(YI) 111, Inc. Business Model Canvas Research |
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111, Inc. Business Model Canvas: Strategy at a Glance
Unlock the full strategic blueprint behind 111, Inc.’s business model. This concise Business Model Canvas highlights how the company creates value, serves customers, and monetizes its platform in a fast-moving healthcare market. Download the full version for deeper insights and practical strategic takeaways.
Partnerships
Pharmaceutical manufacturers and distributors
Pharmaceutical manufacturers and distributors keep 111, Inc.'s catalog stocked across prescription drugs, OTC medicines, supplements, and wellness items, so they directly shape fill rates and price competitiveness. In 2025, this supply base remains the core engine for B2B procurement at scale, helping pharmacies and wholesalers buy more efficiently and keep fast-moving items available.
Pharmacies and wholesalers
111, Inc. works with pharmacy and wholesale partners across its O2O network, helping it reach more than 240,000 offline pharmacy points of sale and fulfillment sites while also feeding the 1 Pharmacy model with demand. These partners widen last-mile access, improve stock flow, and support a platform that reported RMB 4.4 billion in net revenues in 2025.
Medical practitioners
Medical practitioners are core to 111, Inc.’s online consultation and e-prescription flow: doctors and clinicians verify demand, issue compliant prescriptions, and turn patient needs into orderable medicine. In 111, Inc.’s model, this link is critical because prescription workflows cannot move without licensed medical sign-off, and it keeps fulfillment tied to regulated care.
Insurance providers
Insurance providers connect 111, Inc. to reimbursable care, which can lift patient access and raise transaction volume. In 2025, this matters even more because insured demand is the cleanest path to repeat prescriptions and long-term platform use.
It also deepens 111, Inc.’s role in the healthcare ecosystem by linking pharmacies, patients, and payers.
- Drives reimbursable demand
- Improves patient access
- Supports higher order volume
Logistics and technology partners
111, Inc.'s 2025 operating model still depends on logistics, warehousing, software, and IT partners to move orders fast and keep the platform running. These partners support last-mile fulfillment and system uptime, which is critical for its online-to-offline service flow across 2025 delivery and technology operations.
- Warehousing keeps stock close to demand.
- Delivery partners enable last-mile speed.
- IT support protects system uptime.
111, Inc.’s 2025 partner network powered RMB 4.4B in revenue
111, Inc.’s key partnerships in 2025 centered on drug suppliers, pharmacy and wholesale networks, doctors, insurers, and logistics and IT vendors. These links supported RMB 4.4 billion in net revenues and access to more than 240,000 offline pharmacy points of sale and fulfillment sites.
| Partner | Role |
|---|---|
| Suppliers | Stock and pricing |
| Pharmacies | Reach and fulfillment |
| Doctors | Prescriptions |
What is included in the product
Detailed Word Document
A concise, real-world Business Model Canvas for 111, Inc. covering its 9 blocks, key channels, and value drivers.
Customizable Excel Spreadsheet
Helps quickly map 111, Inc.’s business model into a clear, one-page view for faster analysis and decision-making.
Reference Sources
111, Inc. Reference Sources provide a credible trail of evidence that helps decision-makers verify assumptions quickly and act with confidence.
Activities
Online retail and wholesale sales
111, Inc. runs its core business through online retail and wholesale sales of healthcare and wellness products, serving both B2C shoppers and B2B pharmacy partners. This channel mix, built around online retail and wholesale pharmacy network activity, is the company’s main commercial engine and the main way it reaches demand at scale.
Marketplace operation
111, Inc. runs a third-party marketplace that links vendors directly with pharmacies and other buyers, so the Company can expand assortment without owning every SKU. This asset-light model supports faster catalog growth and lower inventory risk, which matters in a sector where breadth and fill rate drive repeat orders.
Warehousing and logistics management
Warehousing and logistics management lets 111, Inc. keep healthcare inventory on hand, fulfill orders fast, and protect service levels for time-sensitive products. This matters because the company’s model depends on high product availability and reliable last-mile delivery, where even small delays can disrupt pharmacies, hospitals, and other healthcare buyers.
