China Pharmaceutical Logistics Industry Report, 2009

• Publication date: September 2009

In recent years, China pharmaceutical logistics industry has changed fundamentally, which is reflected in the accomplished or ongoing logistics projects. Large-scale pharmaceutical distribution centers supported by T-bond discount loans have been founded and many small and medium-size pharmaceutical distribution centers are also under construction. Pharmaceutical logistics is the result of the development of the pharmaceutical industry whi...

In recent years, China pharmaceutical logistics industry has changed fundamentally, which is reflected in the accomplished or ongoing logistics projects. Large-scale pharmaceutical distribution centers supported by T-bond discount loans have been founded and many small and medium-size pharmaceutical distribution centers are also under construction.

Pharmaceutical logistics is the result of the development of the pharmaceutical industry which is connected with pharmaceutical industry most closely. Market capacity and potential demand of pharmaceutical logistics industry can be reflected by those of pharmaceutical industry indirectly. Pharmaceutical industry is called as "eternal sunrise industry", mainly because of expanding market demand, which increasingly rely on the service offered by pharmaceutical logistics. Both of the demand for China pharmaceutical industry and that for China pharmaceutical logistics industry are driven by the following factors -- economic growth, people's awareness of self health care, aging population, urbanization, as well as health care system reform.

According to the latest data released by the National Bureau of Statistics of China in 2009, from January to May of 2009, China pharmaceutical manufacturing achieved the sales revenue of RMB321.988 billion, up 18.07% from the same period last year, but the growth rate was 11.36% lower than that of the same period last year. In 2008 around, China pharmaceutical manufacturing achieved the sales revenue of RMB825.36 billion, up 26.5% year-on-year. The average growth rate of China pharmaceutical manufacturing has been more than 20% over the past decade, far above the GDP growth rate in the same period. Chinese pharmaceutical logistics market has grown up fast with the development of pharmaceutical manufacturing.

In Chinese pharmaceutical market, a large number of pharmaceutical wholesale enterprises emerge and survive owing to China's lack of macro-control policies and market access conditions, the isolation of drug regulation from drug operation, and local protection policies. As a result, in China pharmaceutical logistics industry, there are numerous small pharmaceutical enterprises which accounts for 90%; pharmaceutical enterprises have low intensity, low profit margins and low managerial efficiency; many enterprises produce considerable same products. At present, there are 16,500 wholesale pharmaceutical enterprises and 119,000 retail pharmaceutical enterprises in China, but the annual pharmaceutical sales revenue achieved by them only account for less than 10% of the global sales income. At the same time, the products often belong to the homogeneous varieties. 97% of chemicals produced in China are generic drugs. Innovation and research of new drugs are backward and the development of preparation progresses rather slow. Few innovative drugs exist.

Pharmaceutical Industry in China

Table of Contents
1 Overview of Pharmaceutical Logistics
1.1 Concept of Logistics
1.1.1 Definition
1.1.2 Classification
1.2 Definition of Pharmaceutical Logistics
1.3 Functions of Pharmaceutical Logistics

2 Associated Industries of China Pharmaceutical Logistics
2.1 Pharmaceutical Manufacturing
2.1.1 Market Scale
2.1.2 Economic Benefit
2.1.3 Production and Sale
2.2 Pharmaceutical Wholesale
2.2.1 Development
2.2.2 Situation
2.2.3 Future Development Trend
2.3 Pharmaceutical Retail
2.3.1 Development
2.3.2 Problems
2.3.3 Future Development Trend

3 China Pharmaceutical Logistics Development
3.1 Development of China Logistics Industry
3.2 Characteristics of China Pharmaceutical Logistics
3.3 Comparison between China Pharmaceutical Logistics and Pharmaceutical Logistics of Developed Countries
3.3.1 Scale and Market Concentration Degree
3.3.2 System Support and Operation
3.3.3 Management and Core Competitiveness
3.3.4 Technical Support
3.4 Remarkable Achievements of China Pharmaceutical Logistics Industry
3.4.1 Solution Design
3.4.2 System Integration
3.4.3 Technology and Equipment
3.4.4 Construction of Pharmaceutical Logistics Centers

4 Demand in China Pharmaceutical Logistics Industry
4.1 Demand Entity
4.2 Driving Factors of Demand Expansion
4.2.1 Economic Growth
4.2.2 Aging Population
4.2.3 Urbanization
4.2.4 New Medical Reform
4.2.5 Residents' Enhanced Awareness of Health Care
4.2.6 Technological Progress
4.3 Market Scale Estimation and Forecast
4.3.1 Still Immaturity of Pharmaceutical Logistics Industry
4.3.2 Estimation Methods
4.3.3 Estimation Results and Conclusions
4.3.4 Forecast

