Jedi counterattack before the elimination of the trend of the medical device industry
Beginning in mid-September 2017, a letter of intent from a national distributor of well-known foreign medical consumables has been placed on the desks of hospital presidents, vice presidents and equipment chiefs across the country. The content of the notification letter is first exposed to the supplier's price, and secondly, the hospital's supplier can only supply the hospital with a 10% gross profit margin based on the supply price, if the hospital supplier's supply price is higher than At this price, the national distributor of well-known foreign medical consumables will guarantee direct sales to the hospital at this price.
Why is the national distributor of well-known medical consumables in foreign countries taking such extreme measures? The reason is that it is not in response to the national call for medical reform and the implementation of the "two-vote system", nor is it to benefit hospitals and reduce hospital procurement costs. The purpose of alleviating the burden of medical treatment for the people is from the low-cost market of domestically produced products, and the market share has shrunk dramatically. It is also the development trend of conventional medical device products.
The development trend of conventional medical devices, domestic brands will eventually take the lead
In China's medical device industry , an innovative medical technology is usually transmitted from Europe to the United States. The world's leading medical device manufacturers occupy high-end market with high strategy and high profits. The author believes that as time goes by, more hospitals use this innovative medical technology. After a few years, this innovative technology is mastered by domestic medical device manufacturers. After innovative technology becomes conventional technology, it will attract nearly 100. Domestic domestic medical device manufacturers carry out low-cost dumping and gradually occupy market share. The monitors and heart stents with a transaction price of 80,000 have been pulled to less than 1.7 percent by domestic brands. Domestic heart stents and domestic monitors have accounted for more than 70% of the market. In 2011, Johnson & Johnson decided to withdraw Cordis from the global heart stent business. In January 2014, MicroPort acquired the drug-eluting stent-related assets of Cordis, a Johnson & Johnson company. Due to the lack of price advantage, BD has no high profit to support the operation of the company. A syringe that once occupied 80% of the Chinese market.
The price is a well-known enterprise and a small and weak enterprise, which is the watershed of domestic and imported brands.
Everyone who continues to fight price wars is a small business. It is very difficult to survive. I try my best to make the quality of the product worse and worse, so that the price can be lower and lower. The author Wang Qiang thinks that he will only take this trick. The world-renowned and domestically renowned medical device manufacturers do not fight price wars. They are based on experts, academics, technological innovation, category management, and optimal price/performance ratio to establish a good brand image to drive the market.
Imported medical devices are more than 70% higher than the price of domestic medical devices, and have been recognized by all people in the medical device industry, including the Health Planning Commission and the tendering agencies (in the import and domestic groups at the time of bidding), hospitals, and imported medical devices. And the manufacturers and agents of domestic medical devices, the author understands that the current domestic DR transaction price is about 300,000, and the same configuration of GPS DR transaction price is about 2 million, a set of domestic orthopedic trauma products lock plate (a The price of the board eight nails is 5,000 yuan, while the price of a set of locking plates (one board and eight nails) for imported orthopedic trauma products is 9000 yuan.
Only 10% of the gross profit margin of medical device dealers can survive?
The national distributor of well-known foreign medical consumables issued a letter of advice stipulating that the dealer can only supply the hospital with a 10% gross profit margin on the basis of the supply price, otherwise the hospital can directly place an order with the national general agent. Can a dealer only survive with a 10% gross margin? The answer given by the author is: I can't survive, I can't do it. 10% can only maintain the distribution, but can not do product promotion, how can the maintenance of the hospital's relationship without the support of the cost? It is easier to be robbed by domestic brands. After all, the price is the strength of domestic brands. What's more, the settlement cycle of most hospitals is getting longer and longer. Half a year, ten months, some northeast hospitals only make one payment a year, and some local hospitals have the requirement of rebate.
Is it really easy for a hospital to change suppliers?
The hospital is very cautious about the suppliers: especially the suppliers of large consumables. It is not easy to change suppliers. After all, it involves the interests. The process of changing suppliers is actually the same as the re-entry of new products. Only in hospitals. On the premise that the head of the equipment department and the director of the department are replaced, the hospital will change the supplier.
Instead of letting competitors replace us, it is better to replace their old products with their own new products. Technological innovation is the driving force behind the development of the medical device industry.
If you follow the old rules, you will eventually be eliminated by industry trends.
In 2012, due to fear of change, following the old-fashioned, digitalization of the civilian photography industry, Kodak’s Kodak crashed down, but history is still repeating itself, the disappearance of Motorola and Nokia mobile phones, and the delisting of Belle’s footwear industry. The next one will fall, will it be you?
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