Statistics show that the added value of health industry in China accounts for only 5% to 6% of GDP, which is lower than that of many developing countries. Lack of products and innovation, mainly imitating the products of developed countries, many of which focus on the price war in the low-end market and lack the high-end industry incubation and service platform.
Most health manufacturers are small in scale, weak in R&D and lack of systematic integration of competitive products, core technologies, health services and communication channels. And it is impossible to provide consumers with truly lasting health by providing complete health solutions and successful business models.
Imperfect industry regulations and standards lead to the difficulty in standardizing the whole industry and the emergence of large enterprises, and the investment in health public infrastructure construction is also insufficient. According to statistics, the expenditure on prevention only accounts for 7% of the total health expenditure in China, and the main funds are used for the treatment of serious diseases and hospice care, which has little practical effect, that is, 2/3 or more of the lifetime health expenditure is spent in about 28 days. Although the country has been vigorously advocating "disease prevention", it lacks a strong "guarantee system". The public is afraid of getting sick and unwilling to spend extra money to prevent diseases, so they are in a dilemma.
The crisis of medical trust, serious food safety problems and excessive fudge of health care products have led to insufficient public confidence and trust in the industry and the market. For the above reasons, all kinds of investments are unwilling or difficult to enter the field of health industry, which limits the development of enterprises and even the whole industry.