** Less than 10% of total sales channels

The business club reported on June 2 that pharmacies, supermarkets, and hospitals are "three pillars," which is the marketing blueprint for the next ten years planned by Qin Yufeng, general manager of Dong'e Epoh Co., Ltd. (000423.SZ). However, the biggest shortcoming of this plan is that the hospital channel is less than 10% of total sales.

Dong'e Ejiao said recently that it will focus on the development of hospitals, and strive to achieve sales of OTC (over-the-counter drugs) accounted for 50%, health products accounted for 30%, and prescription drugs and hospitals account for 20% of sales during the “12th Five-Year Plan” period.

This means that Dong'e Ejiao will dig deeper into the hospital channel that has been tepid for nearly nine years, and its "three-legged" concept of walking will also be put into practice. In fact, as early as 2002, the company had cooperated with the China Anticancer Rehabilitation Association in sponsoring cancer patients. However, management did not seem to value the value of hospital channels. In recent years, the hospital channel sales have been less than 10% of the total amount.

“Compound A mortar is a medical insurance catalog product, and it has always been sold in the hospital channel, but it requires a lot of in-depth development. The company decided to dig deep into the hospital channel. First, the capital investment has been prepared enough, and the second is the hospital channel sales. The base is small and there is still a lot of space,” said a pharmaceutical industry analyst in Shanghai.

It is reported that from January to April of this year, the sales volume of compound Ejiao's sales in the hospital channel increased three times year-on-year, and Qin Yufeng expects sales in this channel to exceed 100 million yuan during the year. However, compared to the OTC market, which has nearly 1 billion yuan in sales, the rapid growth of compound tannins in the hospital can only be regarded as a beginning.