Bayer and YaoshiBang Announce Strategic Cooperation to Target China's Downstream Markets

On July 9, 2019, Bayer, a Fortune Global 500 company, reached a strategic cooperation intention with YSB Inc. Both parties will fully leverage their respective advantages in the pharmaceutical and healthcare sectors and the internet industry to build a one-stop operational platform from enterprises to terminal sales, jointly creating a new ecosystem characterized by real-time interaction, openness, and accessibility, with a focus on serving the "lower-tier markets."

(From left: Xiao Haodong, Vice President of YSB Inc.; He Yong, General Manager of Bayer Consumer Health China; Zhang Buzhen, CEO of YSB Inc.; Bian Shenghui, Head of the China Brand Business Unit at Bayer Consumer Health)

He Yong, General Manager of Bayer Consumer Health China, stated, “We aim to establish a more precise, effective, and sustainable long-term market terminal marketing system through the precise digital marketing capabilities of pharmaceutical internet platforms, along with YSB Inc.’s specialized terminal services and intelligent system support. By building this system, we will be closer to the terminal markets and closer to consumers.”

(Address by He Yong, General Manager of Bayer Consumer Health China)

Since its inception, YSB Inc. has focused on serving typical “small B-side” clients, including small and medium-sized pharmacy chains, independent pharmacies, private clinics, and health stations. These entities are characterized by small individual scale and relative dispersion, yet they constitute a large aggregate market. Consequently, enterprises find it challenging to effectively reach, maintain, and develop this long-tail market.

Zhang Buzhen, CEO of YSB Inc., stated, “By leveraging internet technology to connect these ‘small-B’ entities, YSB Inc. continuously introduces upstream supply chains and product varieties. Through the real-time exchange of hundreds of millions of data points and ongoing product iterations, the company has provided ‘small-B’ clients with a super platform featuring over 1.5 million SKUs and real-time inventory value exceeding RMB 10 billion. By the end of 2018, YSB Inc. had covered more than 200,000 terminal pharmacies and clinics, achieved an annual GMV of RMB 10 billion, and surpassed one million monthly orders, becoming the leading pharmaceutical B2B platform in China in terms of active user scale.”

(Address by Zhang Buzhen, CEO of YSB Inc.)

Zhang Buzhen stated, “As a multinational corporation, Bayer possesses core competencies in health and nutrition within the life sciences sector. Its commitment to corporate social responsibility and its forward-looking vision are commendable. Through our future collaboration, we aim to leverage YSB Inc.’s platform to distribute high-quality products to thousands of cities and tens of thousands of pharmacies, thereby making premium medications accessible to consumers in lower-tier markets. This aligns with the original mission of YSB Inc. and underscores its value proposition.”

At the meeting, the YSB Inc. team presented its user profile to the Bayer team, and both sides engaged in lively discussions on advancing the “Thousand Cities, Ten Thousand Stores” initiative for Bayer’s products. Mr. He Yong, General Manager of Bayer Consumer Health China, and Mr. Zhang Buzhen, CEO of YSB Inc., exchanged views on the details of future cooperation between the two parties. Also attending the event were Mr. Bian Shenghui, Head of the China Brand Division of Bayer Consumer Health, and Mr. Xiao Haodong, Vice President of YSB Inc., among others.

About Bayer

As a multinational corporation, Bayer possesses core competencies in health and nutrition within the life sciences sector. The company is committed to helping people overcome the major challenges posed by global population growth and aging through its products and services, thereby benefiting humanity. Meanwhile, the Group enhances profitability and creates value through technological innovation and business growth. Bayer is dedicated to sustainable development. Worldwide, the Bayer brand stands for trust, reliability, and quality. In the 2018 fiscal year, Bayer employed approximately 117,000 people, recorded sales of €39.6 billion, incurred capital expenditures of €2.6 billion, and invested €5.2 billion in research and development.

About YSB Inc.

A mobile internet platform focused on the pharmaceutical distribution sector, linking numerous and highly dispersed pharmacies and clinics to reshape upstream and downstream relationships in pharmaceutical distribution, optimize supply chain nodes, and serve as an efficient trading platform centered on core terminal demands. In 2018, YSB Inc. achieved rapid growth, evolving into a super marketplace with over 1.5 million SKUs and real-time fluctuations in pricing and inventory. It reached an annual GMV target of RMB 10 billion, with monthly orders exceeding one million, covering more than 200,000 terminal outlets such as pharmacies and clinics, thereby becoming the leading pharmaceutical B2B platform in China in terms of active user scale.

July 25–27, 2019, Yiou Health will host“GIIS 2019 The 4th China Health Industry Upgrade Summit”The summit, themed “Yanqi Health Talk—Healthcare Transformation from [Scale] to [Value],” featured discussions on market conditions, investment hotspots, and industrial transformation across four key sectors: healthcare big data, pharmaceutical innovation, non-public healthcare, and health technology.

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