How far can we go with 90% of Connbey's billion-dollar target?
[Direct Report Network Beijing July 4] (Interface News)The OTC drug advertisements of Connberg frequently appeared on the TV screen, and the catchy slogans "Connberg Changyanning" and "Brainwashing" made a wave of audiences.
In 2017, Hu Jiqiang, chairman of Connbey Group, said that the company would break through 100 billion yuan in revenue in 10 years, and expected that the next year's revenue growth could reach 50%.
Over the past five years, Connbey has been trying to test the Internet for a short time to sell medicines and add code after leading the layout of industrial marijuana.
However, the reality is that in 2018, Kangbei did not meet Hu Jiqiang's expectations. In the first quarter of this year, the company's revenue was slightly weaker than that of the same period last year. Moreover, due to many problems related to the company's operation and accounting in the 2018 report, Kangbei received an inquiry from the Shanghai Stock Exchange at the end of May 2019.
In addition to supplementary disclosure of various matters related to the shareholding companies, the Inquiry Letter mainly questioned the sharp decline in the company's operating costs, the sharp rise in sales costs, and the unreasonable ratio of the two to business income, and asked the company to provide additional details.
As one of the top ten Chinese medicine enterprises, what can Connbe do to change the stereotype of money-burning marketing and achieve new performance growth points?
Frequent turnaround test
As a modern Chinese medicine and plant medicine-based, chemical medicine-based, pharmaceutical research, production and marketing as one of the enterprises, Connbe until 2015, has been taking the pharmaceutical industry as its main business model.
And it is not difficult to find from the financial report data over the years, in the early years of business process, advertising has been the most important means of Connbey sales. However, before and after the implementation of the new advertising law in 2015 and the Interim Measures for Internet Advertising Management in 2016, the company's advertising expenses have been reduced.
With the intensification of national censorship of drug advertisements and the change of market terminal orientation, Connbey's "money burning marketing" has become a thing of the past. According to Golden Securities in 2013, Yang Junde, ConnBeidong's secretary, and shareholders have disclosed that the company has begun to integrate its production and marketing system internally, targeting the market or turning to hospital terminals dominated by grass-roots medical terminals.
As early as 2012, Connbey has planned to promote the breakthrough growth of high-end medical marketing business through academic promotion and the construction of high-end medical marketing network, promotion team and expert support system.
In addition, Kangbei, adhering to the theory of "three ships", integrates and builds three major pharmaceutical marketing strategies, i.e. over-the-counter medicine, medicine and grass-roots medical self-management, and investment promotion agency, covering the whole country through "shipbuilding" (making independent brands of enterprises), "buying ships" (purchasing internationally renowned brands) and "chartering ships" (purchasing franchises of international brands). Channel network system.
Through the acquisition or investment of external companies such as Yunnan Xiongye Pharmaceutical Co., Inner Mongolia Yitai Pharmaceutical Co., Guizhou Baite Pharmaceutical Co., Ltd., and Yunnan Xitao Pharmaceutical Co., Ltd., Kangbei has acquired many potential and valuable varieties of resources such as Musk Tongxin Dropping Pills, Salvia Miltiorrhiza Ligustrazine Injection, Longjin Tonglin, etc. Among them, Musk Tongxin Dropping Pill has been approved as a national secret technology variety, and Salvia Miltiorrhiza Ligustrazine Injection has also been purchased, becoming Connbe's first heavy-pound variety earning more than 500 million yuan.
In the past few years, "Internet Food and Drug Business Supervision and Management Measures (Draft for Opinions)" released, a number of domestic pharmaceutical enterprises are eager to try, intending to enter the pharmaceutical e-commerce, Connberg also has many of them.
In order to grasp the opportunity of the Internet drug sales policy and lay out the pharmaceutical business, Connbey has increased a B2B medical business electronic platform - Zhencheng Pharmaceutical in 2015.
However, Connbe has not evaded the impact of the policy: in 2016, although the expected Internet drug sales policy failed to "come as promised", the emergence of the "two-vote system" has also brought a heavy blow to the electronic platform of pharmaceutical commerce.