On March 21, By-Health Chairman Liang Yunchao issued an open letter to shareholders, frankly admitting that the company had suffered a "hard landing" in performance in the past year. The letter disclosed that By-Health's revenue scale in 2024 will shrink sharply to 6.838 billion yuan, a sharp drop of 27.3% year-on-year, and its net profit will undergo a deep adjustment, with a year-on-year decline of more than 60%. With the pressure on performance, the company's stock price continued to be under pressure and the current market value is stable in the range of 20 billion yuan.
Liang Yunchao used "survival in the cracks" to describe the current competitive environment, emphasizing that the company is facing an unprecedented battle. In order to break through the development bottleneck, he said that By-Health has established a digital committee, clearly taking "unmanned" as the transformation direction, and launching the digitalization reform of the entire chain: promoting the upgrading of production automation by building an AI intelligent platform, creating a digitalization laboratory to realize the intelligence of quality inspection, and accelerating the implementation of RFID technology to optimize the efficiency of the logistics system.
Under the performance pressure of a 63% year-on-year drop in net profit, By-Health has accelerated the implementation of RFID (radio frequency identification) technology against the trend. This decision seems contradictory, but in fact it reveals the company's strategic vision in the industry winter. Specifically, combining industry trends and corporate actions, the application of RFID can bring the following benefits to By-Health:
Improve supply chain efficiency
Precise inventory management: RFID technology can achieve full tracking of products from production source to sales terminal. For companies like By-Health with rich product varieties and diverse sales channels, it is crucial to accurately grasp the inventory situation. Through RFID tags, companies can obtain information such as inventory quantity and location of products in real time to reduce inventory backlogs and out-of-stock phenomena. For example, in warehouse management, staff can use RFID readers to quickly count goods, greatly improve inventory efficiency, ensure the accuracy of inventory data, thereby optimizing inventory levels and reducing operating costs.
Optimize logistics and distribution: In the logistics link, RFID can achieve automated sorting and fast cargo tracking. By-Health's products need to be delivered to dealers and retailers across the country in a timely and accurate manner. RFID technology enables logistics companies to quickly identify cargo information, arrange transportation routes reasonably, and improve delivery efficiency. This helps reduce product transit time, reduce logistics costs, and better respond to changes in market demand.
Enhance product quality control
Anti-counterfeiting and traceability: With the continuous development of the health care product market, counterfeit and inferior products appear from time to time. RFID technology provides a reliable anti-counterfeiting method for Tangcheng Beijian's products. Each product with an RFID tag has a unique identification code, and consumers can check the authenticity of the product through official channels. At the same time, when there is a problem with product quality, the traceability function of RFID can quickly locate the production batch, production workshop, and even specific production equipment of the problem product, so that the company can recall the problem product in time, minimize damage to consumers, and protect the brand image.
Optimization of quality monitoring links: During the production process, RFID can be integrated with production equipment. For example, in the raw material procurement link, relevant information of the raw materials, such as origin, supplier, inspection report, etc., can be recorded through RFID tags. On the production line, the production status of the product can be monitored in real time to ensure that each link meets the quality standards. If problems are found in subsequent quality inspections, they can be quickly traced back to the specific links in the production process, and the production process can be adjusted in time to improve the stability of product quality.
Meet market and consumer needs
Improve consumer experience: Modern consumers have high requirements for product transparency and convenience. After Tangcheng Beijian accelerates the implementation of RFID applications, consumers can obtain more product information by scanning the RFID tags on the products, such as nutritional ingredients, usage methods, production date, etc. This interactive consumer experience can increase consumers' trust and favorability in the products, and help improve the market competitiveness of the products.
Adapt to industry development trends: In the entire retail industry, digital and intelligent transformation has become an unstoppable trend. Many large retailers are actively promoting the application of RFID technology to achieve more efficient inventory management and sales analysis. By-Health accelerates the implementation of RFID applications, which can better connect with retailers' systems, improve supply chain coordination efficiency, and occupy a favorable position in market competition.
Written in the end
By-Health accelerates the application of RFID, which is essentially to build "technical anti-fragility" in the industry's cold winter. When competitors reduce technology investment due to short-term profit pressure, it quietly raises the industry entry threshold through supply chain transparency, operational efficiency improvement and brand trust reinforcement. This counter-cyclical strategy may make it the biggest beneficiary of the next round of industry recovery.
This paper is from Ulink Media, Shenzhen, China, the organizer of IOTE EXPO (IoT Expo in China)
