Recently, a wave of “online school” fever for instant retail has swept through the circle of small and medium-sized chain pharmacies. At 3:00 p.m. on July 31, during a lull in customer traffic at pharmacies, staff members quietly flocked to the live stream of the Meituan Medicine Health New Retail Business School. The training session, originally planned for 100 participants, saw an instantaneous influx of more than 260 attendees. From frontline clerks and mid-level directors to chairmen, professionals from small and medium-sized pharmacy chains across nearly 100 cities in China eagerly joined the course to catch up on digital operations.
Behind this company-wide learning fervor is Meituan Medicine and Health’s newly launched “SME Chain Pharmacy Accelerator Program.” Built on the HEALTH digital solution, the program introduces two new initiatives for small and medium-sized chain pharmacies: a Digital Talent Development Program and an Ecosystem Resource Efficiency Enhancement Program. The former systematically cultivates digital operations talent through specialized training in O2O operational methodologies and digital tools, helping small and medium-sized pharmacies move away from the outdated “passive wait-for-customers” model. The latter restructures the supply chain model by directly connecting upstream industrial brands with small and medium-sized chain pharmacies, addressing out-of-stock issues in online operations and enabling these pharmacies to identify high-potential, competitively priced best-selling products for online channels.
“Lack of online operational experience, absence of professional teams, and insufficient supply of blockbuster products are the core pain points for small and medium-sized chain pharmacies during their digital transformation.” A relevant person in charge of Meituan Medicine & Health’s on-demand retail business revealed that over the past two years, there has been a significant increase in the number of small and medium-sized chain pharmacies ramping up their on-demand retail services, transitioning from no online operations to third-party managed operations, and then to building in-house operational teams. Currently, chain pharmacies are shifting from a scale-driven competition phase to a stage of refined operations, bringing online development opportunities to small and medium-sized chain pharmacies that focus on local markets and adopt more flexible operational models.

▲ On-site photo of the Meituan Medicine and Health Yunnan Communication Meeting. Photo by Liu Nan
It is reported that the “O2O Winning Essentials” training program, organized by Meituan’s Medicine and Health Instant Retail division, has already held two sessions, both of which were fully subscribed. The overall training series is expected to continue until early October. “Although small and medium-sized pharmacy chains lack systematic capabilities and procurement channels, they can achieve asset-light operations by leveraging the platform’s digital tools, thereby creating a competitive advantage for breakthrough growth,” said Yu Yue, Head of New Retail at Lanzhou Foci Pharmacy. He noted that within the comprehensive training curriculum, the O2O operational methodology, the merchant-facing HEALTH digital toolkit, and the supply chain resources provided by the platform are all highly valuable. Data from Meituan Medicine and Health shows that small and medium-sized pharmacy chains exhibit significantly higher adoption rates of digital tools within the merchant system—such as brand insights and store diagnostics—compared to large pharmacy chains. Furthermore, the platform has recently introduced new tools, including product selling point analysis and supply insights. These “operational eagle-eye” tools are becoming key levers for refined operations.
Amid fierce industry competition, cost reduction and efficiency improvement have become a consensus. “The entire sector remains excessively competitive. In the past, pharmacies could simply wait for customers to walk in without worrying about foot traffic. However, with pharmacies proliferating everywhere since the pandemic, there is an urgent need to expand operational reach and diversify procurement channels,” said Yang Bo, General Manager of Renhetang Health Pharmacy. “Previously, we sourced products through local commercial distributors, but due to our small scale, we were unable to place large orders, resulting in no price advantage and frequent stockouts. Now, Meituan has established direct links with manufacturers through a tripartite co-construction model, effectively reducing costs and ensuring supply.”
It is reported that during this summer’s peak season for prevalent diseases, Meituan Medicine and Health launched a targeted operational pilot for small and medium-sized pharmacy chains in cities such as Jinzhou. Focusing on best-selling products including 999 Piyanping (Dermatitis Ping), Xiao Kuaier Children’s Cold Medicine, and 999 Huoxiang Zhengqi Mixture, the initiative directly connects with upstream pharmaceutical manufacturers to reduce procurement costs for smaller pharmacies while simultaneously increasing online drug coverage and visibility. By directing high-demand medications to traffic-deprived areas, the program not only meets consumer needs but also drives steady growth for local small and medium-sized pharmacy chains.
In April this year, 12 departments, including the Ministry of Commerce, the National Health Commission, and the National Medical Products Administration, jointly issued the Action Plan for Promoting Health Consumption. This plan systematically outlined the development path for the health consumption sector for the first time, positioning retail pharmacies as “core scenarios for health promotion” and guiding them to expand into health promotion and nutritional healthcare services. “Online, we address supply-demand mismatches for high-demand medicines through tripartite collaboration; offline, we facilitate connections between upstream pharmaceutical brands and small and medium-sized pharmacy chains by hosting dedicated matchmaking sessions. Dedicated cooperation and communication meetings between pharmaceutical companies and small and medium-sized pharmacy chains have already been held in Yunnan Province, with plans to expand to cities such as Nanchang in the near future,” said a representative from Meituan’s Pharmaceutical and Healthcare Division. The company aims to leverage its platform’s connectivity to support the healthy and orderly development of small and medium-sized pharmacy chains.