How Does 111 Company Work?

The company's value proposition centers on enhancing healthcare accessibility, convenience, and affordability for consumers. It also focuses on improving operational efficiency and market reach for businesses within its ecosystem.

• Direct digital empowerment of upstream and downstream healthcare participants.
• Leveraging advanced technology, including AI, for personalized services and efficient operations.
• Operating the largest virtual pharmacy network in China, serving over 320,000 pharmacies.
• Providing 24-hour delivery to over 300 cities and 72-hour nationwide delivery.
• Facilitating doctor-patient connections through digital infrastructure for consultations and prescriptions.
• Empowering offline pharmacies with cloud-based services and omni-channel support.

The company's operational efficiency is significantly boosted by its extensive distribution network, which is described as the largest virtual pharmacy network in China. This network reaches over 320,000 pharmacies, representing more than 57% of the sector. Supported by a growing number of self-managed regional fulfillment centers, the company ensures rapid delivery, with 24-hour service available in over 300 cities and 72-hour delivery nationwide. Understanding the Target Market of 111 is crucial to appreciating how these operations are tailored to meet specific market needs.

111 SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

The 111 company operates a multifaceted healthcare platform, generating revenue through both direct sales and service offerings. This integrated approach allows for diverse monetization strategies across its B2C and B2B segments.

Product Sales

The primary revenue source comes from selling pharmaceutical products and health merchandise. This occurs through its online retail pharmacy and its online wholesale platform.

Online Consultation & Prescription

Revenue is also generated from its internet hospital services. This includes providing online medical consultations and issuing electronic prescriptions to patients.

Platform & Digital Solutions

The company offers valuable platform services to its partners. These include cloud-based solutions, digital marketing, and data analytics to aid in drug commercialization.

Fiscal Year 2024 Performance

In fiscal year 2024, net revenues were RMB14.4 billion (approximately US$2.0 billion). This marked a slight decrease from RMB14.9 billion in 2023.

Profitability Achieved

Despite revenue shifts, the company achieved its first-ever annual operating profit in 2024. Income from operations reached RMB2.1 million (US$0.3 million).

Operational Efficiency Focus

Monetization is supported by a strong emphasis on operational efficiency and cost reduction. Total operating expenses decreased to 5.7% of net revenues in 2024.

Understanding the Revenue Streams & Business Model of 111 reveals a strategic approach to market penetration and financial management. The company's ability to achieve profitability in 2024, with income from operations at RMB2.1 million (US$0.3 million), underscores its focus on cost optimization. This efficiency is evident in the reduction of operating expenses to 5.7% of net revenues for the fiscal year 2024, further improving to 5.5% in Q1 2025. This disciplined financial management allows the company to navigate revenue fluctuations, such as the 28% year-over-year decline in B2C revenue in Q1 2025, while maintaining overall stability and pursuing growth.

Key Revenue Drivers

The 111 company's revenue streams are diverse, catering to both individual consumers and business partners. This dual approach strengthens its market position and revenue stability.

• Product Sales: Encompasses both B2C and B2B sales of pharmaceuticals and health products via online retail and wholesale platforms.
• Online Consultation and Prescription Services: Generated through the company's internet hospital, offering remote medical advice and prescriptions.
• Platform Services and Digital Solutions: Includes cloud services, digital marketing, patient education, and data analytics for offline pharmacies and partners.

111 PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

The company's journey began in 2010 as an online pharmacy, with a significant capital infusion of $100 million in 2016. A landmark achievement was its 2018 NASDAQ IPO, making it the first Chinese internet health firm to list in the U.S. The company has since focused on digitalizing pharmacies and expanding its cloud solutions.

Key Milestones and Financial Turnaround

The company achieved its first quarterly operational profitability in Q1 2024, with income from operations at RMB3.7 million (US$0.5 million). This marked a significant shift from previous losses, demonstrating improved 111 company operations.

Strategic Adaptations and Growth

Strategic moves include a partnership with Scrianen in June 2024 to bolster procurement. Co-founders' share purchases in September 2024 signal strong internal confidence in the 111 company business model.

Technological Advancement and Compliance

Investment in technology is evident with the acquisition of four new patents in 2024, bringing the total to 28. The company also regained compliance with Nasdaq's minimum share price requirement in February 2025.

Competitive Advantages and Market Position

The integrated online-offline model offers a seamless customer experience, supported by robust supply chain management. Technology leadership, including AI-driven tools, is a key differentiator for understanding the workflow of 111 company.

Factors Driving Success

The company's competitive edge is built on its integrated online and offline presence, extensive product offerings, and efficient supply chain. Its technological innovation, particularly in AI and cloud platforms, provides crucial data insights and operational streamlining, contributing to its Growth Strategy of 111.

• Integrated online and offline model
• Extensive product portfolio
• Robust supply chain management
• Technology leadership (AI, cloud)
• Favorable government policies shifting prescriptions to retail

111 Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

The company is a significant player in China's digital health market, which is projected to reach USD 328.8 billion by 2033. It operates a large virtual pharmacy network, connecting patients, doctors, and pharmacies through its digital ecosystem, contributing to its strong industry position.

Industry Position

The company is a leading integrated online and offline healthcare platform in China, boasting one of the nation's largest virtual pharmacy networks. Its market share is bolstered by a comprehensive digital ecosystem that effectively links patients, doctors, and pharmacies.

Market Growth and Opportunity

China's digital health market is expanding rapidly, expected to reach USD 328.8 billion by 2033, with a compound annual growth rate of 16.8% from 2025-2033. The telehealth segment is also seeing robust growth, valued at USD 7.14 billion in 2024 and projected to reach USD 54.77 billion by 2033.

Key Risks and Challenges

The company faces macroeconomic pressures within China's healthcare sector, including regulatory changes and price controls. Intense competition and potential liquidity issues from redemption obligations are also significant concerns, alongside a general hesitancy in patient adoption of online healthcare services.

Future Strategic Focus

Future strategies involve enhancing operational profitability and competitive strengths through AI and digital technology investments. The company aims to optimize its value chain, foster pharmaceutical partnerships, and leverage data analytics for sustained growth.

Outlook and Growth Drivers

The company is confident in its long-term growth prospects, driven by healthcare digitalization, the shift of pharmaceutical sales to retail channels, and the increasing healthcare demands of China's aging population. Continuous operational refinement and investment in scalable tech infrastructure are key to solidifying its leadership in the market.

• Continued investment in AI and digital technologies.
• Optimization of the healthcare value chain.
• Enhancement of partnerships with pharmaceutical companies.
• Leveraging data analytics for growth.
• Focus on operational profitability and competitive capabilities.

Understanding the workflow of 111 company involves recognizing its integrated online and offline model. The company's operational efficiency is a critical factor in its success, especially given the competitive landscape. Detailed explanation of 111 company's internal processes highlights its commitment to managing a complex supply chain and customer interactions. The company's business model is designed to capitalize on the growing digital health market in China, a sector with significant potential. The 111 company operations are multifaceted, encompassing logistics, patient services, and digital platform management. The company's structure supports its ability to handle a large volume of transactions and inquiries efficiently. For a deeper dive into the competitive environment, one can explore the Competitors Landscape of 111.

111 Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