Mar 29, 2021|
JD Health FY 2020: JD Pharmacy to Enhance Medicine Access in China
by Vivian Yang
Allowing users to purchase pharmaceutical and healthcare products anytime and anywhere and providing them with an integrated one-stop shopping experience are key strengths of JD Health’s retail pharmacy business. This was highlighted in its annual financial results released on Mar 29 – the company’s first following its IPO on Hong Kong Stock Exchange in December 2020.
JD Pharmacy, JD Health’s online pharmaceutical products retailing platform is one of the most comprehensive online platforms for pharmaceutical and healthcare products in China. As of Dec. 31, 2020, JD Pharmacy managed more than 20 million SKUs of pharmaceutical and healthcare products on its platform, and its online marketplace had attracted over 12,000 third-party merchants.
Leveraging JD Logistics’ nationwide network and cold chain, the inventory turnover days of JD Pharmacy continued to decrease as a result of improving operational efficiency. As of Dec. 31, 2020, JD Health is utilizing 14 drug warehouses and over 300 other warehouses nationwide.
“With strong supply chain capabilities, we are able to meet the various medical and health needs of our users by providing a comprehensive selection of pharmaceutical and healthcare products,” noted Lijun Xin, CEO of JD Health in his statement published with the results.
Combining direct sales, online marketplace and omni-channel initiatives, JD Health is a pioneer in transforming the supply chain of pharmaceutical and healthcare products in China. Revenues from its direct sales channel reached RMB 16.8 billion yuan during the reporting period, representing an increase of 77.8% year-on-year. At the same time, its third-party online marketplace offered more diversified products that supplement those of JD Pharmacy and its on-demand drug delivery services that have been available in over 300 Chinese cities so far ensured quick and reliable support for users’ urgent medication needs.
JD Health strives to build a comprehensive retail system covering all healthcare product categories, sales models, and shopping scenarios, as explained by Enlin Jin, general manager of the medicine business and head of strategy and investment at JD Health during a partners’ conference last October. “Moreover, we continued to explore in-depth cooperation opportunities with upstream suppliers, enabling new medicines and specialty drugs to debut on our platform, and providing patients with cutting-edge treatment solutions,” Xin underlined in the results.
During the reporting period, JD Pharmacy worked with a number of leading global pharmaceutical companies, including Eisai China, AstraZeneca, Pfizer, Novartis, Bristol-Myers Squibb (BMS), Sanofi and Abbott Laboratories on more efficient product distribution on digitalization transformation.
During the fight against COVID-19, JD Health’s internet-based “Retail Pharmacy + Healthcare Services” model ensured many people’s timely access to necessary medications and treatment. The company has actively participated in the country’s poverty alleviation efforts – the Healthy China Medicine Subsidy Project, which provides the widest coverage of any health subsidies program in China.