Chen Zhenghong: Shen Xiaxin only does medicine

In 1980, after Zheng Zhenghong graduated, he entered the Dujiangyan Pharmaceutical Company and worked for 14 years. In 1994, Dujiangyan Medical & Health Products Co., Ltd. was established. Chen Zhenghong, who has more than ten years of rich industry experience, was sent to the company as general manager. In 1997, when the state-owned enterprises were restructured, Chen Zhenghong took over Dujiangyan Medical and Health Products Co., Ltd. at a price of 30,000 yuan, and began a 20-year road to entrepreneurship.

Chen Zhenghong told reporters that Dujiangyan Medical and Health Products Co., Ltd. at that time did not have much assets: “The warehouse is rented, the facade is rented, and 30,000 yuan is only a sign for the company. But he has been out of work for more than 10 years. I have always thought about doing my own business, but it is not an easy task to create a new brand and attract talents. Dujiangyan Medicine & Health Products Co., Ltd., an old Dujiangyan pharmaceutical company, has a good reputation among consumers. Therefore, the price of 30,000 yuan cannot but be said to be a good deal. At that time, I did not think much about it and won this signboard." Under the painstaking efforts of Chen Zhenghong, the dubious development of state-owned enterprises of Dujiangyan Medicine & Health Products Co., Ltd. gradually took place. With the change, the company's business conditions are also getting better.

Since 1980, Chen Zhenghong’s medical career has been more than 34 years. In an industry that has been working wholeheartedly for 34 years, Chen Zhenghong has faced a lot of temptations. Chen Zhenghong said that the motivation to persevere is due to his love for the pharmaceutical industry. Chen Zhenghong told reporters that in 2004, a friend of a pharmaceutical manufacturer wanted to run a real estate business with him, but he declined an invitation from a friend. In a short period of ten years, this friend accumulated a lot of wealth and invited Chen Zhenghong to visit his company. “He has earned more money in 10 years than most people who have been in the pharmaceutical industry for 20 years, but I never regretted the original rejection of his invitation. In the past 30 years of my career, the pharmaceutical industry itself has developed. After a lot of ups and downs, I have always believed that the pharmaceutical industry is a business that saves lives and saves money, and people can’t leave without drugs.This means that the pharmaceutical industry is an everlasting sunrise industry. It will bring you tremendous wealth, but it can give you a relatively stable development prospects and a good social image.The pharmaceutical industry does not require as much capital as many industries, and does not need too much nepotism. Only the operators need to be able to sink their hearts and serve consumers well,” said Chen Zhenghong.

After visiting the company of friends, Chen Zhenghong not only did not have an interest in the real estate industry, but also strongly encouraged friends to re-enter the pharmaceutical industry, using more funds to promote the development of the local pharmaceutical industry.

Business philosophy keeps pace with the times

Dujiangyan, which is located near Chengdu, is a tourist city. The share of chain pharmacies in the local drug retail market is not large, but monomer pharmacies are prevalent. However, Chen Zhenghong has always been concerned about the development of chain pharmacies. In 2014, when the development of Dujiangyan Medical & Health Products Co., Ltd. entered the 20th year, Chen Zhenghong launched a number of reform measures.

It is understood that Dujiangyan Medical and Health Products Company has been using the business model of the past state-owned retail outlets for many years and currently has 15 directly-operated stores and more than 20 franchise stores. This year, Chen Zhenghong changed the company's original business model and is applying to the relevant departments to set up a chain company, planning to use "Ju Ren Tang" as a chain brand. According to Chen Zhenghong, with the advancement of the new GSP, even in the small regional drug retail market in Dujiangyan, the operating advantages of individual pharmacies in the past are gradually disappearing, chain operations will become mainstream, and consumer brand awareness will become stronger. It is time for a unified brand operation.

In preparation for the establishment of a chain of companies, Dujiangyan Medical & Health Products Co., Ltd. also took advantage of its wholesale, retail and concurrent operations, and achieved diversified business opportunities. Chen Zhenghong told the reporter that as early as March 2011, the company had obtained basic drug distribution enterprise qualifications in basic medical and health institutions in Sichuan, and on March 21, 2012, it obtained the qualification for basic drug distribution companies in primary health care institutions in Dujiangyan City. On the 1st of the month, comprehensive coverage of basic drug distribution will be implemented for basic medical institutions in Dujiangyan City. The company currently has a total of 6 special distribution vehicles, 12 full-time distribution staff, 8 after-sales service personnel, warehouse area of ​​2,000 square meters.

