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Zhao Caixia resigned from Huasheng Therapeutic Apparatus Company after worked for one year because the market sales had not risen for a long time. She thought the medical equipments market is not the same with medicines and health care products. It is slower than other market, but it could at least continuously develop for 10 years after it gets on the right track.
Although in 2007, the medical device industry was caught in the problem of misleading propaganda; exaggerated propaganda which overstates the efficacy of the medical equipment and wrong marketing mode. This industry still attract many enterprises to enter into this field with its annual rate of increase of 14﹪-15﹪.
With the needs of health-care equipments, many enterprises enter into the medical devices industry.
It is understood that in foreign country, the proportion of medical devices and medicines is 4:6, while in China, it is 1:9. At present, the medical equipment level of Chinese medical institution is still very low. The medical instruments and equipments in Chinese 175000 medical and health organizations, about 15% products are produced in 1970s and about 60% products are produced before the 1980s. Their replacement process is a demand for the release.
Besides, with the high sense of self-health care, the demands of family medical devices are keeping rising. So, the medical equipment market of China will show a rapid growth trend at least for 10 years. According to the data, the medical equipment market of China has ranged the 3rd place after America and Japan. And the annual sales of medical equipments reached 32.5 billion yuan, the industry growth rate was about 14% to 15%.
Medical equipment industry is a multidisciplinary, knowledge-intensive, capital-intensive high-tech industry and different to enter into this market, while the number of enterprises who enter into this field is still increase. In 2006, the well-sold medical equipment products such as Lide therapeutic apparatus, Zihuan sleep sound device, gypsum rubrum pillow, eye nanny and so on. But all the products also have some problems.
The enterprises’ quick development encounters into new problems.
Zhao Caixia, the marketing director of Wuhan Yingcai-Hospital Management Group, she thought the medical devices are different from health care products and medicines, they have special remands of users and method of application and the market started slow. Because of these problems, some enterprises adopt the misleading propaganda, exaggerated propaganda which overstates the efficacy of the medical equipment, advertising mode and imitate the marketing mode of other companies in order to pursuit the immediate interests, which lead the enterprises trap into the development bottleneck.
In order to solve this problem, Shang Pengbo, the general manager of Yingkou Zhongcheng Kangtai Medical Equipment Co., Ltd thought some companies’ exaggerated propaganda in the curative effect of products made the customer lose the confidence to the products. And some companies’ misleading propaganda that advertised with the experts and patients’ name and image, all of this were disobeyed the ‘Advertising Law’ and the standard of ‘ Medical Device Advertisement Examination Standard’.
Zhao Caixia thought the essentially problem is in the operation idea and marketing mode of health care products companies. At present, many medical equipment companies adopt the promotion model of advertisement plus terminal. They advertised through newspapers and TV at first and then let the customer to try the products through the terminal. But this kind of mode made the enterprise’s input and output don’t scale linearly, which made the operating costs keep in a high position. All of this was caused by the medical equipments’ performance, because customers will feel the effect of the products after several personal experiences, so the short-term advertising could not made the customers to determine to buy the products. Besides, this marketing mode could not continue with nation’s increase advertising supervision of medical equipment.
The product position and marketing model will change.
Shang Pengbo thought in 2007, there will be many new changes in medical equipment market. The conceptual products will have less sales volume while the targeted and high-tech products with new theory could sale very well such as new products Baiquan millimeter wave therapy apparatus. In foreign countries, this technology was first used in military and radar, and latter it was used in medical devices which were used to treat all kinds of inflammation. Now, this technology is introduced by Beijing Xuanwu hospital and other big hospitals.
Chen Hui, the vice general manager of Shenzhen HOMAY Water Technology Co., Ltd thought functional water ionizer will be the hotspot of 2007, because this device has popularized in Japan, Korea and other countries. With the continuous improvement of people’s living standard and the worsening of water environment, there will be more than 1 billion Asia people face the drinking-water problem in 5 to 10 years. The water ionizer that could intermediate PH value will absolutely sold a lot.
In the market mode, the mode of ‘advertising before the use of terminal’ will be changed into ‘using the terminal before advertising’. Zhao Caixia said, because of the specificity of medical devices, which main customer are middle aged and elderly people and it’s difficult to show the treat effect of the products, the experiential marketing mode is accepted by many End-customers. For example, Xilaijian, it is expensive but it is popular in customers. Because this product provides free treatment in experience points, and the staffs explain the function of the product to customers when the customers are waiting to try this product. All of those increase the customers’ cognition of this product.
Zhao Caixia said this process must need at least 2-3years, and some companies’ experiential marketing mode of terminal could not keep a long time in order to get immediate interests. And in the imitation of marketing mode, some of them just grasp the form of promotion, but focus less on the implementation of the details. And at last, some of the companies failed in this field.