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Multinational medical device companies in China, Current Situation and Analysis

2013-02-25 10:33:33 Click:

China is a big country with 1.3 billion people, and the huge demand for medical equipment, is the popularity of the world's largest medical device market, the world's largest high-end medical equipment markets in the world. The data show that China's medical device market sales of 54.8 billion yuan, of which about $ 10 billion of high-tech medical equipment, and in the growth rate of about 14% per year. In addition, China's medical market, the proportion of sales of medical devices and drugs to 1:8, the large gap with the developed countries, and therefore has a huge potential for development. Hot market has attracted many multinational medical device companies to enter one of the most substantial U.S. GE, Siemens, Germany, the Netherlands, Philips, Shimadzu, Toshiba and other well-known multinational companies. Multinational companies in the Chinese market it? Not long ago, a Chinese medical device market industry sincere the Taihe medicine Information Consulting Co., Ltd. has just completed uncover this mystery.

The study shows strong Developmental Trends with Siemens, GE, GE has occupied half of the CT, magnetic resonance equipment, such as high-end medical equipment market in China, Siemens followed, Philips is catching up, Shimadzu and Toshiba in possession market share gradually decline.

 Throughout the field of high-end medical equipment, GE's market share has reached 50% to 60%, is the absolute leader in the market. To expand the Chinese market at the same time, GE has also gradually put China on the core of the global development position. GE medical equipment production in China not only supply the Chinese market, but also to the global supply. Currently, GE installed capacity of more than 50% of the 30% of the worldwide CT sales and popularity on the CT market from GE Healthcare R & D and manufacturing base. CT70% of its production in China for export. GE Healthcare's future goal is to not only to 2005 in China to achieve sales of 50 billion, while its global market should reach 50 billion yuan from China's purchases.

 Siemens occupied by the Chinese medical device market share after the GE. Siemens Medical Group in 1999 put into operation in Shanghai CT machine, the "Huan star" type CT machine to enter the market in October 2001, sold very well, and the considerable number of them are sold to overseas markets. In February 2003, Siemens Medical Solutions built a new CT production plant in Shanghai's Pudong. Siemens said that the CT machine for Chinese language interface will also be launched soon. Compared to GE, Siemens, two competitors, Philips medical equipment production and R & D base in China to set up a full ten years later. February 9, 2004, Philips Electronics Group and Neusoft Group, China's Neusoft Digital Medical Systems Co., Ltd. jointly established Philips and Neusoft Medical Systems Co., Ltd., will provide Chinese and global market with the CT machine, X-ray machine, ultrasound equipment and so on. Leading technical product advantages of Philips medical equipment and rich experience in international sales and marketing experience, combined with extensive contacts Neusoft and domestic research and medical service agencies can improve the level of technology and management ability Neusoft digital medical field, and promote China's medical industry quickly internationalization. This cooperation is also an important strategy to accelerate development in the Chinese business Philips. Toshiba's development in China has gone through 30 years of ups and downs, until February 2003, Toshiba invested in Dalian to engage in the production of medical devices in China has not yet set up R & D base its products on the Chinese market significantly behind GE and Siemens, which makes Toshiba's high-tech medical products lagged behind the overall level of the high-end market, can not meet the needs of the Chinese market. Shimadzu Founded more than 120 years of history, but the performance on the medical device market in China compared to the original splendor, has also been showing a downward trend.

