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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.