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1.2 Billion Opportunities in the Chinese Health Market

With the growing marketing of the health in China, healthcare Brands have seen the biggest boom of the recent years. With such trends, the list of drugs to be manufactured in there has spiked up.

The market potential is expected to reach a whopping $60 billion by 2020.

 There are many misconceptions associated with it that needs to rethink-5681b89977d2b949379257e2bebf01b8As per the report by McKinsey, China will become the second largest consumer market by 2020 in the world. The people spending on the healthcare will become a part of this growth that is mostly consumer-driven. Also, the healthcare spending is expected to grow at a whopping 10.5% of the total urban households annual spending by the end of the year 2020. Thus, all this data and figures state that it is true that China has become the largest market that offers the greatest opportunity to swell in the consumer healthcare products.

Auto Medication in China

The Health multinational firm  have focused extensively on the prescription drug and the medical devices in China

Medical Devices Market in China

Even after knowing the potential of consumer health care market of china, the drug multinational companies have focused extensively on the prescription drug and the medical devices. It is still a question worth pondering that why the multinational companies have not switched over to the healthcare units despite the sector has a great potential.

Opportunities for SME in China

The small companies might have several reasons for their decisions. However, the discussions with the industrial experts have somehow cleared the misconception about the steps. They term the decision to not go with the healthcare sector as a wise and cautious step. On the other hand, they have fallen short of building a trust in the market among the consumers to build a winning consumer healthcare business in China. Hence, there is a huge Business opportunities in the Chinese Health Market. 

Misconceptions about the Market

 
  1.  The Healthcare Market of China Is Small

 The biggest misconception is that many people think that the consumer healthcare market of China is small. The fact is in the other way round. The healthcare market of China is already huge and the reports have suggested and predicted that it would be growing rapidly till 2020.c1539ee2b6cbf2a65987cab8470e17c3The fact is based on the surveys done by McKinsey that included more than 46,000 consumers located at more than 60 different cities. The survey allowed a deep understanding of the attitude of the Chinese consumers. It also reflected about the buying nature of the consumers under the tag of more than 1000 products categorised in different sections. The sample included different section of the people depending upon the age, income, region, cities. The samples accounted to more than 80% of the China’s GDP, 90% of the disposable income and approximately 50% of the population.The report showed an increasing trend of the expenditure of the people in almost all categories starting from 2000 till 2010 and the expected 2020. The per household healthcare expenditure has also increased to $600 tn in the year 2010 which was $250 in 2000. It is expected to rise to $1400 tn by the end of the year 2020. 
  1. China still follows the tradition mode of medicine in consumer healthcare market

It is believed that the Chinese consumer healthcare market still goes the traditional way. That is they make use of herbs, roots and shoots to make medicines and cure the ailments. To break the myth, china is not only dependent on the traditional method of medicine but also have the space to practice the western medicines. The market share of each of the medicine, traditional and western is almost same. For the traditional it stands at $5 bn for the year 2010 and western medicine at $6 bn for the same year 2010. The forecast for the growth of both medicine type stands at $10bn and $12bn by 2017.c0a64f9d93813663d79082aaa20db814It is concluded that the traditional medicine methods are increasingly being used in the modern medicine such as the tablets, sprays, capsules and pills. The standard and the quality are strictly regulated by the State Food and Drug Administration. Health and nutrition supplements like vitamins, minerals and other natural products are same as that of the Western market.

Western Medicine

As far as the consumers are concerned, they think the western medicines are far better than the traditional medicine. They consider it more effective and tend to use them popularly. 
  1.  This Market is SUPER competitive

 True for some extent! But the Chinese healthcare market does not have those huge competitors from the big multinational companies. Unlike other countries whereby one or the other big companies rule the healthcare field, in China it is pretty, much safe that there is no as such competition. According to data, the top ten companies of the healthcare market China contribute approximately 30-40 percent of the entire market share when it comes to Western medicine and the health and nutrition supplement.gic4092084The report and data depicted shows, that the health supplements contributed $9 bn in 2010. The trend has increased drastically in the year 2017 where it is expected to move to $22 bn.Same is with case of western and traditional medicine. In 2010, the market share stood at $20 bn and is expected to swell to $22 bn in 2017. The overall percentage increase is 10%. When both the things are to be combined and inspected the percentage change is expected to stand at 12%.

  1. Research on By-Health

 By-Health is that entire important thing to be researched on. By-Health was introduced in the market in 2002. It is a type of health and nutrition supplement. The company has a numerous products under its production line like the vitamins, minerals, supplements and natural extract products. The company aims at and has developed a strong distribution capability to enter the different retail sectors like general modern trade, retail pharmacy, e-commerce.

The revenue collected has always seen an increasing trend

As far as the financial statistic is concerned, the revenue collected has always seen an increasing trend. In 2007, when it stood at $9 mn. By the end of 2011, it ended with $86 mn. The consecutive years saw a continuous increase in the revenue contribution by By-Health. The company over the years has emphasized on the high quality of products and raw materials in ads.

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