2012 is another historical turning point in China's veterinary drug industry. The deadline for GsP certification is February 28, 2012, which will inevitably lead to a major change in management. As far as a specific enterprise is concerned, the core of the change lies in the model and strategy, and what remains unchanged or even strengthened is the enthusiasm for the morality and responsibility of each link in the industrial chain for industrial development and revitalization. All practitioners should be unprecedented. Passionately embrace the true spring of the veterinary medicine industry.
1. Knowledge of China's veterinary drug industry in 2011
As we all know, the existence and development of veterinary drugs as an industry has only gone through nearly 20 years of history. Its birth, evolution and development have been within the framework of the constantly revised and improved "Regulations of the People's Republic of China on the Administration of Veterinary Drugs" and its supporting regulations. To keep pace with the development track of China's animal husbandry, that is, to keep pace with the times. The only difference is that, as a special commodity, veterinary drugs go from scattered workshops to industrial prototypes and then to industrial scale. The connotation of human health and protection of animal product safety.
At present, the total market volume of veterinary drugs is about 40 billion yuan. There are more than 75,000 veterinary drug business enterprises in more than 2,000 GMP enterprises, and nearly 2 million veterinary drug dealers, retail stores, and animal clinics in cities and villages in China. , Farm cutting. In the total output value of veterinary drugs of 40 billion yuan: domestic veterinary drug factories account for 70% to 75%; human drug factories account for 10% to 15% of products (scale farms, veterinary hospitals, pet clinics, special drugs); imported drugs and added drugs account for 10% to 15%; according to product use, anti-inflammatory, antibacterial and antiviral drugs account for 25% to 30%; added drugs account for 30% to 35%; biological products account for 15% to 20%; deworming drugs It accounts for 10% to 15%; the other is about 5% to 10%. Obviously, under the guidance of the state's efforts to regulate and regulate the veterinary drug industry, the invisible hand of the market forces the Chinese veterinary drug dealers and the animal husbandry industry to continue to mature and develop.
For this reason, the development of the veterinary drug industry for a long time has been a game between management and being managed, serving and being served, snatch and snatch, regulation and chaos, speculation and strategy. However, in the face of the policy trend of perfecting veterinary drug regulations, GMP becoming conscious, GsP coming to an end, and practicing veterinary research, the characteristics of China's veterinary drug industry in 2011 can be roughly summarized as follows:
Management relies on laws and regulations to advance in an orderly manner: Since the promulgation and implementation of the Regulations on the Administration of Veterinary Drugs in 2004, the implementation of various laws and regulations has been formulated, implemented and promoted in accordance with the outline framework of the Regulations on the Administration of Veterinary Drugs in light of industry conditions, and has been continuously implemented in the implementation. Revised and improved to provide a favorable policy environment for the sustainable development of the veterinary drug industry.
Production regards GMP as a conscious behavior: After experiencing a series of psychological shocks, the production enterprises have developed a kind of reverence for the implementation of regulations such as "Good Manufacturing Practice for Veterinary Drugs" (GMP), and the first batch of veterinary drugs are engaged in production. Enterprises have also successively passed or are passing the second round of GMP re-examination. In the market competition, enterprises no longer oppose GMP with the market competition situation, but regard GMP as a self-consciousness in the comprehensive management of enterprises. Behavior and continuously improve the comprehensive competitiveness of enterprises.
The management link revolves around the rational integration of GSP: the management link has always been a shield for government authorities and production enterprises, and is often considered to be the root cause of the veterinary drug industry’s disorganization. In fact, as an intermediate link in the veterinary drug industry chain, the upstream must endure the malicious intentions of the production enterprises To snatch, the downstream should become a buffer zone for production enterprises, and it has always been the object of criticism from management departments, production enterprises and end users. After the "Good Practice for Veterinary Drug Operation" (GsP) expired on February 28, 2012, a new round of channel integration has become a hurdle that dealers must overcome. The good news is that as long as you are willing to engage in veterinary drug business, as long as you meet the minimum threshold for business qualifications, you should become the object of integration or integration. Service around GsP is the only marketing focus in the distribution link nationwide.
