The Internet is a shot in the arm for retail drug industry, reports Yao Jing.

When Shi Zhenyang was running nine drugstores in China five years ago, he struggled to compete with major chain Changsha Baixing Pharmacy. 7LK, his company, was a latecomer to the market and Shi felt he had missed his opportunity.

"We were barely making profits, while the Changsha Baixing Pharmacy had achieved consolidated sales of about 3 billion yuan ($487 million) in 2009. I could not dream of catching up with Baixing even if I got enough financing," said Shi.