Nepstar combined ppt(Dec11 2013).pptx
- Количество слайдов: 20
Nepstar’s Business Model Study Mike Long Darina Savelyeva Maria Slobozhan
Nepstar’s Business Model Study • • • Part I. China Chain Pharmacy Situation Part II. China Chain Pharmacy Business Models Part III. Nepstar SWOT Analysis and Ustrategy Part IV. Chain Pharmacy Trends and Pharmacy Situation in other countries Part V. Proposals for Nepstar’s UStrategy and Nepstar’s suppliers
Part I 1. 1 Pharmacy in Dilemma after “New” Medical Reform Canceled addition on drug price Hospital medicines 1. New Medical Reform’s “ 0” price gap for basic medicines When does the wall can be moved? 2. “New” Medical Reform for Medical insurance Card Hospital Drugs tore Reimburse Hospital drug cost 4. Hard to Positioning in Diversification 3. 1 Increasing Man Power Cost 3. 2 Increasing Shop Rent Remarks: The average profit of top 100 chain retail drugstore was only 4. 4%. Source: 复美大药房:药店不转型必亏损, 2013 -09 -0339健康网商涛
Part I 1. 2 Pharmacy market share down in Drug retails Chart 1 Chart 2 Unit: Billion RMB General Hospital Community Hospital Drugstore Notes : 1. From the Chart 1, we can see the total medicine sales was mainly pulled up by General Hospital with increasing rate 19% Vs 10. 2% of drugstore , nearly double. The community hospital will go on increasing with “ 0” price gap for basic medicines in coming years. 2. Medicine Retails ‘s market rate decrease from 24. 3% to 21%. For the total 700 Bilion RMB of medicine retails in China, that mean Drugstore lost 21 Billion RMB market sales.
Part I 1. 3 Product category ratio Durg. Retailers Categories Chemical drug Herbal drug Nutritional supplements Chinese medicinal materials Medical Device Cosmetic Others(Foods, convenience goods, others) Total Categories Growth Rate 2010 72137 57315 24654 12207 8538 3731 2010 Growth 2011 Growth Rate 77931 14. 20% 8. 00% 64029 10. 30% 11. 70% 28083 15. 60% 13. 90% 11553 -4. 60% -5. 40% 9475 16. 70% 11. 00% 3838 -13. 20% 2. 90% 2011 6756 8280 25. 90% 22. 60% 185338 203189 11. 50% 9. 60% 2010 2011 Drug 10. 70% 8. 40% Non-Drug 14. 10% 13. 70% Total 11. 50% 9. 60% • Chemical drug , Herbal drug and Nutritional supplements are top 3 main sales products. Others Non-drug products with around 14% growth rate and others such as foods, convenience goods have around 22%-25% growth rate. •
Part II 2. 1 Chain Drugstore Main Business Models Discount Drugstore cosmeceut icals store Community convenience BIG HEALTH Most Fashiona ble Most Convenie nt Special Lowest Price Diversity Differentiation Professionalizatio n High-end Most Processional New Special Drugstore Make sure follow big development closely! Drugstore Specialized Pharmacy Most Visiting 1. Model 1 based on experience diversity: Drug Supermarket, Ecological Heath Store and cosmeceuticals store. Keep consumers continuous visiting Drug store in Supermarket through experience on healthy products and 2. Model 2 Treatmen t Clinic pharmacy 2. based on members ‘ heath management : Specialized Pharmacy, Clinic pharmacy. New Special Drugstore and Pharmacy in supermarket. 3. Model 3 based on medicine service : Community convenience
Part II 2. 2 Main Chain Drugstores Business Models Neighborhood drugstore with one-stop convenience for day to day needs Community Service Center with Licensed Pharmacist contracted with community families as “family doctor” and create people’s electrical drug records to meet target--community “Big Heath” 10 millions members, total 2, 071 stores in 76 cities with 50% as Medical insure Card pointed store, 80 -120 sqm in size. Non-Drug products coverage personal cleaning products, Green health foods, Health supplements, and Chinese herbal pieces. 0. 2 Millions members, 8000 kinds of Non-Drug products coverage personal cleaning products, Green health foods, Health supplements, feminine hygiene supplies and Chinese herbal pieces Source: Second Quarter 2013 Results by Nepstar 上海: 市场规范,业态创新仍有可为, 2013 -10 -21 10: 07: 21 作者:黄丽丘 胡品福 卢冬虎 来源: 21世纪药店
