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Big Data Profit Model of B2B Medical E-commerce

Big data profit model of B2B medical e-commerce

"Do you want to establish a medical e-commerce platform?" At the end of 213, after visiting more than 2 traditional pharmaceutical wholesale enterprises and failing, Yu Zeng, born in 198s, found Li Yanfei, the chairman of Sichuan Hezong Pharmaceutical Co., Ltd. with hundreds of pages of planning books. Their conversation lasted only half an hour, and Li Yanfei decided to put money into the project.

At that time, there were few medical e-commerce companies in Sichuan, and many bosses of traditional pharmaceutical wholesale enterprises sneered at the development of medical e-commerce: "I sold medicines well and made money, so why should I spend millions on this Internet?" However, in a year or two, when almost all traditional pharmaceutical companies are scrambling to plug in the fiery wings of "internet plus", Yu Zeng's team and Hezong Medicine founded Pharmaceutical Tesco, which has sold over 1 million yuan, has tens of thousands of registered terminal users, and has business dealings with customers in 23 provinces across the country.

Medical e-commerce can greatly reduce drug prices

The concept of e-commerce is not new, but the development of e-commerce in the pharmaceutical industry lags behind others. "People often inadvertently associate the Internet with words such as lack of supervision and the proliferation of counterfeit goods." Yu Zeng said that unlike other products, drugs are very special, and the specifications for online drug sales were not perfect at that time, which caused a general misunderstanding. "All drug operations are regulated by the national GSP, and online is not equal to counterfeit drugs."

In his view, the pharmaceutical industry in China is very closed. Yu Zeng's first venture was to be a third-party medicine B2B trading platform directly, but he was repeatedly frustrated in trying to guide traditional medicine people to enter the e-commerce platform. In addition, medical e-commerce faces a policy dilemma: B2C restricts the sale of prescription drugs, medical insurance and online drug transactions are not linked, so the development of medical e-commerce has always been tepid. Huayuan Medicine, Haihong Medicine, Jiuzhoutong and Kuaiyijie in the east of China started the pilot work of medical e-commerce in early 2, while Baiou, the real medical e-commerce platform in the west, only got the Internet Drug Trading Service License in 212.

despite the obvious policy restrictions, with the liberalization of policies, medical e-commerce is gradually surging. Relevant data show that the scale of pharmaceutical e-commerce transactions in China increased from 15 million yuan in 21 to 6.8 billion yuan in 214, with an average annual growth rate of 174%. In four years, the scale of online pharmacies also increased from 16 to 271, an increase of 15 times. A large proportion of them are B2C models. In Yu Zeng's words, "B2C medical e-commerce has almost become a red sea, while B2B is still a blue ocean."

In the pharmaceutical B2B market, the traditional wholesale has many disadvantages and complicated processes. According to Yu Zeng, there are only five first-class pharmaceutical wholesalers in the United States at present, and the top three account for 96% of the market share in the United States. In contrast, there are nearly 2, large and small pharmaceutical wholesale companies in China, and the wholesale links are complicated. "How can the price of drugs be low with the price increase and benefit distribution layer by layer?" Therefore, the key to reduce the price of drugs is to reduce the wholesale circulation, and through B2B medical e-commerce, it can be realized directly from manufacturers to terminal pharmacies, and even directly to consumers.

The traditional company "internet plus" changed

On February 26th, 214, the trial operation of Pharmaceutical Tesco broke through 1, sales in a single day; In less than half a year, the sales volume of Pharmaceutical Tesco exceeded 3 million, and the monthly growth rate of its membership and sales exceeded 7%. In contrast, the operation team led by Yu Zeng at that time had less than 3 people, with an average age of less than 3.

The reduction of intermediate links is an impact on the traditional interest chain. It is not easy for Yu Zeng's team to run in with traditional pharmaceutical companies, and there are many obstacles in the early stage of drug e-commerce. Due to the low price, just two months after its operation, Pharmaceutical Tesco was attacked by public opinion from manufacturers and other wholesalers in its promotion activities. In serious cases, it even required Hezong Medicine to close the website. At the same time, the company's internal offline business encountered the "threat" of online business, and it also complained bitterly.

