Core Viewpoint - The competition among major platforms like Ele.me, JD.com, and Meituan in the food delivery sector has expanded into the pharmaceutical category, leading to a significant rise in the instant retail of medicines, with platforms investing in traffic resources, supply chains, and innovative marketing strategies [1][4]. Group 1: Market Dynamics - The instant retail of pharmaceuticals is experiencing rapid growth, becoming a crucial part of the outpatient pharmaceutical retail market [1][4]. - JD Health's "Buy Medicine in Seconds" feature has seen a threefold increase in order volume due to enhanced traffic resources [4][6]. - The instant retail sector is evolving from high-frequency to low-frequency demand, now covering a full range of categories, including pharmaceuticals [5][6]. Group 2: Platform Strategies - JD.com has prominently featured "24h Delivery of Medicines" on its app, enhancing visibility and traffic for its instant retail services [3][4]. - Meituan has launched its instant retail brand "Meituan Flash Purchase," further intensifying competition in the pharmaceutical retail space [4][6]. - Taobao's instant retail service has been upgraded to "Taobao Flash Purchase," which includes a significant category for purchasing medicines [3][4]. Group 3: Industry Trends - The transformation of physical pharmacies is driving the adoption of instant retail, as many pharmacies are closing, leading to a competitive environment where digital solutions are essential [7][8]. - The integration of online medical services with instant retail is creating a comprehensive service model for users, enhancing the purchasing experience [7][8]. - The collaboration among platforms, pharmaceutical companies, and pharmacies is deepening, allowing for more effective marketing and sales strategies [8][10]. Group 4: Financial Performance - One Heart Hall's new retail segment saw a 47.6% year-on-year increase in revenue, with the O2O instant retail channel contributing 78.2% [15][16]. - Yifeng Pharmacy reported online sales of 2.127 billion yuan in 2024, with 1.721 billion yuan coming from O2O, accounting for 80.9% of total online sales [16][17]. - The overall trend indicates that if online medical insurance is fully opened, the share of instant retail in physical pharmacies could rise to 32.1% by 2030 [16][17]. Group 5: Future Outlook - The competition for instant retail in pharmaceuticals among major platforms is expected to continue, with Douyin's unique position in social media marketing presenting both opportunities and challenges [18]. - The penetration of instant retail in lower-tier markets is anticipated to grow, making it a significant growth driver in the outpatient pharmaceutical retail market [18].

Core Insights - The health industry is experiencing a shift due to traditional growth stagnation, technological advancements, and upgraded consumer demands, leading to a significant differentiation in the market [1] - Instant retail in pharmaceuticals has evolved from a mere purchasing channel to a definitive solution for immediate health needs, becoming a core engine for industry growth [1] Group 1: Market Trends - The compound annual growth rate (CAGR) for Meituan's pharmaceutical health instant retail business is projected to reach 38% by 2024, with significant contributions from various pharmaceutical companies and pharmacies [1][2] - The retail terminal drug sales in China are expected to grow by 3.7% year-on-year in 2024, despite overall industry pressures, indicating structural improvements [2] - Instant retail services are expanding, with offerings now including 30-second online consultations and 3-hour home testing services, enhancing the importance of this channel [2] Group 2: Digital Transformation - The trend towards digital operations and agile marketing is deepening among pharmacies and pharmaceutical companies, with independent purchasing and sales rights being granted to instant retail teams [3] - Meituan's collaboration with pharmaceutical companies and pharmacies during peak flu seasons has significantly improved supply chain efficiency, increasing coverage rates in major cities [3] Group 3: Brand Performance - The recently released 2024 digital brand honor roll by Meituan highlights that 50% of the top 20 brands in the digital engine category are foreign pharmaceutical companies, showcasing the importance of integrated online and offline retail strategies [4] - Notable brands like Kang Wang and Qi Zheng Tibetan Medicine have reported substantial sales growth on Meituan, with Kang Wang's sales increasing by over 35% year-on-year [5] - The digital solutions provided by Meituan have served nearly 500 partners, with plans for further investment in digital tools for marketing and operational efficiency [5]