Dingdang Fast Medicine IPO Road, where is the second half of the Internet Health?

According to information disclosed by the Hong Kong Stock Exchange on December 22, the listing application materials of Dingdang Fast Medicine have been "invalidated". After half a year of waiting, Dingdang Fast Medicine failed to ring the IPO bell within the initial validity period. However, this does not mean that The listing of Dingdang Fast Medicine has failed, and the company can still continue to update the prospectus information to seek hearing opportunities.

As one of the most concerned unicorns in the field of Internet health, Dingdang Fast Medicine has obviously become the only seedling in the O2O battle of the first generation of medicine. The first half of the fight has just passed, and the shock of the second half is coming crazy again. The Internet medical industry, which mainly relies on the "selling drugs" model, is deepening its internal volume, and it is in urgent need of a new solution under the homogenization competition.

According to the prospectus, Dingdang Fast Medicine's revenue from 584 million yuan to 2.229 billion yuan in 2018-2020, a three-year compound growth rate of more than 95%. Despite the unusually harsh market environment, Dingdang Fast Medicine is still favored by all parties, such as Dingdang Fast Medicine announced a new round of financing of US$220 million before submitting its listing application in June this year.

Perhaps, the slowdown of the Dingdang Fast Medicine IPO is not necessarily a bad thing. For it, a new story, a new story that goes beyond the slogan "28 minutes delivery", is more important than acquiring new capital.

Two successful iterations in the industry wave

As an entrant in the field of Internet medical treatment, Dingdang Fast Medicine has almost witnessed the great changes in the entire industry. In less than 8 years, from the fierce fight of O2O to the vertical segmentation of the field, from the Internet hospital to the concept of big health, the emerging technologies such as increasingly mature artificial intelligence, big data, cloud computing, and 5G have accelerated the digital and intelligent transformation and upgrading of pharmaceutical, medical, health care, health management and other industries. Catalyzed by the epidemic, Internet medical care has received unprecedented attention, according to the "2020 China Pharmaceutical E-commerce Market Data Report" released by the E-commerce Research Center of the Network Economic and Social Society, the scale of China's pharmaceutical e-commerce transactions reached 187.64 billion yuan in 2020, an increase of 94.58% year-on-year. Approaching the 200 billion mark.

Along with the soaring scale, there is also an uninterrupted scuffle. In this mid-field melee, the elderly Jingle Fast Medicine has also undergone two important iterations. In 2014, Yang Wenlong began his second venture, and Dingdang Fast Medicine was born - this is not only the expansion of his business territory from drug production to terminal construction, but also his attempt to enter the Internet from traditional industries.

In 2015, when pharmaceutical O2O is blooming everywhere, the "lazy economy" is a new outlet. Among the many competitors, Dingdang Fast Medicine is a company that promises to deliver 28 minutes and can provide free drug delivery services around the clock in the core area. This makes Jingle Fast Medicine stand out quickly.

Like all its peers at the time, Dingdang Fast Medicine also cooperated with offline pharmacies, but some pharmacies could not operate 24 hours a day, or could not meet the speed configuration of user needs, and the "asset-light" model soon had drawbacks. While most O2O companies announced their commitment to stop "delivering drugs on time," Dingdang Fast Medicine chose a more difficult but user-friendly path. Dingdang Fast Medicine carried out self-operated transformation, self-built offline pharmacy, self-built drug distribution system and logistics team, Dingdang Smart Pharmacy came into being.

It turns out that sometimes the decisions of a few people are often the right ones. A year later, pharmaceutical O2O entered the antipyretic period, but Dingdang fast medicine rose against the trend, and Beijing's daily orders alone exceeded 20,000 singles, becoming the final winner of this scuffle.

The second iteration comes from the advent of the "Big Health Concept" era. Ali Health, Jingdong Health have successively come down, and takeaway software such as Meituan has also increased investment in pharmaceutical O2O. In the face of the new wave, Yang Wenlong said: "Dingdang Fast Medicine is not just a drug hypermarket. "After realizing the closed loop of online and offline private domain traffic, Dingdang Fast Medicine has entered a more ecological 3.0 era. In June 2019, Dingdang Fast Medicine announced that it will start to create a new health ecology of "medicine + medicine + insurance + maintenance", and provide perfect health management services around "user medication, chronic disease follow-up, maintenance of non-diseases, and family health".