End users regard value as their core interests: grass-roots veterinarians and farm households are the most terminal links in the veterinary drug industry chain. They have never been or will not become substitutes that only focus on price, regardless of quality, and only focus on the immediate and long-term. It will take the initiative to become the audience of fake and inferior products and inferior services. The only goal that end users have always pursued is: quality first, service first, cost performance first, and value first.
2. Production enterprises must use "change" to "change"
In 2012, the change of China's veterinary drug industry was a change in the pattern and structure, while safety, rationality, effectiveness, and convenience were essentially unchanged for veterinary drugs, and health and sustainability were unchanged in the industrial layout and industrial goals. In other words, any department, enterprise, product or person in China's veterinary drug industry chain must and can only assume obligations and responsibilities, and divide benefits and values ​​within the regulatory framework.
2.1 The core of strategic positioning lies in "leading demand"
All companies know that without a strategy, there is no direction, and they will become headless flies and die in the net of the market. But the strategy is not a boundless virtual magic, nor is it an unattainable castle in the air, but an ideological module that is different from and can surpass competitors. The author believes that small and medium-sized enterprises should take the road of large and specialized branding, and realize the lead of scale effect by diluting the cost of marketing and management; powerful technology enterprises should take the road of small and strong high-tech innovation, relying closely on or Cooperate with national scientific research institutes to create products with unique scientific and technological content, seek to be unique, and obtain rich profits with product connotation.
2.2 The core of product positioning lies in "meeting needs"
The author proposed and practiced the concepts of "hard development" and "soft development" in the development of veterinary drug products at an early stage. The former is the research of new veterinary drugs annotated from the technical level, and the latter is based on the needs of market competition from a marketing perspective. The core of the secondary development of products is to continuously manufacture and meet the real needs of different objects. Objectively speaking, in the face of the status quo of veterinary drug manufacturers that "everyone is copying a book ("Veterinary Pharmacopoeia of the People's Republic of China")", in 2012, most veterinary drug manufacturers should position their products around utilization, integration and Amplify the advantages of production, carry out the positioning of the category structure, and form a polymerization effect in a specific product or a specific series of products. For example, a professional manufacturer of respiratory drugs can produce a series of respiratory drugs according to the production conditions and document number resources of the enterprise. The so-called distinctiveness of one's own products in terms of formula, pharmacology, clinical application, etc. is an argument, because all product behaviors that do not meet the national legal veterinary drug quality standards will be considered substandard products, and a product that does not meet the national standards Propagating technological superiority is all self-deceiving commercial fraud.
2.3 The core of dealer positioning lies in "bridges and links"
In the years before 2012, some veterinary drug production enterprises followed the example of feed production enterprises and dispatched salesmen and technicians to end users, trying to monopolize the regional target market with the marketing strategy of terminal intensive cultivation, thereby promoting the staffing of dealers and accelerating the development of enterprises. Because of this, dealers who have never crossed the county area may enjoy many learning and welfare benefits such as technical training, business training, management training, etc., and realize the sustainable development of themselves and their production enterprises.
However, the change that can be expected and clearly felt is that the state only takes about one year to vigorously promote the GSP certification of veterinary drug business links, and it is clarified that the township distribution outlets in the same county can be affiliated with professional dealers in the form of franchising. The veterinary drug management company has completed the GSP certification, so the comprehensive competitive advantages of veterinary drug dealers with chain, franchise, and direct sales as their main business models will gradually become apparent. The production enterprise is a heavy drink.
