Sino-US medical e-commerce PK: Who can compare international giants?
[China Pharmaceutical Network Market Analysis] In this battle of medical e-commerce, who can take the lead in completing the ecological chain layout, who can become the industry leader. Sino-US med...
[China Pharmaceutical Network Market Analysis] In this battle of medical e-commerce, who can take the lead in completing the ecological chain layout, who can become the industry leader. Sino-US medical e-commerce PK: Who can compare international giants?
With the introduction of the "Internet Food and Drug Administration Supervision and Management Measures" soon, in the face of at least 300 billion market space in the future, in 2015, various medical e-commerce companies will compete and compete in the market.
In early February of this year, backed by Renhe Group's jingle fast drug, the traditional pharmacy transformed the Internet, targeting the O2O model; on July 17, the US group take-out announced that it will launch the pharmaceutical sector, and jingle instant drug as a strategic partner of the pharmaceutical O2O officially In late July, Jingdong began to get involved in the drug O2O, and the “Healthy Home O2O Project” was officially launched in Beijing.
Different from the situation of "mixed war" between domestic parties, after decades of development, the United States has formed a stable "cutting" situation, and the pharmaceutical e-commerce market has been relatively mature: RiteAid's pharmaceutical retail market, WaLGreen and CVS are basically basic. More than 60% of the market share.
The ecological chain model achieves the status of “hegemony”
As early as July 1999, 200-400 companies in the United States had sold drugs online, including prescription drugs, over-the-counter drugs, health products, and various medical and beauty products. In that year, the total online sales of various drugs reached 19 One hundred million U.S. dollars. In 2014, the transaction volume of China's pharmaceutical e-commerce market was 6.8 billion yuan, accounting for 2.41%, 0.51% and 0.06% of the size of the pharmaceutical retail market, the size of the pharmaceutical market, and the size of the e-commerce market. It is estimated that in 2015, China's pharmaceutical e-commerce market will exceed 10 billion yuan.
The process of market growth is the process of enterprise growth. The institutions such as WaLGreen (hereinafter referred to as “WAG”) and CVS have rapidly emerged and achieved industry legends.
Founded in 1901, Walgreen was originally a small family-run shop. After more than 100 years of development, Walgreen has become the world's largest food and pharmaceutical retailer. It has more than 8,000 offline stores and one every 5 kilometers. The pharmacy has established 18 major modern distribution centers, accounting for 20% of the prescription drug market.
In 2000, WAG began to expand wildly. After ten years, the number of stores almost doubled. In 2011, it reached 7761, ranking first in the nation's pharmacies. Subsequently, WAG changed the development strategy of “opening store expansion” and switched to a “network-driven” strategic model, using new technologies to build an ecological chain.
In 1999, WAG launched e-commerce, and established websites such as Walgreens.com, DuaneReade.com, Drugstore.com and Beauty.com, and launched 11 apps, SMS services and mobile websites.
With the continuous upgrade of online services, the customer experience continues to improve. In 2013, at the 18th WebbyAwards, WAG was named the Best Integrated Mobile Experience Award, which was named the highest honor of the Internet industry by the New York Times. In 2014, the InformationWeekElite100 was selected for “the company’s unique loyal customer program that bundles online, mobile and in-store experiences and provides consumers across the United States”.
Online, WAG has taken the convenience store route to provide customers with a self-service shopping environment, which sells prescription drugs, over-the-counter drugs and general merchandise, and prescription drug sales account for 65% of total sales.
While providing convenience store services, WAG also operates a specialty pharmacy (Specialty Pharmacy) that specializes in the sale of specialty drugs for certain complex diseases and chronic diseases.
Not only that, but WAG further extended its business innovation to transform pharmacies into healthcare service providers, and opened a clinic in the pharmacy, TakeCarehealthclinics, to provide patients with basic medical services such as chronic disease referrals. At present, the number of clinics has exceeded 350 and will continue to expand in the future.
At the same time, WAG has expanded its operations to hospitals. For patients with special medication needs, the pharmacy will send a special pharmacist to the hospital to discuss with the doctors, patients, and family members to determine the best drug treatment plan. When buying a drug, the patient purchases a special drug through Walgreens' SpecialtyPharmacy or courier. After the patient returns home, the pharmacist will continue to pay attention to their correct medication. WAG has opened 137 in the United States, most of which are located in hospitals and university medical centers.
