Oct 29, 2020|
Five Pillars Supports the Rapid Growth of JD Health
by Vivian Yang
JD Health hosted its second Partners Conference in Chengdu, Sichuan province on October 29th. The event convened over 1,000 industry partners, policymakers, medical experts and media representatives to discuss new opportunities and challenges in China’s healthcare industry, and enhance understanding of JD Health’s business models and future plans.
During the conference, JD Health’s management team provided an update on the company’s progress from 2019 to 2020.
According to a report by Frost&Sullivan, a Silicon Valley-based research and consulting firm, JD Health became the largest online healthcare platform in China by 2019.As of September 30, 2020, the platform had more than 65,000 doctors, including full-time doctors, who provided an average of over 90,000 medical consultations online on daily basis. In the first half of 2020, the number of daily medical consultations on the platform was five times that of the same period in 2019.
JD Health’s new logo released on 2020 Partners Conference in Chengdu
JD Health’s rapid development in the past 12 months has relied on following five pillars.
Policy support
Internet-based healthcare has undergone ups and downs in its over 20 years’ development in China. In recent years, the industry has maintained a complex compound growth rate of over 30%. The sign of upturn came in 2018 and is marked by China’s State Council guidance on the promotion of the “internet + healthcare” model.
In July 2020, China’s 13 ministries and commissions jointly issued a document requesting to improve telemedicine services and relax limitations on their inclusion in a national medical insurance scheme.
In September, the State Council issued another guidance to encourage the development of new business models in China in which it stressed the importance of promoting internet-based healthcare services, especially in the areas of orderly scheduling of online doctor’s appointments, telemedicine services, digital prescription circulation, medicine sales network and more.
COVID-19
The outbreak of COVID-19 gave a strong boost to the telemedicine industry in China. Data from China’s National Health Commission showed that the number of medical consultations from internet hospitals under its supervision increased 17 times in March compared with the same period in 2019, helping reduce some of the burden faced by brick-and-mortar hospitals.
JD Health also experienced explosive growth during this period of time. The platform reacted swiftly to the pandemic situation through sourcing and delivery of medical supplies to the most needed areas, providing 24/7 online medical consultation, offering a medicine information sharing platform and psychological support hotlines, conducting livestream sessions for medical knowledge education and more. The platform offered more than 10 million medical consultations from January to April 2020.
People’s Rising Awareness of Health Management
Chinese people’s health awareness has greatly increased in recent years. As people have become more mindful about health management, they are increasingly willing to spend more money on disease prevention. Telemedicine offers a good option to gain easy access to health knowledge and consult on minor ailments and common diseases online
In spite of this, for various reasons, health problems keep rising in China’s fast-paced society. According to China’s Blue Book of Health Management released in 2018, about 300 million Chinese people suffer from chronic diseases, with high blood pressure, fatty liver, dyslipidemia, and diabetes being the most common diseases among the population.
China’s growing aging population only makes the number more astonishing. Research by the Chinese Center for Disease Control in 2019 found that two-thirds of Chinese people over 60 years old are suffering from at least one chronic disease.
Under such circumstances, JD Health introduced the “Family Doctor” program that aims to provide customized telehealth services and long term health management support for Chinese families. In parallel, the company stepped up its efforts in opening internet hospitals for specialized chronic diseases, including the centers for diabetes, liver, cardiology and more.
Technology
Technology is the game changer for the internet-based healthcare industry. Thanks to the fast development of big data, AI, robots and more, JD Health is offering “smarter” healthcare services ranging from intelligent robot systems to enhance patient consultation interaction experience and triage efficiency and accuracy, to producing knowledge graph-based solutions such as the “PharmCoo” to supervise drug prescription and dosage.
JD Health has also partnered with research institutions, universities and city-level governments to leverage technologies to develop integrated medical service platforms online and offline to improve China’s medical resource allocation and healthcare service experience, especially enabling greater access of special medicines and doctor services to people in lower-tier cities and rural areas.
Strength in Supply Chain
Leveraging JD.com’s core strength of supply chain, JD Health has become the largest online pharmaceutical retailer in China, accounting for more than 15% of the market with an extensive presence in B2C , B2B and O2O services.
By June 30th 2020, JD Health operated 11 medicine-dedicated warehouses and over 230 healthcare-related products warehouses across China. There are more than 9,000 third-party merchants doing business on JD Health’s platform now, and its medicine wholesale trading platform JD Medicine Procurement provides services to over 170,000 downstream suppliers.
Economies of scale bring strong purchasing and negotiating power for JD Health to offer a rich variety of healthcare-related products at competitive prices. At the same time, suppliers can benefit from the traffic and distribution advantages on JD Health’s platform which helps to bring down marketing expenses. Additionally, JD Health’s ominchannel network has covered over 200 cities in China, ensuring same or next-day medicine delivery, delivery within 30 minutes, and 24/7 delivery services.
Dec 12, 2024|
JD Health Debuts Merck’s New Diabetes Medication GLUCOPHAGE® XR (Reduce Mass) Online in China
On December 10, JD Health, in collaboration with Merck, a globally renowned biopharmaceutical leader, began offering GLUCOPHAGE® XR (Reduce Mass), the metformin hydrochloride extended-release tablets, and became the first online pharmacy in China to provide the new antidiabetic medication developed by Merck. This launch signifies a major milestone in the partnership between JD Health and Merck, which is dedicated to enhancing the online availability and accessibility of innovative treatments for type 2 diabetes patients in China, thereby offering them a more convenient and effective medication experience.
GLUCOPHAGE® has been a cornerstone in the treatment of type 2 diabetes for over 60 years worldwide. The latest version of this medication is designed to enhance patient adherence by reducing the long-term burden of medication administration while maintaining its therapeutic benefits. The use of GSD sustained-release technology extends the time the medication remains in the stomach, reduces gastrointestinal irritation, and improves drug absorption. Additionally, the tablet is now smaller, has reduced volume by 30%, and has been transitioned from a capsule to a round shape, making it easier to swallow. It requires only once-daily administration, significantly enhancing patient convenience and safety.
To celebrate the online launch collaboration, JD Health and Merck hosted a special release event for the new medication at the 7th China International Import Expo in November. This event followed their partnership agreement in September, which also marked the opening of Merck China’s self-operated flagship store on JD.com.
With a large user base, robust supply chain, and rich medical service resources, JD Health has become a preferred partner to launch many chronic disease medications online. By seamlessly integrating online and offline resources, JD Health ensures that new drug information reaches the right users swiftly, offering convenient purchasing options and improving drug accessibility and usage efficiency. Additionally, JD Health’s extensive logistics network ensures timely and secure delivery of medications, enhancing user experience and building trust.
(vivian.yang@jd.com)
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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