More consistently, in the field of Internet health, they both chose the simplest entry point, that is, online pharmacies. 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 drug sales revenue of public hospitals exceeded 50%. In recent years, the state has repeatedly used medicine to support doctors, 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 are very healthy. Ali and JD.COM have been coveting the market for a long time, and the new internet upstarts Meituan and Pinduoduo have rolled up their sleeves. Tencent invested in Penguin Almond, Micro Doctor, Clove Doctor and Good Doctor; Sogou shares in Dr. Chun Yu; By the way, even without internet genes, you can be a safe and good doctor. Unfortunately, the path may be wrong, and starting from medicine is bound to be more difficult than medicine.
As mentioned above, among many "big health" enterprises, JD Health is the only one that is profitable.
Of course, after reading the article of JD.COM Group yesterday, it should be clear to everyone that although profit is important for the retail industry, the most important thing is cash flow. What about cash flow in JD Health?
The answer is, good! The company's cash flow has been positive and getting better and better. You know, JD Health is a newcomer to drug retailing, and 20 14 was established. Platform medicine inherits JD. COM is still self-operated, which means that JD Health has to deal directly with upstream pharmaceutical companies.
Which of these pharmaceutical companies is not a "niche move"? Traditionally, money is pressed downstream, so before 20 17, the turnover days of accounts payable in JD Health have been zero, that is to say, the company has to pay for the goods in advance.
However, as the drugs sold by the company are getting better and better, gradually, they begin to have the right to speak. The turnover days of accounts payable have been increasing. By the end of 2020, H 1 has reached 30 days, surpassing Dr. Ping An for the first time. Although there is still a gap compared with traditional pharmacy 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 the end of 2020, H 1, the data has dropped to 45 days, only half of that of traditional retail pharmacies. And as companies continue to dig into big data, this data will decline.
After reading the above picture, the director guessed that everyone must have doubts. Why is the inventory turnover days of Ping An Good Doctor so low? That's because people are mainly doctors and sell very little medicine. ..
All the above data show that JD Health's business is getting better and better, and the director can say with certainty that perhaps the worst this year will not exceed next year, and JD Health will repeat JD's mistakes. COM's "empty gloves and white wolves" game means that the turnover days of accounts payable exceed the turnover days of inventory, which means that the company doesn't have to spend a penny, 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 takeout.
After reading the above, it is not difficult to find that JD Health is expected to repeat his studies in JD.COM. COM way, don't spend a penny to get everyone's money turnover, and then get bigger and bigger. He can keep the inventory turnover days so low, and it is 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 protection. At the same time, the distribution is also very powerful. There are many kinds of delivery, daily delivery, next day delivery, 30 minutes delivery, 7*24 express delivery, which is suitable for you. Thanks to more than 6,543,800+0,800 logistics brothers in JD.COM.
Over 6,543,800 SKUs, essential drugs can be found in JD.COM, thanks to the warehouse invested by Jingdong Logistics.
JD Health's warehouse is used together with JD.COM's warehouse. By the end of the third quarter of 2020, there were more than 800 warehouses in JD.COM, totaling 20 million square meters, of which 1 1 medicine warehouse and more than 230 other warehouses were used by JD Health.
At the same time, JD Health's competitors, the treatment can be much worse, Ping An good doctor only has a central warehouse covering 40 cities; Ali Health has only 9 warehouses, covering 7 areas.
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 it, and JD.COM can do it.
At present, a considerable part of the cost in JD Health is performance rate, which can be simply understood as transportation cost. However, with the scale benefit and independent listing of Jingdong Logistics, this cost is expected to be further reduced in the future, but it will all become the company's profit.
Originally, the price of drugs in JD Health was lower than that in traditional pharmacies, but the net interest rate was similar. Once the performance fee comes down, JD Health will be cheaper than traditional pharmacies and earn more money than traditional pharmacies. In this way, the company can also give profits to consumers and increase its own advantages.
JD Health is on the right track, and even the number of doctors has become the largest among all platforms.
Seeing this, we should understand why the director has repeatedly stressed that JD Health is the basic migration of JD.COM. Self-operated drugs, fast and efficient distribution, declining costs and increasing scale have pushed down prices and payments upstream, rolled more and more data, reduced inventory turnover days, improved operational efficiency, and superimposed the return of JD.COM Group to JD Health users.
It's all positive cycles! ! !
The Internet will be healthy in the future, and JD Health will certainly succeed. Will lead now, and will probably lead in the future. It makes sense for the market to give such a high valuation.