Industry Analysis & Industry Trends
Hospitals are currently the main distribution channel for medicines. However, upcoming healthcare reforms will enable drugstores to become the major distribution channel in the near future. Due to patient complaints regarding the high cost of medicine, the government will continue to implement policies to restrict and decrease medicine prices, allowing more consumers to purchase medicine when required. In the past, many consumers could not afford to purchase medicine or see a doctor. According to the Eleventh Five-year Plan (2006 to 2010), the government has amended rebate practices of hospitals for pharmaceutical and medicine products to limit overcharging and price gouging of consumers, which inflates hospital revenues.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Several mergers and acquisitions have occurred in this industry since China's accession to the WTO in 2001. These have also been the result of increased competition, increasing costs and decreasing product prices. In 2004, the government imposed Good Manufacturing Practice reforms on firms in this industry, requiring that companies comply with certain production and quality-control standards. Some small companies were unable to afford the associated costs, however, resulting in these firms having to expand through mergers to compete in the industry.
Industry revenue and value added have increased strongly in recent years as domestic consumption has increased and firms expand their market share in rural areas... purchase to read more