On 7 September 2020, Fosun’s FC2M Conference-cum-Global Ecological Supply Chain Summit was held successfully at Atlantis Sanya, Hainan. Representatives of more than 500 world-renowned companies, including Fosun, Alibaba, Danaher, Vale, Sinopharm, Haier, Huawei, Huazhu, JD.com, Shanghai Pudong Development Bank, Tencent, China Merchants Bank, Cimpress, Hewlett-Packard, Starbucks and Hikvision attended the event and met with their supply chain business partners to jointly explore cooperation in the era of consumption upgrade in response to the uncertainty of the global market and to work together towards a post epidemic recovery in families consumer goods and services demand.
Under the theme of “Global Expansion, Mutually Beneficial Cooperation within Businesses Ecosystem”, the conference-cum-summit attracted more than 1,200 guests in the fields of pharmaceuticals, retail, engineering, steel, real estate, manufacturing, and information technology. This summit is a grand event for businesses in the global supply chain. The success of the FC2M conference has fully demonstrated Fosun’s ability to deploy resources for further developing its various businesses in the new operating environment. It marked Fosun’s gradual transformation from an investment holding group into a profound business operating company.
Fosun is building mutually beneficial businesses ecosystem with FC2M model through its global deployment of resources in various businesses
Fosun’s FC2M model is an open and diverse ecosystem in which product creation and rapid iteration are driven by customer demand. In the term “FC2M”, “C” stands for “client”, “M” stands for “maker”, “2” means linking up the client and the maker with smart technology-enabled manufacturing, and “F” stands for “Fosun” as well as “family”. At present, Fosun has enabled the creation of many classic cases of FC2M such as Atlantis Sanya, Laomiao, Songhelou, Wanbang Cloud Health, and BFC Fengjing Weekend Market.
As an important component of the FC2M ecosystem, the global supply chain has been fostering the growth of all such businesses in the ecosystem. Alibaba’s cloud computing services support Fosun’s overall infrastructure and online business operations; Danaher’s global diagnostic platform, Fosun’s medical diagnostics and the member companies in the medical sector have been cooperating with synergy and supporting each other for the long term; Hikvision has joined hands with Nanjing Nangang to promote the implementation and application of video-based AI intelligence in production, safety, and comprehensive management.
Guo Guangchang, Chairman of Fosun International, said that on the back of the growing trends towards the consumption upgrade in the healthcare sector, online businesses, and the sector of goods and services for families and the rapid advancement of digital technology, the businesses ecosystem with the FC2M model that fully meets family needs will create value for families to the greatest extent. He also added that Fosun is willing to have deep collaboration with business partners in global supply chain from all dimensions within its businesses ecosystem. They are building a global supply chain for the FC2M ecosystem together to meet customer needs and for joint development, co-creation, the sharing the fruits of their endeavors, and mutual benefits.
Wang Qunbin, Co-Chairman of Fosun International, said, “Fosun’s suppliers and its business partners are all crucial components of the FC2M ecosystem. In the future, Fosun hopes to work with all its business partners worldwide in its businesses ecosystem, thus fostering each other’s development and working together to provide innovative products and services of the highest quality for families around the world.”
Fosun successfully transforms itself into a consumer group and its various businesses achieve synergy and multiplier effect through FC2M business model
Consumers are raising their expectations about products and services on the back of consumption upgrade and digitization. Meanwhile, customers’ demand becomes increasingly complex and personalized. There has been growing popularity of account servicing of high efficiency and high quality in the market. To take on the challenges posed by the demands in the modern era and to cope with the changes in the external environment, Fosun formally repositioned itself as an “Innovation-driven Consumer Group” in the second half of 2019 and put forward the “Focus” strategy for the first time in early 2020. It indicated that Fosun has basically completed the industrial and regional expansion deployment. The next strategic focus will be on the strengthening of Fosun’s existing businesses and regional operations and the enhancement of both the competitiveness and operational efficiency of its industry operations. Currently, Fosun has optimized its asset allocation to focus on its core businesses of “Health, Happiness and Wealth”. It will strive to develop its every business into a market leader in their respective industries.