These have all become the hallmarks of the second successful iteration of Jingle Fast Medicine. From the perspective of the market environment, this is the only way for Internet medical treatment, but it is also an extremely difficult process.

The shuffling moment of the golden track

At the end of 2019, Internet medical care was once again hyped up because of the epidemic. The entire big health industry has developed rapidly, and the market value of Ali Health and Ping An Good Doctor in Hong Kong stocks has soared, and then the valuation of JD Health has once reached 30 billion US dollars.

In October 2020, Dingdang Fast Medicine announced the completion of the B+ round of financing, a closed-loop map of "medicine + medicine + inspection + insurance" gradually became clear, and Dingdang Fast Medicine also quickly promoted the layout of "thousands of cities and thousands of stores". Also on the day of the announcement of the completion of the financing, Jiangxi Dingdang Distribution Co., Ltd. was established, and the determination of Dingdang Fast Medicine to strengthen the logistics link can be seen.

The self-owned service system created by Dingdang is theoretically a perfect closed loop, but it is placed in the current competitive market, but it does not allow Dingdang Fast Medicine to develop slowly. High fulfillment costs, a lot of offline expansion, coupled with growing logistics and warehousing costs, although Dingdang Fast Medicine's revenue doubled, but losses are also occurring. How to ensure cost reduction while ensuring the quality of service, or how to find new profit points, this is the top priority of Dingdang Fast Medicine.

On October 27, 2021, the National Health Commission solicited public comments on the Detailed Rules for the Supervision of Internet Diagnosis and Treatment (Draft for Solicitation of Comments), and a series of regulations and measures proved that the Internet medical industry will enter a more standardized, subdivided and high-quality era. After the mud and sand, the golden track of Internet medical treatment will usher in a reshuffle moment, and high quality and precision will surely become the keywords of the industry.

Such a change, for Jingdong Fast Medicine, is an opportunity to reverse.

Deep ploughing and innovation with both hands

For the great health, Yang Wenlong said: "I think the great health is an eternal cause, as an eternal cause in the process, we must insist on learning, insisting on innovation, insisting on work, and insisting on sharing." "In this eternal career, he did encounter many key moments. The second entrepreneurship of Dingdang Fast Medicine is that the construction of today's big health ecosystem is also the same.

In the face of such a goal, where is the new story of DingDong Fast Medicine? Now it seems that it is working on two roads. The first is to deepen the field of subdivision, and the other is the innovation of health records.

At the Expo, Dingdang Fast Medicine, Roche Group and AstraZeneca announced in-depth cooperation to deepen the chronic disease market in China, through 5G, Internet of Things, big data and other information technology and online and offline integrated operation services, with professional Internet hospital capabilities to solve the difficulties of chronic disease patients in the process of medication treatment, improve the user consultation and drug purchase experience. As Dingdang Fast Medicine mentioned in its prospectus: "We are currently focusing on chronic diseases such as liver disease, skin disease, cardiovascular disease and diabetes, and plan to gradually cover other chronic diseases in the future." Our chronic disease and health management services help physicians efficiently track, manage, and communicate with users, and help users establish personal health records, improve patient drug compliance, and we accurately predict the medical needs of patients throughout the life cycle. ”

In the field of advantages, Dingdang Fast Medicine also put forward the concept of "a quarter of an hour convenient life circle", connecting the community economy with Internet medical treatment, and taking Dingdang Smart Pharmacy as the fulcrum to provide the community with medical and medical services such as multi-scenario, one-stop consultation, drug purchase, chronic disease management, psychological consultation and so on relying on the Internet.

From these aspects, unlike Ali Health and Jingdong Health, which rely on offline pharmacies, Dingdang Fast Medicine, which relies on offline pharmacies, is naturally closer to consumers, and has more advantages and conditions to create health files for them according to user needs, and then provide health services such as chronic disease management. This is the trump card of its years of deep cultivation, and may also become its winning weapon to take the lead in realizing the closed loop of "medicine + medicine + risk".

From O2O drug purchase to consultation, to chronic disease and health management, from "28 minutes" to "long-term protection and attention", this may be the new story of Jingle Fast Medicine.