Yuxueyuan Invests in Puzhi Healthcare to Build a Full-Lifecycle Platform Serving Millions of Users

Yu Xueyuan CEO Shao Zongzong. Photo provided by Yu Xueyuan.

On May 18, YuXueYuan (hereinafter referred to as “YuXueYuan”), a child health management brand founded by Beijing Cui Yutao Child Health Management Center Co., Ltd., held a press conference at the Kunlun Hotel in Beijing. At the event, YuXueYuan announced its strategic equity investment in Puzhi Medical, marking the official establishment of the YuXueYuan Obstetrics, Gynecology, and Pediatrics Healthcare Platform.

Mr. Shao Zongzong, CEO of Yu Xue Yuan, will assume the role of CEO at Puzhi Medical; Dr. Gou Wenli, a renowned domestic chief physician and professor in obstetrics and gynecology, has been appointed as the Chief Expert Advisor for Obstetrics on Yu Xue Yuan’s Maternal, Obstetric, and Pediatric Healthcare Platform.

The most attention-grabbing announcement at the press conference was the official launch of the YuXueYuan Obstetrics, Gynecology, and Pediatrics Healthcare Platform. Specifically, YuXueYuan has invested in and taken an equity stake in Puzhi Medical. This move marks YuXueYuan’s formal entry into the field of obstetrics and gynecology. Together with Puzhi Medical, YuXueYuan will work to integrate interconnected services spanning preconception care, reproductive health, prenatal check-ups, childbirth, neonatal care, pediatric wellness, and common pediatric illnesses. This initiative enables the provision of comprehensive maternal and child healthcare services to the public starting from the very origin of life—the preconception period.

From its origins as a parenting app to its current status as a platform with tens of millions of users covering the entire life cycle, how has Yuxueyuan built its product and service system? To find out, VCBeat (WeChat: vcbeat) conducted an exclusive interview with Shao Zongzong, CEO of Yuxueyuan.

Broadly speaking, maternal and infant platforms can be categorized into two types: community-based platforms and parenting tools or guidance platforms. The core of the former is to provide a platform for communication, while the latter addresses needs at different stages of the parenting process, such as record-keeping and consultations, offering parenting education and support. “However, most private enterprises rely on user-generated content (UGC) for their content production, whereas Yuxueyuan adopts a fully professional-generated content (PGC) approach, which makes a significant difference.”

It is undeniable that current maternal and infant platforms exhibit significant homogeneity in their business models, and the challenge of acquiring new users has long persisted. With China’s annual number of newborns remaining relatively stable at approximately 17 million, “each year sees an influx of new users; therefore, extending user engagement cycles, broadening reach, and enhancing user retention are critical.” Yuexueyuan is not a pure medical institution but positions itself as a service provider covering the entire lifecycle of the maternal and infant industry.

With the establishment of the Yuxueyuan Obstetrics, Gynecology, and Pediatrics Healthcare Platform, the Yuxueyuan medical team has been significantly strengthened, and its scope of business has expanded accordingly. Building on the existing presence of renowned pediatrician Dr. Cui Yutao, the Yuxueyuan team has welcomed distinguished obstetricians and gynecologists Professor Chen Chunling and Professor Gou Wenli. Under the leadership of these three top-tier experts, the Yuxueyuan team is poised to deliver professional healthcare services to a broader base of parents and children.

Looking back on the development of Yu Xue Yuan, new business segments and services have been launched every year, establishing diverse service scopes. “In 2015, Yu Xue Yuan was merely a mobile parenting app. In 2016, with the opening of its pediatric clinic, it evolved into an integrated online-offline healthcare institution. However, Yu Xue Yuan is not simply an online customer acquisition tool for offline medical facilities; these are fundamentally different concepts.”

“In 2017, Yu Xueyuan launched its paid knowledge services, ‘while also launching its curated e-commerce platform and introducing a Family Health Plan,’ said Shao Zongzong. ‘Earlier this year, Yu Xueyuan completed its C+ round of financing, exclusively invested by New Oriental, with plans to jointly develop medical-educational products. Once our online mobile offerings, paid content, e-commerce, education sector, and proprietary brand products are fully established, our primary task in 2018 will be to complete the healthcare segment of Yu Xueyuan by establishing the Yu Xueyuan Obstetrics, Gynecology, and Pediatric Healthcare Platform, thereby upgrading from children’s health management to a more comprehensive family health management plan.’”

