Analysis To The Distribution Channels Of Chinese OTC Market

Since China began the implementation of classification in Pharmaceutical Market in 1999. The OTC market has been flourishing these years. But too many companies, little scale, inefficiency and disorder characterize the traditional distribution channel of pharmaceuticals formed for a long term. This situation not only restricts the development of the pharmacy and the druggists, but also makes the price of pharmaceuticals stay at a high level for many years. It is also an obstacle against the development of Chinese Pharmacy and the benefit of consumers.Because of the influence of police as well as the change of consumers' health viewpoint, there is tremendous diversification in domestic OTC distribution channels. There are three obvious features in drugstore trade. Firstly, the expansion of drugstore chains is carried out on a large scale. Secondly, the super drug markets flourish. Thirdly, multinational drugstore chains are challenging domestic enterprises. There also come forth some new forms of retailers. As for drug wholesaler, big wholesalers, sales companies of drug makers, local small wholesalers, and traditional drug wholesale stations compete with each other and also have some cooperation at the same time.Under such a situation, these various distribution channels have different adaptabilities because of their respective advantages and disadvantages. This paper analyzes the quantity status, organizational forms, advantages, disadvantages and common adaptabilities of present familiar OTC distribution channels. There should be some benefit to pharmacy enterprises when they try to select proper distribution channels.