Novartis China and Henan Zhangzhongjing Pharmacy Co., Ltd. jointly promote value retail, leveraging professional services to unlock incremental opportunities at the retail endpoint...Patient-Centric: The Comprehensive Enhancement of Pharmacy Service Value
According to data analysis by CKDM (China Key Data Management), due to factors such as the diversion of outpatient mutual aid funds and the decline in individual account payment capacity, retail pharmacies across China have experienced a decline in customer traffic starting from March 2024. Additionally, customer unit prices, product unit prices, and the number of items purchased per customer are all lower than the same period last year. In this market environment, the pharmaceutical retail industry urgently needs to shift from traditional product-centric thinking and break through growth challenges by providing patient-centered professional services.On September 14, Novartis China and Zhang Zhongjing Pharmacy held the "Value Retail, Innovation Rebirth" launch of the Novartis & Zhang Zhongjing Value Retail Project and the Value Store Co-creation Conference in Zhengzhou. Wang Junxing, Head of Retail at Novartis China, attended the meeting along with Yang Jie, Director of Retail in the Western Region, and Hou Yanqing, Head of Key National Retail Accounts, as part of the Novartis retail management team. Yang Mingjiang, General Manager of Henan Zhang Zhongjing Pharmacy, led his senior management team to participate in this grand event. During the conference, both parties engaged in in-depth discussions on multiple levels and dimensions regarding the practice and development of value retail. They reached further cooperation intentions in areas such as building value stores and enhancing the professional service capabilities of pharmacists.
Currently, China has over 100 million patients suffering from cardiovascular diseases, diabetes, and chronic respiratory system diseases represented by chronic obstructive pulmonary disease (COPD) and asthma. The issue of disease management for patients with chronic illnesses is becoming increasingly prominent. For example, the first Global Report on Hypertension released by the World Health Organization (WHO) mentioned that only 16% of Chinese patients with hypertension have achieved treatment targets [1]. In the new situation, how to return to a patient-centered approach and enable patients to access more professional services close to home has become a focus of transformation in pharmaceutical retail.
"We need to focus on creating added value, and the core of this added value is to provide patients with high-quality professional services and long-term health management services," said Wang Junxing, Head of Retail at Novartis China. He emphasized fully leveraging the value of retail pharmacies by using professional expertise to serve every patient who walks into the pharmacy each day. Ensuring proper and standardized medication use, helping patients quickly improve their conditions, and ultimately creating more value for them.
Wang Junxing, Head of Retail at Novartis China
From the patient's perspective, the demand for health is not only about the medication itself but also about knowing how to use it properly and manage life after taking the medication, among other things. When these needs cannot be met at the pharmacy, they naturally flow elsewhere. The "Value Retail" initiative launched by Novartis aims to maximize the value delivered from medications to patients through retail pharmacies.
Professional Services: Unlocking New Opportunities in Pharmaceutical Retail
The slowdown in the pharmaceuticals industry has become an undeniable fact, but in reality, the health demands of residents have not disappeared. Data from Sinopharm shows that the proportion of chronic disease customers in retail pharmacies has been increasing year by year, reaching 16.1% by the first half of 2024. At the same time, 56% of chronic disease patients have DOT (Duration of Therapy) days below 90, indicating that a significant amount of patient needs remain unmet.Against this backdrop, Novartis China and Henan Zhangzhongjing Pharmacy Co., Ltd. are jointly promoting value retail, leveraging professional services to unlock incremental opportunities at the retail terminal, and returning to the essence of retail pharmacies with a long-term perspective.Yang Mingjiang, General Manager of Henan Zhangzhongjing Pharmacy Co., Ltd., mentioned at the conference that since Zhangzhongjing Pharmacy and Novartis China established a strategic partnership, the two parties have carried out in-depth cooperation in multiple dimensions. Over the years, Zhangzhongjing has adhered to the business philosophy of "ensuring the public access to safe medicines and affordable medicines," continuously infusing new contemporary significance into pharmacy services, benefiting more patients in China with higher quality service.
Yang Mingjiang, General Manager of Henan Zhangzhongjing Pharmacy Co., Ltd.
It is reported that Novartis China was the first to propose the concept of "Value Retail," continuously helping pharmacies establish standardized patient management processes, aiming to meet patients' comprehensive health needs. This enables patients to access higher-quality medications, more professional guidance, a more convenient medicine purchasing experience, and an improved quality of life.
Supplier-Retailer Collaboration: Deep Mutual Benefits of Value Retail
At the crossroads of critical transformation in the pharmaceutical retail industry, facing the pressures and challenges of a saturated market, traditional supply models have become incompatible with the demands of this era. Meanwhile, Novartis China's proposition of returning to professionalism has gained increasing positive responses from chain pharmacies. The "Hypertension Flagship Stores" and "Dermatology Health Care Centers," characterized by high professionalism, high compliance, and high activity, co-established by major chains and Novartis, are now flourishing across China.
Notably, these collaboration projects centered on Novartis' "Value Retail" concept have begun to show results.According to internal data from Novartis, the number of members in partner stores increased by 30%, the activation rate of returning patients increased by 60%, order volume increased by 184%, and the average number of medication days per member increased by 52%.
As Wang Junxing said in the conference: By attracting more patients to walk into pharmacies and enabling pharmacists to provide increasingly professional services, it will not only help patients improve their conditions or maintain health but also create more business growth and professional value for pharmacies.
In 2024, Novartis China and Henan Zhangzhongjing Pharmacy Co., Ltd. will continue their partnership to further promote the in-depth development of value-based retail and jointly explore new growth opportunities in the retail industry. This collaboration represents not only an innovation of the traditional pharmaceutical retail model but also a profound response to patient needs. By continuously enhancing the professional capabilities and service standards of pharmacists, they will provide patients with more personalized and precise health management solutions, ensuring that every patient who walks into the pharmacy experiences professional and warm service.
——Professionalism makes retail more valuable.
References:
[1]World Health Organization，Global
report on hypertension， 2023
Approval Code NBR0031318-73936, valid from 2024-09-18 to 2025-09-17, expired documents are deemed invalid.
