Consumer health is an area of great concern in all countries. Some have a good track record in the field of consumer health while some have not. There are some countries that are taking steps in improving consumer health. One of them is China. According to a report published by McKinsey & Co, the country’s healthcare market is tipped to grow at an unprecedented CAGR of around 12% which will surge to $1 trillion by 2020, while in 2011 the sector was valued at $357 billion. Moreover, in 2017, China’s online healthcare market reached 32.5 billion yuan ($4.6 billion), 45.87 percent higher than that of the previous year, shown by National Health Commission. China has seen a strong valuation in the field of consumer growth in 2016. The main reasons are:
- Improvement in living standards
- The trend of growing consciousness among the local consumers
- The pursuit for the personal well-being has increased
- The introduction of nutrition supplement like sports nutrition and weight gain nutrients.
Legal Measures of Healthy China
The law has been framed stricter. According to the new Administrative Measures of Health Registration and Filing, the government manages the health food in the market. Established on the very first day of July in 2016, it works towards strengthening the health and food filing. It ensures the standardization of the rapidly growing health food market of China.
The Chinese government has taken measures to improve local healthcare infrastructure. In 2017, the country made the blueprint “Healthy China 2030”, pledging to build a healthy China in the next 15 years. By 2030, the size of the healthcare market is expected to reach $2.3 trillion. From pharmaceuticals to medical products to consumer health, China is one of the most attractive markets in the health industry and is the fastest-growing of all the large emerging markets.
Who will win the chinese healthcare market?
The big question arises about who is the winner. As per the market analysis and report, there has been an increase in the competition among joint ventures, mergers, and acquisitions. With a view to providing more consumer health, new competitors are coming into the market by acquiring consumer health manufacturers. China’s policies encourage partnerships between private capitals and public hospitals. The major shift in policy was in 2013, the country made efforts to develop joint-venture between domestic and foreign capitals.
For citation, take the example of the acquisition of Guangzhou Biostime Biologicals, of an 83% of share in Australia’s leading multivitamin brand for HK$ 7.7 billion in the month of September for the year 2015. On another stance, the consumer health providers worked hand-in-hand with each other to utilize the maximum possible existing resources that remained in the competitive market.
E-Commerce Retailing VS. Offline Druggists in China
E-commerce has provided people with a lot of conveniences. As far as the buying and selling of the medicines are concerned, it is quite easy to compare the product price as well as features. This advantage made the internet medicine retail remain in the double digits. However, on the same side of the coin, there are many people who still prefer to buy medicines offline. In spite of the various advancement made on the part of online medicine sale and purchase, local druggists and pharmacists still rule the market.
The main reason why still many people prefer offline mode is because of the availability of free or paid health consultancy if necessary. If considered as the other part, direct selling of the drugs through various distribution channels is also a part of consumer health. This has been made possible because of the presence of some of the big giants in the market.
Analysis – The Healthcare Sector is full of potential
Though, anything cannot be procrastinated in the case of market and business. It takes years to build an empire and a moment to destroy it. But as far as the present market trend is heading, it can be said that consumer health is supposed to record a steady growth value at constant 2016 prices. With the growing demand for OTC products and the strong will of the local consumers for healthy food, the awareness for healthcare, nutrition, weight has increased.
Overall, China’s healthcare sector has big potential for 2020 and beyond. The government is supporting the growth of the industry by encouraging investment and innovation at the same time, but also initiating measures to keep a lid on individual healthcare costs.
Healthcare product in China and eCommerce
Everything here is quick and fast. As soon as any purchase is done the delivery details are sent to mail or the account showing all the details. With the involvement of the maximum portion of the consumer in the health drive market, China is the fastest-growing research analyst in the field of drugs and medicines.
Collect report of the old companies and study about the growing competitiveness. Study the market trend and the flow. For China, the healthcare industry is the duty of in-country analysts. You can improve the market business:
- Tell the people about the marketing brands and strategy and the tips for market development that includes enhancement of the products’ sales and supply.
- According to their strategy they also ask to find opportunity in every research result as such result contains the latest data. The data help in analyzing the market risk, market trend, plan, and the strategy to be followed. These all things are discussed with the expert qualitative analysis and growth forecast.
- In the case one is involved in the health industry of China, the research will save money and time. It will empower in making informed, profitable and decisive
The following, are the fastest growing segments of the chinese heathcare Industry:
- Adult mouth care
- Calming and Sleeping
- Cough, cold and allergy
- Digestive remedies
- Ear care
- Emergency contraception
- Eye care
- Herbal and traditional products
- Medicated skin Care
- OTC obesity
- Sports nutrition
- Vitamins and dietary supplements
- Wound Treatment
Features of the Chinese Consumer Reports
The consumer report of china was submitted giving the details on how the report was prepared. The key points that were taken into consideration for preparing the report are as follows:
- The report was made after analyzing the supply side and the demands
- A detailed analysis of the international market was made. Not only was this an analysis on the local products also made.
- Analysis was made on the values of the products and the company. The report has also taken in consideration the market share of the brand
- The report has also forecast the market trends and the market growth for the next five years
- The report has also taken into consideration the past track record of the brand, its productivity and sale.
To conclude on this short intro of the chinese healthcare market 2020
- Analyzing on market share and reach of the Consumer Health in China
- Analyzing the brands presence and the brand that is playing the major role
- With each day trends change, therefore, studying about the trends in OTC Healthcare
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