Chain drugstore beat back
20/11/2003 18:20
Starting today, more than 50 chain drugstores with the Shanghai
Pharmacy Joint stock Co Ltd will cut prices on 80 drug varieties by between 10
and 50 percent, to face the head-on competition sparked by local discount
drugstores, the Youth Post reported today.
Compared with discount drugstores
such as Kaixinren, Shanghai Pharmacy offers price cuts on 80 brands, mainly
locally produced ones for common or frequently occurring diseases.
Among the
50 chain drugstores, many are included in the domestic medical insurance system,
such as Tongrentang on No.377 Ruijin Road 2 and Jinsong Tonic Medicine Store on
Huaihai Road M.
The 50 chain stores are mainly located at local communities,
near metro stations and main traffic roads, very convenient for local residents,
said an industry analyst.
The large-scale drug price cuts have an inside
story, the analyst pointed out.
In order to claim more of the local drugstore
market, the Shanghai Fosun Industry Co Ltd has purchased 27 percent shares from
the Shanghai Pharmacy Joint stock Co Ltd, and also owns many pharmacies such as
Shanghai Leiyunshang Medicinal Chain-Management Co Ltd and Beijing Golden
Elephant Pharmacy, through acquisition, merger and cooperation, the analyst
said.
Offering large price cuts will help the Shanghai Fosun play a leading
role in the local drugstore chain market, he added.
Wendy Zhang/ Shanghai Daily news
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