China’s online healthcare industry is entering its second decade of development this year, and it is expected to be more promising than ever—in terms of breadth or depth.
Apart from the fact that the pandemic has accelerated the pace of user adoption of online services, several pain points within the healthcare industry are also worth mentioning, for example, the scarcity and uneven distribution of quality medical resources, poor medical service experience and the growing deficit of basic public medical insurance. A bunch of online players has received a fair share of attention for their roles in helping to address these problems. They include WeDoctor (Chinese: 微医), Chunyu Yisheng (Chinese: 春雨医生), Alibaba Health (0241:HK) and JD Health (6618:HK), to name but a few, and Ping An Good Doctor is one of the best examples.
Ping An Healthcare and Technology Company Limited, or Ping An Good Doctor (1833:HK), currently is committed to developing four key business segments, which are: a) Online medical services, b) Consumer healthcare, c) Online Mall and d) Health management and wellness interaction.
For the dietary supplement industry the Ping An’s Online Mall is relevant and is an E-commerce platform for medical and health products such as OTC drugs, dietary supplements, medical devices and wellness products such as fitness equipment and accessories. During the reporting period, revenue from online mall business amounted to CNY 1,908.8 million, representing a year-on-year increase of 27.9%, while the gross margin fell 3% due to fiercer competition in the industry.