The Alibaba Group which is said to be very supportive to the development of Alibaba health has agreed to sell some of the categories from their online Tmall pharmacy to Alibaba Health Information Technology Ltd. Recently, the parent company had commented on receiving a deal of Hk$10. 6 billion of newly issued shares of Alibaba health.
Categories from online Tmall pharmacy includes
The categories from online Tmall pharmacy including medical devices, adult products, healthcare products and medical as well as healthcare services are said to be moved over to the Alibaba Health platform. The leading group has commented that the merchants from the Tmall pharmacy will be able to connect on a closer level with the consumers. In turn, the other healthcare ecosystem participants will also get a chance to enhance customer retention and explore new sales opportunities. The analytical capabilities of the Alibaba Health are said to improve the customer experience which gives them a chance to have more choices regarding health care product offerings.
The deal for the Ali health is going to strengthen the business by making sure to push it further into a fast growing healthcare technology market.
Commenting on the latest deal, Alibaba Group CEO, Daniel Zhang asserts, “Healthcare is a strategically important area for Alibaba Group with strong growth potential. This transaction is a logical evolution for the continued development of Alibaba Health into our healthcare flagship platform.”
The increasing demand for the high quality medical and healthcare services is growing day by day for which it is expected for the Chinese Healthcare system to meet the rising demand in order to grow rapidly in the market. According to consultancy McKinsey & Co, it is said that the spending is expected to hit $1 trillion by 2020.