echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Biochemistry News > Biotechnology News > What local logic does the medical device giant have under the new reform?

    What local logic does the medical device giant have under the new reform?

    • Last Update: 2022-03-07
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    Since the major adjustment of the medical device industry regulations, the state has continued to optimize the industry supervision


    At the same time, the medical market is facing major changes.


    Localization logic: GE Healthcare, Medtronic, Roche

    Localization logic: GE Healthcare, Medtronic, Roche

    In the past three decades, multinational giants have achieved great success in the Chinese market


    Among them, the model of some multinational giants is that the headquarters is stationed in the Chinese branch, and the implementation of the global marketing strategy, this strategy will face many problems under the new reform


    Twenty years ago, BD medical syringes accounted for more than 80% of the market share.


    An important reason is that policies such as procurement and procurement of medical devices with volume have accelerated the reshuffling of products of multinational giants.


    One of the methods is that local companies can gain insight into how to match more cost-effective products based on different levels of hospital needs, and to build innovative projects and overall solutions with core competitive advantages


    Therefore, under the new changes, if multinational giants want to hold on to their territory, they really have to start from "research, production and sales" to overthrow and adjust the overall marketing strategy


    For example: some multinational giants have completely started localization, such as GE Healthcare (China), and now its strategy is to fully domesticate, digitally empower, and cooperate for win-win results


    Its localization is also reflected in the fact that GE Healthcare has five production bases in China.


    In 1994, GE Healthcare introduced the first labeling and packaging line in Shanghai, China, and the Shanghai contrast agent production base also quickly landed


    In October 2015, with the completion of the transfer of GE's global filter paper production line from Kent, UK to Tonglu, China, the GE Healthcare Tonglu production base covers six lines including glass microfiber, cotton fiber, filter cartridge, acid treatment, diagnostic media, and offline coating.


    The strategy of localization is to accelerate the advantages of the whole industry chain and cost, so that GE Medical has steadily increased its sales of large medical equipment and won large orders for centralized procurement in multiple provinces


    The strategies of foreign companies are often consistent


    The strategies of foreign companies are often consistent


    On December 16, 2021, Lifetech announced that it had signed a series of supplementary agreements with Medtronic on the "further expansion of the strategic cooperation on the 'Xintong' domestic pacemaker project".


    Roche Diagnostics, likewise, understands the specific needs of customers and patients in the context of national healthcare reform measures and policies, and continuously adjusts its corporate strategy based on these changes
    .
    In November 2014, the largest investment in the Chinese market was launched: 450 million Swiss francs (about 2.
    5 billion yuan) will be invested in the next three years to establish Roche Diagnostics' 8th largest production base in the world in Suzhou Industrial Park
    .

    Since March 2016, Roche Diagnostics has cooperated with the top nine domestic IVD companies in the field of biochemistry; in January 2021, Roche Pharma has signed a memorandum of strategic cooperation with Roche Diagnostics and West China Hospital of Sichuan University through the cloud; on November 12, 2021 Roche Diagnostics is the exclusive agent of RealMind's small fully automatic chemiluminescence analyzer; in March 2021, Roche Diagnostics and Weigao Shengji Medical Industry Group announced a strategic partnership.
    With the help of Weigao's national intensive sales and service network, Roche Diagnostics The penetration rate in the domestic market is expected to further increase
    .
    On November 12, 2021, Roche Diagnostics exclusively represented RealMind's small fully automatic chemiluminescence analyzer
    .

    Roche Diagnostics also signed a global R&D strategic cooperation agreement with Tongyi Medicine (Suzhou) Co.
    , Ltd.
    The two parties will conduct in-depth cooperation in the field of oncology drug companion diagnostic research and development.
    It can be seen that Roche Diagnostics' local strategy has achieved its rapid development
    .

    Transformation and transformation logic: digitalization, online marketing, ecologicalization

    Transformation and transformation logic: digitalization, online marketing, ecologicalization

    Under the influence of factors such as industry policies, market competition and the epidemic, digital intelligence has become the mainstream business model
    .
    Digital intelligence is reflected in three aspects.
    First, enterprises provide hospitals with overall solutions for digital and intelligent projects
    .

    At present, the top three hospitals are building smart medical care and smart hospitals.
    Enterprises can add 5G modules to color Doppler ultrasounds to realize 5G remote surgery
    .
    It can also be used as an unmanned laboratory, which can automatically produce inspection reports, and can be used as a cloud radiological imaging diagnostic laboratory, which can automatically write diagnostic reports
    .

    The second aspect is market promotion: after 2020, well-known domestic and foreign companies such as Medtronic, Johnson & Johnson, GE Healthcare, Boston Scientific, Shenzhen Mindray, etc.
    will carry out a large number of online academic activities, channel investment promotion conferences, and virtual representation of this new model
    .
    With the increasing price reduction of medical consumables in bulk purchases, more and more medical device companies will try to use the virtual representation model
    .

    The third aspect is brand promotion: it has become the norm for new media such as WeChat public account, video account, Douyin, and live broadcast to be used by well-known companies for brand promotion
    .

    At the same time, medical equipment online mall and medical equipment mall are also a big position
    .
    According to public data, the market size of online sales of medical devices is expected to be around 18 billion, accounting for 2% of the overall medical device market
    .

    The medical device online mall refers to the non-mainstream medical devices sold on Jingdong and Taobao, that is, household medical devices, which are promoted and sold online
    .
    Medical device malls are the mainstream medical devices sold, ranging from CT to infusion sets.
    They are usually promoted online and sold offline
    .

    At present, there are three major platforms in the medical equipment mall: one is Nanjing Beiden.
    Since 2012, more than 500 enterprises have settled in
    .
    The second is medical information communication, which is a direct procurement platform for private hospitals
    .
    The third is the colorful shopping mall of Sinopharm Equipment, with hundreds of enterprises
    .

    At present, there is an enterprise with an operating income of 630 million in the medical device mall, but most companies currently have limited sales.
    It will take ten years of development for the medical device mall to become relatively mature.
    100 billion or more
    .
    According to the author's observation, now Medon, Johnson & Johnson, Roche, GE, Philips, Siemens, Yuyue and other well-known domestic and foreign companies are actively deploying online sales of medical devices
    .

    Medical device ecosystem: The formation of the medical device ecosystem depends on the implementation of key policies and the environment.
    Without the promotion of key policies and bad environments, the medical device ecosystem cannot be formed
    .

    Since 2019, medical devices have ushered in the era of the ecosystem, and there is more of a win-win relationship between enterprises and enterprises.
    If medical device manufacturers and distributors cannot find their place in the medical device ecosystem, they will was eliminated
    .

    Every major policy introduction in the medical device industry, every major change in the market environment, and every major reshuffle of the industry is a process of transformation for enterprises
    .
    Every transformation is accompanied by pain, but every transformation is a new growth
    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.