The independent drugstores will find it harder to compete and the percentage of drugstore chain’s locations will steadily increase.
The “50% chain rate by 2020” target was set in 2016. In US and Japan, the percentage of chain stores is over 70%.
Source: www.sfdaic.org.cn/statistics
The market share in sales for top chains keeps increasing, as their sales grow faster than industry average.
Source: 中国药店，中信证券
* the total drug retail sales data is a little different from the previous post China Medicine End Market Sales (2018: 391.9 vs. 400.2 billion RMB, 2% higher in this report)