The story behind the domestic medical equipment giants such as Neusoft, Lian Ying, Anke, and Xinhua

In recent years, more and more manufacturers are involved in large-scale medical equipment , hoping to take a share in the global market. However, with the narrowing of the space of globalization and the "congenital deficiency" of domestic manufacturers, the road to globalization can be described as difficult. How to break through in this environment? Come listen to the analysis of industry veterans.

The so-called large-scale medical equipment (asset-type equipment) is actually difficult to accurately define the standard, and can roughly set up $400,000 for the entry line of large equipment, such as CT, MRI, and linear accelerator.

The trend of large equipment

1. Low profit.

In recent years, the market price of large equipment has gradually declined, compared with a drop of nearly 30% five years ago. From the manufacturer's point of view, the reduction in material costs, especially the decline in core material costs, did not match the market price. In other words, in addition to reducing costs and developing new products, manufacturers have also reduced their own profit margins to some extent.

On the one hand, the number of suppliers of core components is limited, and producers, especially Chinese producers, have limited bargaining power in core components. Taking CT as an example, the cost of the core components – the tube, the monitor, the high pressure, and the ringing – accounts for nearly 60% of the cost of the entire product, and some of the manufacturers except the high pressure can achieve a small number of products. In addition, almost all of the remaining parts need to be outsourced. There are 6 global suppliers of tube tubes, and 5 of them are CT manufacturers. It can be seen that the large equipment is weak in supply chain management.

Another aspect of low profitability is at the agent level. As the market price goes down, the profit margin left to the intermediate link is getting smaller and smaller. Taking CT products as an example, the standard profit left by GPS for agents is 7%, and this profit standard is generally difficult to achieve, and the profit margin of agents has been close to commission.

The story behind the domestic medical equipment giants such as Neusoft, Lian Ying, Anke, and Xinhua

2. The channel is flat.

On the one hand, due to the gradual reduction of profit margins, and on the other hand, due to better control of the project, manufacturers are increasingly inclined to shorten the sales process and reduce the operation of the project by agents. Many project agents appear only as an intermediary. Some product manufacturers choose direct sales methods, such as GPS, which stipulates that CT products are more than 64 layers. If the amount of MRI products or packaged items exceeds a certain amount, only direct sales will be made.

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Shandong Shengli Bioengineering Co., Ltd , https://www.shenglipharm.com