Internet medical and Internet health, the two industries look similar, but the difference is far. Medical is a sub-segment of the big health, in addition to providing online consultation, medicine and other narrow medical services, the Internet big health also includes health management, remote care, chronic disease management, and other full-process, long-cycle service content.
Every business in big health has to be smoothly docked with other businesses, so every additional service is an exponential increase in the test of business coordination, resource mobilization and supply chain capabilities.
Jingdong Group (9618.HK; JD.US) is known for its strong supply chain capabilities and solid technology research and development, and its subgroup Jingdong Health (6618.HK) has inherited the group's genes perfectly, making it a veritable benchmark in the Internet healthcare industry.
On August 24, Jingdong Health released its interim results report for the year 2021 ending June 30th. In the first half of this year, the total revenue of Jingdong Health increased by 55.4% year-on-year to 13.638 billion yuan; gross profit and net profit after deduction of non-compliance increased by 49.1% and 79.9% year-on-year, respectively, with a 1% decline in gross profit margin year-on-year; the number of annual active users is as high as 109 million; its strategic service product "Jingdong Home Health" 2021, which has an active ratio of 87% of users. In the first half of the year, 87% of the users were active, and the average monthly growth rate of the number of users since the launch was 220%.
In addition to the encouraging growth in performance data, Jingdong Health also insists on taking the supply chain as the core and medical services as the gripping hand, based on the digital and intelligent technology drive, and constantly improve the business system, in the service of physical enterprises, community and rural primary health care, in the infected area, the disaster area needs medical protection and other critical period, continue to create greater social value.
The earliest product of the combination of medical care and the Internet is the Internet pharmacy, which meets the need for people to purchase medicines without going out. Gradually, companies that want to provide more and more convenient services to consumers began to integrate physician resources, and the Internet pharmacy was connected to the Internet health care.
With the development of social economy, people put forward a higher demand for health management, no longer satisfied with the disease and then consult a doctor, and hope to prevent the disease before it occurs, or long-term management of chronic diseases, the Internet health care evolved again, extended to the Internet health.
From pharmacy to medical to health, the macro Internet health industry competition has reached the second half. The second half of the competition means that the rough running has basically ended, and more often than not, the fight is through the hard power to retain customers, and through the refinement of the operation to develop customer value. The products are more standardized, more reproducible, more trust, the whole business system of the whole big health industry development and operation of the greater help, these are in the second half of the Internet health enterprises can maintain the key to lead.
The value of user trust, the standardization of products, their own technology research and development and supply chain system to the industry's empowerment, these are Jingdong's strengths, and from the Jingdong system grows out of the Jingdong Health, perfect inheritance of the advantages of the group.
For a simple example, Jingdong Health is not just a platform, it has its own pharmacy within the system, but also in the country to use the group's 17 drug warehouses and more than 350 non-pharmaceutical warehouses, and jointly with the Jingdong Logistics constructed more than 100 cities across the country of the drug "self-supporting cold chain" capabilities, "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express", "Jingdong Drugs Express" and "Jingdong Drugs Express". The "Jingdong Drug Delivery" has covered more than 300 cities across the country, and Jingdong Health - Union Pharmacy has accumulated more than 500 cooperative stores, covering 17 provincial administrative regions across the country.
Precisely because Jingdong Health can provide the entire industry with specialized, intelligent, digital resource integration capabilities, in order to attract a number of leading domestic and foreign pharmaceutical companies such as Ushibi China, Sanofi China, Guilon Pharmaceuticals, Novartis Pharmaceuticals, etc. to reach a strategic cooperation or cooperation to deepen the upgrading of the partners to join the further consolidation of Jingdong Health's leading position in the industry, and to promote the business of Jingdong Health to more high-speed and high-quality development. The company's business is developing at a high speed and high quality.
According to public information disclosure, from 2017 to 2020, the total revenue of Jingdong Health compound annual growth rate of up to 51.82%, the first half of this year's year-on-year growth rate also remained at a high level of 55.4%. After the Henan rainstorm on-line 24-hour online consultation area, emergency aid disinfection and epidemic prevention and other five categories of materials and other social public welfare expenditure, Jingdong Health still achieved a net profit after deduction of 79.9% year-on-year growth, after deduction of net profit margin also increased from 4.22% to 4.89%.
On August 24, the day of the earnings release, Jingdong Health shares rose 14.5%, and the next day rose 3.2%. Listed later than its friends in the same industry, Jingdong Health's market value far exceeds that of its friends, which fully demonstrates that investors are more recognized.
The purpose of "Internet+" should be to empower various industries, but every industry in the transition period, will involve the interests of the entire industry practitioners, the big health industry is no exception.
