Looking at the new retail of pharmacies from a different perspective

Roughly speaking, chain pharmacies have been involved in B2C for ten years, O2O has been developing vigorously for over five years, and private domain traffic operations such as micro malls and mini programs have also been in operation for three years. After years of effort, the proportion of online business in large and medium-sized chain pharmacies has reached 10% -20% or even higher. More importantly than the proportion of sales, the development of online business has driven the innovation and transformation of offline business. Online and offline collaboration has explored the development path of "omnichannel integration", which is related to the future fate of chain pharmacies.

 

It can be seen that the new retail department responsible for online business in chain pharmacies plays a crucial role. The current volume of online business can prove that the organizational structure and operational model of the new retail department have basically matured or at least adapted. But with the online Due to the peak of traffic and various complex external factors, the growth of online business is gradually slowing down. It also requires upgrading organizational capabilities, improving stock efficiency, and unleashing the value of business innovation and change.

 

Continuous success of the enterprise=strategy× Organizational ability. New retail is undoubtedly the top strategy for chain pharmacies in the new era, but in the process of advancing strategic steps, there are still different approaches. Is it a step-by-step approach or a step-by-step approach? The former hopes to continue exploring ways to solve problems based on existing concepts, technologies, and capabilities, controlling costs, ensuring profits, and working steadily; The latter hopes to break free from the constraints of existing concepts, models, and capabilities, establish new concepts and systems, build new capabilities, and even spare no effort in spending money to quickly occupy the market. In practice, in the short term, the former is more effective; In the long run, there is no consensus yet.

 

The organizational structure reflects the basic form of new retail business management by different enterprises. At present, there are two organizational models for new retail business: centralized control and zoning management. The centralized power is concentrated at the headquarters, and a flat model is more conducive to the vertical penetration and implementation of policies, but the flexibility and autonomy of stores are insufficient; Under the partition based organizational model, the new retail department of the headquarters is more like playing the role of an "enabler", developing plans for regional branches, mobilizing resources, and addressing needs. Observing, the genes of physical store management still map to online, and the organizational management model of new retail is in line with the offline management of chain pharmacies. Some have always adhered to centralized control by the headquarters, while others have developed across the country through a decentralized system. There is no fixed law in management, what is suitable is good.

 

Nowadays, the growth rate of online channels has slowed down and entered a bottleneck period. After three years of pandemic, consumption has been sluggish, and the industry's attitude towards online has become rational. It is no longer just pursuing high GMV growth, but emphasizing the need to improve business efficiency. Subtracting costs and adding traffic, content, technology, and logistics to improve repurchase, conversion, and retention, as well as enhancing human, store, and product efficiency. In the past, new retail has had some "certain" successes in certain operational key points.

 

The success of new retail lies in increasing revenue, empowering stores rather than competing with them for business. Therefore, the multi-channel performance of new retail involves multiple assessments. For example, some companies include all sales generated by O2O online orders in their store performance evaluations, while new retail departments adopt a separate KPI evaluation system; The goal of live streaming e-commerce is for all employees to participate in comprehensive assessments, which proactively solves the problem of distributing benefits both online and offline.

 

Service is the strength of both offline pharmacies and online businesses. There used to be a misconception that drugs were standard products, and online only focused on price, service was not important. But in practical operation, strong online services can greatly improve the conversion rate of consulting and thereby increase the repurchase rate.

 

Overall, regardless of whether the proportion of online business is 20% or 30%, the foundation of chain pharmacies is always offline. New retail business cannot be completely separated from offline independent operation, and still needs to rely on offline organizational structure to support operation and allocate resources. So, the positioning of the new retail department is to increase business growth; The second is to empower both online and offline functions, including helping stores and staff better grasp the tools and applications of new retail, gradually improving the overall new retail operation capabilities of the enterprise; The third is to become the center of chain pharmacies, better serving the scale innovation of the front desk. The smooth operation of the new retail project will further enhance the operational, management, product, service, and data capabilities of the pharmacy, achieving a virtuous cycle of omnichannel integration.

 

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