Daxuemedical: Catching the trend of the healthcare industry in China
The Chinese healthcare market represents nearly 6% of the total China’s gross domestic product (GDP). The expenditures have reached about $600 billion in 2015.
Still, in spite of the existing very profitable market, the healthcare market is still fare to be saturated and will experience high-potential growth in the next few months. The percentage of GDP represented by the healthcare industry is still much lower as compared to other developed countries – 17% in the U.S.A (nearly 3 times more than China’s) for instance. In the following years, the spending will be mainly led by 5 main drivers:
- Rapidly increasing middle class and household incomes
- Government’s public healthcare reforms favoring market development and investments
- Aging population and lack of existing resources for senior cares
- Growing urbanization
- Lifestyle changes which will increase the development of specific diseases on a massive scale (diabetes, obesity, STM)
The annual spending is expected to grow on a double digit rate until 2020, to get close to $1,000 trillion by 2020.
Some segments are particularly favorable for investments. Chinese government is for instance strongly promoting the development of the medical innovation. Some trendy segments are:
- Seniors care is booming through new demographic dynamics in China. The aging population, but also the 1-child policy that has been running until 2015 and has let only one child to take care of his/her seniors and the strong urbanization that have increase the separation distance in families are reasons to explain the shift in Chinese patterns and the development market such as nursing homes.
- Pharmaceutical industry players have been facing strong challenges for years to come up in Chinese market due to the very tight regulation. However, the market is slightly opening to international brands and more and more segments are reachable for these firms.
- Chinese medical devices segment offers high potential for international firms and an increasing share of the $50 billion market. The development of premium medical demand has created a great need for quality equipment and supplies.
Daxuemedical assists international brands in their healthcare market entry in China
International firms have great opportunities to be involved in the rapidly growing market in China. Still, such booming industry is also an industry with permanent evolution and changing paradigm. International companies will face trends, consumer behavior, market dynamics and regulation changes difficult to catch.
In this context, the question for international brands and companies is: “how to successfully enter the market and catch this highly-promising trend”? While the market is potentially more than profitable for any new-comer in China, a strong understanding of the local situation is essential – and complicated to catch.
Daxuemedical, segment of professional boutique Daxue Consulting, aims at connecting international companies and Chinese healthcare consumers, insiders and professionals. Daxuemedical works with these companies to reduce their market entry risk, cost and uncertainty.
Moreover, Daxuemedical leverages medical professionals and consultants to reinforce the expertise and medical insights of its offer.
An expert to speak the language of medecine with our clients – Eddie Garber, local insider
Dr. Eddie Garber is our health industry ‐ medical strategy consultant leader in Daxue consulting. Eddie’s experience covers the whole value chain of the health sectors, including applying computer technology in health care systems, pharmaceutical industries, medical devices, medical startups, mobile diagnostics startups, health insurance, privet clinics and hospitals. Eddie understands the context deeply from within and can speak the “language of medicine” with clients and external experts. Eddie received his MD in Lithuania. He conducted his internship in Ichilov Hospital, Tel Aviv Sourasky Medical Center, a world leading and one of the most progressive full‐service healthcare treatment and research institutions in Israel. Eddie held a position of a senior lecturer, teaching and preparing over 150 medical doctors for the Israeli license exams and other practical experiences. Fluent in English, Hebrew, Russian and Lithuanian.