The hottest western enterprises find profits in th

  • Detail

Western enterprises find a niche in the growing Chinese medical market

with China's nationwide implementation of medical reform and China's medical equipment manufacturers' commitment to improving global competitiveness, some Western plastic processing enterprises and industrial design companies have focused their investment on China

Stephen kowlesz, general manager of IDC, Berkshire's design company, shows the improved plastic suture packaging

the Chinese government is now carrying out a comprehensive reform of the domestic medical system

the Chinese government's various medical reforms, including spending $125 billion to strive to achieve universal medical insurance by 2020, and building or rebuilding 2000 rural hospitals, are driving demand growth, which has attracted some Western plastic manufacturers to invest in China, including GVS group, an Italian filter parts molder, and precisionextrusioninc, an American pipe production and stretching manufacturer Company

on the other hand, Chinese medical equipment manufacturers hope to develop more sophisticated products in order to enhance their competitiveness in the international market, which also brings opportunities to some industrial design companies, such as the British based industrial design consulting company, which opened a design studio in Shanghai at the beginning of the year

however, there are still many obstacles to gain a foothold in China

in an interview at the China International Medical Equipment Exhibition (CMEF) held in Shenzhen from April 16 to 19, some foreign medical plastic companies and medical industry officials said that they were facing severe challenges in conducting business in China, including intellectual property rights, fierce price competition and quality problems

nevertheless, some foreign enterprises have found a niche

for example, IDC, a design company headquartered in Berkshire, UK, recently established a cooperation with Shandong Weigao group medical polymer products Co., Ltd., China's leading local medical equipment manufacturer, to redesign a plastic suture package to enter the global market

Stephen Knowles, general manager of IDC, said that after six months of cooperation between the two sides, the design has been improved, making the suture easier to pull out and not easy to knot. At the same time, the packaging appearance has been improved, from "a very Chinese design to a design with a very international image."

"we have improved the plastic design in many details so that it can be perfectly combined", he said in an interview on CMEF. The exhibition, held twice a year, is the largest medical equipment trade exhibition in Asia, which brings together western medical giants including yageng, which records every fresh face of this group, and general electric medical group

Weigao group is headquartered in Weihai, Shandong Province. Li Kai, the manager of the International Trade Department of Fusen medical materials Co., Ltd., the suture Business Department of the company, said that the reason why they seek help from foreign design companies is to better enter the international market

Li Kai said, "Chinese products have always given people the impression that they are low-grade junk products, so it is difficult to [attract attention] by ourselves alone. But this is an important step towards the international market. We are trying to change foreigners' impression of Chinese products."

he said that the company has analyzed and improved the shortcomings of existing products. For the exterior walls of high-rise buildings, fireproof structural measures should be taken, such as providing protection for suture during transportation, and making it easier for surgeons to take it out of the package. The preliminary feedback from global customers is very good

he said that this is the first time that the sewing business department of Weigao group has tried to develop products that target both domestic and foreign markets

knowles said that with the increasing demand of local Chinese medical equipment manufacturers such as Weigao group, IDC opened a six person industrial design studio in Shanghai at the beginning of this year, which specializes in serving the medical market

he said that most of their customers are Chinese local enterprises, not multinational companies. Some of them hope to get advice on how to successfully enter the international market, while others aim at China's domestic market with fierce price competition and hope to stand out in this market

in addition, Western plastic processing enterprises have also begun to invest in China

for example, GVS group, an Italian filter parts molder, built a 400 person injection molding plant in Suzhou, Jiangsu Province, a year ago, equipped with 25 molding machines. Mattiapassarini, the sales manager in China of this Italian company in zolapredosa, said

he said, "we do not intend to compete directly with local Chinese enterprises with price advantages. We aim to win the Chinese market with high quality. This is also the current development direction of China... Although many people fight price wars, we cannot focus on low prices."

he said that the company predicted that the annual growth rate of sales in China would reach 60% in the next few years

however, for some foreign plastic processors in China, it is still difficult to find business in China's domestic medical equipment manufacturers, and the price is the biggest obstacle

prentcorp, headquartered in Janesville, Wisconsin, USA The company said that most of the customers of its thermoplastic molding plant in Shanghai are still western enterprises, because Chinese domestic enterprises are still unwilling to spend more money on the high-quality plastic packaging produced by their company despite their continuous development

Patrick Tan, sales account manager of prent [Malaysia] D., said, "for highly traditional local enterprises, they still don't pay much attention to quality."

in addition, kelcourt plastics Inc., an American Medical extruder with a small factory in Singapore The company said that for the company, the Chinese market is too price sensitive

Sebastiansia, the sales manager of kelcourt in Singapore, said that they did not know how Chinese local enterprises obtained such a low price without taking shortcuts in raw materials, because the cost of raw materials accounted for 80% of the price of medical grade pipes, while the sales price of Chinese local peers was 50% lower than that of foreign enterprises

xiyueer company, a film extruder and thermoformer, said that only some of the largest Chinese medical manufacturers are interested in their high-quality packaging, and its current customers are still more common. The hydraulic universal testing machine is manually operated by foreign companies

Deng Haibo, sales and development manager of neipak products of Hyatt Corporation in China, said that at present, the medical business still accounts for a small proportion of its Shanghai film extrusion and thermoforming plant business, "but [the medical market] is growing at a rate of more than 30% per year, which makes us see great potential."

according to the statistics of the U.S. government, the U.S. medical equipment exports to China are growing at an annual rate of 40%

according to shermanli, a trade expert at the U.S. Consulate General of the U.S. Bureau of Commerce in Guangzhou, the United States is the largest supplier to China's medical industry, accounting for 30% of China's imports, excluding imports entering Chinese Mainland through Hong Kong

the export volume of medical equipment from the United States to China has soared from US $1.64 billion in 2001 to US $7.96 billion last year, and the Chinese medical equipment market is expected to achieve an annual growth of 15%, he said in an interview on the US company booth in the CMEF international exhibition area

Li said that the Chinese government's vigorous development of rural medical services has promoted this growth to a certain extent

according to an analysis of the U.S. government, before the medical reform in 2009, 80% of China's medical expenditure was spent in urban areas, while rural areas with a population of 800million accounted for only 20%

note: the reprinted content is indicated with the source. The reprint is for the purpose of transmitting more information, and does not mean to agree with its views or confirm the authenticity of its content

Copyright © 2011 JIN SHI