Jianke Partners with Taikang Online to Launch Authenticity Insurance, Ushering in a 'Dual Assurance' Era for Online Pharmacy
Online shopping has long become the mainstream mode of consumption in people’s daily lives, and purchasing medications online is gradually gaining acceptance. According to statistics, there are now more than 500 approved and legitimate online pharmacies across China, with a surge of 159 new additions in the past year alone.
This month, pharmaceutical e-commerce platform Jianke, in partnership with Taikang Online Insurance, officially launched a Genuine Product Insurance policy, guaranteeing that all self-operated products sold on its online pharmacy, including medicines, are authentic.
Furthermore, Jianke insures each of its self-operated products through Taikang Online Insurance. If consumers have any doubts about the quality of the purchased medications, they can file a claim and receive full compensation by providing valid documentation from the relevant authorities within a specified period.
Ten years ago, people remained skeptical about online shopping. A decade later, purchasing medications online has become a major force in the e-commerce landscape. According to the "2015 Statistical Analysis Report on the Operation of the Pharmaceutical Circulation Industry" issued by the Department of Market Order under the Ministry of Commerce, pharmaceutical e-commerce has experienced explosive growth alongside the advancement of the internet, with rapid expansion seen in online pharmacies and third-party pharmaceutical e-commerce platforms.
According to data from the official website of the China Food and Drug Administration, as of September 12, 2016, a total of 752 “Internet Drug Transaction Service Qualification Certificates” were publicly accessible. These included 29 Class A certificates for third-party B2B pharmaceutical platforms, 170 Class B certificates for B2B pharmaceutical transactions, and 553 Class C certificates for self-operated B2C pharmaceutical businesses. The number of certificates in all three categories has increased significantly in recent years.
Among these, 159 Class C licenses were issued or renewed in 2015, representing the largest increase. Reporters learned that enterprises holding Class C licenses are permitted to sell pharmaceuticals to individual consumers through online pharmacies. This means that, as of last month, there were 553 legally operating online pharmacies across China.
As the first B2C internet drug retailer in Guangdong Province to operate legally, Jianke obtained the Class C Certificate of the “Internet Drug Transaction Service Qualification Certificate” in 2009. “Many consumers still have reservations about purchasing medications online, worrying whether the drugs they buy are genuine,” pointed out Xie Fangmin, CEO of Jianke. By partnering with well-known insurance companies across China to provide coverage, Jianke aims to instill confidence in its users. “Only when we have 100% confidence in the products on our platform would we dare to introduce such a genuine-product insurance policy.”
Partnering with insurance giants to underwrite “Product Quality Guarantee Insurance” in the name of e-commerce platforms has become a common practice among major online marketplaces to demonstrate product quality. For instance, Tmall, in collaboration with well-known insurers such as PICC and Ping An Property & Casualty Insurance, has sequentially launched initiatives like “Tmall Authenticity Guarantee Insurance” and “Tmall Quality Guarantee Insurance,” while Vipshop has introduced authenticity insurance in partnership with China Pacific Insurance. However, such practices remain relatively rare in the pharmaceutical e-commerce sector.
Jianke, which secured $100 million in Series A financing early this year, was recently ranked by iResearch as the top-valued unicorn in the pharmaceutical e-commerce industry. Xie Fangmin believes that, in fact, state regulation of online pharmacies is already quite stringent. “The barriers to entry are high and oversight is strict; only entities with specific qualifications can obtain operating licenses, and all transaction processes are conducted under the rigorous supervision of both the drug regulatory authorities and the administration for industry and commerce.”
The introduction of genuine product insurance effectively provides a “double guarantee” for online medication purchases. For Jianke Online Pharmacy, which has already launched such insurance, consumers are not required to purchase any additional coverage. Should they have any doubts about the quality of the platform’s self-operated products, including pharmaceuticals, they may file a claim for full compensation by submitting a product quality appraisal report issued by the Administration for Industry and Commerce or a qualified testing agency within the specified period, provided that the report confirms actual quality issues.
Furthermore, Xie Fangmin, CEO of Jianke, stated that the launch of the Authentic Product Insurance not only demonstrates Jianke’s 100% confidence in the quality of pharmaceuticals sold on its platform but also aims to encourage consumers to develop the habit of purchasing medications online by alleviating their concerns about safety, thereby promoting the healthy development of the entire pharmaceutical e-commerce industry.