Definition

The concentration of sales corresponds to the share of sales (value or volume) of the selection over the period by segment of pharmacies sold.

Graphical representation

Construction:
1) Ranking of pharmacies in descending order of sales

2) Calculation of deciles

3) Plot of the distribution curve
X-axis: share of pharmacies selling
Y-axis: share of cumulative sales

4) Line of the bisector representing the equal distribution.

Reading:
60% of sales are made by 30% of pharmacies

Tip

The closer the curve is to the upper left corner of the graph, the more the market is said to be concentrated: a small number of pharmacies make the bulk of sales.

Terminology

The concentration of sales can be translated in English as Sales concentration.

Variations

It is possible to decline the analyzes in number of products (GTIN) instead of the number of pharmacies.

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