Chinese Market Information Session


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Chinese Market Information Session

  1. 1. Chinese Medical Device Market SinaMed Consulting Hao Wu
  2. 2. Agenda <ul><li>Introduction to SinaMed Consulting </li></ul><ul><li>Overview of the Chinese Market </li></ul><ul><li>SinaMed Service offering </li></ul><ul><li>Questions and Answers </li></ul>
  3. 3. SinaMed Consulting <ul><li>Vision: </li></ul><ul><ul><li>To be the premier choice for foreign market entry consulting in the medical device industry for North America and Europe </li></ul></ul><ul><li>Members </li></ul><ul><ul><li>Hao Wu </li></ul></ul><ul><ul><li>Timothy Fung </li></ul></ul><ul><ul><li>Eric Hu </li></ul></ul><ul><li>Why we form this company </li></ul>
  4. 4. Summary <ul><li>General information of Chinese Market </li></ul><ul><li>How to calculate potential market size for your company </li></ul><ul><li>Uniqueness of the Chinese Market </li></ul>
  5. 5. General information <ul><li>13,530 domestic medical device manufactures </li></ul><ul><li>144,977 distribution agencies </li></ul><ul><li>Employees: 440,000 </li></ul><ul><li>Gross Industrial Output Value: 168.6 billion RMB ( 24.1 billion US$) in 2007 </li></ul><ul><li>11,724 medical devices registered in 2007 </li></ul><ul><ul><li>2, 045 imported medical devices </li></ul></ul>Source:
  6. 6. General information <ul><li>Achievements of the industry in 2007 </li></ul><ul><ul><li>Gross industrial output value: 24.1 billion, </li></ul></ul><ul><ul><li>growth rate 29% </li></ul></ul><ul><ul><li>Sales revenue 23.2 billion, growth rate 29% </li></ul></ul><ul><ul><li>Gross profit 2.2 billion, growth rate 32% </li></ul></ul><ul><ul><li>Exports + Imports: 12.7 billion, growth rate 20% </li></ul></ul><ul><ul><ul><li>Imports 4.28 billion, growth rate 16% </li></ul></ul></ul>Source: CMDA Annual Report
  7. 7. General Information 76% Beijing Shanghai Guangzhou
  8. 8. Your potential Market Source: China Health Villages & Towns Urban Area Tier 3 Hospital No. of Hospital Tier 2 Hospital Tier 1 Hospital Unrated Hospital 686 5156 2714 9887
  9. 9. Your potential Market <ul><li>Tier 3-A Hospital </li></ul><ul><ul><li>10,000 operation/year/hospital </li></ul></ul><ul><ul><li>1,000 beds/hospital </li></ul></ul><ul><ul><li>100 hospitals in each of the 3 areas </li></ul></ul><ul><ul><li>10 hospital/central city </li></ul></ul><ul><li>More than 70% medical devices in Tier 3-A hospitals are from oversea companies </li></ul><ul><li>2 billion US$ in 2007 </li></ul>
  10. 10. Your potential Market <ul><li>Orthopaedic surgery medical device company: </li></ul><ul><li>16% growth of Imported medical device: </li></ul><ul><ul><li>10,000 operation/hospital X 20% = 2,000 Orthopaedic surgery </li></ul></ul><ul><ul><li>2,000 X 16%growth = 320 operations </li></ul></ul><ul><ul><li>320 X 10hospitals = 3,200 operations, one city </li></ul></ul><ul><ul><li>3,200 X 5cities = 16,000 operations, one area(Shanghai) </li></ul></ul><ul><li>16, 000/4 = 4,000 operations (4%) </li></ul>
  11. 11. Uniqueness of China <ul><li>SFDA </li></ul><ul><ul><li>Lengthy 18~24 months </li></ul></ul><ul><ul><li>All imported medical devices: Class III </li></ul></ul><ul><ul><li>Clinical trials </li></ul></ul><ul><ul><li>Strategy of accelerating the process </li></ul></ul><ul><ul><ul><li>A good agent </li></ul></ul></ul><ul><ul><ul><li>Intact paperwork </li></ul></ul></ul><ul><ul><ul><li>US, Europe, Canada registration </li></ul></ul></ul>
  12. 12. Uniqueness of China <ul><li>Distributor </li></ul><ul><li>Negotiation </li></ul><ul><li>Education </li></ul><ul><li>Culture and language barriers </li></ul><ul><li>IP protection </li></ul>
  13. 13. SinaMed Consulting <ul><li>Our service offerings </li></ul><ul><ul><li>Market Analysis </li></ul></ul><ul><ul><li>Registration for SFDA </li></ul></ul><ul><ul><li>Distributor Selection </li></ul></ul><ul><ul><li>Distributor Negotiations / Contract </li></ul></ul>
  14. 14. Market Analysis <ul><li>Attractiveness of the Market for your product </li></ul><ul><li>SWOT / PESTLE analysis </li></ul><ul><li>Competitor Analysis </li></ul>
  15. 15. Registration for SFDA <ul><li>18 – 24 months </li></ul><ul><li>Work with a reputable local registration company </li></ul><ul><li>Monitor and update on status of regisition </li></ul><ul><li>We work with you </li></ul>
  16. 16. Distributor Selection <ul><li>Currently have over 30 partner distributors </li></ul><ul><li>Alignment of Distributor characteristics to your needs </li></ul><ul><ul><ul><li>Expertise, revenue, reputation, relationship, passion </li></ul></ul></ul><ul><li>Meeting potential distributors </li></ul><ul><li>Mutual long term relationship that promotes growth for all stakeholders involved </li></ul>
  17. 17. Negotiations / Contracts <ul><li>Discussion on terms of engagement </li></ul><ul><ul><li>Payment structure/credit line </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Professional training </li></ul></ul><ul><ul><li>Logistics </li></ul></ul><ul><ul><li>Exclusivity / geographic coverage </li></ul></ul>
  18. 18. SinaMed Consulting <ul><li>China is a growing market – 16% </li></ul><ul><li>Foreign manufactured products are highly regarded </li></ul><ul><li>Competition is moving </li></ul><ul><li>The time is now and we can help! </li></ul>
  19. 19. Questions?