Jingdong Mall and Jiuzhoutong break up

The rumor came to pass On July 27, kyushutong (600998 SH) announced that it would take back 49% of the equity of JD good pharmacist.com (referred to as "good pharmacist.com") held by JD At that time, good pharmacist.com will become a wholly-owned subsidiary of kyushutong After the equity transfer formalities are completed, the relationship between kyushutong and Jingdong will change from equity partner to business strategic partner Kyushutong said that in the strategic cooperation agreement signed by the two sides, they agreed to take each other as an important business partner in the field of e-commerce of medical and health products in the next 10 years From online to "breakup", the cooperation between Kyushu Tong and Jingdong lasted only more than two years Now this step, in the view of the industry, is a kind of "liberation" for both sides "It has been rumoured that the reason for the break-up is that the two sides are fighting for controlling shares, but in fact, it is because of competition in the same industry." A person familiar with the matter told the newspaper that before the cooperation, kyushutong had set up an e-commerce platform, that is, the online drugstore of good pharmacists, while JD has been selling healthcare products, medical devices and other pharmaceutical products without qualification restrictions on its own platform "At the time of the joint venture, both parties agreed to transfer all of JD's proprietary drug business to goodpharma.com, but it has not been realized since then Now, after the breakup, the two sides will continue to cooperate in the field of medical e-commerce using their respective resource advantages In the near future, Jingdong pharmaceutical City, a pharmaceutical e-commerce platform created by Jingdong itself, will also go online " An instant marriage As of last year, good pharmacists has been operating at a loss, but this year it is profitable The establishment of good pharmacist network is more of a resource integration In November 2003, Jiuzhoutong established a wholly-owned subsidiary, haoyaoshi Subsequently, with many peers in the industry starting to open online pharmacies, good pharmacists also set up an independent domain name of good pharmacists online pharmacies, which is the predecessor of good pharmacists network "In 2011, when Jingdong and kyushutong cooperated, they also improved and utilized this website." According to the person familiar with the matter, prior to the cooperation with Jingdong, the major shareholder of haoyaoshi.com was Beijing JIUZHOUTONG Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Jiuzhoutong, which controlled Beijing haoyaoshi pharmacy chain Co., Ltd (hereinafter referred to as "Beijing haoyaoshi") In order to set up online pharmacies, Beijing good pharmacists have trained a number of system maintenance personnel and e-commerce professionals However, like many peers at that time, this independent website lacks sufficient traffic and online promotion platform, and its performance is not ideal, and it has been in a loss state At this time, JD has also set foot in medical e-commerce However, according to the Interim Provisions on the examination and approval of Internet drug trading services, only those enterprises with both the qualification certificate for Internet drug trading services and the qualification certificate for Internet drug information services can carry out online drug sales JD does not have the qualification in this regard The pharmaceutical products it sells are mainly health products and medical devices of food and health brands In this situation, Kyushu Tong and Jingdong decided to cooperate to set up a good pharmacist network, with the shareholding ratio of 51% and 49%, respectively At that time, the division of labor between the two sides was that kyushutong was responsible for the procurement, sorting, storage and distribution of all kinds of commodities sold online by pharmacists, while JD was responsible for the flow introduction, platform promotion and later distribution to consumers "At that time, JD used its advantages in e-commerce to connect its own system with online pharmacies of good pharmacists, and introduced a large amount of traffic into the new good pharmacists network, which quickly boosted the click rate of good pharmacists network." Another person familiar with the matter said frankly that, in addition, in the distribution process, JD uses its own logistics distribution network to package and distribute the drugs of goodpharma.com and other products of jd.com "In the key areas of good pharmacist network sales, every delivery clerk in Jingdong always has several delivery orders on the same day." However, no matter the drug purchase, distribution and other services provided by kyushutong or JD's subsequent distribution services for consumers, good pharmacist network needs to pay certain fees to both parties in accordance with commercial principles "So far, with registered capital and follow-up