China Yongxin Pharmaceuticals, a leading manufacturer, distributor and retailer of pharmaceuticals in Northeastern China, has signed a 10-year franchise agreement with one of the world’s largest US-based drug chains. The name of the chain was not released for competitive reasons, but the agreement will allow China Yongxin to use the drug chain’s brand name in operating drug chain stores in Jilin Province.
According to the terms of the agreement, the company will have exclusive rights to the brand name in operations in Jilin Province, which includes the City of Changchun. China Yongxin will convert 87 of its existing stores in Jilin Province to branded stores during the first three years of the contract, as well as operate at least half of its new stores under this brand. By the end of the year, China Yongxin expects to have at least eight branded stores in operation, either through conversions or new store openings.
The contract gives China Yongxin a couple of added benefits as well. First, the multi-billion dollar drug chain gives them the marketing power of a globally recognized brand of one of the world’s leading pharmacy franchisors. Finally, it will help with the planned expansion of China Yongxin into additional Chinese provinces because the agreement helps to confirm its status as one of the fastest-growing retail drug store chains in China.
Yongxin Liu, China Yongxin Pharmaceutical’s chairman and CEO, commented, “The decision by our new partner to choose our company to represent its brand of retail drug stores, beginning with Jilin Province, testifies to the industry’s recognition and acceptance of our company’s proven model of vertical integration and aggressive, yet systematic growth. We believe that the ongoing expansion of our retail drug chain stores, wholesale distribution and manufacturing subsidiaries should position us as one of the fastest-growing players in one of the world’s largest drug and pharmaceutical markets in the world.”
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