JD Health National Medicine Summit: Ushering in a New Chapter of Digital Transformation for Domestic Pharmaceutical Brands

On September 10, the 2024 JD Health National Pharmaceutical Gala was held in Beijing. Representatives from nearly 50 leading domestic pharmaceutical companies attended the event, engaging in in-depth discussions on topics such as the development of China’s pharmaceutical market and future opportunities. During the gala, JD Health, in collaboration with Menet, a leading platform for pharmaceutical and healthcare information in China, released the industry’s first “Blue Book on Marketing Innovation for Domestic Pharmaceutical Brands.” Additionally, JD Health joined forces with over 100 renowned domestic pharmaceutical brands, including Tongrentang, Sinopharm Taiji, Yunnan Baiyao, and Pien Tze Huang, to jointly initiate and establish China’s first “Conscience Good Medicine Convention Alliance,” committed to working together to promote the transformation, upgrading, and high-quality development of the domestic pharmaceutical industry.

JD Health “Conscience Good Medicine Pact Alliance” Launch Ceremony

Jin Enlin, SEC Committee Member of JD Group and CEO of JD Health, stated at the conference that the current wave of innovation, represented by large language models, presents an excellent opportunity for the transformation and upgrading of China’s domestic pharmaceutical industry. Leveraging the most comprehensive “Internet + Healthcare” layout in the industry and leading-level applications of artificial intelligence technology, JD Health will remain committed to long-term investment, actively support the digital and intelligent transformation of domestic pharmaceutical enterprises, and work with partners to create greater value.

Traditional Chinese medicine (TCM) culture boasts a long and rich history, giving rise to numerous well-established brands with outstanding reputations. Having endured the test of time and market scrutiny, these brands not only embody profound cultural heritage and historical legacy but also stand out as exemplary representatives of the domestic pharmaceutical industry, thanks to their superior quality, unique formulations, and remarkable therapeutic efficacy.

In today’s era of modernization and technological advancement, traditional time-honored brands continue to uphold the spirit of craftsmanship, while JD Health has long been committed to promoting the revitalization and growth of China’s time-honored brands. In 2024, JD Health partnered with the Time-Honored Brand Enterprise Development Professional Committee of the China Association of Traditional Chinese Medicine to launch a dedicated zone for time-honored brand ecosystem partners on the JD.com platform. This initiative, undertaken in collaboration with nine renowned brands—including Beijing Tongrentang, Yunnan Baiyao, Pien Tze Huang, Dong-E-E-Jiao, Guangyuyuan, Foci, Darentang, Hu Qing Yu Tang, and Jianmin Group—aims to deeply tap into the potential of these heritage brands, align with the rising “Guochao” (China-chic) trend, and better meet consumer demands. Additionally, JD Health has hosted a series of traceability-focused live streams, taking viewers inside enterprise factories and to the source origins of raw materials, allowing the public to more intuitively experience the enduring appeal of century-old time-honored brands.

Currently, younger demographics are paying increasing attention to health issues. In response to this trend, JD Health has partnered with time-honored brands to ingeniously blend traditional and modern elements, launching a series of word-of-mouth marketing campaigns that allow young consumers to genuinely experience the unique appeal and high-quality therapeutic efficacy of these established brands. Taking Angong Niuhuang Wan, a well-known cardiovascular and cerebrovascular medication under Tongrentang, as an example, JD Health collaborated with Tongrentang to increase awareness and accessibility among younger populations based on medical strategies, product features, and analysis of existing customer profiles. Furthermore, leveraging JD Health’s innovative prescription patient service solutions, the partnership provides guidance to ensure users administer the medication correctly.

Through in-depth collaboration with numerous time-honored brands, JD Health has not only facilitated the revitalization and heritage of these traditional brands in the new era, but also promoted the widespread adoption of healthy lifestyles.

In recent years, the achievements of domestic pharmaceutical brands have been widely recognized. Numerous well-regarded, high-quality Chinese-made medicines have become household staples for hundreds of millions of consumers in China. The "Blue Book on Marketing Innovation of Domestic Pharmaceutical Brands," released at this conference, shows that retail outlets have become the second-largest channel for drug sales, following public hospitals. Among these, domestic brands hold a market share as high as 75%. Furthermore, relevant data indicate that e-commerce channels have emerged as a high-growth segment for domestic pharmaceutical products, with a growth rate reaching 30.8%.