The depth of cooperation to achieve win-win situation, in introducing medical equipment, the Chinese government has long set the direction of the "market for technology", and the determination never do backward medical equipment distribution center. The determined from China resolutely ban on imports of used medical equipment can be seen. At the same time, China's economic development is not balanced, but the huge population base and the rapid development of the Chinese economy so that domestic demand of high-end medical equipment than any developed are not inferior. "Home loudly from remote, non-borrowed autumn", in this context, who promptly brought the most advanced technology in China, to provide state-of-the-art products for the medical market in China, and the patience of the Chinese market long-term, stable investment, who may only win in the competition. The study shows the successful experience of GE's most important, is that it does not focus on one-sided increase sales, but production and R & D investment in China to provide first-class medical devices for the Chinese market. Jeff Immelt, GE's current CEO, believes that only rely on technological innovation, enterprises can get a long-term growth. GE in China in this line of thinking, a lot of investment in the plant: GE China Research Center in Shanghai Hi-Tech Park was established on June 6, 2000; October 2003, is located in the Beijing Economic and Technological Development Zone of GE Medical Systems (China) the Group fully completed, which makes its production capacity in China to improve the double export capacity also increased twice. On this basis, GE's R & D base in China to provide world-class IT products and adapt to the needs of the development of China's current high-end market, accepted by the majority of customers in China. With the growth of health care investment and investment diversification, in parts of county-level hospitals have begun to buy GE or Siemens products. Instead, Toshiba and Shimadzu products gradually being left out in the cold of the Chinese market, in the final analysis, because they did not use the Chinese medical device market development point of view, but a long time ago, the freeze-frame of the Chinese medical device market for the low-end market, not with the forward to the development of the Chinese economy, make the appropriate adjustments.

 Of course, China's economic development is uneven demand different levels. Just held the Fifth National Medical Equipment Fair of West, the reporter saw many medical institutions on some high-end equipment, beloved, but cash-strapped. This means that enterprises should provide for different levels of market quality products, and not on outdated technology products to get China to sales. Moreover, in the eastern coastal developed areas, hospitals, the demand for high-end medical equipment is synchronized with the world advanced level. Shimadzu has realized the importance of science and technology research and development and sales of high-tech level products in China. According to one of the company's staff revealed its latest angiography equipment is very advanced products.

 The same time, if the establishment of medical devices in China R & D center for product development, clinical trials and clinical evaluation in China, this clinical trial will increase the depth of involvement of the hospital high-end customers in China, more detail on the new research and development of medical devices understanding of the products involved in the research and development process to establish deep feelings. This sense of intimacy in the research of medical devices in China's long-term promotion will have far-reaching impact. The same time, multinational companies to establish R & D base in China, will receive strong support from the Chinese government to enhance the level of product technology, accelerate the speed of the market's reaction. Proved, the first to establish R & D centers in China, GE's success. From the current market situation, the first enterprises to establish R & D center in China, is the leading enterprise in the market. A truly global company, will not only China as the mere sale of products in the market, but will China as to create greater customer value "poised". The past two or three years, the production of medical instruments in China, GE showed the largest exhibitions in the United States very much, and also increasing the number approved by the U.S. FDA. People even began to feel, GE, China; GE in China R & D and production services in China, the world. Outside of the medical device industry, some of the well-known multinational companies, such as Motorola, Microsoft, Nokia, Lucent and so has R & D centers in China, most of the global R & D-oriented, rather than just transformation for Chinese customers. However, some Japanese companies are relatively backward in this regard.

Talent Localization conducive to the development of multinational companies in China, the absorption and use of local talent in China is essential in enterprise development. The one hand, the local talent a better understanding of national conditions, more understanding related policies and regulations, and may to a certain extent on the impact of regulations and industry standards to reduce barriers for enterprises to develop new markets in China. On the other hand, the local talent is also a better understanding of the Chinese market. Absorb a large amount of Chinese local talent and culture development in China, GE and Siemens played a a considerable supporting role. GE in recent years to attract a lot of local technology and management talent, you can see both the Americans in the leadership and management of the Chinese people, but also you can see the Chinese Americans in leadership, management, them equal competition cooperation, common development . Cultivate a strong local workforce, but also one of the Siemens attaches great importance to the management philosophy, and even become one of the secrets of success in China in Siemens. In contrast, Toshiba and Shimadzu encountered some resistance in the development of China.

 Sincere Taihe Company general manager pointed out that the powers of, the survey showed that, in today's environment of China, the Chinese market for the development of the multinational medical device companies to provide unprecedented opportunities and wide open spaces. Multinational medical device companies must do: not simply to expand the market, but to invest and build factories in China or set up R & D center to create employment opportunities for the Chinese, and the recruitment and training of China's domestic research and development, management talent. Only in this way can the multinational companies to integrate into Chinese society, and long invincible.

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