Obviously, veterinary drug distributors with franchise qualifications will give full play to the comprehensive advantages and agglomeration effects of brand value, distribution capabilities, technical support, resource occupation, bargaining advantages, category complementarity, marketing strategies, etc., and will inevitably become the competition for various veterinary drug manufacturers. Fragrant buns. Distributors will also gradually evolve from a pure buying and selling relationship in the past to becoming an image spokesperson, value creator, service pioneer and market consultant for several advantageous veterinary drug manufacturers with complementary characteristics in certain regions at the same time. Become a solution provider and terminal service provider for end users, transforming from a single veterinary drug trading business to a comprehensive service provider for seed supply, material supply, technology supply, medicine supply, and assistance in the sale of livestock and poultry products, so as to realize the transformation of ordinary dealers to professionalization The role of operating enterprises has changed, and veterinary drug products are only effective carriers and tools for value-added such as information transmission and technical services.
3. The development path of China's veterinary drug industry
3.1 Policies and regulations guide the sustainable development of the industry
Veterinary drugs are a special class of substances used to prevent, treat, diagnose animal diseases or improve animal production performance. They are one of the important inputs for animal products. Safety, effectiveness, controllability and convenience are the main goals that the national standards for veterinary drugs need to achieve. However, illegal drugs such as malachite green, Sudan red, furazolidone, chloramphenicol, bislamidine, amantadine, clenbuterol hydrochloride, etc. are used in the breeding process, or there are inadvertent withdrawal periods, inadvertent combination medication, super large Dosage and medication have led to many major food safety incidents and seriously damaged the image of the veterinary drug industry. Food safety issues are related to national image, national economy and people's livelihood. The root of banned drugs lies in the production, circulation and breeding of veterinary drugs, but their ultimate manifestations are reflected in the food processing industry. No matter whether the farmers use the prohibited drugs without knowledge or ignorance of the law, they cannot escape and transfer the responsibility of being held accountable. The resulting losses can only be borne by the farmers themselves, so one investigation and punishment may cause Years of savings are lost, affecting reproduction. What is even more terrifying is that farmers cannot prevent drug bans and ensure the purity of the veterinary drug production and circulation system by themselves, which will inevitably cause panic among other farmers and cause a sharp reduction in the amount of social farming. veterinary drug
The production and sales system will also be hit hard, and social instability will also be formed. Therefore, starting from the need to maintain the sustainable development of the industry, based on the perspective of protecting animals, serving human beings, and ensuring the safety of animal products, the country will adopt a moderate, gradual, step-by-step reform approach that pays equal attention to guidance and supervision.
In the industry, the period from 2004 to 2008 is called the perfect stage of veterinary drug administration regulations. Therefore, various supporting regulations centered on the "Veterinary Drug Administration Regulations" have been successively issued and implemented, and requirements are made from the perspectives of research and development, production, operation, monitoring, and standards; The period from 2009 to 2012 was the stage of publicity and implementation of laws and regulations, and the awareness and implementation of laws and regulations were increased by means of conferences, document revisions, seminars and training, etc., and were revised and improved continuously to facilitate the development of the veterinary drug industry under the new situation; It is the management and supervision departments or service departments at all levels to conduct supervision and inspection in accordance with laws, regulations and standards, and to promote the sustainable development of the industry with both administrative services and market competition under the impetus of market forces.
3.2 Cases push all links in the industry chain to take responsibility
In recent years, the outbreak and rectification of food safety incidents have led to many problems such as technology, standards, integrity, responsibility and morality in all aspects of livestock and poultry breeding in China, but the needs of international market competition and the needs of domestic industries. With the courage of a strong man to break his wrist, a little rectification can easily promote the healthy development of the industry.
For example, in the year when the melamine incident broke out, many enterprises in China's dairy farming, dairy product processing, and related dairy cow medicines and feeds were almost on the verge of collapse and bankruptcy. Some people even called the Chinese dairy industry to be broken. At the expense of the short-term "benefits" of many departments and even hundreds of millions of consumers, after the rectification, the quality of dairy products has been improved, the awareness of dairy farmers has been enhanced, and the inputs such as medicines and feeds entering dairy cows are also more in line with standards. People who eat dairy products are more at ease, and "healthy and safe" milk can better and faster promote the entire industry into a healthy and sustainable development track.
