However, with the rise of new forces such as Mindray and new industries, the main theme of domestic substitution has been superimposed. In recent years, IVD foreign companies have finally felt the pressure from "getting involved in a big country", so that they have changed their stable business style, "put down their posture", reversed their operations and sought a broad grassroots market.
Recent trends in some industries show that foreign companies are increasingly ambitious to seize the grass-roots level and their pace is obviously accelerated:
Last year, Roche Diagnostics cooperated with Nanjing Renmai for the first time and exclusively represented the latter's small automatic chemiluminescence analyzer MCL60.
In addition, Simson Kangmei is the only agent in China to undertake Zecheng Bio-Paulia small POCT products.
This month 17, Roche Diagnostics made another move, and launched a strategic cooperation with Changchun Sino Medical on the automobile production line, once again releasing the signal of storming the grassroots market.
It can be seen that multinational IVD enterprises are breaking the original boundaries, and their determination and actions seem decisive. Some people say that for domestic "savage growth" IVD enterprises, this is a dimension reduction blow similar to Apple's price reduction. Narrow roads meet, the horn of domestic IVD grassroots market blows!
Internal and external factors are superimposed, and IVD foreign companies expand their borders.
You can't get up early without profit. There are still a lot of unmet needs in the grassroots market.
On February 22nd, the State Council, the Central Committee of the Communist Party of China issued Document No.1-Opinions on Promoting Rural Revitalization in 2022, which clearly mentioned:
We will further promote the construction of a compact county-level medical and health system, implement medical insurance payment according to the total amount, strengthen supervision and assessment, and realize the reasonable sharing of surplus retention and cost overruns.
In other words, the construction of compact county medical institutions will become the focus of future work, and the importance of primary medical market will rise to another latitude!
According to official data, by the end of 2020, there were about 970,000 primary medical and health institutions in China, such as community health centers, township hospitals and clinics, most of which did not have the inspection ability.
This is the external cause that induces the sinking of the foreign enterprise market. Internally, foreign companies are also facing two kinds of pressures:
First, in terms of policy, domestic substitution, graded diagnosis and treatment, even quantity procurement and mutual recognition of regional inspection results show that the general direction of expanding accessibility is unstoppable.
Second, the growth pressure brought by competition, the offensive and defensive situation of domestic and imported companies gradually broke the balance, and the tertiary hospitals, the main position of foreign companies, were gradually infiltrated by domestic companies and had to fight back.
Centralized procurement is an unavoidable topic in the industry.
Last year, in Anhui Province, four importers split in two, half of them faced withdrawal after the struggle, and the other half "surrendered" and actively cooperated. In the face of centralized procurement, there will be gains and losses. No matter whether you win the bid or not, you will face the challenge of falling sales. There is an urgent need to find the increment.
Secondly, it remains to be seen how DRG/DIP will be implemented after it is fully rolled out this year, such as the impact of disease grouping on medical behavior, diagnosis methods and hospital income.
Of course, the purpose of the above policies is the same-reducing the procurement cost of terminal hospitals. Enterprises are bound to face a sharp decline in profits.
Internal double pressure+external market potential, foreign companies should act.
"Hand-to-hand combat", competition returns to the essence
Full of ideals and reality.
It is not easy for multinational enterprises to be a grassroots market, just like rich children with good cards, who are willing to put down their bodies and fight naked with civilians. Although it is not impossible, it must face a series of barriers such as domestic containment, acclimatization and lack of hard conditions.
Challenge 1: Back to the essence, customer strategy and organizational structure have become the focus of competition.
Generally speaking, large companies usually use a lot of external resources to formulate strategies, so it is generally not easy to have problems, and problems often appear in strategy and implementation.
The high-end market occupied by foreign-funded enterprises for a long time is mainly KA model, which is a business model with high investment, high cost and high profit. The production, transportation and labor costs of enterprises are all there, which is also the main reason why it was difficult to enter the grassroots market before.
The underlying logic of IVD market is to rely on products and channels to become bigger and stronger, seize as many products as possible and cover as many scenarios as possible.
Multinational enterprises have rich experience in market cultivation and are now trying to enrich their product lines, so the customer strategy and transaction structure of stakeholders have become the focus of competition.
In addition, for the grass-roots market, how to properly adjust the organizational structure is no small test. For example, AstraZeneca, a foreign company in China, has gone through several rounds of organizational iterations and is still stumbling. Although the IVD industry is different, it faces the same challenges in the face of organizational change.
Challenge 2: How to solve the price-sensitive problem at the grassroots level?
The grassroots market is different.
At present, the medical technology departments above the second level mainly emit light, and the general flux is above 200 tests/hour. Reagents are generally packaged in large packages, and the start-up cost and maintenance cost are not low. Obviously, it is not suitable for primary medical institutions such as counties and communities, and the output is likely to be difficult to feed Qualcomm's equipment and instruments.
Therefore, in order to sink into the grass-roots market, laboratory equipment is only one aspect, and reagent cost is also a more important factor.
In addition, it is also one of the topics that foreign companies should consider to enrich more low-end product lines, sort out the circulation links, reduce the later equipment maintenance and service costs, and solve the price-sensitive problems at the grassroots level.
