China Medical Device Industry Current Situation and Trends
Presented by Jiang Feng
China Association For Medical Devices Industry
Agenda
General Situation
Problems
Trends
Suggestions
General Situation: Manufacturers
• Above 10,000 medical devices manufacturers
- 11,847 manufacturers in 2005
• - increase of 1400 compared with the year of 2004
• Growth Rate: 13.40%•
• Gross Industrial Output Value : More than USD
3.09 billion
General Situation: Manufacturers
Types of the industry structure
60%
3%
37%
State-owned Enterprises
Joint Ventures
Private Companies
(measured by quantity)
General Situation: Manufacturers
• Pearl River Delta
• Yangtze River Delta
• Bo Hai Bay Loop
Three key geographical manufacturing areas
General Situation: Products
Registration Information
In 2005 :
• Imported Medical Devices: 10111
• Domestic Medical Devices: 33847 Class I &II -- 27213, Class III -- 6634
General Situation: Products
• Therapeutic Products:
Tri-dimensional Ultrasonic focused therapeutic system, body rotary Gamma knife, simulator, linear accelerator
• Medical Diagnostic Products:
Black & white and colored supersonic diagnostic unit, sleeping monitor, digital X-ray system, MRI, CT, DR
• Operating & Emergency Appliances:
Anaesthesis ventilation system
• Components: High frequency & voltage generator
Business Situation
• More than 30,000 Agencies
• Import Products – over 80% Market Shares
Focus on High-tech devices and large equipment
General Situation : Market Figures
Increase from 210billion in 2005 to 260billion in 2006
USA40％
Japan 12％Europe 18％
China 5％
Others 25％
General Situation : Market Figures
Sales Capacity of the global medical devices market
5.56 6.337.21
8.25 9.3811
0
2
4
6
8
10
12
2000 2001 2002 2003 2004 2005
General Situation : Market Figures
increased from USD5.56 billion in 2000 to USD11
billion in 2005 ,19% annually
Sales Capacity
Sales volume in 2005 :
• Largest foreign-owned manufacturer:
GE Medical USD 700million
• Largest domestic medical manufacturer:
Mindray USD 120million
• Largest domestic agency:
CMIC USD 61.7 million
General Situation : Market Figures
Total Imported Value:USD1.82billion Jan.- Jun.2006
Others,35.66%
523 millionUSA 28.69%
304 millionGermany16.69%
346millionJapan18.96%
Besides the abovementioned countries, Holland, Singapore, UK, France,
Switzerland, Ireland ,Israel, Italy, Korea, Sweden
General Situation: Import & Export
6.30 ％
Besides the abovementioned countries& areas, Singapore,UK, Italy,Russia,Taiwan, Canada, France, Malaysia,Ireland
908 miilion,USA 28.66%
149 millionGermany
5.77%
441 millionJapan13.92%
Total Exported Value : USD3.16 billion Jan.- June.2006
General Situation: Import & Export
20.94 ％
Others
51.65%
General Situation: Import & Export Top 10 domestic export enterprises Jan.- Jun.2006
1 Hangwei GE Medical systems 航卫通用电气医疗系统有限公司 2 Omron Dalian 欧姆龙 ( 大连 ) 有限公司 3 Family Health Equipment (Shanghai)Co.,Ltd.
发美利健康器械 ( 上海 ) 有限公司 4 Siemens Hearing 力斯顿 ( 苏州 ) 听力技术有限公司 5 Luxottica Dongguan 陆逊梯卡华宏 ( 东莞 ) 眼镜有限公司 6 Terumo Medical Products (Hangzhou) Co. Ltd
泰尔茂医疗产品 ( 杭州 ) 有限公司 7 Shenzhen Baoan Foreign Economic Development Co.,Ltd.
深圳市宝安外经发展有限公司 8 SHENZHEN MINDRAY
深圳迈瑞生物医疗电子股份有限公司 9 Shanghai Light Industrial Products Import and Export Corp. Ltd.
上海轻工业品进出口有限公司 10 GN ReSound China 瑞声达听力技术 ( 中国 ) 有限公司
General Situation: Import & Export
Main exported Products
• Standard device, small surgical instruments, etc.
• Some value added products
- ultrasound imaging device
- patient monitoring system
- diagnostics tools
General Situation: Import & Export
• Foreign & Joint Ventures: over 50% of the total exporting volume
• Hi-tech Medical Equipment Export increased
• Increasing competitive capability of Medium & Small Enterprises
Problems
• Commercial Corrupt Practices Act
NDRC policy of restricting price
• Equipment Choosing & Quota system
Problems
Problems
• Developing Law System
Low R&D input
• Technology Achievements Transfer Difficulty
• Lack of high-tech products
Trends: demand
• Sales volume of the medical devices
V.S pharmaceutics industry
In developed countries 1:1
In China : 1:3
< 2% of GDP
Trends :demand
• MOH building the country and the community Medic
al treatment systems
- USD 2.7 Billion / USD 0.85 Billion
- Government Purchase
• Hospitals management system reform
• After SARS, medical devices input increase
Growth Engine:
Trends :demand
• increasing desire for utilization of more advanced
technologies and higher degree of operating autonomy
in Chinese hospitals and clinics
* 175,000 domestic hospitals & clinics ,15% of the medical devices
are made in the 1970s
• growing desire for better quality of care
• increasing availability of healthcare insurance
Growth Engine:
Trends
• Fast Development of R&D Organizations
• More Investment Input
• More Focus on Intellectual Trainings
• High quality products increased
• High tech products enhanced
• Fast Growth Rate on Export
Trends
Suggestions
China Market Strategy Suggestion
For Foreign Medical Device Manufacture
Suggestions
China Market Strategy Suggestion for Foreign Medical Device Manufacture
• Pre-research
• Registration
• Price Strategy
• Select Distributor
• Manufacturing
Suggestions
• Pre-research
- What is hot in China
- Marketing situation and trend
- The related manufacturer information from
- Government policy and regulation
Suggestion: Choose the senior NPO/Company
Suggestions
• Registration
- High time cost
- Evading the product not be clearly regulated
- Choosing NPO/Company
Suggestions
• Price Strategy
- Promotion Expense
- Controlling price range
Suggestions
• Select distributor
- Integrated Strengths
- Extensive distribution, sales and service network
- After-sales service and maintenance
- innovative business model
Suggestions
• Manufacturing
- Government resource and public relation
- Distributing Channels
- Patent Protecting / Products Copying