Consultation and prescription fulfillment
111, Inc. uses online consultation to create a fast path from care to e-prescription fulfillment, so demand can move into compliant delivery in one flow. In FY2024, this prescription-led model stayed central to repeat usage, because each completed consult can turn into a refillable order and a higher conversion rate for the platform.
- Online consults feed e-prescriptions.
- Fulfillment links care to delivery.
- Repeat refills support retention.
Software development and IT support
In FY2025, 111, Inc. used software development and IT support to keep its O2O platform, supply-chain systems, and data integration running across pharmacies, vendors, and consumers. This work supports one connected network, so orders, inventory, and partner services move with less friction.
- Runs the O2O platform
- Keeps supply-chain systems live
- Supports partner software and IT
- Links pharmacies, vendors, consumers
111, Inc. Strengthened Its Digital Health Network in FY2025
In FY2025, 111, Inc. focused on running its O2O platform, supply-chain systems, and partner IT, so pharmacies, vendors, and consumers could transact in one network. The Company’s key work stayed centered on online ordering, fulfillment, and digital consult-to-prescription flow.
| Key activity | FY2025 role |
|---|---|
| O2O platform and IT | Kept network linked |
| Supply-chain systems | Supported order flow |
| Online consults | Drove e-prescriptions |
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Resources
O2O healthcare platform
111, Inc.’s O2O healthcare platform is its core asset, linking consumers, pharmacies, vendors, and service providers in one online-to-offline network. In 2024, the platform supported RMB 11.0 billion of revenue and enabled both B2C orders and B2B supply-chain transactions, which keeps traffic, fulfillment, and data inside one system.
14 Yi Hao retail pharmacies
As of December 31, 2021, 111, Inc. operated 14 Yi Hao retail pharmacies, giving it a physical footprint in Guangzhou, Tianjin, Kunshan, Chongqing, and Wuhan. These stores support local fulfillment and boost brand visibility, but the count was still just 14 locations, so the network remained small versus national pharmacy chains.
Product catalog breadth
111, Inc.’s product catalog breadth covers prescription drugs, OTC medicines, supplements, optical products, devices, personal care, and infant care. That breadth is a key resource because it supports one-stop healthcare buying, lifts cross-sell, and helps keep customers in the 111, Inc. ecosystem.
Warehouses and logistics capabilities
111, Inc.’s warehouses and logistics network are core key resources because they support storage, distribution, and fulfillment across its healthcare supply chain. The company needs this infrastructure to manage wide product variety, keep orders compliant, and ship on time across regions.
Supports high-SKU storage and picking
Enables regional order fulfillment speed
Helps meet compliance and traceability rules
Data, software, and operating know-how
111, Inc.’s key resources are its data integration, software systems, and supply chain know-how. These assets run marketplace operations, lending workflows, and partner servicing, while helping the Company tune assortment, demand, and fulfillment across its healthcare network.
- Connects data across partners and orders
- Supports lending and servicing workflows
- Improves assortment, demand, and fulfillment
111, Inc.’s O2O Platform Drives RMB 11.0B Revenue
111, Inc.’s key resources are its O2O platform, supply chain, and data systems. In 2024, the platform supported RMB 11.0 billion of revenue, while its 14 Yi Hao pharmacies, as of December 31, 2021, added local fulfillment and brand reach.
| Resource | Data |
|---|---|
| O2O platform | RMB 11.0 billion revenue in 2024 |
| Yi Hao pharmacies | 14 stores as of Dec. 31, 2021 |
Value Propositions
One-stop healthcare shopping
111, Inc. turns healthcare shopping into one basket by combining medicines, supplements, devices, and personal care items on one platform. That breadth lets consumers buy across categories in one place, which cuts search time, reduces cart switching, and lowers purchase friction.
Prescription fulfillment online
111, Inc.’s online prescription fulfillment lets users get medical guidance and an e-prescription in one flow, then receive medicines through delivery. This cuts friction in access to care; in China, online healthcare use keeps rising as patients move routine visits and pharmacy orders to digital channels.
O2O convenience
111, Inc. links online ordering with offline pharmacy support, so customers can buy through digital channels and still get help from a physical store. That O2O model improves access and trust in healthcare purchases, which matters in a market where 111, Inc. reported its latest annual results for 2025 on the SEC filing path.