The era of "dislocation competition" has gone, and the logic of foreign companies has changed.
Although there are still many challenges ahead, some foreign IVD have taken the lead in "sending troops" and tried to enter the grassroots market.
Mode 1: Be prepared for danger in times of peace, conform to the general trend and strengthen local cooperation.
For individuals in an ecological circle, the more connectors, the deeper the connection benefits and the stronger the network structure. Especially multinational enterprises, in foreign countries, if they don't know how to enjoy the benefits, I'm afraid it's difficult to occupy the highlands forever.
In recent years, foreign companies have felt some difficulties in some domestic substitution areas, such as blood cells. But some high-end projects, such as immunization (chemiluminescence), are still growing. According to media reports, in 20021year, the sales volume of Roche's production line in China exceeded 100, and the strong growth trend remained.
Be prepared for danger in times of peace. Although the growth is still the same, in the face of the challenge of "grey rhinoceros", the world's largest IVD leader still boldly makes innovative moves. The first choice for the sinking grassroots with a clear-cut flag is not to fight alone, but to introduce partners to learn from each other's strengths and make common progress.
For example, the cooperation between Roche and Sinomed mentioned at the beginning should be well thought out:
First, considering the global scope, it is necessary to maintain the price system of its own products, so it is necessary to innovate and make differentiated products containing China gene, on the one hand, to avoid hurting the existing product price system, on the other hand, to reduce costs and meet the demand for price reduction in China market;
Second, the quality problem. After years of market tempering, the quality level of China enterprises is mature and stable, which can stand the strict standards of global leaders.
Looking back, in the past two years, Roche has cooperated with many local enterprises, including Jiuqiang, Renmai, Rip Benchmark, Dunhui Medical and Ding Jing Bio. Even cross-border cooperation with GE Medical to build an accurate diagnosis ecosystem.
Other multinational giants are also actively following this cooperative orientation of seizing the market.
For example, Beckman and Shengqiang Bio are jointly promoting a new model of cooperation in the field of biochemistry; Abbott cooperates with Jiuqiang Bio to produce special reagents suitable for Abbott's automatic diagnosis system; Siemens Medical cooperated with Pan Zi to deepen the clinical application and popularization of molecular diagnosis of lung cancer based on high-throughput sequencing detection related products.
In this cooperation, local enterprises use the instrument platform to increase the share of reagents in the high-end market; However, foreign manufacturers reduce the overall cost through cooperation and meet the requirements of channels and users for cost and product mix. Win-win situation is the general trend.
Method 2: unify internal thinking and form a professional team.
Market competition, talent first. At the same time of product localization, it is also important to establish a special team to occupy the market.
China's revenue is the most important growth driver of Roche Diagnostics in the world. In order to maintain sustainable growth, Roche Diagnostics has been looking for solutions for grassroots in recent years. Among them, an emerging market team was set up for primary hospitals to provide professional testing solutions.
In addition, Siemens Medical, Abbott and Simcombe also set up related teams.
Mode 3: Self-production and self-marketing, solving worries and innovating cooperation mode.
As the most important growth market in the world, China's foreign giants will naturally not sit idly by and start layout early.
From 65438 to 0997, Beckman Coulter, a subsidiary of Danaher, opened its first factory in Suzhou, the first layout instrument factory in China and the IVD enterprise of R&D center. Last year, the company spent more than $ 1 billion to establish the first global center integrating R&D, production, customer experience and other functions.
20 18 Siemens medical Asia-Pacific first diagnostic reagent factory settled in Shanghai, with an investment of about 3 billion yuan to produce clinical chemistry and immunoassay reagents.
In 20 18, Roche Diagnostics invested 450 million Swiss francs to put into production in Asia-Pacific R&D Center, and developed and produced immune and biochemical detection reagents. In 2020, the capital will increase by 65.438+0.8 billion USD, with a total investment of 479 million USD.
Although Abbott has not directly established a production base in China, its Alere is deeply localized. In 2006, Alec acquired Hangzhou Aibo as its headquarters in China. 20 16, Abbott Diagnostics China R&D Center officially opened.
In the process of localized production, the factory is an indispensable guarantee. In addition to the export of high-end products in the early stage, foreign-funded enterprises may rely on their own factories to be self-sufficient in the later stage to solve worries for the grassroots market, such as IVD products with low prices and easy operation.
Other enterprises even stepped out of the self-production mode and sought external cooperation. For example, at the end of last year, Beckman Coulter launched the innovative brand "Behuakang" and authorized Shanghai Airid and Shandong Akeda as the first cooperation units, which was regarded as one of the ways for foreign companies to differentiate their products and reduce costs.
You know, the market is an ecosystem of continuous learning and evolution. If we only stick to a certain unchangeable market strategy, we will inevitably face bottlenecks.
The challenge of grassroots market is the last mile of accessibility of medical diagnosis. With clear direction and policy support, the key to success can not be separated from insight into the industry, forward-looking layout and team execution. This competition has been started for foreign companies, and the result is worth looking forward to!
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