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2021

The digital transformation of the pharmaceutical industry is accelerating. How can pharmaceutical companies strategize to achieve sales growth?

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How should pharmaceutical companies layout to achieve sales growth in the digital transformation of the pharmaceutical industry in the future?

Over 30 exhibitors, with a year-on-year sales growth of over 300%.

On August 5, the first JD Health "Cloud Pharmaceutical Fair" hosted by JD Health's pharmaceutical wholesale trading platform "JD Pharmaceutical Procurement" concluded. During the 3-day online exhibition, over 300 pharmaceutical companies participated, and hundreds of thousands of industry professionals visited the "cloud exhibition" and watched live broadcasts, with over 30 exhibitors achieving a year-on-year sales growth of over 300%.

During the conference, JD Pharmaceutical Procurement signed a series of strategic agreements with multiple partners covering various aspects of the pharmaceutical industry chain. At the same time, exhibitors received over 50,000 negotiation invitations, and the cloud pharmaceutical fair helped pharmaceutical companies achieve a closed-loop transaction from exhibition to order conversion, which also promotes the further acceleration of the digital transformation of the traditional pharmaceutical industry.

As a pharmaceutical exhibition that has accompanied the development of China's pharmaceutical industry, it has long played the role of "serving the supply chain" for pharmaceutical companies. However, traditional offline pharmaceutical exhibitions have long faced the dilemma of short cycles and difficulty for exhibitors to directly convert from exhibition to transaction. Coupled with the impact of the pandemic, most offline pharmaceutical exhibitions face the risk of delays or even cancellations, leading to a cautious attempt at online exhibitions that have now developed vigorously, greatly accelerating the pace of digitalization.

Previously, the General Office of the Ministry of Commerce issued a notice on "Innovating Exhibition Service Models and Cultivating New Driving Forces for the Development of the Exhibition Industry," which mentioned the need to actively guide, mobilize, and support enterprises to hold online exhibitions, fully utilizing modern information technology means such as 5G, VR/AR, and big data to hold "cloud exhibitions," conduct "cloud displays," "cloud connections," "cloud negotiations," and "cloud signings." The first JD Health "Cloud Pharmaceutical Fair" was held against this background, creating a matrix composed of "Cloud Pharmaceutical Fair APP + Mini Program + Website" to build a "cloud exhibition center" for enterprises, allowing remote participation without leaving home.

At the same time, through innovative methods such as 3D VR exhibition halls, live broadcast rooms, online negotiation rooms, and real-time chat tools, it breaks the venue limitations of traditional offline pharmaceutical exhibitions, providing exhibitors with comprehensive display channels, facilitating online negotiations between exhibitors and buyers, allowing the industry to reach the end, and promoting the digital transformation of the pharmaceutical industry.

How to make the industry reach the end?

In the pharmaceutical e-commerce business, pharmaceutical logistics is the most critical link. As a special commodity, the state has put forward high requirements for the storage management and transportation distribution of pharmaceuticals. Pharmaceutical regulatory authorities believe that "the management level and conditions of ordinary express delivery companies do not meet the quality requirements for pharmaceutical distribution, and the risks of express delivery of pharmaceuticals in transit are difficult to control, making it hard to define responsibility in case of pharmaceutical quality issues." The draft for comments on the new "Regulations on the Supervision and Administration of Pharmaceutical Business" requires that third-party pharmaceutical logistics companies must meet GSP requirements as well as requirements for personnel, data docking and recording, and facilities and equipment.

Currently, the pharmaceutical logistics landscape mainly consists of traditional pharmaceutical distribution companies, third-party logistics companies like JD, and new instant delivery businesses. At the same time, JD Pharmaceutical Procurement provides an integrated service platform for the pharmaceutical industry with a full range of products, full links, and full channels.

Zhou Xinyuan, General Manager of JD Health's Channel Innovation Department and head of JD Pharmaceutical Procurement, introduced, "By providing digital empowerment solutions for the industrial, commercial, and terminal links of pharmaceutical distribution, JD Pharmaceutical Procurement has opened up the entire B2B link of pharmaceuticals, with a transaction volume growth of 28 times in three years, accumulating over 180,000 downstream customers, over 40% active users, and over 200 commercial companies settled, achieving coverage in over 300 cities."

JD Pharmaceutical Procurement: upstream pharmaceutical companies, downstream pharmacies.

JD Pharmaceutical Procurement is JD Health's B2B platform, connecting upstream pharmaceutical industrial enterprises and commercial enterprises, and downstream connecting terminal pharmacies, independent clinics, village health rooms, and other medical institutions. It aims to solve the pain points of high costs, information isolation, and low efficiency in the traditional pharmaceutical distribution field.

It is understood that JD Pharmaceutical Procurement provides support for various links in pharmaceutical distribution through industrial resource feedback, JD logistics assistance, terminal resource capture, and JD finance empowerment; and provides product + service empowerment for terminal links through pharmaceuticals, non-pharmaceuticals, pharmaceutical + insurance solutions, and pharmacy clinics; at the same time, it provides data management for upstream and downstream based on service, LBS, RFM, lifecycle, and other information and behavior tags. In the terminal and user links of pharmaceutical distribution, JD Health - Alliance Pharmacy creates a health steward for the public.

Zhou Xinyuan introduced, "First, by standardizing operations and supply chain finance, we help terminals complete the construction of basic capabilities, then upgrade terminal capabilities through internet digital operations, and finally achieve the function of a chief health steward that integrates chronic disease management, health consultation, and health checks."

Industry insiders also pointed out that JD Health runs through the "service supply chain" before, during, and after user diagnosis, realizing the transformative value of "Internet +" in the pharmaceutical distribution field, becoming a necessary condition to accelerate the digital transformation process of the traditional pharmaceutical industry.

The effect is even more evident after the "Cloud Pharmaceutical Fair" APP is connected with the JD Pharmaceutical Procurement APP. Just from the situation during the conference, the number of exhibited products exceeded 50,000, and the promoted new products exceeded 2,500. During the conference, JD Health reached a strategic cooperation with JD Allianz Insurance to create a health insurance service supply chain, fully promoting the integrated development of "health insurance + health services"; "JD Pharmaceutical Procurement" signed a series of strategic agreements with partners covering various aspects of the pharmaceutical industry chain, such as Keyuan Trade, Xiangdanqing, Shangyi Zhixin, and Gairui Health Technology.

From the above layout, it can also be seen that under the layout of JD Health, the entire chain of pharmaceutical distribution is promoted, driving the professionalization, digitalization, and intelligent high-efficiency integration of resources in the pharmaceutical industry, creating a convenient, efficient, and intelligent full industrial chain of pharmaceuticals. JD Pharmaceutical Procurement has always played an important role in pharmaceutical distribution, and this "Cloud Pharmaceutical Fair" also shows that its service capabilities and experience have matured enough. We also look forward to JD Pharmaceutical Procurement playing a greater role in the future new changes in pharmaceutical distribution.