In the current era swept by the digital wave, JD Health has established a mature operational model integrating “self-operated sales + online platform + instant retail.” Leveraging its industry-leading omnichannel layout, JD Health collaborates with domestic pharmaceutical brands to explore more service scenarios, reach a broader population, and expand market opportunities. Its industry-leading supply chain services, covering all temperature zones and dosage forms, have significantly enhanced the accessibility and coverage of high-quality domestic pharmaceuticals. Furthermore, relying on its position as the premier professional entry point for internet-based healthcare, JD Health has built a comprehensive, scenario-based professional service system centered on both doctors and patients, thereby strengthening user trust in domestic pharmaceutical products.

Furthermore, JD Health has fully leveraged its digital marketing advantages to collaborate with domestic pharmaceutical companies in creating numerous blockbuster drugs. For instance, Zhejiang Shengsheng Mandi Pharmaceutical partnered with JD Health to launch the new-generation Mandi Minoxidil Foam into the market, rapidly turning it into a bestseller that has gained widespread consumer recognition. Beyond this, the two parties have engaged in deep cooperation across product portfolio strategy, integrated marketing, online consultations, and AI-based hair loss detection. These efforts have provided users with high-quality hair growth products and professional medical services, not only demonstrating JD Health’s strength in building a closed-loop “medical + pharmaceutical” ecosystem but also driving technological innovation and service upgrades across the industry.

For another example, JD Health conducted in-depth user surveys and review analyses to identify consumers’ key concerns and unmet needs regarding vitamin A and D deficiency. In collaboration with the well-known brand 21 Jin Weita, JD Health jointly drove product innovation and upgrades, launching a new vitamin A and D drop formulation that is odorless, easily absorbed, and hypoallergenic due to its soybean oil base. This innovative product not only effectively addressed user concerns about allergies and taste but also enhanced nutrient absorption efficiency, garnering positive market feedback and widespread acclaim shortly after its launch.

At the gala, JD Health also took the lead in launching the “Conscience Good Medicine Covenant Alliance.” The alliance aims to bring together numerous outstanding domestic pharmaceutical companies, adhering to the principles of “quality first, exquisite craftsmanship, conscience good medicine, and benefiting millions of households,” to support the high-quality development of local pharmaceutical brands, accelerate the universal accessibility of high-quality domestically produced drugs, and contribute more to improving the health standards of the nation.

Taking the market for processed Chinese herbal slices as an example. As a vital component of Traditional Chinese Medicine (TCM), processed Chinese herbal slices have long been plagued by the absence of unified industry standards. This has made it difficult for manufacturers to ensure product quality during production, hindering the development of effective competitiveness and, in turn, impeding the overall upgrading and transformation of the industry.

In recent years, JD Health has actively leveraged its strengths to collaborate with industry experts, authoritative institutions, and renowned pharmaceutical companies in jointly advancing the standardization of traditional Chinese medicine (TCM) decoction pieces. It has successively completed the formulation of relevant specifications, including standards for the origin of TCM materials, quality standards for TCM decoction pieces, comprehensive testing standards for TCM decoction pieces, standards for smart decoction centers, and full-process traceability standards.

Furthermore, JD Health has strengthened its collaboration with industrial clusters specializing in traditional Chinese medicine (TCM) decoction pieces to ensure product quality at the source. In 2023, JD Health worked closely with the Suqian honeysuckle industrial cluster across all stages—from seed selection, cultivation, and processing to sales—by introducing standardized planting techniques and digital management processes. This initiative not only facilitated the transformation and upgrading of Suqian’s honeysuckle industry but also made a positive contribution to increasing local farmers’ incomes and advancing rural revitalization.

JD Health Partners with Numerous Domestic Pharmaceutical Companies for Joint Development

The JD Health National Pharmaceutical Gala is not only a grand event for industry exchange but also a milestone marking JD Health’s collaboration with domestic pharmaceutical brands to pursue shared development. Leveraging its omnichannel layout, digital transformation solutions, and professional medical services, JD Health is taking concrete actions to drive the transformation, upgrading, and high-quality development of China’s domestic pharmaceutical industry. Looking ahead, JD Health will continue to work closely with domestic pharmaceutical enterprises to jointly explore innovative pathways, enhance the market competitiveness of local pharmaceuticals, and make unremitting efforts to meet the diverse health needs of the public.