Another example is the investigation and strict accountability of the "clenbuterol" incident, as well as the subsequent establishment of a product quality traceability system, which will undoubtedly make the pig breeding industry more favorable. The outbreak of "clenbuterol" in 2011 did not As in the past, it has led to the consumption panic of pork products, but it has increased consumers' confidence in pork and its products in an unprecedented state. The various units in the chain get good returns. Therefore, the historical perspective of "doing not dare to control chaos because of fear of chaos" will change to the thinking mode of "sustainable development of the industry can only be built by fighting against chaos".
Therefore, the GMP and GSP certification of veterinary drugs implemented by the state is precisely to improve the professional level and legal management awareness and ability of veterinary drug production and business units. Prohibited drugs are used in accordance with laws and regulations; the country purifies the source, takes GMP as the core, and strictly inspects production enterprises, so that production enterprises organize production in strict accordance with national standards, and strictly inspect counterfeit and shoddy products; rectify the sales system, and gradually establish a standardized veterinary drug sales model with GSP; establish Improve the system of licensed veterinarians, guide clinical rational drug use; purify the breeding environment, promote the construction of standardized and large-scale farms and their support, standardize breeding procedures, improve the technical level of breeding personnel, strengthen the awareness of drug residue prevention, and gradually adjust the distribution through market means. foster households.
At present, the most ideal breeding mode is the self-supporting mode of the one-stop group. Because of its strong technical force and conscious control awareness, and the entire quality management system is relatively mature, it is an ideal management mode to effectively control drug residues and epidemic diseases.
3.3 The key trajectory of the development of the veterinary drug industry in the post-GSP era
2012: The competition in the veterinary drug industry has become increasingly fierce, and veterinary drug products have entered the buyer's market in an all-round way. The animal health industry as a whole shows overcapacity, unbalanced supply and demand, homogeneous competition among veterinary drug companies, and disorder and vicious competition in the market. The survival and development of enterprises are in crisis. With the emergence of biosafety issues and the enhancement of people's awareness of food safety, the government uses the dual means of policy support and regulatory supervision to govern and standardize the two fields of production and circulation, and enforce the GMP certification of veterinary drug production quality management and the GSP of veterinary drug business quality management. To certify, stop and reverse the current chaos in the animal health products industry. The implementation of GMP is a revolution for veterinary drug production enterprises, while GSP is a revolution for veterinary drug distribution enterprises. The traditional model of one dealer acting as an agent for several manufacturers' products will be challenged, and regionalized, specialized, networked, and integrated operations will be challenged. The model has become an important means of regulating the animal health products market.
GSP is the operation quality management standard, which is the basic criterion for the quality management of veterinary drug operation. The implementation of GSP marks that government authorities have begun to rectify the field of veterinary drug circulation after adopting the mandatory standard (GMP) for the production of veterinary drugs. The management of veterinary drugs is undertaken by the manufacturer, and the next Breeding and production play an irreplaceable role in purifying the industry order and ensuring product quality. February 28, 2012 is the limited period of GSP certification. A large number of veterinary drug wholesalers mainly based on direct sales, chain, franchise and other marketing models are fighting in the channel management, and have seized the good ability to visit and have feed in the channel. Township dealers with business experience and fixed breeding customers; social breeding retail households have initially begun to reform, and began to formulate drug residues and inspection and quarantine systems, and large-scale farms have become veterinary technical expert teams and large-scale technical service providers that systematically solve veterinary problems. Competing for the focus; the state continues to strictly investigate the banned drugs in food processing products, open up all links in the banned drug restriction chain, and make the banned drug inspection systematized and institutionalized; social scale farms are initially built, and some social chicken heads and veterinary drug dealers have begun. into the main farm.
2013: Production enterprises were basically organized in accordance with legal standards. The phenomenon of homogeneity was serious, and the vicious competition was fierce. A number of production enterprises were poorly managed, closed down or were merged; the veterinary drug GSP certification work was basically completed, the medicine began to be separated, and the practice of veterinarians was gradually promoted. ;The transformation of social farming retail households continued to deepen, and various management systems basically began to operate normally; some social farming households with low breeding levels began to be employed in large-scale farms and turned into farming workers; the government issued relevant documents such as veterinary drug residues and epidemic disease monitoring , leading to the deepening of the transformation of retail farmers; the government began to play a comprehensive leading management role, and the entire management system framework was initially constructed.