Today, WAG has once again positioned itself as a daily health provider. In the next five years, WAG is ready to push health food stores and plans to add more than 1,000. The ambitious WAG is trying to integrate itself into people's healthy lives.
CVS is the second largest pharmaceutical retail company in the United States after Walgreens, with more than 7,800 retail pharmacies and specialty new pharmacies. Compared to WAG, CVS pharmacies achieve a layout of every 3 kilometers.
Unlike WAG, CVS has focused on strengthening its pharmaceutical welfare management services (PBM) for pharmacy members while building its own business ecosystem. In the United States, medical welfare management mainly refers to providing members with services such as drug welfare program design, expense auditing, claims reimbursement, and payment model design. In 2006, CVS merged with Caremark and subsequently grew to become the largest PBM supplier in the United States. In 2013, the business generated $75.2 billion in revenue for CVS. The domestic market is competing, who can compare the international giants?
Chinese medical e-commerce started late. In 1998, Shanghai's first pharmaceutical store opened China's first online pharmacy, opening up China's pharmaceutical e-commerce model. However, in the face of more than 500 million Internet users in China, the development of pharmaceutical e-commerce is faltering. After ten years, by 2011, the scale of online drug sales was only 400 million yuan, of which only 5 were online pharmacies with sales of 50 million yuan. The reason is mainly limited by the domestic policy and regulatory environment.
In the past two years, the policy has gradually opened up. On May 28, 2014, the State Food and Drug Administration issued the "Internet Food and Drug Administration Supervision and Management Measures (Draft for Comment)", which revealed that the country is about to open online sales of prescription drugs. In May 2015, the State Council issued the "Opinions on Vigorously Developing E-Commerce to Accelerate the New Motive Force of the Economy", of which Article 12 stipulates: "Develop and improve the supervision and management measures for Internet food and drug operations, and regulate food, health food, medicine, cosmetics. And medical device network management behavior, strengthen the construction of the Internet food and drug market monitoring and supervision system, and promote the development of pharmaceutical e-commerce"
With the spring breeze that may be banned by prescription drugs, the scale of the pharmaceutical e-commerce industry will inevitably grow exponentially, and all walks of life are also targeting the medical e-commerce field, and they have been arranging as early as possible.
As of December 31, 2014, a total of 353 enterprises in the country had the “Internet Drug Trading Service Qualification Certificate” issued by the food and drug regulatory authorities, an increase of 154 compared with the same period of the previous year. When the statistics were re-stated at the end of July 2015, half a year A total of 76 have been added, and a total of 429 enterprises have obtained the "Internet Drug Trading Service Qualification Certificate" issued by the Food and Drug Administration, an increase of 21.53%.
Among many enterprises, they are roughly divided into three categories: building an Internet platform, starting a logistics, and transforming traditional pharmaceutical companies.
Peony Drug Network is a typical representative of building an Internet platform.
On January 29, 2015, Shaoyao.com completed a 450-yuan C-round financing, which became the highest level of financing for medical e-commerce, which broke into people's horizons. Peony Drugs has positioned itself as “the largest medical e-commerce company in China with its left hand and the largest mobile medical portal in China with its right hand”. Its main carriers are “No. 1 Pharmacy” and “Easy to Diagnose”.
“No. 1 Pharmacy” belongs to the mobile app, and most of the drug sales come from this. "Easy to diagnose" as a "handheld hospital", after the launch in 2011, the operation was forced to stop in September. In 2014, Shaoyao.com once again launched a "easy diagnosis" to enter mobile medical care. As of mid-April 2015, the number of DAUs (day active users) of “easy diagnosis” reached about 140,000.
In order to cope with the opening of prescription drugs, Shaoyao.com also arranged in advance, and reached a cooperation with the Second People's Hospital of Guangdong Province to open up an electronic prescription channel.
Obviously, for Yaoyao.com, the drug service has been upgraded and extended to the upstream medical service to provide better one-stop service for medicine.
Kyushu General, which started from logistics, adopted the layout mode of B2C+O2O.
