China's First 'Internet + Smart Pharmacy' Launches in Hangzhou, Operated by Laobaixing

As a listed pharmacy chain, LBX Pharmacy has been continuously exploring the pharmaceutical O2O model. On May 28, LBX Pharmacy partnered with WeDoctor to establish an offline internet consultation point in Hangzhou, marking the official debut of China’s first “Internet + Smart Pharmacy.”

This pharmacy was transformed from the Laobaixing Pharmacy Guodu Branch located on Zhaohui Road in Xiacheng District, Hangzhou. According to Laobaixing, the store integrates O2O operational initiatives such as WeDoctor’s remote consultation services, JD Daojia’s online-to-offline synergy, and cashback programs, aiming to create a comprehensive, high-quality traffic closed loop for the pharmacy.

The pharmacy covers an area of nearly 1,000 square meters and features a health equipment experience center, a nutrition center, an integrated traditional Chinese and Western medicine clinic, and a service center. Customers can have their blood pressure measured, try out medical devices, and receive guidance on equipment usage at the service and experience centers. A distinctive feature of this smart pharmacy is its offline consultation site for Wuzhen Internet Hospital, enabling patients to consult online and pick up prescriptions in person. Professional physicians are available on-site to provide expert medical advice. Additionally, the pharmacy is listed on JD Daojia, effectively integrating customer experience with comprehensive services.

Laobaixing Pharmacy, established in 2001, has expanded its presence to 15 provinces and over 70 cities, operating more than 1,500 stores, and successfully listed on the A-share market in April 2015.

According to a representative from Laobaixing, “Laobaixing’s e-commerce team is actively deploying its O2O business and integrating online and offline resources with the aim of creating a comprehensive, high-quality traffic closed loop for its pharmacies. The collaboration with WeDoctor Group, Ping An Good Doctor, JD Daojia, and Fanli.com is fostering innovative synergy in pharmaceuticals and enhancing everyday life.” It was reported that in May this year, Laobaixing Pharmacy entered into an in-depth partnership with WeDoctor, successfully launching a pilot program in Zhejiang Province and establishing a robust digital health ecosystem combining “Cloud Medicine” and “Express Pharmacy” services.

According to a relevant official at WeDoctor, the company will leverage the combined strengths of both parties to further advance the deployment of “Internet + Smart Pharmacy” initiatives.

On June 24, the General Office of the State Council issued the Guiding Opinions on Promoting and Standardizing the Application and Development of Health and Medical Big Data. Previously, the pharmaceutical e-commerce sector faced skepticism due to the revocation of pilot permits for third-party online drug sales platforms. However, as national policies have become increasingly clear, it is evident that the rapidly emerging pharmaceutical O2O (Online-to-Offline) model will serve as an effective distribution channel. With the growing emphasis placed by the state on the “Internet + Healthcare” model, the industry is poised to seize significant opportunities for development.

As a special commodity, the core value of O2O (Online-to-Offline) services for customers in the pharmaceutical sector should lie in enhancing professional services. Although pharmaceutical O2O models vary, they are ultimately oriented toward offering low-price discounts and facilitating online ordering with offline delivery. Currently, pharmaceutical O2O models have proliferated across China. These range from Alibaba Health’s order-grabbing O2O model, which emphasizes low prices, to various O2O applications centered on medication delivery, as well as Laobaixing Pharmacy’s “Internet + Smart Pharmacy” initiative. How to remain user-centric while maximizing and enhancing the professional value of pharmacies remains an unresolved challenge.