Over the five years to 2017, revenue for the Pharmacy and Drugstore industry has been growing at an annualized rate of 16.6%, and is expected to reach $129.8 billion in 2017. Many factors have supported the development of the industry, including substantial growth in domestic demand for drugs retailed by drugstores, relatively higher drug prices in hospitals and consumers' increased ability to self medicate. Additionally, China's accession to the World Trade Organization in December 2001 and the subsequent entry of foreign investment have boosted industry growth. The government's support for the development of chain drug retailing enterprises has also been a positive influence on the industry.The industry is not highly profitable; profit is expected to account for only 5.0%...purchase to read more.

Industry Report - Industry SWOT Analysis Chapter

Over the decade to 2022, industry value added is expected to increase at an annualized 10.7%, higher than that of China's GDP over the same period. This indicates the industry is in the growing phase of its life cycle.Enterprise numbers have increased rapidly in recent years, due to rising domestic demand in rural areas and increased numbers of franchise outlets. Rising disposable income levels and the implementation of the New Cooperative Medical Care System stimulated demand for drugs from rural citizens.Currently, over 70.0% drugs are retailed through hospitals. Further healthcare system reforms will make hospitals focus on providing medical services rather than selling drugs, which will significantly expand the market for drug retailers. The...purchase to read more.

Additional Insights for the Pharmacies & Drugstores Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies & Drugstores Industry are

  • Economies of scale
  • Experienced work force
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Health Policy and Key Attitudinal Changes - Health Consciousness in the Pharmacies & Drugstores industry impact industry performance..

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    What's in this report

    What is the Pharmacies & Drugstores Industry?

    The Pharmacy and Drugstore industry in China retails both western medicine and traditional Chinese medicine, products for birth control and sexual healthcare, and other personal and pharmaceutical products.

    Industry Products
  • Prescription drugs
  • Over-the-counter drugs
  • Sexual healthcare products
  • Other personal products
  • Industry Activities
  • Retailing western drugs and medicines, both prescription and over the counter
  • Retailing traditional Chinese medicinal herbs and materials
  • Retailing patent traditional Chinese medicines and traditional Chinese medicines in ready-to-use forms
  • Retailing products for birth control and sexual healthcare
  • Retailing other miscellaneous personal products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health Policy
  • Key Attitudinal Changes - Health Consciousness
  • Levels of Health - Number of Hospital Visits - Total
  • Competition from Substitutes - Pharmacies and Drug Stores
  • Levels of Health - Disease/Epidemics
  • Levels of Health - Private Health Insurance Membership
  • Per Capita Disposable Income

  • Current Performance
    Healthcare reforms and trendsIndustry globalizationCompetitive landscapeBusiness models
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Pharmacies & Drugstores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacies & Drugstores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Hospitals
  • Households

  • Key Selling Industries
  • Chinese Patent Drug Manufacturing
  • Medical Supplies Manufacturing
  • Pharmaceutical Manufacturing
  • Pharmaceutical Raw Material Manufacturing
  • Traditional Chinese Medicine Manufacturing

  • Products & Services
  • Prescription drugs
  • Over-the-counter drugs
  • Sexual healthcare products
  • Other personal products
  • Chart: Pharmacies & Drugstores Industry Products and Services Segmentation

  • Demand Determinants
  • Price and convenience
  • Self-medication trend
  • Disease incidence rates
  • Insurance
  • Disposable income levels
  • Changing attitudes
  • Healthcare reform

  • Major Markets
  • Consumers aged 55 and over
  • Consumers aged 35 to 54
  • Consumers aged 15 to 34
  • Consumers aged 14 and under
  • Chart: Major Market Segmentation for the Pharmacies & Drugstores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Rent
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacies & Drugstores

  • Basis of Competition
  • Quality
  • Product range
  • Price
  • Outlets
  • Location
  • Environment and size
  • Services and customer management
  • Brand and marketing
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmacies & Drugstores Industry

  • Industry Globalization
    Sinopharm Group Co. Ltd., Guangdong Da Shen Lin Chain Drugstore Co., Ltd., Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd., Chongqing Tongjunge Big Drugstore Chain Co., Ltd., Hunan Laobaixing Big Drugstore Chain Co., Ltd.,
  • Table: Sinopharm Group Co. Ltd. - financial performance
  • Table: Guangdong Da Shen Lin Chain Drugstore Co., Ltd. - financial performance
  • Table: Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd. - financial performance
  • Table: Chongqing Tongjunge Big Drugstore Chain Co., Ltd. - financial performance
  • Table: Hunan Laobaixing Big Drugstore Chain Co., Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies & Drugstores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pharmacies & Drugstores Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)
  • Chinese Patent Drugs Output (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Drug Supermarkets
  • Large drugstores with drug products displayed in an open-shelf manner.
  • Fair-Price Drugstores
  • Drugstores that sell drugs at low prices with low profit margins.
  • Good Selling Practice (Gsp)
  • A certification for drug distributors (see the Regulation and Policy section for more information).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmacies & Drugstores market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pharmacies & Drugstores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pharmacies & Drugstores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmacies & Drugstores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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