111, Inc. (NASDAQ: YI) (“111” or the “Company”) is a leading integrated online and offline healthcare platform in China. The Company provides hundreds of millions of consumers with better access to pharmaceutical products and medical services directly through its online retail pharmacy and indirectly through its offline pharmacy network.
111 also offers online medical services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation and electronic prescription services. In addition to providing direct services to consumers through its online retail pharmacy, 111 also enables offline pharmacies to better serve their customers. The Company’s online wholesale pharmacy, 1 Drug Mall, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. The Company’s New Retail platform, by integrating the front and back ends of the pharmaceutical supply chain, has formed a smart supply chain, which transforms the flow of pharmaceutical products to pharmacies and modernizes how they serve their customers.
111’s New Retail Platform
New Retail aims to improve the efficiency of selling and buying, as well as customer experience, by integrating e-commerce, brick-and-mortar retail, and logistics with data throughout the value chain. In 2016, 111 began the transformation from a pure B2C business to a New Retail platform, integrating its online retail pharmacy and offline pharmacy network by leveraging its smart supply chain and cloud-based solutions. This model allows the Company to collect and analyze data from a large number of transactions, which it uses to continuously increase the efficiency of its smart supply chain, and the intelligence of its cloud-based solutions.
111 applies advanced technologies and management expertise to integrate the front and back ends of the pharmaceutical supply chain to form its smart supply chain, which transforms the flow of pharmaceutical products to pharmacies and modernizes how they serve their customers. The Company’s inventory on demand and smart procurement services assist its pharmacy customers to procure their inventory with product mix at the optimal amount and time needed, reducing their working capital requirements and enabling them to quickly react to market demand. 111’s nationwide fulfillment coverage is supported by four efficient fulfillment centers in the key economic areas in China. The Company’s retail and wholesale businesses share the same procurement and inventory management systems to optimize the utilization of its fulfillment centers.
111 also provides a full suite of innovative cloud-based solutions on its platform to offer participants in its ecosystem on-demand internet-based software services, providing convenient and customized access to business applications and service modules such as customer relationship management (CRM), supply chain management, online medical consultation, e-prescriptions, digital contract sales organization (CSO) and precision marketing. The Company’s scalable cloud-based platform allows it to rapidly enroll suppliers and customers onto its platform and seamlessly connect all participants in the ecosystem with high efficiency.
The Company believes it is the first mover in the industry to turn data insights into valuable business intelligence. 111 provides technology and data solutions to pharmaceutical companies, which enable them to monitor sales volume and prices of products sold through its smart supply chain and to gain valuable market insights. Meanwhile, with the data on product flows in each location the Company serves, 111 is able to stay abreast of demand for specific products in real time. Data on such demand allows the Company to recommend procurement and stocking strategies to its pharmacy customers and fundamentally improve its pharmacy customers' procurement procedures.