2014-2015: The number of retail farmers in the society gradually decreased, the large-scale farms and one-stop self-cultivation were steadily expanded, and the retail farmers were gradually transformed into farmers in large-scale aquaculture plants; production enterprises focused on R&D innovation and carried out various joint R&D models. Enterprises with veterinary hospital capabilities and sales models have begun to focus on one-stop self-supporting and social-scale farms; veterinary drug GSP dealers have begun to shrink gradually, and some dealers will find a way to upstream production enterprises or downstream large-scale farms to transform into production Business owners or heads of large-scale farms.
2016-2020: The positioning of production enterprises has been basically completed, the industry has basically stabilized, and their own characteristics have begun to form; most of the veterinary drug dealers have changed their careers or engaged in diversified operations, and only a small number of dealers have begun to serve emerging specialty breeding and various pets industry; most of the individual farming farmers have been transformed into farmers in large-scale farms, and a small number of them have been transformed into special farming, and the original social farmers have basically disappeared; social scale farming has formed a scale, and began to optimize and reorganize, some of which are owned by one-stop groups Mergers and acquisitions, or the merger of multiple breeding sites into a new group.
4. Development strategy of China's veterinary drug industry
4.1 Development and changes of veterinary drug production industry
At present, the trend of homogenization and price transparency of veterinary drugs will force GMP enterprises to reduce the cost of sales, and an important means to reduce the cost of sales is to compress the sales path, reduce the intermediate links, reduce the consumption path, and reduce the sales force, which requires the distribution of veterinary drugs. Enterprises must go deep into the market and have their own sales capabilities, otherwise they will be eliminated. Therefore, production companies with marketing capabilities will build their own sales systems, while sales companies without marketing capabilities will simply give up sales channels and concentrate on product development and research and development. This requires the birth of professional marketing companies. The ways to reduce the number of GMP enterprises are mergers and alliances. It was difficult for veterinary drug companies to merge in the early stage. Now some large companies seem to be unable to compete with small companies. Large companies are tied up because they strictly implement GMP and are subject to strict supervision.
For now, the competition among manufacturers is no longer centered on the creation of new products, but more on the business alliance based on channel integration: alliances among large veterinary drug companies, veterinary drugs and feed The alliance between enterprises, the veterinary medicine feed and the integrated alliance of breeding livestock and poultry, etc. After the alliance, everyone will jointly build the distribution channel and even jointly build the marketing channel.
4.2 Development and changes of veterinary drug business industry
The implementation of GSP will experience a painful fission process in the short term for both veterinary drug manufacturers and operating companies. During this fission process, a considerable number of veterinary drug business enterprises were inevitably forced out of the market. At the same time, those operating enterprises with value will be integrated, strong and excellent operating enterprises will continue to develop and grow, and national and regional leading enterprises will emerge. At the same time, external capital will be strongly involved, and the operating enterprises will shift from the competitive market to the competitive products and brands. Production resources will be optimized, and the new veterinary drug distribution pattern will be re-established. Large-scale systems, large chains, large-scale circulation, and large-scale collaboration are the development characteristics of the veterinary drug distribution market in 2011.
4.3 Development Strategy of Veterinary Drug Industry
4.3.1 The core of management is to solve problems
The necessary conditions for enterprise development must be product (technology), capital, brand and market, but it is difficult to really play a role if the elements such as product, capital, brand and market are separated from effective management. If an enterprise has good management capabilities, the above four elements will be truly established and play an effective role. Therefore, the core of veterinary drug production and operation enterprises is to make management an effective tool to solve problems, and the goal of management is to put one's own Enterprises and employees are in the industry "to be a respected enterprise and a socially respected employee.
