iHealth Labs Europe, Subsidiary of 999 Medical, Launches Xiaomi Authorized Store in France to Expand New Retail Business

VCBeat (WeChat ID: vcbeat), May 22, Tianjin Andon Electronics Co., Ltd. (hereinafter referred to as “Andon Health”) announced that its subsidiary iHealthLabs Europe S.A. (hereinafter referred to as“iHealth”) has obtained Xiaomi's retailer authorization.

On May 22, 2018, local time in France, Xiaomi officially entered the French market, and the first Xiaomi-authorized iHealth store in Europe opened its doors on the same day.

Andon Health stated that, leveraging the experience and team accumulated over five years of development in Europe, as well as its deep understanding of the new retail concept gained through its strategic partnership with Xiaomi Corporation, the company has finally taken its first step in exploring the new retail business model in Europe.

The origins of the partnership between Xiaomi and Andon Health can be traced back to 2014, when Xiaomi invested in Andon Health’s iHealth brand.

On September 19, 2014, Xiaomi Technology invested $25 million in Andon Health’s iHealth brand for a 20% equity stake. As a result, iHealth became Xiaomi’s partner in the mobile health sector, with the two companies engaging in deep collaboration on user experience, Xiaomi’s e-commerce platform, and cloud services to jointly build a globally leading mobile health cloud platform.

Andon Health was established in 1995 as a company engaged in the research and development, manufacturing, and sales of home medical and health electronic products, while providing related technical services to build a “Mobile Internet + Health Management Cloud Platform.” The company’s main product portfolio covers blood pressure, blood glucose, blood oxygen, electrocardiogram (ECG), heart rate, body weight, body fat, sleep, and physical activity, featuring a relatively comprehensive product line of personal health wearable devices.

The iHealth series from Andon Health received strong support from Apple Inc. in its early stages. Following the launch of its first mobile-connected blood pressure monitor, the BP3, on Apple’s channels, the company introduced a range of additional products, including wireless smart mobile blood pressure monitors, glucose meters, and body fat scales.

As with other portfolio companies, this means that iHealth can tap into Xiaomi’s resource ecosystem and collaborate in areas such as user experience, sales channels, and cloud services; of course, Xiaomi’s marketing resources are also a critically important component.

For Xiaomi, the company boasts a large base of high-quality, highly loyal fans who themselves have corresponding healthcare needs. The continuous growth in its user base, coupled with the uniqueness of its operational model, is expected to enable iHealth’s hardware to rapidly capture market share with Xiaomi’s support.

By investing in Andon Health’s iHealth, Xiaomi will work with Andon Health to implement“Entering the fields of mobile healthcare and health big data by starting with wearable devices and smart hardware, and then building a health ecosystem centered around users.”"Strategy: Deeply mine big data and enter the mobile healthcare sector."

Xiaomi’s products are technologically advanced, boast strong design aesthetics, and deliver superior user experiences, with its concept of ultimate price-to-performance ratio being widely embraced by consumers. From online to offline channels, Xiaomi stores have established a new retail model centered on high value-for-money products, driving exceptionally high sales per square meter for its physical Xiaomi Home stores.

Xiaomi is not only experiencing rapid growth in the Chinese market; all three components of its business model—“Hardware + New Retail + Internet”—are also poised for swift expansion in international markets.

In November 2017, Xiaomi officially entered the Spanish market. To date, it has opened four authorized stores in Spain, propelling Xiaomi to become the third-largest smartphone brand in the country. Additionally, Xiaomi smartphones have topped the Indian market for three consecutive quarters and have emerged as the second-largest smartphone brand in Indonesia.

Based on Xiaomi’s performance in international markets in recent years, Andon Health believes that Xiaomi’s New Retail model will be equally well-received in the European market and is expected to achieve results as outstanding as those in other regional markets. Leveraging iHealth’s years of accumulated experience and team resources in Europe, the company launched a plan in 2018 to open Xiaomi-authorized stores in France under iHealth Europe.

According to the announcement, iHealth Europe has opened Xiaomi’s first authorized store in France, located in the Châtelet district, one of the most bustling commercial areas in central Paris. The store is situated near a major metro hub that converges multiple key Parisian subway lines, offering convenient transportation access and substantial foot traffic, making it an ideal location for a retail outlet.

Should the aforementioned authorized stores receive a favorable market response, Andon Health will further expand its new retail business based on actual conditions, with an initial target of opening five Xiaomi authorized stores in Paris within 2018.

Andon Health stated that its B2C business had previously relied on traditional marketing models. However, with the advent of the internet era, these traditional approaches are gradually being phased out. By establishing Xiaomi-authorized stores, the company can leverage Xiaomi’s platform to rapidly accumulate experience, resources, and channels in new retail, thereby exploring new models for its B2C operations, delivering products directly to consumers, and enhancing sales efficiency.

Furthermore, the establishment of an authorized Xiaomi store in Paris has effectively integrated the valuable resources that iHealth has accumulated in France in recent years, deepened its strategic partnership with Xiaomi, helped consolidate the company’s overall competitiveness in Europe, and is expected to have a positive impact on the improvement of its operational performance.

Of course, there are also certain risks involved. Andover Healthcare stated:

First, Xiaomi’s internationalization efforts are still in their early stages. In Paris, France, the brand’s foundation and its base of “Mi Fans” are relatively weak. As a new entrant to the French market, Xiaomi needs to focus on market development and user acquisition, thereby facing certain market risks.

Secondly, iHealth Europe’s initial foray into the emerging new retail sector carries the risk of uncertain profitability. Meanwhile, there is a scarcity of talent with relevant operational and management experience. Given the differences between France and China in terms of local laws, policy frameworks, and cultural environment, the authorized store may also face risks related to corporate management, resource allocation, and human resources after commencing formal operations.