B2B supply chain integration
111, Inc. connects pharmacies and vendors through a managed marketplace and data integration services, so partners can source faster and keep inventory visible. In 2025, this B2B layer supports a more connected procurement flow and helps reduce manual ordering friction.
- Managed marketplace links buyers and vendors
- Data tools improve sourcing efficiency
- Better inventory access supports replenishment
For pharmacies, that means quicker access to products; for vendors, it means a tighter route to demand and more consistent order flow. The result is a cleaner, more connected supply chain process.
Financing support for 1 Pharmacy clients
111, Inc. offers online loan application support to pharmacies and wholesalers, helping ease working-capital strain in a supply chain where cash gets tied up fast. This adds value beyond distribution by improving liquidity access and making the purchasing cycle smoother for pharmacy clients.
- Supports online loan applications
- Relieves working-capital pressure
- Adds financing value beyond distribution
111, Inc.: One-Stop Healthcare Shopping Made Simple
111, Inc. gives one-stop access to medicines, devices, supplements, and personal care, then adds online prescription, offline store support, and B2B procurement in one flow. Its 2025 annual filing shows this model is built to cut search time, speed replenishment, and ease pharmacy cash pressure.
| Value proposition | 2025 proof point |
|---|---|
| One-stop healthcare shopping | 4 product groups |
| Online prescription to delivery | 1 guided care flow |
| Pharmacy and vendor sourcing | B2B marketplace + data tools |
Customer Relationships
Self-service digital ordering
111, Inc. uses self-service digital ordering so consumers and business buyers can place repeat orders online with little manual help, which fits high-frequency replenishment and keeps the process fast and low-friction. This model supports scale through automation and is well matched to pharmacy and healthcare buying, where speed and convenience matter most.
Managed B2B account support
Managed B2B account support helps 111, Inc. keep pharmacies, wholesalers, and vendors aligned on procurement, system integration, and fulfillment, which matters most for large, recurring orders. In a business handling high-frequency replenishment, account-level service can cut order friction and improve repeat sales.
Clinical consultation support
Clinical consultation support gives 111, Inc. a guided layer for online purchases, so consumers can confirm prescription choices before checkout. In FY2025, that kind of service helps lift trust, reduce order friction, and improve fulfillment quality in high-stakes healthcare buying.
Supply chain and data support
111, Inc. builds customer ties through integration and operational support, not just product delivery. This service-heavy model helps partners improve efficiency and visibility across procurement, inventory, and data flows, which is core to its B2B healthcare platform.
- Integration support, not pure retail
- Improves partner efficiency
- Raises supply-chain visibility
Loan application assistance
111, Inc. supports pharmacy clients with online loan applications, so the sale becomes a financing touchpoint, not just a transaction. In 2025, that kind of embedded credit help can raise partner stickiness and make pharmacies more likely to keep using the platform for both sourcing and funding.
- Links commerce with credit access
- Raises partner loyalty
- Increases platform dependence
111, Inc. Boosts Retention with Fast, Trust-Based Reordering
In FY2025, 111, Inc. kept customer ties through self-service ordering, account support, clinical guidance, and embedded financing, so repeat buying stays fast and low-friction. That mix suits pharmacy and B2B healthcare, where trust, speed, and fulfillment quality drive retention.
| Channel | Role |
|---|---|
| Self-service | Repeat orders |
| Account support | Partner retention |
| Clinical help | Order trust |
| Loan tools | Stickiness |
Channels
Online retail channels
111, Inc. uses online retail as a core B2C channel, letting individual consumers browse its catalog, place orders, and get fulfillment through digital touchpoints. This channel is central to its direct-to-consumer model and supports scale across pharmacy and health products.
Wholesale and retail pharmacy network
111, Inc. uses a pharmacy-based offline and hybrid network to link B2B drug supply with local store availability, which also supports O2O order fulfillment. In its latest reported year, this channel stayed central to serving pharmacy buyers and improving last-mile reach across China.
Online marketplace
111, Inc.'s online marketplace links third-party vendors with pharmacy buyers, so it works as a direct procurement and discovery channel; the Company said this model expands assortment and lifts transaction volume across its platform.
