23Mofang Slashes Gene Testing Price to RMB 299, Ushering in the 'Two-Digit' Era for Consumer Genomics

On June 26, 2018, VCBeat (WeChat ID: vcbeat) learned that 23Mofang, a leading player in China’s genetic testing industry, suddenly announced a price cut, slashing the cost of its genetic testing product from 499 yuan to 299 yuan. This move marked the entry of consumer-grade genetic testing fees in China into the “200-yuan range” era.

In August 2017, 23Mofang slashed its testing price from RMB 999 to RMB 499, sending shockwaves through the industry. As a result, the company’s product sales multiplied several times over.

Less than a year later, another significant price cut has sparked widespread discussion. Zhou Kun, CEO of 23Mofang, candidly stated, “This price reduction aims to serve more users. As the market expands and costs decline, lowering prices is an inevitable trend and a necessary step toward reshaping industry standards.”

According to public reports, 23Mofang has rapidly completed multiple rounds of financing since the beginning of this year, with top-tier investors such as SoftBank and Matrix Partners China participating sequentially. In the field of research and development, 23Mofang has also been highly active. In addition to jointly establishing a testing center with Thermo Fisher Scientific, a global life sciences giant, the company is conducting collaborative research with institutions including the Key Laboratory of Modern Anthropology at Fudan University (Ministry of Education), the Kunming Institute of Zoology of the Chinese Academy of Sciences, and the First Affiliated Hospital of Army Medical University.

In recent years, the substantial decline in gene sequencing costs has spurred the rapid rise and expansion of the genetic testing market, propelling China’s consumer-grade genetic testing sector into a period of high-speed growth.

A product’s disruption of the market lies not only in technological innovation but also in serving the majority of the market at a price acceptable to the general public. As Clayton Christensen stated, the driving force behind disruptive innovation is transforming expensive, highly specialized products into affordable and simple ones.

Just as in the computer industry, IBM achieved profitability despite low profit margins and low operating costs but high output. By combining technological innovation with its business model, it ultimately transformed both the computer industry and the world.

This also appears to be the objective of 23Mofang. Since its inception, 23Mofang’s products have consistently emphasized high cost-effectiveness. Amidst fierce market competition, 23Mofang has leveraged its robust R&D capabilities and operational expertise to outpace other direct-to-consumer (DTC) competitors, emerging as an industry leader.

In its recently released “2018 China Genetic Testing Industry Analysis,” Analysys ranked 23Mofang first in the consumer-grade genetic testing sector, with nearly 200,000 paying users.

Furthermore, in the “Full List of China’s 50 Most Innovative Companies” released by Forbes China on June 19, 23Mofang was selected alongside Ant Financial and DJI Innovations, and was defined as a “Game Changer in Genetic Testing.” The Forbes report stated: “23Mofang is the first professional institution in China to offer personal genetic testing services, committed to maximizing its assistance in helping users understand their own needs and creating the most cost-effective consumer-grade genetic products globally.”