In 2020, the world has been severely hit by the COVID-19 epidemic. To take on the challenges posed by the epidemic outbreak, the Group strived to meet the consumers’ growing demand for products and services of the healthcare sector and online businesses as well as the growing demand of families. The process has accelerated the transformation and upgrading of Fosun’s businesses. Fosun has joined hands with its subsidiaries to speed up the construction of its FC2M ecosystem with Fosun’s characteristics. Specifically, Yuyuan’s live streaming conducted by internet celebrities or KOLs (key opinion leaders) and amateurs alike already became part of its regular sales channels and boosted the online sales of Laomiao Tmall store by 100% YoY in the first half of 2020. “iShopping”, an online shopping platform launched by the BFC, achieved its goal of recruiting 100,000 members for its customer club ahead of schedule and completed the roll-out of a number of offline activities. The “BFC Fengjing weekend market” attracted over two million people within two months of its launch and is emerging as a magnet for internet celebrities.
In May, Fosun kicked off its marketing campaign “515 Fosun Family Day” which focused on household consumption. In that annual marketing event, Fosun joined hands with its 28 brands to carry out online and offline interactions with consumers and promotional activities. This not only can contribute to a recovery in post-epidemic consumption but also can helping the various businesses in the ecosystem with FC2M model to achieve synergy and multiplier effect. Since July this year, Fosun has successively held a number of theme forums on FC2M for Fosun Pharma, Fosun Hive, and Fosun Tourism, demonstrating the determination and strength of Fosun’s businesses of health, happiness, and wealth to work with their business partners to build a robust FC2M ecosystem.
Consolidating supply chain for businesses ecosystem, enhancing synergy between such businesses with FC2M model
Fosun’s digitization and adoption of smart technology have contributed to the rapid development of the FC2M ecosystem. Digitization and the adoption of smart technology have enabled the businesses ecosystem with the FC2M model to develop the markets for consumer goods and services at a lower cost and higher efficiency. Therefore, Fosun and Alibaba have started deep cooperation in many aspects.
In terms of investment, Fosun and Alibaba have jointly invested in high-profile businesses such as Cainiao and Mybank and they have thus pooled their high-quality resources and laid a foundation of strategic significance for their cooperation in business. At the business level, Fosun, which has been expanding rapidly in the past, has put forward such requirements as low cost, high flexibility, and high security for its information technology system. Alibaba Cloud provides group cloud and public cloud services for Fosun and its more than 30 subsidiaries and helps Fosun build up its capability to safeguard its information technology system on Cloud through Cloud Shield, enabling Fosun to shift the focus from CAPEX to OPEX for running its products and businesses. This effectively supports the digitalization of Fosun’s business and accelerates innovation in business with the help of digital technology.
As a business partner of Fosun, Alibaba has helped Fosun realize the upgrading and mutual reinforcement of Fosun’s various businesses from the perspectives of Fosun’s suppliers, customers and business partners. In the future, Fosun and Alibaba will continue to deepen their cooperation in cloud computing, big data, artificial intelligence, and the Internet of Things, with their focuses on such fields as retail, medical care, real estate development and cultural tourism, etc. Moreover, Fosun will also encourage more of its subsidiaries to adopt the technology of Cloud computing so that they will be able to reduce overall costs. Meanwhile, Fosun will explore more opportunities for cooperation with Alibaba in the digitization and adoption of smart technology in business.
As of the end of August, Fosun has reached out to hundreds of high-quality manufacturers around the world to meet families’ demand in the fields of health, happiness and wealth. It has also worked with thousands of business partners around the world to serve more than 350 million clients. Through the FC2M ecosystem, Fosun can efficiently link all parties in its businesses ecosystem and unlock the value from the synergy of all such businesses. This has also enabled it to build strong economic moats in its various businesses.
Xu Xiaoliang, Co-CEO of Fosun International, said, “As an innovation-driven consumer group, Fosun has completed its deployment of resources worldwide and the development of its individual businesses. It has also built on this achievement by linking hundreds of high-quality manufacturers around the world in its businesses of health, happiness and wealth. It has also worked with thousands of business partners around the world to provide more than 350 million clients with high-quality products and services that satisfy their needs.”