China’s pharmaceutical E-commerce market in 2020: developments and prospects

At present, China’s pharmaceutical e-commerce industry has entered a changing period, and related services have been continuously extended and developed relatively quickly, which has been actively encouraged by policies.

At present, China’s pharmaceutical e-commerce industry has entered a changing period, and related services have been continuously extended and developed relatively quickly, which has been actively encouraged by policies.

The market scale and penetration rate of the pharmaceutical e-commerce industry are on the rise, and there is still much room for market growth.

Compared with offline pharmacies, online pharmacies are more diverse and can satisfy consumers’ various medication needs.

China’s pharmaceutical e-commerce industry ushered in a reshuffle period

Since its rise in 2005, China’s pharmaceutical e-commerce industry has developed rapidly, constantly innovating industry service models.

At this stage, China’s pharmaceutical e-commerce industry has ushered in a reshuffling period. While the size is expanding, it will further extend its business to the service sector.

The specific medical transaction services provided by pharmaceutical e-commerce enterprises include: drug transaction services between drug manufacturing or operating companies and medical institutions (B2B) and transaction services that provide drugs to end consumers (B2C).

China’s policies are generally encouraging medical e-commerce

The policies for the pharmaceutical e-commerce industry are generally positive and encouraging.

Specifically, the system and specifications of medical e-commerce filing, review, business scope, price management, etc. are becoming clearer.

Policies promote the improvement of drug quality and focus on reducing the level of drug circulation.

Under the standardization and improvement of a series of policies gradually released such as online prescription drugs and electronic prescription circulation, it will bring huge opportunities to medical e-commerce.

China’s overall scale of pharmaceutical e-commerce rises, the room for growth is still large

From 2015 to 2018, the scale of China’s pharmaceutical e-commerce market grew year by year.

According to statistics from the Ministry of Commerce, China’s pharmaceutical e-commerce market reached 97.8 billion yuan in 2018, a year-on-year increase of 32.7%.

According to the current development status and trends of the industry, it is estimated that the scale of China’s pharmaceutical e-commerce market in 2019 will be about 110.9 billion yuan.

From 2015 to 2018, the market penetration rate of China’s pharmaceutical e-commerce industry has been increasing year by year.

In 2018, the market penetration rate was 4.53%. Regarding the trends, China’s pharmaceutical e-commerce still has a large room for growth, and it is worth looking forward to in the future.

It is expected that the penetration rate of China’s pharmaceutical e-commerce market will reach 4.94% in 2019.

Online medicines are more diverse to meet consumers’ various medication needs

At present, China’s pharmaceutical e-commerce has 15-25 times more drug types than offline pharmacies. In contrast, the advantages of online pharmacies are prominent.

Online pharmacies are not substantially restricted by the size of the “store”, and the drug type reserve and supply capacity are stronger than offline, and there are more types to choose from.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/05/china-s-pharmaceutical-e-commerce-market-in-2020-developments-and-prospects/.

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