LaoBaiXing

EBITDA: USD 70 million in 2015
Number of Employees: 11,900
Sales: USD 727 million in 2015

LaoBaiXing is China's first discount pharmacy superstore chain. The company operates 782 retail pharmacy chain stores in 12 provinces and three direct municipal cities across China.

LaoBaiXing offers customers low prices, in-store consultation service and membership programs. New store formats with added focus on health and beauty products are being rolled out.

LaoBaiXing was founded in 2001 in Hunan province as a family business.

To LaoBaiXing

Market trends and drivers

The Chinese pharmacy retail market is growing by around 14% per year, driven by an increased demand for high quality drugs on the back of growing incomes. Public reimbursement programs also underpin the market. The separation of drugs dispensary and hospital consultation services could also accelerate the retail pharmacy’s share of the business generated by hospital drugs dispensaries. LaoBaiXing expects continued profitable growth and a consolidation of the market through acquisitions.

Investment potential

LaoBaiXing had a solid growth track record with clear cost leadership in the discount market. A strong underlying market and a fragmented sector provided good growth prospects.

The development roadmap includes organic and acquisitive growth by penetrating the regions currently covered and, potentially, by entering adjacent regions; improving the headquarter functions regarding central procurement, M&A and financial control and more focus on high margin products. Expansions into new, selective operations including an online pharmacy and shop-in-shop strategy are also considered.