Emerging Digital Healthcare in China

How much do you know about the digital healthcare revolution occurring in China?

The advent of digital healthcare has witnessed a remarkable surge in recent times as the imperative to streamline and digitize medical services, pharmaceutical advancements, and various healthcare practices continues to gain momentum.

China's Rise In The Medical Equipment Global Market

Local Businesses are Increasing Their Market Value

China's digital healthcare market is currently divided into two distinct segments. 

The first comprises foreign manufacturers specializing in producing top-tier products for renowned brands such as Siemens, Johnson & Johnson, and other industry leaders. 

The second category comprises domestic manufacturers offering low to mid-range products, encompassing a significant 80% market share. 

While these statistics may suggest limited opportunities for foreign businesses, local dominance in low-end products, and substantial foreign investments in high-end offerings, it is worth noting that Chinese healthcare providers exhibit a strong preference for imported devices, particularly those of advanced technology. Past experiences with Chinese-made goods have instilled greater trust in foreign brands regarding technical equipment within China. Thus, your brand has promising potential within the Chinese digital healthcare market, especially considering the aging population's growing demand for enhanced care quality, surpassing the capacity of current local supplies. In an industry where demand outstrips supply, you can confidently explore opportunities to enter the market.

Tremendous Room for Growth

Data by OECD

Based on the 2020 data, it is evident that there is still considerable room for advancement in China's digital medical industry. 

A notable example highlighting this potential lies within the medical device market. While the global medical device market comprises an average of 42% of the overall pharmaceutical industry, the corresponding figure in China stands at just 14%. This stark contrast indicates the untapped growth possibilities within China's medical device sector. 

As income levels continue to rise and the population undergoes aging trends, the demand for medical equipment has reached unprecedented levels. Moreover, the prevalence of chronic diseases such as cancer, heart disease, and diabetes is also surging, further emphasizing China's quest for additional medical equipment suppliers.

Where Has This Growth Come From?

The remarkable growth in China's medical industry can be attributed to substantial investments, particularly in biotechnology. In recent years, China has made significant financial commitments with the aim of establishing itself as a global frontrunner in pharmaceuticals and biotechnology. 

Consequently, China has emerged as one of the largest global producers of antibiotics and a leading force in cutting-edge stem-cell research. This extensive investment has yielded numerous medical breakthroughs in pivotal areas such as genomics, neurobiology, molecular biology, and biochemistry. 

As a result of these investments and the consequential advancements, the Chinese market has garnered a reputation as a trailblazer in medical products and services. This positioning further strengthens the proposition for your brand to enter and flourish in this dynamic marketplace.

Healthcare Changes

Another major change that has led to the massive growth of digital health in China is the changes to the healthcare system. More recently, better health insurance, a new "essential drug list," and hospital reforms have helped China catch up with other companies and provide quality medical care across the country.

Moreover, China, as the country with the largest population, has invested heavily in the medical industry while paying for social insurance at the same time. Because China's social insurance also includes medical insurance, China's medical sector is developing rapidly.

At the same time, the digital healthcare market has grown substantially. Chinese who have never had access to healthcare before now want fast and easy access to digital healthcare.

Combine that with China having one of the largest aging populations, higher incomes than ever before, and the need for better medicines and services. You can understand why China has such a big appetite for digital health.

Potential Market Opportunities

As evident, the Chinese healthcare industry presents abundant marketing opportunities, particularly in pharmaceuticals and over-the-counter medicines. Brands capable of establishing local manufacturing processes and implementing robust marketing strategies stand a significant chance of swiftly emerging as market leaders in a landscape characterized by high demand and limited supply. Furthermore, a substantial market appetite exists for cutting-edge technologies and medical support, encompassing digital X-ray equipment, surgical instruments, and artificial organs.

However, before venturing into a new sector, it is crucial to grasp the intricacies of each industry and gain a comprehensive understanding of digital marketing and sales dynamics in China. Notably, the regulatory approval process for drugs in China can be protracted, encompassing activities such as quality testing, clinical trials, and other time-consuming procedures, which collectively span approximately 26 months. Several factors must be considered when devising a marketing strategy targeting the Chinese market. Consumer behavior operates on distinct platforms compared to Western countries, and search engine optimization (SEO) algorithms are more nuanced than Google's.

What are the suitable marketing channels in China?

Localized Pages: Creating localized web pages specifically tailored for the Chinese market is crucial for effective marketing in China. It involves adapting content, design, and language to resonate with the local audience. Chinese consumers prefer websites in Mandarin Chinese that cater to their cultural preferences and user experience expectations.

Baidu SEO: Baidu is the leading search engine in China, similar to Google in other parts of the world. Implementing effective Search Engine Optimization (SEO) strategies for Baidu is essential to improve the visibility and ranking of your website in Chinese search results. It includes optimizing keywords, meta tags, content, and backlinks to align with Baidu's search algorithm.

Public Relations: Building a strong public relations strategy is vital for establishing a brand reputation and credibility in China. Engaging with local media outlets, industry influencers, and key opinion leaders (KOLs) can help generate positive publicity and enhance brand awareness. Understanding China's cultural nuances and media landscape is important to navigate public relations channels effectively.

WeChat and Weibo Marketing: WeChat and Weibo are two popular social media platforms in China. WeChat is a multi-purpose venue with features like messaging, content sharing, payments, etc? Weibo is a microblogging platform similar to Twitter. Leveraging these platforms for marketing allows you to reach and engage with a vast user base in China. Strategies include creating official brand accounts, sharing engaging content, running campaigns, and utilizing influencer partnerships.

Tmall: Tmall is one of China's largest and most popular e-commerce platforms. It provides a marketplace for brands to sell their products directly to Chinese consumers. Establishing a presence on Tmall allows brands to tap into the enormous online consumer market in China and leverage Tmall's extensive user base and robust logistics infrastructure.

The Development of Digital Health in China

The current demand for digital healthcare in China is undeniably enormous, presenting a significant opportunity for any brand capable of meeting this need. By offering a compelling product or service to address the market gap, your brand can position itself for both immediate and enduring success. When you're ready to establish your presence in the Chinese marketplace, contact us, and we'll collaborate to develop a tailored marketing plan. With our expertise in Chinese digital marketing, we can ensure that your brand name resonates and gains prominence, maximizing its visibility and impact.