Drug price slashes spreading in city
10/7/2003 18:04
Price cuts on drugs are spreading in Shanghai, as more local
drugstores are joining the massive industry act to lower prices, today's
Shanghai Morning Post reported.
Up to date, 36 local drugstores in nine
districts have joined the "Green Union", a drugstore cartel launched by local
medium-to-small-size pharmacies, spreading the cuts to some 500 products, to
fight against the intruding nationwide discount chain drugstore Kaixinre,
according to the council of Green Union.
After the cut, price of hemalbumen,
a common drug to enhance the immunity system of patients in serious conditions,
for example, has dropped from 302 yuan (US$37) a shot to 270 yuan and could save
960 yuan in total for a patient for one period of treatment, during which 30
shots are usually applied.
The price cuts have boosted up these union
drugstores' sales and resulted in the short supply for their suppliers,
according to managers of some drugstores, who have to turn to other distribution
channels for supplies at higher costs.
Despite that, the drugstores will
continue the low retail prices, said Wang Zongwu, manager of Zhongda
Drugstore.
He said his store is determined to maintain the low price strategy
to win the customers back.
Some large-size drugstores are also considering
lowering down the prices. One of them is Lei Yun Shang Drugstore, one of the Big
Five leading drugstores in Shanghai.
The store has launched a trial low-price
policy earlier this month at its Juji outlet in north Shanghai's Pengpu area,
with cuts ranging from 20 to 50 percent and covering more than 400 products,
according to Gu Yunwei, the outlet manager.
Aiming at further improve its
professional medical service to win back the losing business, he said the outlet
has employed 12 licensed pharmacists.
The low-price strategy will soon, and
probably from next weekend, expand to the other 75 Lei Yun Shang outlets across
the city, according to Jin Haiyan, manager of the drugstore.
She is in Ningbo
to learn the successful experience of Kaixinren's new outlet there.
Other Big
Fives, including Guo Da and Hua Shi, are also considering price cuts, the
Shanghai Morning Post report said.
Jane Chen/ Shanghai Daily news
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