"Fortunately, Mr. Li resisted the pressure, delegated a lot of authority and let us do it." Yu Zeng said that in order to improve efficiency and avoid using traditional people to do things on the Internet, E-commerce is not just an e-commerce department set up by other pharmaceutical companies, but an online and offline development. Today, two years later, it turns out that this traditional transformation model is successful. As of November 215, in the past two years, there were more than 13, single pharmacies and clinics registered on Yaoyigou, which had business dealings with customers in 23 provinces. Drug E-commerce has become the benchmark of B2B medical e-commerce in southwest China, and many pharmaceutical companies in neighboring provinces have even traveled thousands of miles to learn from it. At present, Yaoyigou has established an office in Xinjiang and gradually expanded to other provinces in southwest China.

Yu Zeng is not only interested in selling drugs online. "It turns out that many traditional pharmaceutical companies think that medical e-commerce is a' pit', and there will be no other benefits except saving money." Yu Zeng said, "Many traditional enterprises want to transform, but most of the ideas are just to open an' online store'. This simple offline-to-online platform conversion will soon encounter bottlenecks." The "internet plus" transformation of real traditional enterprises is not so simple.

In his expansion plan, the goal in 215 is to reach 1 million yuan in sales, have 12, terminal members and expand his business to two provinces. In fact, this plan has been realized more than two months ahead of schedule. His goal is that every province in China can have a strategic alliance of drug easy-to-buy, copy the model of drug easy-to-buy, and take the online e-commerce alliance of drug wholesale. Once the framework is set up, the more users are recruited, the more they can penetrate into the local market of each province, and the real value other than selling drugs will begin to be reflected.

The profit outlet of medical e-commerce

The number of medical e-commerce is increasing, but the profit model is still being explored. National Medical Products Administration stipulates that online drug sales must have the Certificate of Internet Drug Trading Service and the Certificate of Internet Drug Information Service. According to public data, as of the beginning of this year, the Food and Drug Administration issued 16 A certificates for third-party trading service platforms like Taobao; There are 86 B2B certificates for wholesale transactions, of which no more than 2 are actually engaged in business; There are 288 B2C certificates for online retailing, but no more than 8 of them actually carry out business, and only a few of them make profits.

how can drug e-commerce make a profit? Yu Zeng said that there is still a huge space in the customer base and variety structure of Pharmaceutical Tesco, but what Pharmaceutical Tesco really sees is the huge potential demand mining after the customer clustering effect, and that is the real goal of Pharmaceutical Tesco.

"judging the pain points of the market and customers, all this should be based on the support of data." This is Yu Zeng's expansion logic of drug purchase. Manufacturers, like all sellers, need to rely on big data analysis and judgment to sell drugs well, but gradually abandon the original empiricism. Now that informationization is so transparent, experience will become a regional thinking. Yu Zeng said that after the online alliance of drug e-commerce is established, the terminal big data of pharmacies and clinics in all provinces in China will be the "anchor needle" of the future business pattern. He said that in addition to big data, e-commerce training, financial products, and even offline community medical services can all be included in this system, not just varieties, but also help pharmacies, clinics and other terminals and upstream production enterprises in an all-round way. It is the real mission of drug purchase.

"looking at the industry outside the industry is the way, and optimizing the industry within the industry is the skill. Change the pattern and reconstruct the ecological chain. Medicine Tesco has always been on the road. " Yu Zeng said.

third party comments

the most important thing is to provide good service

it is an inevitable trend for the pharmaceutical industry to become an e-commerce platform, with bright prospects, but tortuous roads. If every pharmaceutical enterprise wants to take the road of Internet, it must face the problems of ideas and talents. Traditional pharmaceutical enterprises need to subvert the past business model and management model, which is the biggest difficulty. The transformation of pharmaceutical enterprises' thinking must rely on relevant talents, and they need talents who have Internet thinking and can combine the traditional business model with the operating rules of the Internet. But at present, there is a shortage of such talents.

e-commerce in the pharmaceutical industry requires every pharmaceutical e-commerce company to operate legally. Since they sell drugs online, they must have relevant qualification certificates. Whether operating online or offline, they must follow relevant laws and regulations and act according to rules, which is the most basic point for pharmaceutical e-commerce. Secondly, the price needs to be transparent. Although the online operating cost is relatively low and the drug price is correspondingly low, it will cause resistance from some traditional pharmaceutical businesses, but it is an advantage after all and gives customers more benefits. The most important thing for medical e-commerce to really grow is to do a good job of service and always think about its own operation from the perspective of customers.

The prospect of pharmaceutical e-commerce is very good, but it needs a process. At this stage, the primary task of medical e-commerce is to accumulate the number of users. On the one hand, there are more users and more profits from selling drugs. On the other hand, more users can extend the profit channels. For example, there will be some advertising fees and agency fees in the future, which can bring more income to medical e-commerce.

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