axis represents the proportion of sales of categories on O2O.


For example, for every 100 yuan sold for family planning in pharmacies, 20 yuan goes out from O2O. This also means that various industries, enterprises for such a category of power retail, O2O is a track can not be ignored.


From the distribution of the whole price, basically 0~19,20~39 these two segments contribute nearly 70% of the O2O channel sales share. More and more manufacturers are introducing small doses or small packages of drugs in order to match the purchasing characteristics of O2O channels and the characteristics of customer orders.


To sum up, no matter from the consumer side, the industrial side, the chain side or the platform side, everyone is very concerned about the pharmaceutical O2O. In the future, we believe that this channel will become more and more mature, and it will play a very important role in the entire out-of-hospital retail market.