How to break the ice by Dongfeng domestic medical equipment?

Breaking the "GPS" myth, alleviating the problem of expensive medical treatment

Outside the outpatient clinic of a hospital in Guangzhou, the notice that the “salesman declined to enter” did not stop Zhang Yunfan (pseudonym) from entering. After pushing the door, he quickly sold the ECG monitor of a domestic medical device brand to the attending doctor who was about to leave work.

As a domestic medical device salesperson, Zhang Yunfan did not have much hope for this promotion: “The gross profit margin of domestic medical equipment is only 10%, and the salesperson’s commission for each bill is only 3%. Selling Domestic medical devices are not as profitable as the legends. Basically, there is no profit. From enterprises to sales personnel, this is the case.” What makes Zhang Yunfan even more frustrated is that even if this sales promotion is successful, it is only the three years since he started his business. The fourth business, "If I had to eat this meal, I would have starved to death!"

"GPS" monopolizes domestic high-end medical equipment

As a front-line salesperson, Zhang Yunfan's experience reflects the current status of production and sales of domestic medical devices.

For a long time, GE, Philips and Siemens have monopolized 70% of the domestic high-end medical equipment market such as CT, MRI and PET-CT. Because the English initials of these three companies are "GPS", the monopoly pattern in the industry is called "GPS myth".

With the industry's cutting-edge advantages, first-mover advantage and technological innovation, foreign-funded enterprises have always occupied the four-point high point of R&D, production, brand and marketing of high-end medical devices. According to the "China Medical Device Trade Report for the First Half of 2014" published by the China Chamber of Commerce for Import and Export of Medicines and Health Products, 80% of the high-end medical equipment used in China, 90% of the ultrasonic instruments, 85% of the ultrasonic instruments, and 85% of the inspection instruments, 90 % of magnetic resonance equipment, 90% of electrocardiographs, 80% of high-end monitors, and 90% of high-end physiological recorders are foreign brands.

Under the triple-clamping of GPS, nearly 16,000 medical device manufacturers in China have struggled to survive.

According to the analysis of the China Pharmaceutical Industry Information Center, based on the total of 276 billion yuan in the medical device market in 2014, the average annual income of domestic medical device manufacturers is only about 17 million yuan, and most medical device manufacturers are small and medium-sized enterprises, and The technical level is low, mainly for regional market sales in some regions.

The lack of core technology is one of the reasons why domestic medical devices cannot be heard. Prospective network medical device analyst Li Peijuan believes that in the field of high-end medical devices, compared with international multinational companies, domestic companies have far-reaching differences in product R&D investment, and there are only a handful of R&D investment exceeding 10% of corporate revenue. At the same time, foreign medical device companies are constantly acquiring similar companies with outstanding domestic performance.

Domestic medical devices can only gain a foothold in non-contact devices and other low-end areas. In the first half of 2014, the total import and export volume of medical equipment trade in China was US$16.79 billion, up 6.1% year-on-year, but the products with exports exceeding US$100 million were still concentrated in disposable appliances such as massage equipment, medical catheters, and cotton wool. Diagnostic treatment equipment.

Expensive imported medical equipment is one of the reasons why Chinese people are expensive to see a doctor.

In May of this year, President Xi Jinping said in the inspection of Shanghai Lianying Medical Technology Co., Ltd. that some high-end medical equipment cannot be afforded at the grassroots level, and ordinary people (64.89, 0.00, 0.00%) cannot afford it. At present, the price of imported medical equipment in China is generally 50%-100% higher than the price of the country of origin such as Europe, America and Japan. “The main problem is not the manufacturer, most of the profits are spent on circulation.”

According to insiders at General Electric (GE), taking an ordinary cardiovascular stent as an example, the US market sells for about $200. In China, after a layer of price increases, the price of reaching the hospital is as high as 20,000-30,000. yuan.

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