This matters because marketplace-led buying can widen SKU coverage fast and improve fill rates, which helps 111, Inc. deepen repeat trade with pharmacies and other healthcare buyers.
Yi Hao physical pharmacies
Yi Hao’s 14 retail pharmacies act as storefronts and fulfillment nodes for 111, Inc., giving the Company a physical channel in key Chinese cities while supporting last-mile pickup and local service. In healthcare, these stores also lift trust: the 14-site network backs online sales with a visible, licensed presence, which helps reinforce brand credibility and patient access.
- 14 physical pharmacies
- Storefront and fulfillment nodes
- Key-city local channel
- Supports healthcare trust
Consultation and e-prescription workflow
Digital consultation and e-prescription are core service channels for 111, Inc.; they turn patient demand into product orders, especially for prescription medicines that need a valid script before fulfillment.
This model links care, payment, and delivery in one flow, so each consult can move straight to pharmacy order capture and repeat fills.
- Consult-to-order conversion
- Best fit for prescription drugs
- Supports repeat fulfillment
111, Inc. Blends Online, O2O, and Pharmacy Marketplaces
111, Inc.'s channels mix online retail, pharmacy O2O fulfillment, and a marketplace that links third-party sellers to pharmacy buyers. Its 14 physical pharmacies also act as store, pickup, and service nodes, while digital consults and e-prescriptions help turn patient demand into orders.
| Channel | Data |
|---|---|
| Physical pharmacies | 14 |
| Channel types | Online, offline, O2O, marketplace |
Customer Segments
Individual consumers
Individual consumers are 111, Inc.'s core B2C base: they buy prescription medicines, OTC drugs, supplements, devices, and personal care items, and they also use consultation and e-prescription services. China had 1.09 billion internet users by end-2024, giving 111, Inc. a very large digital health pool to serve.
Pharmacies
Pharmacies are a core B2B segment for 111, Inc.: they act as both buyers and operating partners in the 1 Pharmacy model, using the platform for sourcing, data tools, and supply-chain integration. 111, Inc. reported RMB 6.9 billion in net revenues in 2024, underscoring the scale of this pharmacy-led network.
Pharmaceutical manufacturers and distributors
Pharmaceutical manufacturers and distributors use 111, Inc.’s platform and marketplace to reach pharmacy demand at scale, giving them a wider buyer base than direct sales alone. That access helps keep product supply flowing and supports marketplace liquidity by matching more SKUs with more pharmacy orders.
Medical practitioners
Medical practitioners are a core customer segment for 111, Inc., because they drive prescription generation and patient consultation flows that feed its healthcare service layer. China had about 4.8 million licensed physicians in 2023, so even small shifts in practitioner adoption can scale prescription-linked demand fast and connect clinical need to product fulfillment.
- Drive prescriptions and consultations
- Anchor healthcare service traffic
- Link care demand to fulfillment
Insurance providers
Insurance providers are a strategic ecosystem segment for 111, Inc., not just a retail buyer, because they connect the platform to reimbursable healthcare spending. With about 1.33 billion people covered by China’s basic medical insurance, insurer links can turn pharmacy demand into more stable, partnership-led volume.
- Drives reimbursable demand
- Supports partnership growth
- Stabilizes order flow
111, Inc.: Pharmacy-Led Growth in China’s Digital Health Market
111, Inc. serves five clear customer groups: consumers, pharmacies, drug makers and distributors, clinicians, and insurers. Its strongest pull is pharmacy-led demand, while prescriptions and reimbursement links widen repeat use across China’s digital health market.
In 2024, 111, Inc. posted RMB 6.9 billion in net revenues, with China’s 1.09 billion internet users and about 1.33 billion basic medical insurance enrollees supporting reach and paid demand.
| Segment | Role | Key data |
|---|---|---|
| Consumers | B2C demand | 1.09B internet users |
| Pharmacies | Core B2B partner | RMB 6.9B net revenue |
| Insurers | Reimbursable flow | 1.33B insured |
Cost Structure
Product procurement costs
For 111, Inc., product procurement costs are the biggest cost bucket because the Company Name buys medicines, supplements, and other healthcare products from suppliers for wholesale resale. This includes inventory purchase and sourcing fees, and it directly pushes gross margin up or down.
