Chinese autorities have bannned E-Commerce website to sell Medications.
On Weibo, it is a super popular post, e-Commerce platforms who are selling medication via e-commerce are now regulated and can not sell without license.
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Self medication was a huge phenomenos in China, many peple prefer to buy online drugs, health supplments, Vitamines. Many Chinese do not trust offline pharmacies that are according to them overprices and gives bad advises.
Third-party ecommerce platforms like Ali Health and JD Health were getting popular. The restrictions don’t mean that all online pharmacies are exempted from these platforms. Those with drug distributor accreditation can still operate through these third-party platforms.
These health e-platforms do not currently have the ability to regulate online medication transactions.
New chances for Pharmacies in China.
Pharmacies have suffer from Lockdown in China, and most Chinese people use to buy medications online.
This ban is done to discourage oligopoly, and encourage Chinese customers to buy medication from local pharmacies. Many netizens voiced their dismay at the new law’s potential inconvenient consequences and the potentially high prices for medication sold through physical pharmacies. Stock prices at Ali Health and JD Health have fallen by 16.4% and 14.8%, respectively, over the last few days.
It is not yet clear if these policies will be implemented and whether third-party ecommerce platforms should be used by pharmaceutical companies. Many customers are now purchasing medication online because of the low prices and ease-of-use, particularly for those who need regular medication. Apps that allow Chinese customers to access medical information and subscribe to medications can be developed by pharmaceutical companies.
Ali Health, Alibaba’s healthcare subsidiary was identified the prescription drug market.
Alibaba has piloted an mobile app which allows customers to upload their prescriptions and receive price quotes from nearby pharmacies.
JD Health is one of the China’s largest online healthcare platform, with technology-driven App, which is based on the supply chain for pharmaceutical and healthcare products, is strengthened by healthcare services. This allows users to access all aspects of their healthcare needs throughout their entire life. Both the online and retail pharmacies can meet users’ healthcare needs and offer affordable, accessible, high-quality, and convenient healthcare products and service for all Chinese citizens.
Medication Hospital and corruption in China
All medicines prescribed in China used to sold by hospitals in China, explains how this de facto monopoly on prescription drug sales has contributed to high prescription drug prices and encouraged corruption.
Hospitals are not the only ones searching for alternative revenue sources, and you have to know that Chinese doctors are not paid salaries that are comparable to the services they provide. Many Chinese doctors are seeking “black income” in order to supplement their salaries.
Before big Chinese pharmaceutical firms conceal a “commission” from the sale price of the pharmaceutical product. This is the price they sell to hospitals. The hospital’s purchase price for a drug is often significantly higher before it enters its hands.
Solution by E-health App
Aliheath and other players have help to clean this dark industry, and profit from the expanding Chinese healthcare industry, while also looking for creative ways to end the racket.
After choosing the seller that they wish to use, the customer makes payment via AliPay’s mobile payment system. The medication is then delivered to their home. In cooperation with local governments
The Alibaba mobile app has helped customers save up to 50% on their total spending by allowing them to purchase prescription drugs 20% below the market price.
JD health and Ali health have completely disrupted the supply chain of drugs and allow customers to order prescription drugs online, avoid hospitals and pharmacies. By reducing price that cause high prices for Chinese consumers, 3rd e commerce platform because super popular in China.
The shift from Offline to Online
Before a significant shift in China’s prescription drug market was occur
Hospitals and doctors haved likely resist any licensing of internet prescription drug sales because it reduces their revenue.
Many hospital administrators have made it difficult to upload a prescription, it was a big fight for many years. E-Commerce Health Apps had challenged by its peers in the technology-healthcare intersection. Tencent, a major Chinese Internet company has integrated doctor appointments and payment services into WeChat’s mobile chat app WeChat. Tencent had invested in a portal for healthcare and created an online health service.
With WeChat, you can book, pay, keep in touch with many hospitals. Tencent’s main focus is on medical service payments.
In China, many Chinese Buy health supplement, and vitamins via Tmall or JD global.
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