4.3.2 Promote systematic marketing in an all-round way
Products, prices, channels and promotions are an overall marketing process for an enterprise. Under the background of GMP and GSP becoming mainstream management, product convergence and cost convergence are obviously more important than systematic marketing. Service and marketing responsibilities and obligations, products are only the carrier to complete the above marketing connotation.
4.3.3 Let the product return to its essence
There is no good or bad product, only qualified and unqualified products. All products that meet the national legal veterinary drug standards are qualified products, not "as long as the product ingredients are good, the compatibility is good, and the curative effect is good, it is a good product, or a product with a high price. It is a good product”, because veterinary medicine is a special commodity, and it is a technical work handled by professional technicians. In fact, any qualified product is a good product. For therapeutic drugs, qualified products mean products that can cure diseases. And for health products, a product that can play a certain role is a good product. Unfortunately, there are many people who expect a product to be a "cure for all ailments", or wish that the more ingredients the product has, the better. Drug compatibility has strict incompatibility taboos. Too many ingredients will not only not work, but will have adverse effects. Therefore, it is not that the more ingredients in the product, the better the product. Obviously, all marketing and management behaviors that allow the product to return to the core value of the product are effective management that respects the product.
4.3.4 Strategy first
Whether it is an operating enterprise, a production enterprise, or a veterinary drug supervision and management department, all must have a strategic awareness and strategic behavior, and put their own enterprises, individuals and industries into comprehensive consideration under the current situation of the industry, the level of domestic development and the international competitive environment , systematically formulate phased development goals and systematic development strategies, and allocate resources around strategic goals. Only in this way can an enterprise gain the impetus for sustainable development, and can also undertake more responsibilities and obligations as an individual in the development of the industry in the ever-changing market competition environment. Therefore, all kinds of intuitive decision-making based on strategy can improve the development speed and operation quality of enterprises.
4.3.5 Unlimited team strength
When discussing the talent strategy of veterinary drug companies, the author once put forward the viewpoints of "widely recruiting talents, recruiting talents widely, gathering talents widely, and training talents internally" and "making the best use of talents and making the best use of talents". Construction is particularly important, and any industry must rely on the strength of the team to complete. The core understanding of the team is not the people who are paid in the unit or the department, but everyone who is conducive to the development of the career can be regarded as a team member, even our competitors are also one of our most important team members, Because they act as calibrators of why and how we work on the team. As for the team building within a specific organization, three aspects should be paid attention to: First, set up people according to the situation, that is, you need to find the corresponding people to do the work you need to do, or you can find the competent people to do what kind of jobs the company needs. The second is to focus on both the process and the results; the third is to focus on internal training and scientific incentives.
4.3.6 Integrity issues within the organization
Stand with integrity. China's veterinary drug industry has been placed on the cusp of public opinion because of numerous animal product safety incidents. The core of solving the healthy development of the industry is not the technical level, but the moral level. It is whether the enterprise and its practitioners have the courage and ability to undertake industrial construction. Those who pay more bit by bit for the sustainable development of the industry. Most companies have realized the importance of honesty to customers. In fact, internal integrity is the premise for employees to be truly honest. The internal integrity of an enterprise is first established on the basis of the integrity of managers. Once managers are not honest, the internal integrity mechanism of the organization difficult to build. Therefore, honesty is an equivalent behavioral cognition for industry practitioners, industry managers, employees within the organization, and between the organization and the audience.
4.3.7 The orientation of internal management of the organization must be responsibility
Responsibility is not passive, it is the responsibility of the industry to the industry, the responsibility of the industry to the people, the responsibility of the enterprise to the employees, the responsibility of the employees to the society, not the responsibility of the employees to the boss. With the improvement of the rule of law society and the establishment of the market competition system, disputes between enterprises and employees, disputes between enterprises and intermediaries, and disputes between farmers and external products will also increase year by year. Enterprises should standardize production and publicity in accordance with national standards. The only breakthrough, the internal management of the veterinary drug enterprise organization must be based on the management model, method of management and development of the enterprise with the core concept of courage to assume social responsibility, social morality, and creation of social value.