San Francisco, CA (PRWEB) June 19, 2013
Over the past five years, revenue for the Pharmacy and Drug Retailer industry has been growing at an annualized rate of 9.5% to an expected $42.7 billion in 2013. 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 people's increased ability to self-medicate.
Additionally, the government's support for the development of chain drug retailing enterprises has also been a positive influence on the industry.
The Pharmacy and Drug Retailer industry is not highly profitable, with profit only accounting for 3.6% of industry revenue in 2013. Drugstores are at the very end of the distribution chain of drugs, and distributors obtain most profit margins. The low profit margin is also due to the increasingly intense competition among retailers.
In 2013, the combined market share of the industry's top four firms – Sinopharm, Chongqing Tongjunge Big Drugstore, China Nepstar Chain Drugstore, and Guangdong Da Shen Lin Chain Drugstore – is estimated at 6.7%. IBISWorld expects concentration to increase steadily in the future as large chain drug retailers further increase their outlet numbers and with the expected implementation of new, stricter Good Selling Practice (GSP) measures in mid-2013.
Currently, this industry does not hold a dominant position in drug and pharmaceutical distribution in China. Over 60.0% of medicines and drugs in China are distributed or retailed through hospitals, which derive income from selling drugs more than from providing medical services. Upcoming reforms of the healthcare system will include changes of income sources for hospitals and a focus on medical care provision rather than drug retailing. As such, this industry's share of the drug retailing market will expand, supporting future revenue growth, says IBISWorld.
For more information, visit the Pharmacies and Drug Retailers in China industry report page.
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IBISWorld Industry Report Key Topics
The Pharmacy and Drug Retail industry in China retails both western medicine and traditional Chinese medicine, products for birth control and sexual healthcare, and other personal and pharmaceutical products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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