liquidity, the total investment of goodpharma is estimated to be tens of millions of yuan." Before that, Liu Zhaonian, vice chairman of Jiuzhoutong, also disclosed to this newspaper that until last year, good pharmacist network still operated at a loss, but began to make profits this year Better to break up "The previous cooperation between the two sides has not been fully integrated, so now the separation does not have a great impact on both sides." However, one of the most critical cooperation agreements has not yet been implemented According to the initial cooperation agreement, JD needs to transfer its self owned health care products and medical devices business to goodpharma.com, the people familiar with the matter said "However, since 2011, the growth rate of medical e-commerce has been obvious, and this business of JD has grown rapidly to an annual revenue of several hundred million yuan." The people familiar with the matter said that in sharp contrast to this, the revenue growth of haoyaoshi.com is not obvious According to the 2012 annual report of Jiuzhoutong, the annual sales revenue of goodpharma.com was 76.3894 million yuan, with an average monthly sales growth rate of about 20% "JD has no controlling interest in goodpharma.com, so it naturally does not want to cut flesh." And in JD's business structure, the sales of all kinds of goods belong to different business units If all of them are transferred to good pharmacist network, the workload is huge, which is one of the reasons why JD has not been implemented "JD also has a listing plan, and the statements of a non holding company cannot be incorporated into the group company." As a result, JD's investment in good pharmacists is considered to be low cost-effective, the people familiar with the matter said In terms of personnel structure, JD's voice is also interpreted as not high by the industry Drug trade is an industry under special control of the state, which is highly specialized and demanding Another industry personage pointed out that in the management structure of good pharmacist network, only the CEO is sent by JD, and the other senior executives are all sent by Jiuzhoutong, including Shaoqing, the former marketing director of good pharmacist network, who was originally a person of Jiuzhoutong In the business model of good pharmacist network, half rely on Jiuzhoutong, and half rely on JD "Kyushutong knows medicine circulation management and Cui Wei knows e-commerce Both sides have outstanding advantages in their respective fields and are difficult to integrate." Many contradictions between the two sides were thoroughly intensified at the end of last year In November last year, for the reason of system upgrading and adjustment, the link of goodpharma.com disappeared suddenly on jd.com's homepage, and it has never been re launched since then Later, in the logo of good pharmacist online, the words "Jingdong" were also erased "In fact, at that time, Jingdong had also launched its own plan of medical e-commerce platform." The above industry figures pointed out that through self owned health care products and medical devices, JD has tasted the benefits of the pharmaceutical e-commerce industry, and in its expansion plan, it can improve its layout by supplementing the pharmaceutical business, and JD has stepped up the layout of its own pharmaceutical e-commerce platform According to public information, Jingdong pharmaceutical City, which Jingdong is preparing for, will officially go online in the near future "At this time, the business relationship with Kyushu Tong must be closed first, which is conducive to the business development of both parties." The people familiar with the matter told the newspaper that, as a result, Kyushu Tong recently issued a public announcement confirming the long-standing rumors It's worth mentioning that after the break-up, Shao Qing, along with Cui Wei, left good pharmacist.com to become the executive director of Jingdong pharmaceutical City, which was built by Jingdong, and Cui Wei continued to be the CEO of Jingdong pharmaceutical city While maintaining cooperation with JD, Kyushu Tong has already begun to cooperate with more e-commerce platforms In April this year, tmall store, a good pharmacist, was launched Facing its B2C short board, Jiuzhoutong has built its own warehouses of more than 10000 square meters in five cities including Guangzhou, Beijing, Chengdu and Wuhan, and has deployed its sorting system "That is to say, the previous cooperation between the two sides has not been fully integrated and their dependence on each other is not very strong Therefore, breaking up now does not have a great impact on both sides." The above industry personage pointed out that the new relationship between the two sides at present is: Jiuzhoutong has changed into a customer of Jingdong, but the two sides agreed that in the future, on the medical e-commerce platform opened by Jingdong, Jiuzhoutong will enjoy better treatment than its peers It may be a better ending for both sides.