Yixintang Pharmaceutical (SZ:002727)2022-12-08 09:16Group 1: Regional Development Strategy - The company's largest revenue comes from Yunnan, with Guangxi and Sichuan ranking second and third respectively. The strategy is to complete coverage in Yunnan and then expand to the Southwest region [1][2] - Current sales revenue in Guangxi is 130 million, with a projected increase of 16.5%. There are 253 stores in Guangxi. Sichuan's sales revenue is 96 million, with 141 stores [2] - The company has 383 rural stores, which are strategically valuable, especially in Guangxi and Sichuan. The sales revenue from these stores is approximately 480,000 (excluding tax) [5][6] Group 2: Brand and Product Strategy - The company has over 1,100 product varieties, with the top 100 disclosed. Key products include Dong'e Ejiao, Tongrentang protein powder, and Yunnan Baiyao aerosol [2] - The product strategy is divided into four tiers, including non-exclusive products, exclusive products, and private label products [2][3] Group 3: E-commerce and Sales Strategy - The company is focusing on integrating online and offline sales channels, with plans for a modern pharmaceutical system that includes e-commerce [4][5] - The online sales of pharmaceuticals in China are projected to reach 6 billion this year, accounting for about 2%-3% of total sales [6] - The company is conducting experiments to observe consumer behavior, which will influence future e-commerce strategies [6][8] Group 4: Regulatory and Market Challenges - Obtaining medical insurance qualifications for new stores can take about a year, with insured stores generating twice the revenue of non-insured ones [7] - The company faces challenges in entering new regions due to regulatory approvals and the need for a strong company image [6][7] Group 5: Future Expansion Plans - The company plans to expand through both acquisitions and new store openings, focusing on maintaining a positive customer experience [7] - The company believes that the transition to e-commerce will be gradual, with a continued focus on retail as the core business [8]