Dazhong Pinyao Files IPO Prospectus: Empowering Chain Pharmacies with Data-Driven Health Care Solutions

Currently, the prevalent models integrating the internet with the pharmaceutical industry are primarily pharmaceutical e-commerce and pharmaceutical O2O (Online-to-Offline) services. “However, within this business model, chain pharmacies have not secured an ideal position; significant online diversion has threatened the operational viability of brick-and-mortar pharmacies, while the O2O model has further undermined the commercial standing of traditional physical pharmacies.” According to Wu Yu, founder of Dazhong Pin Yao, there is no inherent or steadfast alignment between brick-and-mortar pharmacies and pharmaceutical O2O services.

During his professional experiences in the United Kingdom and the United States, Wu Yu observed the operational models of several outstanding pharmacies. Currently, many UK pharmacies have begun implementing healthcare services, emphasizing the concept of “care.” In these pharmacies, pharmacists possess strong professional competencies, maintain an in-depth understanding of their local communities, and have access to comprehensive health and medication data for their patients. This enables them to provide proactive, intelligent care services. “It is similar to visiting a café: if I simply order a cup of tea, pay, and leave, the place remains unmemorable. However, if I sit down and the server says, ‘Sir, I recall you prefer Earl Grey with a specific amount of milk and sugar,’ I feel cared for, which makes me more inclined to return.”

What Dazhong Pin Yao aims to do is precisely to provide such assistance to pharmacies. On one hand, by offering C-end users comprehensive medication knowledge, health management services, medication experience sharing, and an online care community, Dazhong Pin Yao accumulates a large user base and generates data such as user health profiles and personal medication habits. Based on the results of its big data analysis, Dazhong Pin Yao drives customer traffic to B-end pharmacies and provides them with guidance on delivering personalized services to medication purchasers.

Meanwhile, Pinyao provides B-side pharmacies with a full suite of services, including online promotion, introduction of high-margin product categories, integration of upstream and downstream supply chains, access to remote consultation resources, as well as procurement and financing solutions.

For consumer users, Dazhong Pin Yao provides access to nearly all common medications, covering 5,000–6,000 types of commonly available drugs sold in pharmacies across China. It offers detailed drug package inserts and enables users to search for similar medications with identical indications and therapeutic effects. Additionally, Dazhong Pin Yao serves as a platform aggregating medication experiences and insights from millions of users.

Wu Yu told VCBeat that, currently, the C-end users of Dazhong Pin Yao are mainly divided into three categories:

The first scenario involves users who are clearly aware of their diagnosis and possess a prescription issued by a hospital. However, since medications with the same chemical name may be manufactured by multiple pharmaceutical companies, these users can consult reviews from other patients who have used the same medication on the app to compare and determine which manufacturer’s product is better suited to their needs.

The second scenario is when users already know which specific medication from a particular manufacturer they wish to purchase. In this case, they can use the Dazhong Pin Yao app to check whether nearby pharmacies have the drug in stock and to view any available promotional offers.

The third scenario involves users who are completely unsure about which medication to take, knowing only that they may have a cold or are experiencing coughing. If users know their specific condition, they can directly search for medications within the app. If they are uncertain about their diagnosis, they can perform an initial self-assessment on the Dazhong Pinyao platform. The self-assessment feature is a preliminary diagnostic system developed by the Dazhong Pinyao team using big data, under the guidance of medical consultants. First, we implement numerous safeguards: all information provided is for reference purposes only, and diagnoses are limited to common diseases based on reported symptoms. Furthermore, we offer probabilistic references rather than definitive diagnoses; we never claim a 100% certainty regarding any condition. If users have any doubts about their diagnosis, they should seek professional medical attention at a hospital.

Dazhong Pin Yao App Interface

According to VCBeat (WeChat Official Account: vcbeat), since the product launch in January 2016, Dazhong Pinyao has accumulated 200,000 registered users.

While Dazhong Pin Yao serves end-users on the consumer side, it also collects their usage data, which forms the foundation for its services to business-side pharmacies.

In the course of collaborating with pharmacies, Dazhong Pinyao has pioneered a new partnership model. “This approach first alleviates pharmacies’ concerns,” Wu Yu told VCBeat (WeChat official account: vcbeat). All of Dazhong Pinyao’s product designs are intended to help drive foot traffic to pharmacies by attracting users through its online promotional efforts. Pharmacies can showcase their desired content on the Dazhong Pinyao app. “This may include highlighting various capabilities of the pharmacy, such as medication delivery, 24-hour service, and even on-site traditional Chinese medicine (TCM) consultations and herbal decoction services. All services, along with any promotional offers they run, can be displayed.”

“For pharmacies, our platform is designed to enhance their core competitiveness in intelligent proactive services, helping them adapt to and leverage the new trends brought by the internet,” said Wu Yu.

In addition to online operational promotion and guidance, Dazhong Pinyao has designed a series of core services for pharmacies, such as overseas procurement to improve gross profit margins, and financial services aimed at integrating the upstream and downstream segments of the industry chain. As an entry point, Pinyao.com integrates various resources that can assist pharmacies, allowing them to focus their professional expertise on delivering high-quality pharmaceutical care services. In the future, big data will also be leveraged to provide personalized guidance for medication purchasers. “Through Dazhong Pinyao’s system, pharmacy staff can access personalized data, such as a customer’s medication habits, as soon as the customer enters the store.” This capability forms the foundation for the personalized customer services that Dazhong Pinyao provides to its partner pharmacies.

The backend of the Dazhong Pinyao App features an open, non-exclusive design, effectively adding value to pharmacies. “Pharmacies often struggle with online promotion, which is our area of expertise. They simply need to use our platform, and we will provide them with data and various other services,” said Wu Yu. He noted that the non-exclusivity of the Dazhong Pinyao App means that pharmacies’ existing partnerships with other pharmaceutical e-commerce platforms do not hinder their collaboration with Dazhong Pinyao.

Currently, Dazhongpin Yao has begun collaborating with chain pharmacies to launch online stores in Tianjin, Liaoning, Shaanxi, Jinan, Shanghai, and other regions. Recently, it has also engaged in online-to-offline (O2O) collaborative campaigns with a leading internet tech giant, rolling out its nationwide strategy across China.

Wu Yu, Founder and CEO of Dazhong Pin Yao, is a young Chinese-British entrepreneur who has dedicated many years to business intelligence and returned to China through the Overseas High-Level Talent Introduction Program.

According to VCBeat (WeChat official account: vcbeat), Dazhong Pin Yao secured millions of yuan in seed funding in the second half of 2015. The company is currently planning an angel round of financing.