Currently, in the wholesale business, Dujiangyan Medical & Health Products Co., Ltd. operates more than 4,500 varieties of products, of which more than 200 kinds of medical equipment. Because of its advantages in wholesale business, the pharmacies owned by Dujiangyan Medical & Health Products Co., Ltd. can put on other hospital types that are difficult for other pharmacies to obtain, and the large stocks can well meet the turnover needs of pharmacies. Chen Zhenghong told reporters that due to the understanding of the category structure of medical devices sold in hospital channels and using the advantages of large store areas, the pharmacy owned by Dujiangyan Medical & Health Products Co., Ltd. is equipped with medical equipment varieties that other drugstores dare not display in large quantities, and became the first to operate in Dujiangyan. One of the most successful pharmacies is medical devices. In some of its stores, sales of medical devices account for as much as 30%.

Despite forming a differentiated competitive advantage with local drugstores in Dujiangyan, Chen Zhenghong did not remain in the status quo. With the rise of online pharmacies, he realized that the market share of medical devices is being quickly eroded by online pharmacies: “From the nature of products, medical devices are very suitable for online sales, and there are no restrictions on medical devices in terms of policies. In the near future, medical devices will surely be the world's online pharmacies, and our company’s advantages in this area will continue to be lost.” In response, Chen Zhenghong has begun to consider another direction of diversification—Chinese medicine clinics, ready to apply. Corresponding license.

The drug retail market in Dujiangyan is very small, but there is also a big competition in small markets. Small drugstores have their own splendid beauty. Chen Zhenghong is relying on the business philosophy of keeping pace with the times and has made his company firmly occupy a place in Dujiangyan.

Face to face

The Chinese Medicine Museum is a barrier against the impact of e-commerce

Dujiangyan Medical & Health Products Co., Ltd. has been selling medical device products well. Why is it planning to open up TCM pavilions this year?

Chen Zhenghong: Pharmaceutical e-commerce is rapidly emerging. The market scale has increased from 1.65 billion yuan in 2012 to 4 billion yuan in 2013, of which medical devices account for a large proportion. Drugs belong to special commodities. Sales of online pharmacies are limited by policies and they are not large-scale. However, medical devices are very suitable for online transactions. Therefore, offline pharmacies must find new breakthroughs or they will be defeated by the emerging business model.

The standardized products of traditional Chinese medicine decoction pieces and medical devices are not the same. The traditional Chinese medicine decoction pieces industry still lacks a unified and standardized standardization system. The products have not been standardized yet, but with the prevalence of the concept of “prevention of disease” and “big health”, the The advantages of medicine in health care are gradually becoming prominent, and consumer demand for Chinese herbal medicines is growing rapidly. At the same time, sales of Chinese herbal medicines rely on the treatment of Chinese medicine practitioners, and it is difficult for online pharmacies to provide intuitive services. In my opinion, this is a reliable means for traditional pharmacies to withstand the impact of online, and the development of TCM pavilion has also responded to the current trend of great health.

"21st Century Pharmacy": What are the plans for Dujiangyan Medical & Health Products Co.

Chen Zhenghong: At present, on the basis of a pharmacy, we prepare a “Jurentang Traditional Chinese Medicine Hall” with an area of ​​about 200 square meters. The decoration style is based on antiques. After the completion, we will carry out medical treatment, health care, massage, physical therapy and other medical services. service items. In fact, the business of our traditional Chinese medicine clinics has been carried out for many years and has accumulated a large number of old Chinese medicine resources. However, doctors’ resources are still the main constraint factor in the establishment of TCM pavilions. Therefore, in preparation for opening procedures, doctors’ resources are also being stepped up.

In recent years, with the promotion of the great health tide and the favorable policies, the development of traditional Chinese medicine is increasing. However, in many places, there are still unfavorable situations in which Chinese medicine is not believed. As an old medical person, this situation is something I do not want to see. The reason why we plan to build a TCM pavilion is on the one hand to improve consumers' health and awareness, and on the other hand, to promote TCM culture to consumers through TCM pavilion, and to contribute to the development of a profound and profound TCM culture.