Part III 3. 1 Nepstar SWOT Analysis Strength Weaknesses • Convenience and quick delivery • Small store space • Many Private label Products • Non-professional shop • Professional Licensed Pharmacist assistants, can not give • Approved to open drugstore professional advice. online • Management • Listed on the New York Stock Exchange Opportunities Threats • Seize Convenience Store’s shares with quick delivery and competitive price. • Introduce new kind of goods • Diverse bonus system – more customers , increase sales. • Decreasing price gap between hospitals and drug retails • Increasing cost • Other competitors of Chain drugstore
Part III 3. 2 Diversity of non-drug products Question Which kinds of nondrugs products should be main sales ? Products Proportion for agreement Nutritional supplement and Natural function food Chinese herbal pieces Adult Products High-grade tonic Medical device Personal Cleaning and Everyday chemicals Source: 中华药网 82. 35% 55. 88% 47. 06% 44. 12% 38. 24% 35. 29%
Part III 3. 3 Nepstar’s Multicultural Business model ---U-strategy 50% discount Personal Visit Nepstar drugstore in Chaobao Road of Shanghai City and Purchase goods experience , showing Free U-product Rice • Nepstar “U-Goods” – living goods of highest quality at low price • Non-pharmaceutical products: beverages, health food, household consumables, personal care products and other non-pharmaceutical
Part III 3. 4 U-Consept • U-Products should be green and healthy • Too many brands => customers are tired of making choice => Nepstar professional study and chose • Not used to buying foods and living essentials in drugstore => promotion of changes frequency to sale more Nutritional supplement and Natural function foods , which are the main profit.
Part III 3. 5 Nepstar’s U-strategy Performance Source: Presentation_to_investors_Sep_2013 from Nepstar official website
Part IV 4. 1 Maple Trial sales in Drugstore ---opportunity and challenge Mum, Are you going to buy drug? No, buy Maple for you. ? Drugstore Trial Sales Maple in drugstore of Beijing and Suzhou in Oct 2013 State food and drug supervision and administration bureau start approve some cites to sales Maple in Drugstore which is good opportunity and challenge: How operate and how to control Maple ‘s quality o make customers trust drugstore than other chancels.
Part IV 4. 2 Drugstore online in Difficulty Dummy drug • Drugstore online surely will be new increase profit point except Maple. • Nepstar have get license to open drugstore online, but cannot sale prescription drugs. • Need special delivery. • Dummy drug online • Old people hard to accept buying drug online. X drugstore online Source: <网上药店成长烦恼:资质少物流不可控 》, 作者:刘佳 发布于2012 -05 -07 18: 45: 31
Part V 5. 1 Diversification as business model in other countries
Part V 5. 2 Diversification as business model in Russia n Classical “Drugstore” concept: health care, no grocery, gifts, toys, home solutions n Seasonable flexibility n Various special offers and bonuses
Part V 5. 3 Diversification as business model in other countries Photo services & goods Contact lenses Beauty Personal Care Health Care Home Solutions Grocery Household Products Vitamins & Supplements Baby Care, Toys Gift sets
Part V 5. 4 Proposals for U-Strategy Products • Contact lenses • Baby Care, Toys • Travel kits/Gift sets • Beauty • Grocery • Sport nutrition • Traditional Chinese Medicine Services • Providing professional consultations • Health test point • Rent devices and apparatus • “Wish list”
Part V 5. 5 Proposals for Nepstar’s U-Strategy • Shop-in-shop strategy • + Bonuses for regular “Nepstar”’ customer – discounts for partners’ services and products • Inside advertising of drugs in sell, accent on special, season, family offers • Advice refer Forme’s community service center with Licensed Pharmacist contracted with community families as “family doctor” and create people’s electrical drug records to meet target-community “Big Heath”
Part 5 5. 6 Proposals for Nepstar’ suppliers • Delivering high-margin products of required categories • Develop flexibility in order to fulfil seasonable demand • Define the possibility of providing herbal medicine in Nepstar • Provide Maple and other products for Infant &Mom to Nepstar • Provide Japanese brands Cosmeceuticals and management ideal to Nepstar
Nepstar combined ppt(Dec11 2013).pptx