The recent Black Friday shopping event witnessed an extraordinary success story from iHealth, a subsidiary of Chinese medical device manufacturer Jiuan Medical, which achieved remarkable sales performance with its COVID-19 test kits while securing billion-dollar government contracts.
Black Friday Sales Phenomenon
iHealth's antigen test kits became one of the most sought-after products during the Black Friday promotions. The company's discount links were sold out within hours of being posted, with social media platforms flooded with organic recommendations from satisfied customers. Promotions on major discount platforms like dansdeals were completely exhausted within a few hours, demonstrating unprecedented market demand.
$191 Million Government Contract
Beyond retail success, Jiuan Medical secured a $190.8 million (approximately 1.367 billion yuan) procurement contract with the U.S. Defense Logistics Agency (DLA) for iHealth test kits. This follows previous substantial government orders, positioning the company as a major supplier in the U.S. pandemic response infrastructure.
The contract, signed on November 22, covers 72 million test kits with specific delivery milestones: 10% within 10 days of contract activation, 40% within 90 days, and full delivery within 140 days. Payment follows inspection and acceptance procedures according to federal acquisition regulations.
Strategic Market Positioning
Jiuan Medical's success stems from strategic foresight and established U.S. market presence through its iHealth subsidiary. The company had already built significant brand recognition on Amazon, where its thermometers consistently ranked bestsellers before the pandemic.
A crucial breakthrough came in November 2021 when iHealth's COVID-19 antigen test received Emergency Use Authorization (EUA) from the U.S. FDA, coinciding with government initiatives to expand testing availability. This timing allowed iHealth to capture approximately 70% of the initial 500 million test kit procurement program.
Financial Performance
The company's financial reports reveal extraordinary profitability, with 24.589 billion yuan in revenue and 16.05 billion yuan in net profit for the first three quarters of the year, representing net margins exceeding 60%. Test kits constitute the primary revenue driver, suggesting even higher product-level margins.
Key Success Factors for Cross-Border Commerce
Jiuan Medical's achievements offer valuable insights for international e-commerce operations:
- Product Selection: Identifying high-demand products that address specific market needs
- Localization: Developing deep understanding of target markets through long-term investment
- Regulatory Compliance: Securing necessary certifications and approvals for market entry
- Brand Development: Building credibility and recognition through platform performance
- Opportunistic Execution: Rapid response to emerging market opportunities with decisive action
The company's performance demonstrates how strategic market positioning, regulatory preparedness, and operational execution can combine to create exceptional business outcomes in international markets.