Liu Qiangdong said, "When the field of health is completed, we can recreate a JD.COM." Surprisingly consistent, Ma Yun also stated that "the only thing that can surpass Ali in the next decade is the big health industry."
More consistently, in the field of Internet health, both of them chose the simplest entry point, that is, online pharmacy. Of course, this road is absolutely correct and the most spacious.
In the whole medical field, the market scale of drugs has always been the largest. In the past many years, the sales revenue of drugs in public hospitals has exceeded 51%. In recent years, the state has repeatedly failed to support doctors with drugs, and various high-pressure policies have been introduced, which has reduced the proportion of drugs in hospitals. But the demand will not disappear, and this part of the market that was forced to give up by public hospitals has flowed out, which means that the external drug retail market is becoming more and more spacious.
Many Internet giants have a healthy layout. Ali and JD.COM have been in the market for a long time, and the new Internet upstarts, Meituan and Pinduoduo all rolled up their sleeves to leave; Tencent invested in penguin almonds, micro-doctors, clove doctors and good doctors; Sogou took a stake in Dr. Chun Yu; By the way, even without the Internet gene, a safe and good doctor can be made. Unfortunately, the path may be wrong, and it is doomed to be more difficult to start with medicine than medicine.
As mentioned in the previous article, among many "big health" enterprises, JD Health is the only one who is profitable.
Of course, after reading yesterday's article by JD.COM Group, it should be clear to everyone that for the retail industry, although profit is important, the most important thing is cash flow, so what about cash flow in JD Health?
the answer is, very good! The company's cash flow has been positive and getting better and better. You know, JD Health is a newcomer in drug retailing, which was established in 2114. Platform drugs are inherited from JD.COM, and are still self-operated, which means that JD Health has to deal directly with upstream pharmaceutical companies.
Which of these pharmaceutical companies is not a "small business"? They are used to pressing money downstream, so before 2117, the turnover days of accounts payable in JD Health were always zero, that is to say, the company had to pay for the goods first.
However, as the company sells drugs better and better, it gradually begins to have the right to speak. The turnover days of accounts payable have been increasing. By H1 in 2121, it has reached 31 days, surpassing Ping An Good Doctor for the first time. Although there is still a gap compared with the traditional pharmacy that has been cultivated for a long time, the gap is narrowing.
Like the parent company, because the supply chain is made in JD.COM, the company's inventory management is quite good, and the inventory turnover days are also declining. By H1 in 2121, this data has dropped to 45 days, which is only half of that of traditional retail pharmacies. Moreover, with the continuous mining of big data, this data will drop.
After reading the above picture, the director guessed that everyone must have doubts. Why is the inventory turnover days of Ping An Hao doctors so low? That's because people are mainly doctors and rarely sell medicines ...
All the above data show that JD Health's business is getting better and better, and the director can definitely say that maybe this year, the worst will not exceed next year. JD Health will repeat JD.COM's play "White Wolf with Empty Gloves", that is, the turnover days of accounts payable exceed the inventory turnover days, which means that the company doesn't have to spend a penny of its own, and all the money belongs to everyone. Moreover, the larger the scale, the richer JD Health will be.
The director has always emphasized that JD Health is the basic migration of JD.COM Group, just as the hotel and transportation business of Meituan is the migration of food and beverage.
After reading the above, it is not difficult to find that JD Health is expected to repeat JD.COM's way, take everyone's money for turnover without spending a penny, and then get bigger and bigger. He can keep the inventory turnover days so low and still decreasing, thanks to his dad's big data support and mature warehouse management system.
The company's drugs are mainly self-operated, which is basically equivalent to genuine product guarantee. At the same time, the distribution is also very powerful. There are always many kinds of distribution, such as daily delivery, next-day delivery, 31 minutes and 7*24 express delivery, which are suitable for you, thanks to the logistics brother in JD.COM who exceeds 1.8 million.
With more than 11 million SKUs, almost any medicine can be found in JD.COM, which is attributed to the warehouse invested heavily by Jingdong Logistics itself.
The warehouses in JD Health are used together with those in JD.COM. By Q3 of 2121, there are more than 811 warehouses in JD.COM, with a total area of 21 million square meters. Among them, the infrastructure including 11 drug warehouses and more than 231 other warehouses are used by JD Health.
At the same time, the treatment of JD Health's competitors is much worse. Ping An's good doctors only have central warehouses covering 41 cities; Ali Health has only 9 warehouses, covering 7 regions.
What is even more irritating is that drugs are special, and many of them need cold chain distribution. It doesn't matter, JD.COM has them, and JD.COM can do it.
At present, a considerable part of JD Health's cost is the performance fee rate, which can be simply understood as the transportation cost. However, with the scale benefit and independent listing of Jingdong Logistics, this fee is expected to further decrease in the future, and it will all become the company's profit.
At present, the price of drugs in JD Health is lower than that in traditional pharmacies, but the net interest rate is almost the same. Once the performance fee comes down, JD Health will sell them cheaper than traditional pharmacies and earn money. In this way, the company can also give more profits to consumers and increase its own advantages.
JD Health has been on the right track, and even the number of doctors has become the largest in all platforms.
Seeing this, everyone should understand why the director repeatedly emphasized that JD Health is the basic migration of JD.COM. Self-operated drugs, fast and efficient delivery, declining costs, increasing scale have pushed down prices and payments upstream, rolling more and more data, reducing inventory turnover days, improving operational efficiency, and overlapping with JD.COM Group's back flow to JD Health users.
all of them are positive cycles! ! !
In the future, the Internet will be healthy, and JD Health must be the one that can succeed. If it takes the lead now, it will probably take the lead in the future. It makes sense for the market to give such a high valuation.