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Medical giants to enter the domestic market grassroots competition

When the large hospitals in major cities of the traditional channel growth began to slow, sustained release of China's new medical reform primary care market space, began to stimulate multinational medical equipment giants continue downward momentum, and local medical device companies in selves, but also by virtue of mergers and acquisitions, technological innovation and other means to break up, under the "two strong" wrestling, the domestic medical equipment market is expected to compete will be more intense.
Primary care market potential international medical giants adjust the layout
China since the beginning of 2009 a new round of medical reform most directly stimulated the rapid growth of the medical device market, the Ministry of Health Planning and Finance Division data show that China's more than 2,000 county hospitals and equipment configuration average gap of 30%, including more than 2,000 counties nationwide Construction of the hospital medical equipment, more than 5,000 centers and 2,400 township hospitals community health service centers, and 30,000 to 50,000 village clinics, the market huge imagination.
County hospitals, township hospitals and community health service centers represent the primary market, is the Chinese government's latest round continued to invest over 110 billion yuan of new medical reform focused oblique direction. A conservative estimate, between 2009 and 2015, China's medical device industry compound annual growth rate will remain at between 20% to 30%; medicine to 2015, the total amount of China's medical device market will reach $ 53.7 billion, market expansion will also give local medical device companies and multinational medical equipment giants create unprecedented opportunities.
A conservative estimate, Siemens, GE and Philips eating three foreign companies in China exceed seventy percent of high-end medical equipment market share. However, due to the slowdown on the one hand the traditional focus on large urban hospital market growth, market approaching saturation; on the other hand primary care market growth rate exceeding 30% of the force they have to make adjustments to the current strategy.
Ying, president and CEO of a small segment of GE Healthcare Greater China, said that "in 2009 the new medical reform started at the same time, we will adjust the overall marketing plan in China, the Chinese market has become a grass-roots work with our big cities alongside the hospital market focus. "GE and at the same time, Siemens also began to focus on primary care market, the introduction of easy to use, appropriately priced products, beginning in the primary market segments to explore. Philips will launch low-end X-ray machines, magnetic resonance, ultrasound in China to meet the demand for primary market.
Domestic enterprises to break through technical barriers, and constantly upward breakout
China's domestic medical device companies and reconciled to their sphere of influence by outsiders devoured eroded. The first batch of growing up local medical enterprises through continuous technological research and development and innovation, breaking the monopoly of foreign manufacturers, to fill the technology gap, dramatically increase the likelihood of domestic equipment to enter the high-end market.
In fact, China's medical device market in foreign giants and local enterprises to other forces in the field of mutual penetration pattern has been formed, the local company's technology upgrade to one market upward trend in recent years more and more obvious breakthrough. Or by virtue of a solid financial strength, or virtue to master the core technology, the first batch of domestic instrumentarija grew up in the home put the spotlight on high-end medical market, accelerate the pace shake foreign monopoly. In 2011, Shenzhen Mindray to 18 percent of annual revenue invested in R & D, which expressed a wish to become a high-end medical equipment manufacturers and multinational companies began to enter the high-end market occupied; 2013, Safety and Health Technologies announces successful autonomic R & D China's first multi-purpose dynamic DR, one of the world's three successful manufacturers developed a dynamic DR successfully into the domestic high-end medical market, proven scientific and technological innovation ability of Chinese domestic medical enterprises, to advance in the medical field to lay a high-end solid foundation.
 In addition to increased investment in research and development, more and more frequent mergers and acquisitions of local enterprises have begun to release signal internationalization and rapid development. 2013, Mindray ultrasound takeover of US giant ZONARE, Alma Fosun acquired Israeli companies into the medical beauty equipment market, minimally invasive medical acquisition of US Wright Medical orthopedic services, etc., the domestic local enterprises through overseas acquisitions to accelerate market layout, with an international medical giants compete.
Under the fierce market competition, the industry reshuffle is approaching
As the saying goes, elephants fight, the ants suffer. Compared with international giants, most of the local businesses rely on low-cost and low price to win the primary market, but multinationals postures, develop more "affordable" for the low-end market and specialized machines for the Chinese market base medical solutions When the program in the future will become increasingly fierce market competition, China's medical device industry reshuffle is approaching. Small scale, weak technology companies will face the risk of being eliminated, local health care companies leading manufacturers in virtue of financial advantage, scale advantage and leading edge technology to speed up the layout of the market, and international giants competing against.

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