In-depth analysis of the hidden trouble behind the growth of the deli market

Business Club January 24th First, the industry's overall level of development is not high, the foundation is weak, accounting for the overall share of the pharmaceutical industry is still too small. According to statistics, in 2009, TCM decoction pieces accounted for only 5% of China's pharmaceutical industry scale, and were at the end of the ranks of pharmaceuticals; proprietary Chinese medicines accounted for only 22.4% of the market share, which is inconsistent with China’s long history of ancient Chinese medicine civilization. .

Second, the international level of the deli market is low, accounting for less than 20% of the international market share, and most of them are exported as APIs. China’s basic theoretical research on traditional Chinese medicine is not deep enough, its innovation ability is weak, and it lacks industry standards, which has seriously hindered Chinese medicine from going to the international market. It is understood that 40 kinds of traditional medicines in 10 countries have registered successfully in China. However, there is no case in China where Chinese medicines are officially registered overseas. Japan and South Korea have long devoted themselves to the clinical research of traditional medicine. After purchasing Chinese medicine raw materials at a low price of agricultural products in China, they carry out standardized processing, use Western technology theory to "package", and sell them to the world at high prices.

Third, the management level is low and profitability is poor. The number of domestic companies in the industry is large, the scale is small, the barriers to entry are low, and the family workshop-style small-scale processing factories continue to ban. This has caused serious impact on the regular production enterprises. Although GMP certification has been implemented, the situation of small, scattered, chaotic and poor industries has not been greatly improved. The overall profitability of the industry is poor, and 75% of enterprises are on the verge of losses.

Fourth, the disorderly market competition is serious and the industry has not formed a joint force. China is a big country of Chinese medicine, but it is not a strong country of Chinese medicine. Taking ginseng as an example, China’s participation in Korean ginseng is similar, with the same source. In the first half of 2010, China exported 1331.3 tons of ginseng, the export price was US$15.3 per kg, and Korea’s Korean ginseng exported 209 tons at the price of US$139.1 per kg. Although China’s exports of ginseng are six times that of Korean ginseng’s exports, the export amount is only 70% of Korean ginseng, and the export price of Korean ginseng is more than nine times the average export price of ginseng in China. There are more than 5,000 enterprises involved in the production and operation of ginseng in China, and the total assets exceed that of South Korea’s “Zhengguanzhuang”, but the efficiency is less than 1/10 of that of Zhengguanzhuang. In comparison, the cultivation of ginseng in China is still in a disorderly state, and most of them are managed by farmers alone. Moreover, the ginseng in the market is mixed, and it is difficult to distinguish between true and false. Medicinal value has been greatly reduced in the minds of consumers.

During the “Eleventh Five-Year Plan” period, the Chinese Herbal Pieces industry has developed rapidly. Behind the bright data, however, there is still a long way to go to achieve a leap from a large Chinese medicine country to a strong Chinese medicine country.

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