Until April 1st, Fujian Putian, Huang Wei (pseudonym), who opened a specialist clinic in Beijing, has not decided whether to return to his hometown to attend the April 4th Conference of Putian.

The meeting was convened by the Putian Health Industry Association (hereinafter referred to as the Putian General Assembly). The main topic was to study how to deal with Baidu. Huang Wei’s clinic is well managed. He is a member of the Putian General Assembly and a cadre elected by everyone, but he does not want to go too close to the poorly known Putian.

"I want to do my own business, but I always have to pull me," he said.

April 4 is the day before Ching Ming Festival. According to Chinese tradition, Qingming is going to return to the countryside to sweep the grave. This Qingming Festival of Putian people is not very calm. On the 4th, 208 representatives from various Putian Department Hospitals gathered at the Sandy Hilton Hotel Convention Center opposite the Putian City Government to discuss and vote. This is a closed-door meeting, and the security is very strict. At the door of the conference center, someone is holding a list of names to check. The venue is talking about Putian.

After the meeting, Wu Yidong, assistant to the president of the Putian General Association and executive president, announced that after the vote by secret ballot, all member units suspended bidding promotion cooperation with Baidu from 0:00 on April 5.

Wu Yidong said that about 90% of the participants agreed to suspend cooperation with Baidu. Huang Wei told Caixin reporter that he voted against it.

According to Wu Yidong, in the following two days, the relevant leaders of the Putian General Meeting and the branches of the branch, “all of them fought in the front line, and even coordinated, communicated and communicated with the hospital on a large scale.”

According to the Putian General Association, as of 3 pm on April 6, 98.2% of the more than 8,600 Putian medical institutions in the country have stopped bidding in Baidu. There are only about 150 medical institutions in the country that are still bidding for Baidu.

Baidu's response is extremely strong. Baidu said on the official Weibo that some customers have reported that they have been threatened by the “Purchasing Baidu Bidding Agreement” in the North China Branch of the Putian (China) Health Industry Association, saying that they will not stop Baidu’s promotion and “generate the collective click”. Because Baidu charges according to clicks, malicious clicks will cause huge losses to the cooperative hospitals. Baidu dismissed this behavior as a "black society" and said that it would never compromise with a false medical institution. It has reported the case to the public security organs and technically blocked malicious clicks.

Although the Putian Department emphasized that the suspension is only a means to better cooperate with Baidu, Baidu refused to negotiate and negotiate with the Putian General Assembly before the publication of this article.

From the beginning of the wind in early March to the Putian Conference on April 4, Putian Baidu "Congress War" officially began. On April 8, a research report from JP Morgan Chase predicted that the confrontation between the two sides will continue for some time and will have an impact on Baidu's short-term performance, but JPMorgan is still optimistic that both parties are expected to reach an agreement within a few weeks, Baidu May give a greater discount to the Putian system.

The boycott has indeed put pressure on Baidu's share price – after the market opened on April 6, when the Nasdaq stock market rose, Baidu's share price fell by 2.35%.

Surprisingly, the confrontation only lasted for four days and the suspension was announced. According to the news from Netease, on the evening of April 8, Putian General issued a group notice, saying that "the suspension of cooperation with Baidu has ended at 24 o'clock in the evening", the purpose is "to leave room for further negotiations with Baidu." . But "if the two sides cannot reach a consensus, there will be further and more powerful actions." A number of hospital officials also confirmed to Caixin reporters that they received the above notice. On the same day, Baidu shares rose 8.98% to 212.84 US dollars per share.

This statement was denied by Wu Yidong, executive president of Putian General Assembly, but he acknowledged that internal differences are increasing, and it is always possible to adjust strategies and use legal weapons to jointly respond. A confrontational confrontation will be dying.

Baidu and Putian originally had a business model of “mutually fish”. The basis of the model is to lock in customers through Baidu's bidding rankings, and to ask for high prices, both Putian Department Hospital and Baidu have high income.

There is a saying in the Chinese medical industry that 80% of private hospitals in the country are from the Putian system. The Putian Department Hospital is mainly engaged in gynaecology, male subjects, dermatology, plastic surgery and beauty, and is known for its good at marketing. However, it has been widely criticized for its exaggerated publicity, over-medical treatment and arbitrary charges.

In the past ten years, with the rise of Baidu and the monopoly on search engines, Putian Department Hospital gradually used Baidu bidding ranking as a major platform to attract the source of the disease. The medical industry has also become one of the three major sectors contributing to Baidu's advertising revenue. Therefore, Putian is known as the “Baidu Big Gold Master”.

Now, this business model has arrived at a time when it has to change. Behind this short-term confrontation is not only the appeal of Putian's redistribution of interests, but both sides have unanimously proposed the long-term goal of promoting "business transformation."

Putian wants to change the old image, turn the attention and investment in advertising to provide consumers with more professional, cheaper and more effective medical services; Baidu is also determined to raise the threshold and remove the worst medical services. At the same time, with the transformation of mobileization, we gradually enriched the income model and got rid of the dependence on the auction ranking.

"The Putian system is the product of the times. The cooperation between Baidu and Putian is also the contradiction that is now the product of the times. The so-called 'Putian model' will gradually die as a product of the times." A medical field investor Said.

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