Boston Consulting: China will become the second largest medical technology market, highlighting three major trends

Source: BCG released its latest report "winning the ever-changing Chinese medical technology market" on October 30, 2014, pointing out that China's medical technology market will maintain an annual compound growth rate of 14% from 2013 to 2020, and by 2020, the market size will increase to US $55 billion, becoming the second largest market in the world According to the report, China's medical reform has brought both precious opportunities and severe challenges to the medical science and technology industry Multinational companies and local enterprises need to quickly take effective measures to better grasp this growth opportunity The report deeply analyzes the impact of the new round of medical reform on China's medical system and medical technology industry, and puts forward strategic suggestions for multinational companies and local enterprises to win the Chinese medical technology market The report points out that under the promotion of medical reform, the whole Chinese medical system has undergone a major transformation The main trends include: regulatory policies encourage enterprises to actively innovate and establish a fair competition environment; price pressure is increasing; the coverage of medical insurance reimbursement is expanding, but the hospital budget is increasingly tightening; the hospital pattern is changing, and small hospitals assume greater responsibility; the government's regulation on sales and marketing is still strict, etc Luo Ying, a partner of BCG and one of the report's authors, said, "the medical technology industry in China today is very different from that ten years ago, and this market will change dramatically in the next decade." The report reveals the three most important trends in the future of China's medical science and technology market pattern: first, the scale of the midrange market is expanding and its importance is becoming increasingly apparent Take CT products as an example From 2013 to 2020, the annual compound growth rate of high-end market and low-end market is expected to reach 13% and 5% respectively, while the middle end market will reach 18% Second, the rise of local enterprises Local enterprises have taken the lead in many medical technology products With the government's strong support for technological innovation and quality improvement of local enterprises, these enterprises will also occupy more shares in other market segments such as high-end products High end private doctor service wechat official No.: kgn091 focuses on medical and health industry exchanges, and doctors are bound to powder Third, the sales and distribution mechanism of medical technology products will change With the development of basic health care system and private hospitals, hospital customers are more and more scattered in geographical location, which requires manufacturers to build a diversified sales and marketing network to effectively cover John Wong, a senior partner of BCG and another major author of the report, said: "in the face of the rapidly changing Chinese medical technology market, multinational companies and local enterprises have to change according to the times, and need to adopt a differentiated strategy For example, at present, the product lines of multinational enterprises tend to focus on the high-end market, while the local enterprises focus more on the middle and low-end product market In order to win in the fast-growing mid market, multinational companies need to reexamine their product portfolio and consider whether they can obtain mid market products through local product development or M & A Local enterprises should shift their focus from low-end products to middle-end products, and gradually shift from mainly relying on cost advantages to relying on cost, quality and even innovation to win " BCG suggests that both multinational companies and local enterprises should make timely and necessary adjustments to their business models in order to seize the opportunities generated in the process of market changes In the face of increasingly strong local competitors, multinational companies should not only strive to defend their leading position in the high-end market, but also actively expand their business network in the fast-growing middle-end market On the other hand, local enterprises should take a higher step to improve their competitiveness in the middle and high-end market, even in some high-end markets through product development, skill enhancement and talent cultivation.