Preliminary progress of China’s medical e-commerce platform
Alibaba Health issued a performance announcement on September 30, 2019 stating that the overall operating conditions of the company are improving. It can be predicted that its revenue will maintain a high growth rate in the upcoming few years.
The situation of Alibaba Health
China is entering an aging society, and medical services are getting more and more attention. However, in many cities of China, the level of medical care and the number of hospitals are not enough. Therefore, the development of medical e-commerce can greatly facilitate the lives of people. Surprisingly, since the launch of Alibaba Health in 2014, it has been losing money. People do not have the habit of seeking medical treatment online or buying medicine online.
According to the performance report announced on September 30, 2019, the sitation has been improved. Within half a year, the company realized an operating income of 4.117 billion yuan, an increase of 119.1% year-on-year. The net profit of the group was 139.5 million yuan, which was 10.5 billion yuan in the same period last year.
Alibaba Health has begun to try more business models, including online health consultation, online medicine sales and online medical device sales, that have gradually formed an industrial chain and will further bring benefits to Alibaba.
The future of Alibaba Health
Alibaba is the most qualified company to conduct a business in the field of e-health. Its 19 years of e-commerce experience means that it has rich resources, including more than 14 million medical and health products, more than 150,000 pharmacies and thousands of partner hospitals.
Apart from this, Alibaba Health has many possibilities for development. Let’s take the example of the pharmaceutical e-commerce. Although its revenue growth rate exceeds 100% in 2019, the amount is less than 4 billion yuan. Moreover, the total sales of Chinese medicines are about 2 trillion yuan, meaning that the size of this market is large enough. Thus, Alibaba Health also has great development potential.