Mei Shuang, a reporter from the Securities Times.
September twenty _ fourth111 IncAt the "inclusive Digital Link Technology"-2020 China Internet Medicine and Health Summit and 111 Inc Partnership Conference held in Shanghai, Dr. Yu Gang, co-founder and executive chairman of 111 Inc, pointed out that in the next decade, the medical and health industry will surpass real estate and automobile to become the largest industry in China, and digital technology is the main driving force for the rapid development of this industry.
"Medical and health is a race track that is always sunny and never sets, and it is also the fastest growing industry in China. In the past five years and even in the next five years, the entire medical and health industry will continue to grow at a growth rate of not less than 12%. In other words, within ten years, the medical and health industry will surpass the real estate industry and surpass the automobile industry to become the largest industry in China." Yu just pointed out at the above-mentioned meeting.
At the same time, Yu Gang said that China's pharmaceutical industry is also the most fragmented, the least efficient, and the industry with the most pain points. For example, there are 480000 pharmacies, half of which are monomer pharmacies, and the largest chain stores account for no more than 2% of the market. Due to the lack and imbalance of medical resources, it is difficult for patients to see a doctor and expensive to buy medicine.
However, with the development of science and technology, the inefficiency and opacity of circulation are being changed. Science and technology empowerment is creating great value for the future of this industry, and this is also the final impact of the Internet on the pharmaceutical and health industry.
Yu Gang believes that in the future, there will be three irreversible trends in the field of medicine and health, that is, the population will continue to be aging, and the proportion of China's population over 65 will double in the next 30 years; the policy is irreversible, and prescription drugs will certainly be released online. Online health insurance must be opened in all regions, and it will be digitized in the future. With the continuous development and irreversible change of technology, the Internet era has been updated to the intelligent era. Big data can gain a deeper insight into customers, understand their portraits and behavior, and provide personalized service and precision marketing for all patients.
It is worth noting that with the continuous changes of national policies such as national health insurance negotiations and normalization of volume procurement, great changes are taking place in the pharmaceutical industry, and the traditional marketing and business models will be impacted.
At the conference, Liu Junling, co-founder, chairman and CEO of 111 Inc, said that 111 Inc, as a technology company, uses digital technology to organically connect patients with drugs and medical services. "at present, 111 Inc has created an ecosystem, including pharmaceutical companies, pharmaceutical distributors, drugstores, hospitals, doctors, insurance, and we empower all the participants in the ecosystem."
"for example, zero plus, two-vote system, drug proportion and so on have all had a profound impact on the industry. But at the same time, challenges and opportunities coexist, especially for digital links, such as prescription drug outflow, broad market, direct doctor-patient access, and so on. " Liu Junling pointed out.
"Internet technology has great advantages. One network covers the whole country, no geographical restrictions, 7 × 24-hour service, unlimited shelves, real-time data can track customers, provide personalized services for customers, and very importantly, avoid cross-infection. 111 Inc provides cloud pharmacy, cloud clinic, cloud inventory, cloud CRM and other services for pharmacies, we can share more than 300,000 kinds of medicines with pharmacies. Wearable equipment, real-time monitoring of vital signs of patients, real-time remind patients of exercise, medical treatment, medication and so on. " Yu Gang gave further examples.
However, Yu Gang also stressed that offline medicine purchase is also indispensable, because it has its own advantages, such as doctor-patient interaction, X-ray, blood sampling, CT, ultrasound, and so on. Offline drug purchase is also available immediately, so it must be organic integration online and offline in the future. In fact, this is also an important reason why 111 Inc and 280000 domestic drugstores have reached an integrated cooperation online and offline.
It is understood that 111 Inc was listed on NASDAQ in September 2018. According to public data, as of June 30, 2020, 111 Inc had set up a network covering 280000 pharmacies across the country, accounting for more than 50% of the total number of pharmacies in China, with the coverage of pharmacies in tier 3-6 cities exceeding 63%.