After the big health business is "online", will the income of hospital doctors and pharmacists be affected? Will the business of pharmacies disappear? Will the customers of private doctors be taken away? Will Internet health and offline related industries compete or synergize with each other? If these issues are not resolved well, it will easily cause dissatisfaction among the original practitioners, which in turn will lead to social conflicts, and the original order of the medical and health management system will be thrown into disarray again.
In order to realize the Internet's empowerment of the health industry, we must first find the problems that exist in our original medical and health management system, the pain points that need to be solved, and then prescribe the right medicine. Jingdong health from the solution to the supply and demand side of the pain points to start, become China's big health industry to optimize the pushers.
The main problems that exist in China's big health system are the serious inequality in the distribution of medical resources, the uneven level of pharmacists in pharmacies, and the obstruction of medical supplies suppliers to receive feedback from users, and other major problems.
In solving the problem of uneven distribution of medical resources, Internet hospitals play a crucial role. According to the "2021 Internet Doctor Clinic Behavior and Happiness Report" jointly released by the health sector and Jingdong Health, more than 43.5% of Internet doctors have the title of chief physician or deputy chief physician, and the proportion of attending physicians and above is more than 80%. A network line connecting doctors and patients, greatly eliminating the geographical differences in medical resources, so that patients, no matter where they are, can get more professional diagnosis and treatment; at the same time, practicing doctors use the fragmented time, better play their professional value, and get the corresponding "sunshine income".
Jingdong Health's Internet hospital construction is at the forefront of the industry. In the first half of this year, Jingdong Health continued to upgrade and iterate the online medical and health service experience, and constantly improve the layout of specialty centers. As of the end of June, the Jingdong Health Internet hospital has increased the number of specialty centers to 24, with more than 130,000 own and external cooperative doctors and medical experts. In the first half of the year, an average of 160,000 patients received professional medical services through Jingdong Health every day.
Special period, the Internet health really "life-saving". July 20, Henan, a patient felt unwell after going to the drugstore, in the shopping guide recommended to buy a few drugs, the condition did not improve instead of aggravating the trend. At that time, Zhengzhou rainstorms just after the water, power outages, network problems have not yet been resolved, the traffic is also paralyzed. The patient with a try attitude dialed the Jingdong Health "950619" medical consulting services line, in time to get professional feedback, to get the correct medication advice, the condition slowly improved, the afternoon on the microblogging issued a "Jingdong diagnosis to save my dog's life! "The first time I saw this is when I was a little bit tired of it, and it was a lot of fun.
In addition, Jingdong Health provides one-stop omni-channel digital intelligence solutions for offline cooperative retail pharmacies to help them realize digital intelligence transformation and upgrading, and achieve cost reduction and efficiency; provides customized value-added services for brands, and launches customized products based on online demand; and provides new development space for brands by connecting physical objects and services.
The open ecology of Jingdong Health's "retail pharmacy + medical and health services" is beneficial to people and themselves, and is a real booster for the development of the big health industry.
With the development of social economy and people's knowledge of health changes, many people have realized that prevention is better than treatment, people no longer wait to find the body has problems before going to the hospital for examination, but pay more attention to daily physical examination and maintenance. At the same time, more and more chronic diseases are being emphasized by people, and the demand for long-term health management is increasing.
On this basis, the concept of the family doctor, which has become relatively popular in developed countries, has begun to rapidly increase in demand in China, and Jingdong Health has captured this demand in advance by launching the "Jingdong Family Doctor" on August 18th of last year.
By August 18th of this year, Jingdong home medical this year, the user active ratio of 87%, the average monthly growth rate of 220% of the number of users. The rapid growth of users reflects the demand of our people for family doctors, and the product maturity, standardization of capabilities, can cover the user's entire life cycle and the whole scene of the Jingdong family doctor, stand out among peers, become an important hand of the Jingdong health medical services and the whole family health management services new entrance.
After a year of development, Jingdong Home Medical has many highlights. For example, in cooperation with hardware manufacturers, the "Jingdong Home Medical" service as a standard module implanted in smart speakers, smart bracelets and other devices, to realize the "Jingdong Home Medical" products and the combination of intelligent medical and health care products; and then realized the smart speakers and other devices as the entrance, the Afterwards, it realized the smart speaker and other devices as the entrance, upgraded the graphic-based communication form to telephone or video-based communication, and launched the filial piety version of the "Jingdong Family Medicine" specifically for the elderly group, which fully solved the problem of the older people using the graphic-based communication is more difficult.
