Price not enough for China medtech exporters

 29-Oct-15, Nikkei Asian Review 

Are you familiar with Microport, Mindray or BGI? What about Kanghui, Wego or Andon? You may not recognize the names, but you soon will. These health care product companies are among many Chinese exporters competing with multinational companies in the global market.

Image: Reuters

The value of health care products exported from China increased by an average of 18% a year from 2008 to 2013, reaching nearly $12.8 billion in 2014, according to the United Nations. Companies that are leading this effort are not only targeting Western countries but emerging markets as well.

A natural question for healthcare executives is how these brands will be perceived by new customers outside China. For Chinese companies, developing a clear understanding of brand perception in a new country is a key element of their entry strategies.

Physicians are generally positive toward Chinese brands in relation to local competitors because they see a need for products that provide adequate quality at a reasonable price. These characteristics play to traditional Chinese strengths, although while Chinese brands are widely perceived to be competitive with local brands on price and quality, they are viewed considerably less favorably on value and reliability.

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