In 2011, on January 17, Guangya launched health wine, Yunnan Baiyao shampoo "Yangyuanqing" series will begin nationwide promotion, two well-known pharmaceutical companies, one to the food industry, one to the daily chemical industry, they seem to be more The farther away, Guangpharm also wanted to push cosmetics and elderly products. In addition to shampoos, Yunnan Baiyao also used shower gel, body lotion, and hand cream. Is it that pharmaceutical companies will repeat the pharmacy as a "grocery shop"?

Pharmaceutical companies "do not work properly", vice-industry development even more than the main business situation has always been there, but in recent two years have become increasingly hot trend, 2011, January 17 Guangyao launched health wine, Yunnan baiyao shampoo The “Yuanqing” series will be launched nationwide. Two well-known drug companies, one to the food industry and one to the daily chemical industry, will seem to be moving further and further. Guangpharm will also want to push cosmetics and elderly products next; besides washing. Hair, Yunnanbaiyao also make bath lotion, lotion, hand cream. Is it that pharmaceutical companies will repeat the pharmacy as a "grocery shop"?

Toothpaste is more expensive than drugs to sell drugs or sideline products to make money. We can use the typical example of Yunnan Baiyao to view the leopard. Recently, Yunnan Baiyao released a pre-advanced performance announcement. Its 2010 performance is forecast to increase by 50% to 70%, which corresponds to a net profit of 90558.68 million yuan -102.632 million yuan. It is pointed out in the industry that the central products of Yunnan Baiyao include capsules, creams, tinctures, powders, The market sales of aerosols and transdermal products did not reach expectations in 2010. On the contrary, there was a decline. Analysts from Guotai Junan also believe that Yunnan Baiyao’s 2010 results have increased significantly in addition to the contribution of toothpaste products, mainly because marketing investment has accounted for a reduction in the proportion of industrial revenue, and toothpaste, transdermal agents and other services have shifted to harvest. Guotai Junan believes that the growth momentum of the Yunnan Baiyao toothpaste business in the next two years is still sufficient, and the company has entered a stage of profit growth. Looking forward to 2011, Yunnanbaiyao transdermal agent sales will have a recovery and high growth, is expected to grow 30% -40%; toothpaste growth is still large, is expected to grow by more than 50%.

The reason why Yunnan Baiyao's central product did not meet expectations in the last year's market sales in 2010 was due to the price increase of Yunnan Baiyao at the end of 2009. The toothpaste and daily chemical products bring obvious benefits because of the higher gross profit margin. Yunnan Baiyao Pharmaceutical Industry and pharmaceutical business respectively accounted for about 35% and 65% of the main business. In the first half of 2010, the sales revenue of Yunnan Baiyao Pharmaceutical Industry reached RMB 1.6 billion, while the sales revenue of the Company’s toothpaste was a conservative value of RMB 500 million. It can also be seen that the company’s pharmaceutical consumer goods are eye-catching.

Drug companies have opened "grocery shops"

At the same time, the fast-paced momentum of its Wong Lo Kat annual sales of billions of dollars has allowed the GP Group to step up its efforts in the areas outside the pharmaceutical industry. The head of the group stated that the listing of the Shennong wine in Baiyun Mountain is only the first step in the health industry of Guangyao Pharmaceutical. In the future, it will also cooperate with suppliers in the global scope to expand into herbal tea, drug makeup, health food, slimming beauty products, health care equipment, and elderly products. Despite the banner of “healthy”, these new businesses that are about to develop have touched on various fields such as daily chemicals and daily necessities, and they have indeed blossomed.

In addition to Yunnan Baiyao and Guangyao, Pien Tze Huang is also working hard in the field of daily chemicals and food. Its business scope has added candy products to its original foundation. In recent years, Kang Mei Pharmaceutical, Ma Ying Lung, Shanghai Pharmaceutical Group, and Tasly Lik have also successively He began to engage in sideline health tea, sugar, cosmeceuticals, and eye cream. For example, Tasly Group invested billions of dollars into the Pu'er tea industry. Beijing Tongrentang established Beijing Tongrentang Cosmetics Co., Ltd., and Ma Yinglong launched the "Eight Baboon Eye Cream". . . . . .

Why does the drug gross profit rate fall below that of daily chemical products? Drug companies are keen to “do nothing”. Guo Fanli said: First, choosing a new business can expand the company’s own profit chain, and diversification can make up for the disadvantages of the company’s main business. Secondly, for pharmaceutical companies, due to their similarities with Japanese companies, it is relatively easy to extend their business to Japanese products.

There is also a third factor. Guo Fanli said that since the implementation of the essential drug system, the prices of drugs have dropped drastically and gross margins have fallen. Enterprises have started to open up other businesses with higher gross margins in this context. This factor is also a problem that many companies have mentioned. Niu Zhenggan, deputy general manager of Kyushu Tongji Group, said that for pharmaceutical companies, the environment for industrial policy can now be described as bad. “The medical reform has lowered the price of medicines to a very low level, but the problem remains unresolved. The root of the problem is actually not in pharmaceutical companies, but in **.” Niu Zhenggan cited as an example, the current policy provides that the upper limit of generic drug profits is only 8%. This restriction makes the pharmaceutical industry feel very helpless.

Ann Ning, executive vice president of Livzon Pharmaceutical Group Co., Ltd., admitted to reporters that a real new drug, from R&D to production, often takes more than 10 years, and that the capital investment is still in the millions, 10 million, and even hundreds of millions, and there is still a certain high risk. These little people know. Drugs have been produced, but they have yet to face another problem: Domestic goods are hard to enjoy the same treatment as foreign goods.

According to the European perspective of the world's leading consumer market research institution, the domestic shampoo market will reach 24.4 billion yuan in 2012, with a compound annual growth rate of 12% in 2009-2012. Among them, the herbal shampoo market in 2009 reached 2.6 billion yuan, with a growth rate of 20%. It takes at least five years or more for the drug to go from R&D to final sales, and now the policy requires that the profit limit for generic drugs is only 8%.

Will the pharmaceutical market be handed over to foreign companies?

As more and more companies develop in various fields, Guo Fanli said that the situation that pharmaceutical companies are beginning to open up other businesses with higher gross margins will become a trend in the future. However, in the face of drug companies’ “drug and drug” and “daily heat,” many people in the industry are quite worried. Daily chemical expert Li Zhiyong pointed out that diversified development may bring new profit models and considerable benefits to Chinese domestic pharmaceutical companies. Profit, but it may also allow pharmaceutical companies to disperse their energy and affect the ability to research and develop pharmaceuticals. And at present, the domestic chemical industry multinational companies gather, compared with their strong R&D and market manipulation capabilities, whether domestic drug companies can open up the market for drugstores is still unknown. At the same time, the pharmaceutical market is also a gathering place of multinational corporations, occupying a huge market of diseases and drugs in the markets of diabetes, hepatitis B, cardiovascular disease, and cancer. If the domestic pharmaceutical companies are still not operating their main businesses, the consequences will be disastrous.

In foreign countries, the real big money is ***, innovative drugs, China happens to be the reverse, the money is all health care products, innovative drugs but it is difficult to make money. Innovation must have its way out. One has done more than a dozen or twenty years and has invested a lot of manpower, material resources, and capital costs. It ultimately needs to obtain returns from the market. However, the Chinese market is not standardized, and funds have flowed into the stock market and real estate. No one is willing to make real innovations. No one even wants to do business.