In its latest reported results, this cost line remains tightly tied to order volume and product mix, so even small shifts in supplier prices or inventory turns can quickly change profitability.
Warehousing and logistics expenses
Warehousing and logistics are a major cost driver for 111, Inc., because storage, handling, transportation, and last-mile delivery are needed to keep healthcare orders accurate and on time. In healthcare fulfillment, even small delays can hurt service quality, so these costs are not optional; they support reliability, patient trust, and recurring demand.
Technology and software development
111, Inc. keeps spending on platform engineering, software maintenance, IT support, and data systems because these layers power its marketplace, e-commerce, and integration services. These are structural costs in a digital model, so they rise with user traffic, partner links, and order flow rather than falling away after launch.
Pharmacy operations
Operating 14 retail pharmacies means 111, Inc. carries fixed rent, staffing, compliance, and store overhead at each site. These physical outlets raise visibility and support O2O sales, but they also make the cost base less flexible and the operating model harder to manage.
- 14 stores add fixed costs
- Rent and labor drive spend
- O2O support, more complexity
Sales, marketing, and compliance
Sales, marketing, and compliance are recurring costs for 111, Inc., driven by customer acquisition, partner management, and strict prescription and product rules in healthcare distribution. These spend lines protect trust and lawful operations, especially in a regulated market where compliance failures can stop sales and raise legal risk.
- Customer acquisition keeps order flow growing.
- Partner management supports supply continuity.
- Compliance reduces legal and licensing risk.
111, Inc. Cost Base Hinges on Procurement and Pharmacy Overhead
111, Inc.’s cost base is led by product procurement, then warehousing, logistics, and platform IT, so gross margin stays sensitive to supplier prices, inventory turns, and order volume. The 14 retail pharmacies add fixed rent, labor, and compliance costs that reduce flexibility.
| Key cost driver | Latest data |
|---|---|
| Retail pharmacies | 14 |
| Main pressure points | Procurement, logistics, IT |
Revenue Streams
B2C product sales
111, Inc. earns direct B2C revenue from consumer sales of medicines, supplements, devices, and personal care products through online and offline retail. This is its most direct cash source, and in 2025 it still sat at the core of the business mix alongside broader healthcare distribution.
B2B wholesale sales
111, Inc.’s B2B wholesale sales revenue comes from bulk, recurring orders from pharmacies and wholesalers, which lifts order size and repeat buying. This is the core of its network model, and in 2024 the Company continued to scale a platform that serves tens of thousands of pharmacy partners across China.
Marketplace service fees
111, Inc. monetizes its online marketplace by charging third-party vendors access, transaction, and service fees, so the platform earns from intermediation rather than only product margin. In 2025, this model stayed tied to vendor activity across its digital health network, where fee income scales as more sellers and orders move through the marketplace.
Value-added service fees
111, Inc. can charge for online consultation, e-prescription fulfillment, and data integration, so revenue can grow beyond product margins. These value-added services also keep users inside the platform longer and lift repeat use across the health ecosystem.
- Monetizes service layers, not only products
- Lifts revenue per customer
- Deepens ecosystem engagement
Financial facilitation income
Financial facilitation income comes from helping 1 Pharmacy clients complete online loan applications, turning financing support into fee-based service revenue. It links commerce with financial enablement and can raise partner stickiness, because one more useful service usually means more platform usage.
- Loan support creates service income
- Connects sales with financing
- Boosts partner retention
111, Inc.’s 2025 Revenue Mix: Sales, Fees, and Services Drive Growth
In 2025, 111, Inc. still relied on five revenue lines: B2C retail, B2B wholesale, marketplace fees, healthcare service fees, and financing-related service income. The mix matters because product sales drive volume, while fees and services raise revenue per order and deepen platform use.
| Stream | 2025 role |
|---|---|
| B2C retail | Core cash source |
| B2B wholesale | High-repeat orders |
| Marketplace fees | Platform monetization |
| Services | Higher ARPU |
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