May 12, 2020|

JD Pharmacy: China’s Largest Pharmaceutical Retail Channel


by Tracy Yang

As of now, JD Health has become the largest pharmaceutical retail channel in the country. It not only provides comprehensive, smart and convenient drug purchasing and other services for consumers, but also provides brands with an integrated solution for online marketing, empowering the entire pharmaceutical industry supply chain.

This month marks four years since JD Pharmacy officially launched, and the business has since grown to become the largest retail pharmacy in China. Over the duration of that time, the growth rate of JD Health’s pharmaceutical retail business is four times higher than the industry average.

According to the 2020 White Paper on the Development of Pharmaceutical E-commerce in China released by EqualOcean, one of China’s leading research firm, the scale of China’s pharmaceutical circulation and pharmaceutical e-commerce market has increased each year from 2013 to 2018. In 2018, China’s market for the circulation of pharmaceutical goods reached RMB 2.1586 trillion, an increase of 7.7% over the same period last year. E-commerce, as one of the key channels for the circulation of pharmaceutical goods, benefits from the growth trends provided by omnichannel retail. The market size of pharmaceutical e-commerce reached RMB 97.8 billion, an increase of 32.7% over the same period last year.

Although the penetration rate of domestic pharmaceutical e-commerce is increasing every year, the share of pharmaceutical e-commerce in the United States accounts for 33% of the overall circulation of pharmaceuticals in the US market while the share of Chinese pharmaceutical e-commerce accounts for only 3.9% of the China market. The growth rate of pharmaceutical e-commerce is much faster than that of the entire market, while China’s pharmaceutical e-commerce still has a lot of room for growth.

JD Pharmacy is a good example. Its core concept is to combine doctors and medicine founded on retail principles, and introduce doctors and pharmacists through Internet hospitals to fill the service gap between “diagnosis and treatment” and “drugs”. Therefore, it can provide comprehensive, convenient and professional drug purchasing expertise and drug use services for patients. JD Pharmacy has formed an online “doctor + medicine” closed-loop model, establishing a new entry point for patients to buy drugs.

The outbreak of COVID-19 served as a test for pharmaceutical e-commerce and Internet medical services. As an important part of JD Health, JD Pharmacy not only ensures the circulation and supply of drugs in China during the epidemic, but also solves the challenges for chronic disease patients needing to revisit and renew prescriptions across the country. This highlights the strengths of JD Health’s pharmaceutical supply chain and channel value of pharmaceutical e-commerce.