Managing Your Healthcare Business in China

Open Up the Chinese Healthcare Market

The Chinese healthcare market is dynamic and impacted simultaneously by several long-term trends and government reform and development programs. Increasing life expectancy and the consequences of the former one-child policy led to the rapid aging of society and the end of population growth. Changes in lifestyle, consumption and eating habits due to increasing prosperity lead to increased lifestyle diseases such as high blood pressure, diabetes, obesity, or overweight. By 2035, additional treatment spending on chronic diseases will more than offset the acute infectious disease decline caused by improved health infrastructure. Consequently, healthcare spending is expected to increase to $2.53 trillion, representing an accelerated compound annual growth rate of 8.4 percent.

The long-term market trends, paired with the strategic industry development Plan "Healthy China 2030" that seeks to let defined health indicators reach the level of high-income countries, produces numerous market opportunities for specialized medium-sized companies (SMEs) in the coming years. But how to seize the opportunities? This is where Melchers comes to play because the successful realization and mastering of the increasingly complex Chinese healthcare market require an experienced and trustworthy partner with the same strategic mindset.


Our Flexible Solutions

Do any of these scenarios sound familiar to you?

  • You are going global but lacking the cultural understanding of China?
  • You find it challenging to correctly classify the increasingly complex developments of the Chinese healthcare market?
  • You want to increase your market participation and accelerate growth but do not possess the financial and management resources to do it alone?
  • You are considering establishing or having established a company in China but are concerned about the corporate governance and compliance of the local organization?
  • Your local distributor acts in a non-transparent manner and only selectively shares information and market contacts?
  • You want to fully focus on the sales and operations of your China business and outsource the time-consuming managing of the complex administrative and regulatory requirements?
  • The pricing pressure on your products has become unbearable, and you are considering local production but are concerned about IP protection?

If you answered any question with "yes" or face similar strategic challenges to enter, unlock or grow in the Chinese market, it is time we talk.

Melchers has over 155 years of experience enabling international companies to succeed in China. We help our selected brand partner understand the Chinese healthcare market, quantify the scale and the competitor landscape, identify short, mid, and long-term opportunities for market growth, and minimize investment and risk. Through our businesses, we have longstanding experience and knowledge along the entire value chain of the Chinese healthcare industry in medical devices, medical consumables, pharma packaging, and pharma machinery.

Every business and brand is unique. Customized approaches enable us to offer tailored and brand-oriented solutions and market approaches for all our partners, from sales, through corporate services to corporate governance. We also take an equity share in our partners' China operation with a focus on long-term partnerships and risk sharing, if desired. Cooperation mode possibilities include

  • Market Incubation via Delegate Models
  • Sales, Services, and Distribution Partnership
  • Digital and Omnichannel Services
  • Managing Laboratories, Repair, or Service Centers
  • Joint Venture Cooperation
  • Equity Partnership for Your China or Asia Business
  • Corporate Service Provider (Finance, HR, Backoffice) to Your Local Company
  • Management Representation and Corporate Governance Services
  • Independent Board Members and Interim Management
  • Services for Supply Chain Coordination and Management

Case Studies

We understand that every business requires a tailored approach for its China strategy. We jointly develop and implement a China strategy with each of our brand partners. There is no one-size-fits-all; thus, our case studies reflect the variety of cooperation possibilities.

Joint Venture and Corporate Governance in the Pharmaceutical and Medical Device Industry

To increase the market participation of a German family SME that produces cardioplegic and organ preservation solutions in the field of cardiac and transplant surgery, the Melchers Group became a shareholder of the newly established local Joint Venture company in China and provides a one-stop-shop administration, supervision and corporate governance solution, which includes management representation, and ensures smooth and compliant day-to-day operations.

Corporate Service Provider in the Medical Device Industry

To ensure a smooth running of clients' business in Asia and allow their focus to be solely on operations, Melchers China provides Corporate Services to the Asia Headquarter of a German manufacturer of ophthalmological instruments in Hong Kong.

Sales Agency for Medical Consumables Manufacturer

Melchers China is the sole sales and after-sales partner of a Slovenian producer of medical consumables for the Chinese pharma industry. We have developed key accounts with the regular annual delivery of several dozens of million medical tampons to Chinese TCM manufacturers.

In the field of pharma and daily care packaging, as well as pharma machinery, our machinery and industrial business unit represent several brands in the Chinese market. Learn more about what we have done.


Insights

Learn about recent trends in the Chinese healthcare market and what we have done in our insight section.


Contact Us

We value any feedback and are always available for a non-committal conversation about your China strategy.

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