Jingdong Family Medicine also continues to refine the service area, more targeted to the needs of different people, customized different products, according to the common health problems faced by the people, on-line sleep service packages for people with sleep problems, to help children more scientific and healthy growth of "children's growth" service packages and so on.
Jingdong Health, in conjunction with a number of insurance companies***, launched a managed health insurance service called "Home Medical Insurance", which also meets the needs of users, with the prevention of disease and the improvement of health as the core purpose, rather than the traditional disease insurance to go to hospitals and prescribe medication as the standard for claims, and combining the health insurance with Jingdong Health's healthcare services and health management capabilities, providing families with a one-stop-shop for all their healthcare needs. The combination of health insurance and Jingdong Health's medical services and health management capabilities provides families with one-stop lifelong medical and health services and health protection solutions.
As an important part of the grassroots family doctor service system and the social healthcare system, Jingdong Family Medicine plays an important complementary role in solving the health management of the empty-nester elderly, chronic disease management, and alleviating the pressure on offline hospital outpatient services.
The real health management is based on the scientific track of national benefit, health management in the most important health care, especially public health care, almost always play a role similar to the "charity", which is destined to the health management track players, more should be to promote the development of the industry, the practice of social responsibility to the forefront, rather than focusing on the pursuit of higher profits, and not just the pursuit of higher profits, but also the development of the industry.
These are the first time I've ever seen a company like this.
Jingdong Health understands the reason, always adhering to the "solve industry pain points, create social value" concept, last year at the beginning of the epidemic was the first time to fully engaged in the fight against the epidemic, this year in Hebei, the rebound of the epidemic, Henan disaster and other moments in a timely manner, the first to support people's livelihood protection, through free medical consulting services, material donations, sending rescue teams and so on. The company has been able to provide a wide range of products and services to the public, and has been able to provide a wide range of products and services to the public, and has been able to provide a wide range of products and services to the public.
In addition to being able to respond quickly to emergencies, Jingdong Health has also put its heart and soul into other areas that require long-term investment. On February 27th of this year, Jingdong Health launched the "Rare Disease Care Program", and through the establishment of the "Jingdong Health Rare Disease Care Fund", joined hands with the Disease Challenge Foundation, integrated the platform and supply chain advantages of Jingdong Health, to create a "medical, pharmaceutical, insurance", and a "medical, pharmaceutical, insurance". Through the establishment of the "Jingdong Health Rare Disease Care Fund", together with the Disease Challenge Foundation and the integration of Jingdong Health's platform and supply chain advantages, the program has created a one-stop solution platform for "healthcare, medicine, insurance, and public welfare", and is committed to smoothing out the difficulties of diagnosis and treatment and access to medicines brought about by geographic distances, as well as alleviating the difficulty of paying for medicines for patients with rare diseases.
At present, many effective medicines are available online at Jingdong Pharmacy, which is operated by Jingdong Health; Jingdong Pharmacy has now become the most comprehensive online platform for rare disease medicines, and almost all the oral medicines for rare diseases that have been listed on the market in China can be purchased here.
Even if you can solve the problem of access to medication, patients with rare diseases such as Kabuki syndrome and acromegaly will also suffer from psychological stress due to their different appearance, which can lead to greater psychological pressure on the patients themselves or their families. Jingdong Health has also taken into account the psychological aspects of the problem, in its page on rare diseases to popularize, so that more people understand and can understand the rare disease patients.
Doing charity, rescue, popularization, these moves for a company's revenue is almost no help, but may significantly increase the cost, but these public welfare activities Jingdong Health almost never absent, just as the Jingdong Group, Jingdong Logistics, the same did not miss the anti-epidemic, emergency rescue, rural revitalization. Such an enterprise, worthy of respect.
Health management is a blue ocean market, which contains the immediate need for medical care, but also the rise of the need to improve health, disease prevention. It's a track with a bright future, and it's likely to get wider and wider.
But accordingly, due to the need for a long period of resource accumulation, various aspects of technology research and development and supply chain system construction, the return on investment cycle of health management is very long, and it is an absolute value investment, a road that few people can walk down.
Internet companies, especially those with e-commerce genes, have a more mature supply chain system, and have had the experience of integrating suppliers and retailers, which gives them a unique advantage in doing Internet health management; and for the companies themselves, they can also attract more highly viscous traffic through health management.
However, health management is different from the fast returns that Internet companies are used to, and requires patience. Perhaps the only way to do a good job of this business for the benefit of society and ultimately reap the benefits of compound interest is to root in the real economy, grow in the real economy, serve the real economy, continue to invest heavily, and take the high-quality development of the real economy to make more contributions as the goal.