The standard of living of the Chinese people has improved significantly; therefore the quality of healthcare is a concern for many residents. The fields of medical technology, biotechnology and pharmaceutical markets are booming in China.
The medical market in China
According to Ubifrance, different categories of medicine should develop themselves in China, including cosmetic medicine for diabetes, cardiovascular disorders, oncology care and respiratory medicine, etc. Moreover, the Chinese medical device market is the 4th worldwide market. Western medical companies have a role to play in this growing market.
The regulation was revised in June 2014, the registration process for Class I products (eg wheelchairs, bandages, scalpels) is simplified. The procedure for class II products (eg es contact lenses, skin staples, infusion pumps) and III (eg active coronary stent, hip) has been reduced. Finally, the procedures for product innovation have been accelerated and the validity of the one year certificate of registration has been extended.
The procedures seem to be reduced and simplified, so it’s time for medical companies to begin selling in this promising market. How they should approach this market?
Approaching this market with a French or Chinese salesman under an umbrella company.
In order to succeed, it is recommended to have a French or Chinese sales representative on-site who prospects. In going through an umbrella company, you will make your launch easier and will not be faced to administrative procedures.
The umbrella company will be in charge of the administrative and salary procedures that your company needs to set up on the Chinese market.
In concrete terms, your company is linked to the umbrella company with a service provision contract, while the umbrella company is linked to your sales representative with a working contract.
While the umbrella company will be in charge of the administrative procedures, visa demands and procedures linked to the hiring of your sales representative, this one will focus on his core business.
In addition, flexibility is a key to a successful implementation in China. An umbrella company will allow you to remain flexible, since this solution allows using the services necessary from the umbrella company. This company can take care of accounting, administrative, provide offices, etc. The medical company does not need to hire a secretary, an accountant, lease individual offices. The umbrella company adapts to the needs of its clients and provides the required and necessary services.
Salesman can therefore, at first, get information about the regulations relative to the market of medical products, including from the China Food and Drug Administration. In order to succeed in setting up a company on the Chinese market, one must be very knowledgeable about the regulations and conscientiously follow trends.
It is also strongly recommended to participate in shows such as “CMEF, China medical equipment fair” or “International medical instruments and equipment exhibition” to meet potential importers and distributors of medical products in China. By going through an umbrella company, a medical company will be present at all these shows and arrange appointments with prospects in the Chinese territory. This flexible solution seems to be a winning solution for a successful presence on the Chinese market in the medical field.
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Sources: Ubifrance/ Aviesan/ China Food and Drug Administration