Will Retail + Internet Healthcare Survive Post‑COVID? Key Insights

01 Medical Resource Shortage, Internet Healthcare Steps In

In January 2020, the sudden COVID‑19 outbreak disrupted normal life. The Chinese government highlighted that the pandemic is both a challenge and an opportunity for industries, urging the transformation of traditional sectors and the cultivation of emerging ones such as smart manufacturing, unmanned delivery, online consumption, and healthcare.

Healthcare, as an emerging industry, gained attention from e‑commerce players. Suning, leveraging its existing online pharmacy business, launched rapid‑response internet medical services.

Suning introduced applications like “Online Doctor Consultation” and a “Rumor‑Busting” tool to provide professional medical advice and ensure accurate information dissemination. The platform also organized appointment sales, group buying, and live‑streaming for scarce medical supplies such as masks, disinfectants, and over‑the‑counter drugs.

Medical Demand Expands Rapidly

From 2009 to 2018, the number of outpatient visits in China rose from 5.49 billion to 8.31 billion, and per‑capita visits increased from 4.1 to 6.0. However, the supply of medical staff has not kept pace. In early 2020, the documentary “Chinese Doctors” reported that 20 million people seek medical care daily while only 4 million doctors are available, with 24.6 % of doctors working over 80 hours per week.

High Risk of Hospital Cross‑Infection

The coronavirus spreads via droplets and contact, making medical staff highly vulnerable. By February 11, 2020, 1 716 medical workers (3.8 % of total cases) were infected, far exceeding the infection rate of the general population. The 2003 SARS outbreak saw a 20 % infection rate among healthcare workers.

Non‑Contact Internet Healthcare Gains Attention

Experts believe that mature internet healthcare can break spatial constraints, using big data and AI to record patient histories, and even employ medical robots for remote diagnosis.

During the pandemic, online consultation, e‑pharmacy, remote diagnosis, and tele‑rehabilitation demonstrated strong growth potential.

02 Merging Retail and Healthcare Without Disruption

Data from Bain shows that online medical platform usage surged, with online consultations increasing 30‑135 % and active users rising 100‑215 %.

Retail giants like Sunian possess massive online‑offline traffic and sophisticated logistics, enabling them to enter the medical retail space. By integrating pharmacy sales with their supply chain, they can deliver medicines directly to consumers’ homes after online prescriptions.

Suning’s R&D leaders suggest that controlling downstream pharmaceutical consumer data can also influence upstream drug development, guiding R&D focus and regional production planning.

Offline stores can host “micro‑clinics” offering basic health services such as vaccinations, minor illness treatment, and health consultations, complemented by online follow‑up.

03 Pharmaceutical E‑commerce and Medical O2O Worth Watching

The pandemic acted as a habit‑forming period for internet medical services. Post‑pandemic, traditional offline care may be partially replaced by online models, though long‑term sustainability remains uncertain.

Pharmaceutical e‑commerce and O2O models are attractive to retailers. By standardizing online drug categories, distribution, and integrating insurance and charitable support, retailers can reduce patients’ financial burdens and increase price transparency.

On March 2, 2020, the National Healthcare Security Administration and the National Health Commission issued guidance to include qualified “Internet+” medical services in medical insurance reimbursement, further encouraging the development of internet healthcare.