Behind the Exodus: Real Reasons for the Surge in Resignations Among Pharmaceutical E-commerce Executives

Between 2014 and 2015, eleven CEOs of pharmaceutical e-commerce companies resigned from all their positions. These included Zhang Yibing, former General Manager of Zaikang E-commerce; Lai Yurui, former COO of Qilekang; Zhong Rihua, former General Manager of Haiwang Stars Online Pharmacy; Zhang Shouchuan, former COO of Ali Health; Niu Zhengzhao, former CEO of Jinxiang.com; He Tao, former CEO of Jianyi.com; and Xia Yu, former CEO of Cardinal Health’s Online Pharmacy, among others. Industry insiders and external observers have extensively analyzed the underlying reasons, debating whether this trend signals a decline in the sector and speculating on who might be the next to depart.



At the 2016 Digital Health E-Commerce (West Lake) Forum held on April 7, several former executives of pharmaceutical e-commerce companies, who had once been at the center of industry attention, revealed the truth behind their departures from their previous employers and shared their insights on talent retention.

Zhang Yibing, COO of Haoyaoshi, formerly served as the General Manager of Simcere Zaikang Online Pharmacy. He left that position in July 2015 to join Haoyaoshi. Zhang’s career path began at Jointown Pharmaceutical Group, then moved to Kangaiduo, followed by Simcere Zaikang, before ultimately returning to Jointown through its Haoyaoshi brand.He frankly stated that the reason for his resignation was simple—equity. It was not merely for financial gain, but for a reasonable incentive mechanism and greater aspirations.Talent is scarce in the pharmaceutical e-commerce sector. Regarding how companies can retain talent, Zhang Yibing stated, “Why did Jack Ma and Ren Zhengfei achieve success? In my view, it is because they distributed wealth to gather people.” How to select talent and how to retain talent are essentially the same question.

Chen Hua, currently the CEO of 360 Health and former CEO of 1Drug.com, joined Qihoo 360 in August 2015. Regarding his resignation, Chen Hua expressed agreement with Zhang Yibing’s response and acknowledged that equity was also a factor for his own departure. Chen Hua revealed,360Early Stage of Health172Among humans168Everyone is a shareholder; the era of the sharing economy has arrived. Everyone is a boss, everyone reaps rewards, and everyone works for themselves.Chen Hua believes that internet talent falls into two categories. The first is business-oriented talent, which can be cultivated; with diligence and adherence to the 10,000-hour rule, individuals in this category can become experts. The second is technical or specialized talent, which tends to concentrate in major internet companies. Large platforms and industry leaders hold significant appeal for such professionals, offering substantial learning opportunities, making this type of talent particularly difficult to retain. To address the challenge of retaining specialized technical talent, companies may adopt a pragmatic approach by leveraging mature market-ready products rather than investing in internal development teams. This alternative strategy may offer better cost-effectiveness.

Xia Yu, CEO of Dekai Pharmacy, formerly served as the CEO of Souyaosong. When Bai Yu, Chairman of Dekai Pharmacy, asked what might cause him to leave in the future, Xia Yu stated that since most employees at Dekai are shareholders, equity would not be the reason for his departure.Besides financial issues, a major reason for employee turnover is managers micromanaging their subordinates' work.“So many people say that finding a business partner is harder than finding a wife.” Bai Yu declared on the spot, “I am willing to share power, offer care, and yield profits! Let’s work together toward a common goal. These are all things I can deliver, and I hope that by doing so, you will stay with me for life.”

How Do E-commerce Platforms Plan to Spend Their Hundreds of Millions in Funding?

The Trend of Internet E-commerce Raising Funds Is Becoming Increasingly Aggressive. Whether the money has already been pocketed in real cash or merely exists as a string of zeros behind valuation figures, these sums are by no means small. So, how do the industry leaders favored by capital intend to spend this vast wealth?

Jianke.com raised $100 million just two months ago. When asked how the company plans to use the funds, CEO Xie Fangmin candidly admitted, “I haven’t given it much thought.” Many entrepreneurs present a polished vision to investors, but the actual allocation of capital often tells a different story. “I may not have all the details figured out right now, but I am confident that I will find the right way to deploy these funds to achieve our expected outcomes. Exactly how we will spend the money is still under consideration.”

Regarding the use of funds, Shi Zhenyang, Chairman of Guangzhou Qilekang Pharmaceutical Chain Enterprise Co., Ltd., offered only a brief six-character response: “Operations, Technology, Logistics!”

Chen Hua, CEO of 360 Health, stated that the company aims to become the “Doraemon” of China’s pharmaceutical and healthcare sector. “We often ask our clients three questions: ‘Are you optimistic about the current development of internet-based healthcare? How is your business performing? What challenges are you facing that I can help you with?’” It is reported that in November last year, 360 Health launched its pharmaceutical e-commerce platform, “360 Haoyao.” The second platform is a technology platform that provides technical support to all partners interested in entering the pharmaceutical e-commerce space. “We hope to change the world through technology. Therefore, we aspire to fulfill the role of Doraemon effectively. Only by creating value for our partners can we realize our own value.”Therefore, this 100 million yuan will be used to expand the team, develop products, and meet everyone's needs.”

Xia Yu’s approach is to identify the core 20% of a company’s competitiveness and allocate resources there. Every enterprise has its own core competencies, and capital must be spent where it matters most. The first step is to pinpoint that critical area—the “blade’s edge”—and delve deeply into that vital 20%. This is how unicorns such as WeDoctor have emerged. “I hope Dekai will become one of these unicorns in the future.”