HONG KONG, Dec. 16, 2020 /PRNewswire/ -- Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor"; stock code: 1833.HK), a leading internet healthcare services platform in China, recently announced that it has signed a strategic cooperation agreement with Tsumura China Inc. to strengthen the Chinese medicine supply chain via the innovative "Internet Healthcare + Pharmacies" service model. The parties will cooperate closely in the new retail aspect of the Traditional Chinese Medicine (TCM) sector, as well as promote the "Healthy China 2030" initiative together.
Photo 1: Group photo of parties at the signing ceremony
As a leading manufacturer of Kampo medicines in Japan, Tsumura predominately engages in the standardized planting of high-quality Chinese herbal medicines and production of TCM decoction pieces, alongside general health products. The company is famous for providing high quality Kampo products and exporting its world-leading pharmaceutical technologies.
In this context, Ping An Good Doctor and Tsumura would join hands and satisfy the demand for further innovation in TCM, medical products diversification, as well as enable consumers to build a "comprehensive health" lifestyle.
Innovation of Chinese Medicines Enhances Accessibility of Quality Chinese Medicine Service
As for innovation in Chinese medicine services, the two companies will build an online and offline operation model. For the online operation, a team of in-house doctors from the TCM division of the internet hospitals operated by PAGD, along with the TCM masters shared with Tsumura, will provide virtual consultations and TCM prescriptions, Tsumura's high quality decoction pieces and medicine services will then be safely and timely delivered to the patients. As for the offline operation, the consultation process will be carried out by the Pharmacy Cloud of PAGD, with consumers able to enjoy at pharmacies virtual consultation services by online doctors, as well as diagnosis and treatment plans based on high quality TCM products by Tsumura, after scanning a QR code. 31 provincial administration regions, 390 cities and more than 1,500 chain pharmacies and 111,000 offline pharmacies in China are covered by the Ping An Good Doctor Pharmacy Cloud service, and Tsumura's decoction pieces will be promoted in cooperation with this distribution network. This has not only provided a direct connection between Tsumura and consumers, but has also raised its brand awareness.
At the forefront of TCM innovation, the "One Person, One Prescription" and "Homology of Medicine and Food" projects formed collaboratively by the two parties were launched in August and well received by the market, seeing a surge in user demand. As for special disease categories, the two parties plan to together introduced the "Classical Prescriptions on the Treatment of Special Diseases" in order to promote the development of precision medicine.
A Wide Variety of Drugs to Meet the Diverse Needs of Consumers
According to statistics, the TCM market size in China is estimated to reach RMB170.8 billion by 2022, presenting a promising prospect. Through the new collaboration, PAGD has opened a gateway for Tsumura to import unique products from Japan to China, providing a wider variety of drugs to consumers in China. As a result, Chinese consumers can purchase authentic Kampo herbal medicine, and, in turn, their upgraded consumption demand can be better addressed.
Promote Products Based on TCM's Theory of "Homology of Medicine and Food" and Lead a "Comprehensive Health" Lifestyle
Following the rapid development of the "Comprehensive Health" industry, along with the increased adoption of healthier lifestyles among the younger generation, there is a stronger demand for herbal food products. Tsumura's product range, which includes fresh ginseng, Beauty Ginseng Tea, and TCM decoction pieces, can meet such demand. PAGD will promote Tsumura's quality products to users in China through both online and offline distribution (online platform + offline pharmacies). PAGD has its own extensive logistics and services network, comprised of its own warehouses and O2O express delivery of medicines, which ensures a stable supply of quality products, delivered to specific locations at specific times. Tsumura is set to benefit from this established infrastructure, with an increase in sales and patient service capabilities throughout China.
Representative of PAGD stated that both parties will launch an in-depth collaboration across online TCM clinics, with online and offline channels. On top of the existing cooperation agreement, they will also explore IT technologies and innovative healthcare service models that can benefit patients and industrial development, thus facilitating the development of new retail opportunities for TCM products in China.
Representative of Tsumura (China) stated that they hope to strengthen the exchange of both parties and boost business through this opportunity. By working with PAGD, they will be able to offer reliable and high quality TCM products to a wide range of consumers throughout the country.
