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Fundraising for the national affordable store "People" to do drug retail "aircraft carrier"

Fundraising for the national affordable store "People" to do drug retail "aircraft carrier"

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Guangxi News Network, Contemporary Life Reporter, Pan Zengquan
 
Three years ago, a large pharmacy of “people” opened in Taoyuan Road, Nanning, and sensationalized the “parity” with an average drug price lower than the market price of 45%. For a time, it incited the price of iron barrels. After that, Hunan “Century Kang” and “One Bar Scale” and other economic pharmacies have come to Nanning. At the same time, local drug retailers have emerged and joined the pharmaceutical retail market. In the dragons and tigers of drug dealers, consumers have finally gained a lot of benefits.
 
The crowds are struggling, and the storms are rampant. Nowadays, “people” have opened 9 stores in Nanning, Liuzhou and Zhangzhou, with annual sales totaling more than 150 million yuan. In the first nine months of this year alone, sales of more than 150 million yuan. According to estimates from the large pharmacy of Guangxi people, in June 2006, in June 2006, “people” saved about 76 million yuan for Guangxi consumers. In fact, these outstanding achievements of Guangxi Pharmacy in the past three years are only a microcosm of the 86 stores of the “parent company” pharmacy nationwide management agency.
 
Recently, Xie Zilong, the founder of the affordable pharmacy and the chairman of the National Pharmacy of the People's Republic of China, said in an exclusive interview with the reporter: "We will introduce 70 million to 80 million US dollars of private equity funds early next year to acquire and purchase affordable pharmacies. The power to realize the expansion of the pharmacy of the common people, the comprehensive annexation of 'medicine' and 'retail'... Of course, Nanning, including Guangxi, is one of the main battlefields of our expansion..." In the words, Xie Zilong will lead his team. In the next two or three years, it is necessary to “small and plunder the land” to seize the national market including Guangxi, and to be the “Wal-Mart” for drug retailing.
 
For the fifth anniversary of the common people
 
On October 27th, “people” will launch the “Grateful 5th Anniversary” theme promotion campaign in 13 provincial-level markets including Guangxi to reward consumers. Is this done out of hype? Xie Zilong, chairman of the "people", told reporters: "The two major advantages of scale and procurement are the swords in our hands, and our killers. It is these two advantages that allow us to keep profits while lowering the average price of drugs." Xie Zilong said: "We are making money. In 2004, our sales reached 1.82 billion yuan, which is the first place in the national pharmaceutical retail sales and profits. In 2005, we sold 2.18 billion yuan. We maintain this position. We can say that we are the annual sales, the total business area, the average daily sales of single stores and the net profit of 'six national first' pharmaceutical retailers.” In the interview, the reporter learned that from From October 27, 2001 to October 27 this year, the "people" have gone through a full five years. In the past five years, the "people" has moved from the narrow Changsha Xiangya Road to 13 provinces and cities (districts) across the country, with 86 stores, directly making a profit of 5 billion yuan, directly bringing benefits and services to tens of millions of consumers. With these support, “people” has also become an “industry leader” from “industry pioneers”.
 
Acquisition and merger to achieve expansion
 
"I think that the winter of the national pharmaceutical industry has already arrived." Xie Zilong analyzed that due to the increasing number of affordable pharmacies nationwide, the market separated by the hospital is not enough to support the increase in the price of affordable pharmacies and policy factors, next year will be There is a large medical retail company that has died.
 
Xie Zilong said that this may not be a bad thing for the "people". If the sentence is not good, then the "people" can take the opportunity to clean up the mess. Next year, the self-raised 70 million to 80 million US dollars of strategic investment funds will be used. The “people” will change the practice of opening their own stores. Through capital operations, they will expand the cheap pharmacies in Beijing, Jiangsu, Anhui, Fujian, Sichuan and other provinces through acquisition. At the same time, further mergers and acquisitions of affordable pharmacies in other parts of the country, including Guangxi, "We want to do the retail of the Wal-Mart." Xie Zilong is full of expectations.
 
The reporter asked the "people" to buy a number of cheap pharmacies in Guangxi next year. Xie Zilong said with no mystery: "The secret plane will not leak, and now it is really eyeing some retail pharmacies. It is sure to open several more stores. Shot."
 
Start exploring OEM and GMP
 
In late August of this year, the people's large pharmacy participated in the National New Drug Trade Fair held in Harbin and declared: "In the future, the pharmacy of the general public will focus on operating OEM (own brand) products as a work focus." The industry has shown great concern.
 
The reporter learned that after several years of development, the "people" this low-cost pioneer began to explore OEM (pharmaceutical logistics) and GMP (pharmaceutical), initially forming a complete industrial chain.
 
“Fengwoda Pharmaceutical Logistics”, a wholly-owned subsidiary of “People's People”, was established on February 28 last year. The sales volume of the year has exceeded 500 million yuan, becoming a powerful “new army” for pharmaceutical logistics. In October of this year, “Fengwoda” only reached 100 million yuan in the Guangxi market.
 
Yaoshengtang Pharmaceutical Co., Ltd. successfully passed the GMP certification of oral liquid (including Chinese medicine extraction), tablets, hard capsules, pills (water honey pills) and granules (including Chinese medicine extraction) in August last year and April this year.
 
The establishment of “Fengwoda Pharmaceutical Logistics” and “Pharmaceutical Shengtang Pharmaceutical” has enabled the “people” to rise from the previous store advantage (price advantage, variety advantage, service advantage) to the industrial chain control advantage. "In the future, the 'people' pharmacies will sell well, and the Pharmacy Church will be able to produce their own brands or produce OEM drugs." Chairman Xie Zilong said with pride.
 
Expected to be listed overseas within two years
 
“We intend to list overseas in 2008 or 2009. Now we are introducing strategic investment to introduce a very good corporate governance structure and provide practical assistance for the company's next development. The overseas listing is to make the company's operation more Standardize, develop healthier, and truly become a 'hundred-year-old shop'." Mr. Xie Zilong said.
 
Now, “people” are considering the development of appropriate incentives for employees to share the fruits of the company's development. According to Xie Zilong, before 2003, the salary level of “people” was very high, but now it is not competitive. Therefore, the focus of the "people" on employees is to enable them to make more money. According to Xie Zilong, the "people's" equity incentive plan is in the process of implementation. "If it is successfully listed in 2008 or 2009, this means that we can train a group of 'millionaires' and 'multi-millionaires.'" Weiyi author: Panzeng Quan