Source: Home of Instruments
From April 11th to 14th, the 89th China International Medical Equipment (Spring) Expo (CMEF) was held in Shanghai, with nearly 5,000 brand companies from more than 30 countries and regions around the world. The atmosphere at the exhibition site was high, and a number of medical device companies held on-site signing ceremonies, jointly opening a new chapter of cooperation and development.
In just two days, it has signed strategic cooperation agreements with 19 medical device companies such as Yuyue, Omron, Kefu Medical, Philips, Wenwen, Maidster, Oxygen Elf, Xianhe, Chaoya, Yade Medical, and Ruimate, jointly announcing that they will improve the supply of all categories of devices and expand omni-channel circulation in 2024. Deepen cooperation in global marketing, jointly improve the efficiency of medical device product supply and service, and jointly drive the high-quality growth of health consumption.
01
Digital supply and marketing integration
Create a "new flywheel" for the growth of machinery enterprises
In recent years, with the rapid development of the medical device industry in mainland China, the market size has exceeded the trillion mark, and China has become the second largest medical device market in the world. In 2023, the number of medical device manufacturers in mainland China has reached 32,700, almost doubling compared with 2019.
In this form, the medical device market is facing major changes. On the one hand, the current industry has a large number of enterprises, high concentration, and fast iteration speed, which will lead to more and more fierce market competition, and the competition between product quality and service will gradually intensify;
Repositioning and broadening sales channels have become the only way for device companies to reduce costs and increase efficiency.
As a domestic online medical device retail giant, JD Health's position in the industry is undoubted. According to the data, in 2023, the number of third-party cooperative merchants on the JD Health online platform will exceed 50,000, a year-on-year increase of 100%, and the annual active users will exceed 172 million. At the same time, the supply of medical device products has hit a record high, and the electrified household equipment has achieved a breakthrough in the market share of online platforms.
It can be said that with the most comprehensive online medical device category in the industry and the marketing ability covering the whole life cycle of products, JD Health has become the preferred cooperation platform for many domestic medical device companies to achieve sustainable and rapid growth.
Among the companies that signed contracts with JD Health at this CMEF exhibition, Yuyue Medical is a leading medical device and solution provider in China, and the two sides have maintained a close relationship for more than 10 years. Since 2014, Yuyue Medical opened the "Yuyue Jingdong Self-operated Flagship Store", and the cumulative sales have exceeded 2 billion. JD Health, as the largest online retail channel of Yuyue Medical, further deepened its strategic cooperation this time, and the two sides reached an agreement on the direction of cooperation in 2024, such as sales scale, resource investment, product development, and "Internet + medical" innovation, to jointly build an Internet + medical and health ecology that runs through the entire medical process and the entire pharmaceutical and medical device industry chain.
At the same time, JD Health also signed a strategic agreement with Kefu Medical, and will deepen cooperation in the fields of full-line product sales, brand membership, and trend product line co-construction, and help Kefu Medical's sales achieve the goal of 200% year-on-year growth in the next three years through innovative patented technology product co-construction, global marketing, service upgrades and other measures.
In addition, JD Health, as Philips' core sales channel in China, will further leverage its resource advantages in supply chain, service experience, digital marketing, and hospital channels to jointly develop more trending new products, bring better service experience to Chinese consumers, and meet the health management needs of more families and enterprises.
02
Data-driven technology innovation
Towards the deep water area of the medical model
Since 2024, "new quality productivity" driven by digital technology has become the "weather vane" of economic development in the new year. As an important part of people's livelihood security, medical devices are also a strategic emerging industry supported by the mainland. Driven by digital technology innovation, it has become an industry consensus to shape the new quality productivity of the medical device industry.
In the cooperation over the years, Yuyue Medical has adjusted its product design and functions in a timely manner based on the consumer behavior data and feedback accumulated by JD Health, and launched products that are more in line with market demand. Its high-end flagship nebulizer 407C was launched on JD Health, and the sales volume of this product increased by 291% year-on-year in 2023, and the sales of Yuyue Medical's oxygen concentrator category exceeded 1 billion, a year-on-year increase of 50%.
In 2023, under the C2M (reverse customization) mainline marketing model, the two parties will also jointly launch JD.com's special YE680AR blood pressure monitor with personalized functions such as voice broadcast, LCD large screen, 360 cuff, and last measured value display, and the sales volume will exceed 50 million in one year.
Next, the two sides will continue to pay attention to market dynamics and user needs, jointly create C2M star products in key categories, and carry out in-depth product planning in key categories such as oxygen concentrators, blood pressure monitors, blood glucose meters, nebulizers, etc., to achieve breakthroughs in category sales.
Not only that, in the first year of the development of the medical model, JD Health released the industry's first medical model "Jingyi Qianxun", which connects physical objects and services, and integrates knowledge and data. The model integrates a large number of clinical practice guidelines, medical literature and expert knowledge to provide new ideas for the industry to solve problems with "experience +", "efficiency +" and "service +".
With the support of Jingyi Qianxun, JD Health has created a full-course intelligent auxiliary diagnosis platform of "precise doctor-patient matching and disease screening before diagnosis", "improving diagnosis and treatment efficiency and patient experience during diagnosis", and "refined patient management and data precipitation after diagnosis", truly realizing the closed loop of online diagnosis and treatment.
In the future, JD Health will also use Jingyi Qianxun as the "technical base" for the construction of a new generation of medical and health service ecology, and promote the intelligent upgrading of industry-wide solutions and products, so as to maximize the value and energy of new technologies.
03
Targeting the elderly care service scenario
Cultivate new growth points for machinery enterprises
This year, JD Health will continue the strategic goal of "strengthening infrastructure, promoting supply, and emphasizing experience", focusing on rich supply, category breakthroughs, and hospital expansion, strengthening its own brand advantages, and further improving user experience and service levels.
In terms of category-leading breakthroughs, JD Health will strengthen its industry advantages in the category of live devices, focusing on the upgrading of the performance timeliness with consumer devices, and in terms of hospitals, JD Health will continue to increase investment, continuously improve the full-link service capabilities of hospital customers before, during and after sales, and create industry-leading one-stop solutions through system, operation and performance upgrades to help partners achieve higher growth.
In addition, JD Health will also actively respond to the proposition of the times of vigorously developing the silver economy, take home care and new medical scenarios as a breakthrough, refine the layout of the elderly care track, and join hands with upstream and downstream enterprises in the industrial chain to jointly deepen the two major health care scenarios of home and travel, incubate more new categories and new products, and continue to create new growth points for the medical device industry.
At present, JD's health care supply has covered 30,000 brands and thousands of sub-categories, with the service capacity of the whole industry chain, which can meet the six major health care consumption needs of the elderly in walking aid, daily care, monitoring and treatment, and chronic disease management.
During the CMEF exhibition, the strategic cooperation between JD Health and home rehabilitation medical brands Medeste, Yade and Longwill revolves around this proposition. All parties will work together to create new products for the elderly such as electric nursing beds and electric wheelchairs with industry competitiveness in various fields such as user insight, product research capabilities and digital marketing, so as to provide rich elderly care consumption choices for elderly users.
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Building an industrial ecology of co-construction, sharing, mutual benefit and win-win results is an important sign that an industry can achieve sustainable and high-quality growth. Relying on its capabilities of full-category supply, omni-channel circulation and full-life cycle marketing, JD Health has become the preferred cooperation platform for many domestic medical equipment companies to achieve global growth, which will surely promote the high-quality development of the entire medical device industry.