At the end of August 2013, Jiuzhou Tong Pharmaceutical Group and Jingdong Mall “divided” and each “solo”. Backed by a strong pharmaceutical logistics system, relying on the resources of the pharmacist pharmacy under the line, the pharmacist online pharmacy is making rapid progress. In recent times, good pharmacists have frequently made moves in the field of mobile Internet. After launching the drug delivery service and carrying out the internal cooperation with Dr. Chun Yu, they have also integrated the micro-pharmacy and docking network hospitals. In April 2014, Kyushutong teamed up with Tencent WeChat to develop the 020 “medical delivery” business of WeChat and offline pharmacies, becoming the first user to launch the pharmaceutical 020 business on WeChat.
叮当快药 is the first platform in China to open up pharmaceutical companies, pharmacies and consumers.
叮当快药 is an O2O-based medical health app that is a third-party service platform that assists pharmacies in providing information. Backed by Renhe Group, it has 18,000 sales staff and 320,000 traditional pharmacies and medical institutions. On February 6, 2015, Dangdang Express Medicine was officially launched, joined the medical e-commerce war, and began to “run the jingle”. Since its launch, its online users have developed rapidly in scale. At present, the number of APP users exceeds 2 million, the daily order volume exceeds 20,000, and the ground promotion personnel exceed 1,000. At the same time, Dangdang fast medicine has successively reached strategic cooperation with Baidu, Meituan, Hungry, Public Comment, Qihoo 360, Chunyu doctor and other multi-domain Internet giants, intending to occupy the traffic entrance, grab the users, and deeply cultivate the service quality. Improve user stickiness.
Relying on the O2O model of offline cooperative pharmacies, Dangdang Express launched the “28 minutes free delivery to home in core area” service, providing customers with a better service experience.
Through the 100-day battle in early May, Dangdang quickly took the Beijing market, and subsequently covered cities such as Guangzhou, Hangzhou, Chengdu, Tianjin, and Shenzhen. After half a year, Dangdang Express Medicine has attacked 20 key cities across the country and is moving towards the goal of “covering first- and second-tier cities nationwide at the end of the year”.
For online, jingle instant medicine is not limited to medical information display, but tries to create an ecological chain that includes doctor-patient communication, community and shopping mall. At present, Renhe Group has built a “Dangdang Big Health Ecology Circle” through the four Internet products of Dangdang Express, Heli Internet of Things, Dangdang Medicine and Dangdang Health. It is hoped that this will open up the upstream and downstream of the industrial chain, and realize the human health and comprehensive industrial chain service that reduces the price of raw materials from the upstream of the industrial chain to the downstream people's convenient purchase of medicines and intelligent management of health. And the instant pharmacy will also serve as the last mile of the service consumer. It not only connects the upstream drug suppliers and retailers, but also provides an entry point for the follow-up patient's smart medical services and becomes an important part of the strategic layout. In the current battle of medical O2O, the company is expected to achieve profitability through the advantages of the industrial chain.
From the consumer's point of view, Dingdang fast medicinal electronic fence technology has delineated the core area to ensure that the distributors of the cooperative pharmacies can achieve the "28 minutes" speed experience, and the 28-minute drug delivery time not only reduces the consumer's purchase of drugs. The time cost ensures the timeliness of medication.
From the perspective of cooperative pharmacies, in the control of drug safety, Dangdang Express provides ERP system to cooperative pharmacies, conducts unified training for its distribution personnel, and strictly supervises the entire distribution process; in the sales of pharmacies, due to jingle Fast medicine helps pharmacies broaden the radiation range of the drug purchasers, and the order quantity has increased substantially. In terms of the pharmacy's own interests, when the pharmacy chooses a regional pharmacy, only one pharmacy is signed, which has exclusive characteristics.
From an industrial point of view, Dingdang Express will accumulate a large amount of user data through the O2O platform, which will help guide industrial production upstream of the industrial chain, produce marketable medical supplies, and reduce waste of resources. These products are straight through the B2C platform. For cooperative pharmacies, and through the jingle fast drug O2O platform to reach consumers, reduce the intermediate links, provide users with quality and cheap medical supplies, so benign cycle, forming a sustainable ecological closed loop.
Not only Shaoyao.com, Kyushu Tongyao Pharmacist, Dangdang Express, Ali Health, Jingdong, Neusoft Group, China Resources Medical, etc. have also joined the medical e-commerce war. In this battle of medical e-commerce, who can take the lead in completing the ecological chain layout, who can become the industry leader. With the demographic dividend, the next Walgreen and CVS appear in China just around the corner. (Source: Bubble Network)