Three years of struggle for a medical device chain: e-commerce shocks for the market

“I have always had an e-commerce dream, but I have been suppressed by e-commerce since 2012.” Bai Yi, chairman of the rehabilitation home, one of the largest domestic medical device stores, told reporters.

Since 2012, medical e-commerce has ushered in a period of rapid development. The convenience of the network has made online purchase of home medical devices such as blood glucose meters and wheelchairs more and more accepted by more and more people. At the same time, offline medical device chain stores have entered a difficult period, and customer loss, commodity homogenization, low-cost warfare, and high cost have caused many medical device stores to lose money. In recent months, some medical equipment franchise stores such as Rehabilitation Home, Kanglin Renhe and others have begun to pick up. This aspect reflects the transformation of consumption, on the one hand, the result of the continuous operation and transformation of the equipment store.

E-commerce shock

In 2001, Bai Wei plans to open a medical device franchise store, but because of its lack of funds, few people are optimistic about the industry and other reasons. Until 2004, Boss took the first rehabilitation home with 40,000 pieces. “From the day of the establishment of the Rehabilitation House, I wanted to be an e-commerce company. When the company was still a few dozen people, there were several people who specifically used computers. We applied for several good domain names, such as Chinabed.net, but because there is no license, sales. A large amount will be reviewed," said Bai Wei. "The closing of stores and the removal of goods during the review period will result in a large loss of passenger flow." Medical e-commerce is divided into ABC certificates, that is, third-party trading platforms, pharmaceutical wholesale, drug retail platforms, medical e-commerce can sell equipment online, and the franchised medical device websites directly sold to consumers have not issued relevant licenses, limiting the rehabilitation of home appliances. The development of business.

Three years of struggle for a medical device chain: e-commerce shocks for the market

In 2012, pharmaceutical e-commerce developed rapidly through low prices and explosions, which brought a lot of impact to the rehabilitation home.

In the e-commerce consumption scenario where the price is clearly marked and there is no experience, the consumer psychology is different from the offline consumption. Most consumers will pursue low-priced, top-selling products. For example, the price of wheelchairs in offline equipment stores ranges from a few hundred dollars to several thousand dollars, and the wheelchairs with the highest sales volume on the website are three or four hundred dollars. In terms of materials, ergonomics, etc., different prices will result in different comfort levels. Liu Bin, president of the Rehabilitation Home, believes that in the medical device market, there have been cases of “bad money expelling good money” in recent years, and the expulsion of high-quality goods by low-priced products is more obvious.

Internet sales have reduced the circulation of equipment and reduced costs, while the cost of labor and rent in stores has increased. In addition, the radiation range of stores is limited. Site selection is particularly important. Most of the equipment stores are located next to the top three hospitals. The flow of people in the equipment store.

Manufacturers are market-oriented, reducing the research and development costs of high-end medical equipment, and producing more low-priced goods, which further squeezes the store's living conditions. “The market cake is so big, the e-commerce has gone a big chunk,” Liu Bin said.

At the peak of the rehabilitation home, there were more than 300 stores. However, under the impact of e-commerce, some loss-making stores were shut down one after another. Today, there are more than 150 stores in the country.

Under the impact of e-commerce, offline stores are also on the layout line.

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