5 SWOT Analysis of China Pharmaceutical Logistics Industry
5.1 Strength (S)
5.1.1 Promotion by Pharmaceutical Industry
5.1.2 Improvement of Market Concentration Degree
5.2 Weakness (W)
5.2.1 Overheated Investment
5.2.2 Low Informatization Level
5.3 Opportunity (O)
5.3.1 Considerable Potential
5.3.2 National Policy Support
5.4 Threat (T)

6 Operation of China Pharmaceutical Logistics Market
6.1 Market Structure
6.1.1 Characteristics
6.1.2 Reorientation
6.2 Competition Patterns
6.2.1 Competition among Chinese Enterprises
6.2.2 Competition between Foreign and Chinese Enterprises
6.2.3 Accelerated Industry Integration
6.3 Business Models
6.4 Regional Distribution
6.5 Risk Analysis
6.6 Future Development Trend


7 China Pharmaceutical Logistics Centers (Enterprises)
7.1 Sinopharm Logistics Co., Ltd.
7.1.1 Profile
7.1.2 Logistics System
7.2 Shanghai Pharmaceutical Logistics Center
7.2.1 Profile
7.2.2 Operating Capability
7.3 Quanzhou Medicine & Food Logistics Center
7.4 Jiangsu Yabang Pharmaceutical Logistics Center
7.5 Logistics Distribution Center of Beijing Pharmaceutical Co., Ltd.
7.6 Jointown Pharmaceutical Logistics Distribution Center
7.7 Chongqing Pharmaceutical Peace Logistics Center
7.8 China - ASEAN (Tongji) Pharmaceutical Logistics Center
7.9 Nantong Suzhong Medical Logistics Co., Ltd
7.10 Chongqing Modern Pharmaceutical Logistics Center

8 Main Problems and Countermeasures of China Pharmaceutical Logistics
8.1 Key Issues
8.1.1 Lagging Development and Lack of Support from Third-Party Logistics
8.1.2 Unadvanced Enterprise Management and Lack of Modern Logistics Technology
8.1.3 Backward Standardization
8.2 Countermeasures and Suggestions
8.2.1 Scientific Construction Planning
8.2.2 Channel Informatization
8.2.3 Cultivation of Third-party Pharmaceutical Logistics Enterprises
8.2.4 Accelerating Integration of Logistics Resources
Selected Charts
Market Scale of Pharmaceutical Manufacturing, Jan-May 2009
Profit of Pharmaceutical Manufacturing, May 2009
Sales Profit Margin of China Pharmaceutical Manufacturing, 2003-May 2009
Profit Structure of China Pharmaceutical Manufacturing (by Sub-industry), Jan-May 2009
Top 20 Pharmaceutical Retail Enterprises in China by Competitiveness, 2009
Top 20 Logistics Enterprises in China, 2008
Supply Chain of Pharmaceutical Logistics Industry
General Models of Pharmaceutical Logistics Industry
Sales Revenue and GDP Regression Analysis of China Pharmaceutical Industry
Chinese Aging Population VS Medicare Spending, 2006-2016
Health Expenditure in China, 2005-2016
Trends of CPI and Health Care and Personal Products Index
Sales Revenue of Manufacturing, 1999-2008
Circulation Rate and Profit Margin through Circulation of Pharmaceutical Industry, 1999-2008
Market Scale and Profit of Pharmaceutical Logistics Industry, 2000-2008
Market Scale Trends of Pharmaceutical Logistics Industry, 2000-2008
Profit Trends of Pharmaceutical Logistics Industry, 2000-2008
Market Scale and Profit Growth of Pharmaceutical Logistics Industry, 2000-2008
China Pharmaceutical Industry Growth Rate and GDP Growth Rate, 2000-May 2009
Scalization and Intensivism Process of Pharmaceutical Logistics Industry, 2000-2008
Competition Patterns of Pharmaceutical Logistics Market in Beijing and Shanghai
Basic Logistics System of Pharmaceutical Retail Chain Enterprises
Distribution of Major Pharmaceutical Logistics Centers in China, May 2009
Future Development Trends of China Pharmaceutical Logistics Industry
Four Logistics Centers of Sinopharm Logistics Co., Ltd.
Integrated Logistics Network of Sinopharm Logistics Co., Ltd.
Comparison of Designed Operating Capability and Current Operation in Logistics Centers
Functions and Scale of Quanzhou Drug & Food Logistics Port