Medical network May 23 - compared with multinational companies, Chinese enterprises in the local have four big advantages, cost, supply and demand matching degrees, marketing strategy and government policy support. 

 

Emerging health-care technology accounts for a share of the global market for medical technology, up from 18% in 2010 to 20% in 2014. According to Boston consulting, the share will grow by 8 per cent between 2016 and 2022. But the scale of the Chinese medical market will grow much faster than that. 

 

The Boston consulting group recently released the medical technology, emerging market companies under a tuyere, report predicts that by 2022, the Chinese medical market scale will reach $69 billion, ranks second in the world, only to the United States, compared with growth of up to 13% in 2015. 

 

A dramatic increase in the size of the market under the premise of China's leading enterprises of medical income is also substantial growth, growth is far higher than the European and American leading enterprises, and in some trades in the local market to overcome or tied in a multinational company. 

 

Boston consulting business Luo Ying, head of greater China medical science and technology, said the development of medical technology emerging market companies tuyere has come, China's leading medical technology companies growth is accelerating. 

 

Chinese medical and technical enterprises are facing the development tuyere 

 

Medical technology of emerging markets has come to China, India, Brazil, the developing countries represented by the size of the market will be a breakthrough in growth, China's medical enterprise income is growing fast. 

 

Of the Boston consulting group, according to a report in 2016 medical accounts for less than a quarter of global markets, emerging markets are expected to be in 6 years of growth in 2022 to a third. 

 

China, which already has the world's second-largest medical technology market by 8% in 2015, will still generate 13 percent growth in the future, the report said. India, which already has the world's fifth largest market by market size in 2015, will generate 17 per cent growth in the future. 

 

Mindray, weigao, Germany, etc, according to the annual report of China's leading medical technology companies from 2010 to 2010, the company annual compound growth rate of income between 16% and 32%, far more than the same period in Europe and the leading enterprise of 0.4% to 6.3% growth. 

 

In the Chinese market, local companies have become market leaders in some sectors, according to the BCG report. 

 

Take drug-eluting stents, for example. In 2004, domestic companies sold only 11 per cent of China's market, a monopoly for multinationals. But by 2015, the number of local companies represented by minimally invasive medical and leep medical care (300003) is about 75 percent. 

 

Similarly, there are X-ray digital imaging systems. In 2004, multinational companies accounted for 100 per cent of the Chinese market in the sector, and by 2013 local companies, such as wandong healthcare, had made up 50 per cent of international companies. 

 

"Local companies have accounted for medical technology market low threshold field major market share, but in CT, mri and endoscopic these high technology, still is given priority to with multinational companies." Luo ying told reporters that Chinese companies are increasingly entering the high-tech sector. 

 

Luo Ying believes that the future in China's medical enterprise as representative's emerging market companies will further expansion has become an important participant in developed markets, and develop into a leading global market participants. 

 

Local companies have a big advantage 

 

Analysis of the Boston consulting group report, compared with multinational companies, Chinese enterprises in the local have four big advantages, cost, supply and demand matching degrees, marketing strategy and government policy support. 

 

Mid-range ultrasonic equipment, for example, will be China's leading ultrasound equipment maker mindray and commonly known as "GPS" compared to the three major multinational companies, while the former is lower in price 10% to 20%, but due to the former in sales, research and development, administrative costs 5% to 30% lower than the latter, such as cost, so the final on the operating profit. 

 

And in the matching degree between supply and demand, based on local companies in advantage, often can more accurately lock the demand of the local market, so as to provide more accurate supply. 

 

21st century economic report, the VSD wuhan local enterprises because found that China's large hospitals can provide the wall plug type negative pressure drainage device, so as to research and design the cost saving pumping dressings, than the first invented the technology of Acelity saves the pumping cost of $10000 each, and save the patients in the management of large area burn when carrying pumping action. VSD now has a 50 per cent market share in China, while multinationals account for only about 20 per cent. 

 

On the marketing strategy, due to local companies on the Chinese market, channels and marketing methods, especially new things more sensitive and understanding, thus better able to occupy the market. 

 

With glucose meter in China currently has 15% to 20% market share of three Noel biological (300298, shares), for example, in 2005, 90% of the glucose meter market was dominated by multinational companies, public hospitals as the main sales channels. Sano accurately captures the prospect of rapid growth in the retail channels of pharmacies, and also captures the e-commerce as an entry point and gets better marketing results. 

 

"The Chinese government's policy support for companies is also an advantage." In the research and development phase, the government provided financial support for local research and development, luo ying told the 21st century economy. In the register phase, but also by eliminating that imported products enjoy fast listed preferential treatment, provides a quick approval for innovative domestic product channel, encourage local enterprises registered products quickly. 

 

The 21st century economics report also learned that local businesses enjoy preferential treatment in manufacturing, bidding, reimbursement and even display in the industrial chain. 

 

But it is worth noting, because the costs are increasing, such as China's manpower, medical enterprises in China's cost advantage is gradually decreased, the future will require more spending on research and development on product upgrades to keep growth advantage.