New policy takes effect—convenience stores now make it even easier to buy medicine!

“Simplifying the approval process and application materials for retail businesses seeking to sell Class B over-the-counter (OTC) drugs, reducing the approval timeline to within 2 days.” Recently, the Hubei Provincial People’s Government website released the “Several Measures to Further Boost Consumer Spending Amidst the Impact of the Epidemic,” introducing the latest regulations on the sale of Class B OTC medications. This also means that in the future, the procedures for convenience stores to sell medicine will become even simpler.

> Accelerate the development of chain convenience stores and streamline business approval procedures

Last August, the General Office of the State Council issued the "Opinions on Accelerating the Development of Circulation and Boosting Consumer Spending," which, under the section titled "Speeding Up the Development of Chain Convenience Stores," proposed that the National Medical Products Administration, according to its division of responsibilities, would "launch a pilot program to streamline the approval procedures for Class B over-the-counter drugs."

Since the beginning of this year, various regions have gradually begun implementing measures to streamline the approval procedures for Class B over-the-counter drug operations. The Department of Commerce of Henan Province, along with 12 other departments, jointly issued the "Implementation Opinions on Accelerating the Development of Branded Chain Convenience Stores" (hereafter referred to as the "Opinions"), which strongly promotes the transformation and upgrading of physical retail businesses, further fostering the creation of "15-minute convenient living service circles." The "Opinions" emphasize simplifying license processing, optimizing food business licensing requirements, and streamlining pharmaceutical product approval procedures.

Additionally, Xiamen City, Fujian Province, has unveiled the "Implementation Plan for Promoting the Development of Branded Chain Convenience Stores in Xiamen," which introduces a total of 14 significant policies, including optimizing the layout of convenience store locations and expanding opportunities for convenience store development; streamlining the licensing procedures for convenience stores, enhancing food business permit requirements, and simplifying formalities related to pharmaceutical product operations.

Beijing is at the forefront of streamlining its approval processes. According to media reports, the Haidian District Market Supervision Administration in Beijing has implemented several key measures, including conducting preliminary visits and surveys, as well as proactively establishing green channels to significantly reduce the time required for license approvals. Additionally, the bureau has further simplified the registration and approval procedures by offering on-site administrative guidance to eligible convenience stores. For businesses seeking to add new items to their business licenses or apply for pharmaceutical operation permits, the bureau provides "one-stop" services through a single-window system. If the submitted application materials meet all requirements, on-site inspections and license issuance can be completed within just one working day.

Beijing's Haidian District has clearly stated that the pilot program for selling Class B over-the-counter drugs in convenience stores must meet specific standards: First, a chain headquarters must be established to handle centralized drug distribution; the chain headquarters must employ a licensed pharmacist, while each store must also have trained staff equipped with basic pharmaceutical knowledge. Additionally, all medications must be purchased exclusively from suppliers holding the necessary qualifications.

In terms of regulation, efforts have been stepped up to enhance post-event monitoring and inspection, with a particular focus on overseeing the pharmacy's drug procurement channels, display and storage practices, as well as its guidance provided to customers during medication purchases. Enterprises are urged to rigorously fulfill their primary responsibilities, develop robust risk-prevention measures, and ensure the quality, safety, and efficacy of all pharmaceutical products sold.

>"Store-in-Store" Emerges as Pharmacies Explore New Approaches to Diversification

Although allowing pharmacies to sell drugs is merely one measure to expand the product categories offered by convenience stores, it has nonetheless sparked concerns and anxieties among many pharmacy operators. In fact, there are several restrictions on convenience stores engaging in this activity. First, the range of pharmaceutical products available in convenience stores is limited—and these products don’t typically fall into the high-end, cutting-edge segment of the pharmaceutical industry. Moreover, only chain convenience stores located within "large commercial districts or major shopping malls in Beijing," and with a dedicated drug-selling area no smaller than 20 square meters, are eligible to apply for permission to operate such services.

On the other hand, it will still take time to encourage consumers to adopt the habit of "buying medicine at convenience stores." The real strength of selling pharmaceuticals in convenience stores lies in the word "convenience"—a factor that pharmacies simply can't compete with. Currently, many pharmacy chains have already embraced the O2O model, while delivery platforms like Meituan and Ele.me are also actively expanding into the healthcare sector, rolling out 24-hour door-to-door medicine delivery services. Meanwhile, unmanned drug vending machines are further extending pharmacies' operating hours and reach, offering greater flexibility to customers.

Notably, the relaxation of regulations governing convenience stores and pharmacies by relevant authorities is accelerating the integration and convergence of these two industries. Nestled within Yongantang Pharmacy on Andingmenwai Avenue in Beijing's Dongcheng District is a hidden 7-Eleven convenience store.

Currently, regulatory requirements for this model stipulate that the affiliated convenience store chains must be corporate entities consisting of 10 or more stores. These chains are mandated to implement unified ordering, centralized and streamlined distribution, standardized checkout processes, and clearly separate procurement from sales functions. Meanwhile, individual pharmacies only need to occupy a space of at least 100 square meters—for instance, Yongantang Pharmacy near Andingmen Gate, though it has leased part of its area to a 7-Eleven convenience store, still maintains ample unused space well beyond the minimum requirement for pharmacies. As long as both businesses hold all necessary licenses and their operations do not interfere with each other, this integration can be considered largely superficial, with the two entities maintaining complete operational independence.

Behind the "Beijing Model" lies, in fact, a mutually beneficial arrangement between retail pharmacies and convenience stores. For convenience stores, the presence of pharmacies helps fill their gap in drug sales while also attracting additional foot traffic. As for pharmacies, the steady flow of customers from convenience stores is precisely what they value most.

So, is this model replicable in other regions? Industry insiders believe that pharmacies are hoping to significantly boost foot traffic and profitability by "partnering" with convenience stores. However, even if this strategy achieves short-term success, sustaining it over the long term may prove challenging. Looking at the outcomes of these collaborations, pharmacies seem less effective at driving customers to convenience stores than convenience stores are at attracting shoppers to pharmacies. As a result, the longevity of their partnership remains uncertain.

To put it another way, even if the "Beijing Model" may not necessarily be replicable, pharmacies certainly have a solid foundation when it comes to the concept of "convenience." Currently, many pharmacy chains have already embraced the O2O model, while delivery platforms like Meituan and Ele.me are also actively expanding into the healthcare sector, rolling out 24-hour medicine-delivery services right to consumers' doorsteps. Meanwhile, unmanned vending machines are further extending pharmacies' operating hours and reach, breaking through traditional spatial limitations. By leveraging "new retail" strategies, these pharmacies can broaden their service radius and strengthen their competitive edge—both in terms of time and space—which could very well prove to be a win-win situation.