The announcement of the complete closure of Shenzhen Zhonglian Pharmacy also announced that this once top 100 chain in the country could not withstand the economic downturn and collapsed. It also brought back the author's memories of developing a new OTC market in Shenzhen many years ago.

Shenzhen, the forefront of China's reform and opening up, the first special economic zone, is not only the "holy land" in the hearts of countless businessmen, but also the place where miracles are born.

In August 2001, I was sent to Shenzhen by the company to develop the market due to my outstanding performance at the age of 25.

At that time, the company where the author worked was mainly engaged in women's products (sanitary napkins, panty liners), and its business scope was mainly in the southwest region. Based on the concept of increasing the added value of women's care products, it developed two women's products-"Lian Xiang Xi Yu" medicinal panty liners and "Lian Xiang Xi Yu" medicinal wipes, which belong to the medical device category.

Driven by exquisite outer packaging, promotional products, and newspaper soft article design and promotion, the product became popular in the Guizhou market as soon as it was launched, and quickly covered the local chain, clinics, single drug stores, supermarkets, maternal and child health hospitals and other mainstream channels in Guizhou, which greatly strengthened the confidence of decision-makers to expand outward and promote it nationwide.

As a special economic zone at that time, Shenzhen had an astonishing male-female population ratio of 1:7. It was also a key market for men's and gynecological products. In addition, the development of chain drug stores in Shenzhen was in full swing and was at the forefront of the country.

The decision-makers believed that "even if a drugstore sells one box a day, we can make a lot of money in half a year."

At that time, market development was mainly riding a bicycle to travel around the six districts of Shenzhen, inside and outside the customs, to negotiate chains, build customer relationships, do dynamic sales, promote, post posters... completely copying the "successful experience" of the Guizhou market.
However, ideals are full, but reality is skinny.

Although after several months of development, major chains in Shenzhen already have our products, and sales are gradually increasing, but in the huge Shenzhen market, without media investment, it is like a drop in the bucket for only three people riding bicycles to visit, display and promote drugstores one by one.

At this time, the headquarters was blinded by greed and issued a "buy one get one free" order.

A new product that has been introduced to the market for less than half a year, without any advertising investment, and has not yet passed the incubation period and entered the growth period, is forced to increase sales and achieve breakthroughs. The outcome is self-evident.

Many years later, thinking of this past, there was no reinforcement outside, no food inside, and no autonomy. All actions must be strictly carried out according to the remote control command of the headquarters, and sometimes the orders were changed every day, and changed three times a day...

Less than half a year later, seeing that there was no hope of increasing sales and unwilling to increase investment, the headquarters sounded the retreat, and my first overseas experience in my career also came to an end.

Reviewing this failed overseas assignment, there are five main reasons.
First: Without preliminary market research, there would be no first step of the 4P theory of marketing strategy: exploration.

I don’t know how big the Shenzhen market is? How many people? How many chains? How many single stores? How many representatives are needed to maintain? How many target consumer groups? What is the average customer price of gynecological products? What categories are there? Where is our price range? Where are our strengths, weaknesses, opportunities, and threats? How much are we prepared to invest? How to invest? What is the expected input-output ratio? How long will it take to achieve break-even? Before there was a preliminary investigation on these issues, I thought that the Shenzhen market could also be won based on the successful experience of the Guizhou market. I decided to develop it with a slap on my butt and a passion. The old saying that preparation is for success and failure is for failure has come true.

Second: Without focusing on the key points of the channel, with limited manpower and resource investment, a general method of casting a wide net was adopted, that is, there was no second, third, and fourth steps of the 4P theory of marketing strategy: segmentation, priority, and positioning.

What is the proportion of gynecological medicinal pads and medicinal wipes used in gynecological drugs? What is the market share? Is the main way for patients to buy them in pharmacies or clinics? Which patients are our target consumer groups? Which terminals need to be developed and maintained? What is the psychological price that the target consumer groups generally accept? How to provide good after-sales service and make patients become long-term loyal consumers? Without thinking about these issues seriously, running around, trying to cover everything but struggling.

Third: Promotion is not a panacea, and buy-one-get-one-free is a double-edged sword. We must respect the objective laws of the market, and the sales plan must be in line with the product life cycle.

A new category that has been introduced to the market for less than half a year, the distribution and listing of goods have not been completed, and consumer awareness has not been established. Based on the pressure of sales, rashly launch a "buy one get one free" buy-one-get-one-free activity, then in the minds of consumers, you are a cheap, unsalable, and difficult-to-use low-end product, which seriously damages the preset high-end positioning, and it is natural to be abandoned by the market.

Fourth: For the development and construction of unfamiliar markets, if the company does not have the strength to invest and does not have a certain stage of loss estimation, it may be more appropriate to adopt an agent model that is familiar with the local market situation, or recruit local sales personnel with experience and resources, rather than sending employees who are completely in the dark from the headquarters.

Fifth: "People-oriented" is a prerequisite for the development and growth of enterprises and organizations. Respect people and treat them well, rather than tricking them or calculating them. In practice, it means that what should be given should be given, and what should be given should be given, and don't be good at calculating.

If you haggle over every penny, the company will suffer in the end.

Before going to Shenzhen, my income in the Guizhou market had reached 8,000 yuan/month, and occasionally it could reach tens of thousands. In the pharmaceutical industry in 2000, it was already a high income. However, in response to the needs of the company, and in order to see the world and improve my vision, I applied for an assignment to Shenzhen. The company retained my basic salary (650 yuan/month) and slyly cut the 80 yuan/day subsidy for expatriates in the company system on the grounds that there was no benefit in the early stage of market development.

That is to say, I gave up my monthly income of nearly 10,000 yuan, took a basic salary of 650 yuan (staying in the office rented by the company), and went to Shenzhen, where the living standard is the first in China, to develop and expand the market. With an income of 650 yuan, in Shenzhen, not to mention running the market, drinking a few more bottles of water every day and taking a few more buses are already seriously overspending.

When employees are well fed and well clothed, they know etiquette. When they can't even eat enough, do they still have the heart to listen to chicken soup and eat big cakes?

In less than 5 years, this company also went bankrupt and liquidated, and was annihilated in the tide of the market. This is a story for later.

Every step of the road you have walked counts. There are always two sides to things. Although I have survived a difficult six months in Shenzhen, it is a blessing in disguise. It has broadened my horizons, improved my abilities, accumulated connections, and enhanced my core competitiveness, and it has also become an experience worth cherishing in my life. Not long after returning from Shenzhen, I was also spotted by a well-known local pharmaceutical company, which opened the highlight of my career.

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