Currently, Yu Xueyuan has basically completed the architectural setup of the business segments outlined in its initial plan. Steady progress is being made in expanding its user base, refining and building its content ecosystem, advancing its empowering city partner program, and developing big data algorithms.

“Against the backdrop of consumption upgrading in the maternal and infant sector, YuXueYuan’s philosophy is not about scaling up, but rather about strictly controlling quality, serving our users well, building trust, strengthening service connectivity, and cultivating core competitiveness. By allocating resources in response to evolving user needs, market dynamics, and behavioral patterns, the ultimate manifestation is the iteration of our business model and enhanced profitability.”

According to our reporter, in 2017, Yuxueyuan’s total revenue was composed of 70% from its mobile products and e-commerce segments, and 30% from its healthcare sector (clinics). To date, the platform has over 200,000 paying members, with a user base reaching tens of millions.

Currently, Yuxueyuan operates a pediatric clinic in the Taiyanggong area of Chaoyang District, Beijing. Following the establishment of the platform, Yuxueyuan will partner with Puzhi Medical to jointly build the Yuxueyuan “2+2” medical institution matrix, comprising two hospitals (Yuxueyuan-Puzhi Honghe Women’s and Children’s Hospital and Yuxueyuan-Puzhi Shan’er Hospital) and two clinics (Cui Yutao Yuxueyuan Pediatric Clinic and Yuxueyuan Puzhi Yijian Outpatient Department).

In the maternal and infant sector, a user base in the hundreds of billions is not particularly large. After all, Yu Xue Yuan remains a young enterprise. However, the key to building platform differentiation lies in focusing resources on serving a precisely targeted user group. Shao Zongzong explained, “Every business model is established based on the company’s specific circumstances and profit model. Not every model pursues large scale; it entirely depends on one’s own business and product models.”

Since its inception, Yuxueyuan has never adopted a strategy of large-scale investment in promotion for customer acquisition. “Among companies of similar size and standing in the industry, we are likely the one with the lowest marketing expenses, relying primarily on organic traffic from precisely targeted users. Of course, we will continuously iterate on product formats that better resonate with mothers born in the 1990s and 1995s. For instance, we have been experimenting with short-video content through continuous trial and error to improve customer acquisition efficiency, but this by no means involves high-cost promotional campaigns. Our focus at Yuxueyuan is on building user trust, enhancing stickiness, and fostering word-of-mouth referrals.”

"For Yuxueyuan, which is primarily based on PGC, 'We have a comprehensive knowledge base and system. In the medical sector, we have our own discipline construction and also produce basic educational courseware. The core remains original knowledge content, providing assistance and guidance throughout the entire process of children's growth and development.'"

Shao Zongzong stated, “In the maternal and infant industry, PGC creators rely on their influence and user trust to serve targeted audiences. As for Yuxueyuan, we have never considered competitors; China’s maternal and infant market is vast, and not every company needs to target the national market.”

Although there appears to be an abundance of professionally generated content (PGC) on the market, whether from physicians or parenting experts, few can match the scale of influence achieved by Cui Yutao. As of press time, Cui Yutao’s Weibo account had amassed 6.59 million followers.

“The gap between the first and second tiers of top-tier PGC (Professionally Generated Content) resources in the maternal and infant sector is substantial. A significant portion still consists of localized experts and physicians. This is neither inherently good nor bad; it ultimately depends on the scope required for an institution’s communication strategy. We also collaborate with numerous PGC experts to build a knowledge matrix, which is a sustainable and effective long-term approach. However, our overall content framework remains primarily anchored in the Yuxueyuan system,” said Shao Zongzong.

All fundamental technological shifts brought about by the second half of the internet era will reshape corporate strategies, with the underlying driver being the continuous evolution of user needs. Shao Zongzong concluded, “Having managed a company for 20 years, I view each stage of business development as a process of natural evolution. Over the three-plus years since its establishment, Yuxueyuan has largely progressed in line with our expectations.”