China's online healthcare market proving tough pill to swallow

 29-Jul-16, South China Morning Post 

Chinese conglomerates Fosun and Alibaba are betting big on the country’s expected reforms of the health care system, with their own bold plans to expand their online offerings to the sector.

Image: SMCP

But so far the country’s rigidly-regulated market is proving a more bitter pill to swallow than expected, say experts.

Ali Health, Alibaba’s health care offshoot with a foray already into online pharmacy services, is focusing its efforts squarely on Beijing’s overhaul of the current overreliance by hospitals on drug sales. But its plans took an early setback in Jun-16 when the government unexpectedly halted online drug sales by third-party platforms.

In Jul-16, Fosun's offshoot Shanghai Fosun Pharmaceutical tied up with Alibaba’s online payment service provider Alipay to form an alliance through both online and offline channels. "The cooperation will connect Fosun Pharma’s offline health care service system with Alipay’s advanced online payment ability," a spokesperson said, adding that other potential collaboration areas including technology and media have been identified.

 Read the full article

 Insights