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Mergers Abound as Local Medical Technology Companies and Distributors Look to Stay Competitive in the Chinese Market Finds Frost & Sullivan - Monitoring local enterprises in this space is necessary as some have the potential to attain global market leadership in the next decade - MedTech.Frost.com
Mergers Abound as Local Medical Technology Companies and Distributors Look to Stay Competitive in the Chinese Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Shanghai, China, 2014/03/27 - Monitoring local enterprises in this space is necessary as some have the potential to attain global market leadership in the next decade - MedTech.Frost.com.

   
 
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The medical technology industry is a fast-growing sector in China, with local players expanding even quicker. Understanding the business model of key domestic manufacturers and distributors is the first step that will facilitate entry into the Chinese market.

New analysis from Frost & Sullivan, Profiles of Local Chinese Medical Technology Companies and Distributors, covers the manufacturers and distributors of medical imaging devices, patient monitoring devices, low- as well as high-value consumables, in-vitro diagnostic devices, and hospital information systems. The study finds that the medical technology industry, characterized by high profits and resistance to economic cycles, is an extremely competitive as well as fragmented market with more than 14,000 competitors. The relatively low entry barriers also increase the number of market participants. Most of them, including the market leader, are small to medium-scaled.

"In the face of intensifying competition from multinational corporations, domestic enterprises are investing in R&D and focusing on innovations in single product areas to retain their competitive edge," noted Frost & Sullivan Healthcare Consulting Manager Hans Yuan "Several companies already dominate certain segments and are looking for mergers and acquisitions (M&As) to further enlarge their business, reduce operating costs, boost revenue against business risk, and thus eliminate the threat from competitors."

M&As can particularly help smaller enterprises that specialize in a few areas and have an inadequate sales force. Expansion to peripheral solutions, along with access to the sales force and client resources of both parties, will galvanize enterprises facing declining margins. Even mid-size to large companies with robust product portfolios and effective sales teams can widen their product lines based on the needs of existing clients. This could make room for substantial improvements in the efficiency of marketing resources and provide extensive clinical application solutions for target customers, resulting in lower operating costs while enhancing profitability.

"Meanwhile, existing foreign participants considering tapping into the Chinese medical technology domain should pay more attention to basic medical technology demand, specifically from the low- to mid-end sectors," suggested Hans Yuan. "Most of China's level III hospitals are already equipped with high-end imported equipment, and hence, market potential lies in county- and primary-level healthcare systems that still use obsolete products."

If you are interested in more information on this study, please send an email to julie Zheng, Corporate Communication, at julie.zheng[.]frost.com

Profiles of Local Chinese Medical Technology Companies and Distributors is part of the Advanced Medical Technologies (medtech.frost.com) Growth Partnership Service program. This study provides insight into the competitiveness as well as overall status of local medical technology suppliers and distributors in China, for foreign medical technology counterparts that intend to develop long-term strategies in China. The study analyzes the current market and forecasts future opportunities by examining market dynamics and trends.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Profiles of Local Chinese Medical Technology Companies and Distributors / P709-54

 
 
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Mergers Abound as Local Medical Technology Companies and Distributors Look to Stay Competitive in the Chinese Market Finds Frost & Sullivan

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