Made-in-China Medicine Testing the World Market

Many pharmaceutical companies in China are hoping to pass major international certifications, such as certifications from the WHO, EU and Australia. "It is likely that 20 pharmaceutical companies can obtain international certifications this year," said Mr Yu Mingde, a vice-director of China Pharmaceutical Enterprises Management Association.

Temptation from the outside

2007 was another record year for China's western medicine export value, up 56% to US $ 784 million. However, most medicines that went to big markets such as Japan, Korea and Australia were products from foreign companies in China, mainly in the form of export processing trades. Products made by domestic Chinese companies were exported to low end markets such as Nigeria and Pakistan. As Chinese pharmaceutical companies are still weak at proprietary R&D, most of their products are generic copycat drugs.

Yu revealed that "the big three markets of EU, US and Japan have different market systems to ours. For the same generic drug, profits from selling to the big three markets are 5-8 times of those in China." A more pressing issue is that almost half pharmaceutical companies in China currently have idle capacities.

On one hand it is the high profit from international markets, on the other are the capacity surplus and vicious competition in the domestic market. It is not hard to see why the Chinese government has been emphasizing medicine exports in its healthcare industry planning, and "going out" has also become a consensus in the Chinese pharmaceutical industry.

Access to the markets

The EU mandates that medicine access permits will only be granted to companies inside the EU jurisdiction. So if foreign companies want to sell medicines to the EU market, they have to establish local branches or find local partners. FDA in the US also has similar requirements.

Yu suggested that for Chinese medicine products to enter EU and US markets, Chinese companies may try arrangements such as local mergers and acquisitions, registration of local offices or seeking local partners, and local partnerships would probably be the easiest. It is understood that those companies whose products have passed the EU certification, such as Hisun Pharmaceutical, Wuxi Kaifu Pharmaceutical and Shanghai Tianping Pharmaceutical, have all chosen the partnership path.

Yu, who has 30 years' pharmaceutical management experience, pointed out that regulations, processes and even social cultures in foreign markets are "very different" from China. He suggested that for Chinese companies that are "testing water", in light of the reality of a few foreign distribution channels, they can temporarily choose the OEM (original equipment manufacturing) or commissioned processing paths. Only when they become more sophisticated in this area, they may then go for mergers and acquisitions, local entity registration and brand building.

Zhejiang Reachall Pharmaceutical's fast-track FDA approval in the US was a good example of smart leverage. In early 2007, a big American pharmaceutical distribution company approached Reachall, requiring it to produce ointment products for the North American market. After a series of inspection, research and negotiation, a long term cooperation agreement was signed …

Smart Fitness Market Outlook, Sales Revenue, Strategy to 2026

Smart fitness equipment are used for physical exercises that help in managing overall weight, improve physical stamina, and develop muscular strength. These devices are used to track information including sleep, steps, calories, heart rate, and other physical status, which further help in improving the overall fitness of the human body.
Rising awareness among people related to health and fitness is one of the major driving factors for growth of the global smart fitness market. The factor attributed to growth of the market is rising health issues such as obesity, diabetics, heart attack, which further increases demand for fitness equipment.

For instance, in 2013, according to the Institute for Health Metrics and Evaluation analysis, nearly 30% of the world population was suffering from obesity or overweight, globally. Moreover, according to the, the total number of people in the US suffering from diabetics was 7.2 million in 2014, and in 2015, 1.5 million new cases were reported which was 6.7% per 1,000 persons. Therefore, increasing awareness among people will proportionally demand for such fitness equipment, which will help them to track health related information such as heart rate, amount of calories burned and workout time. This is expected to further help to improve their overall fitness of the body, in turn aiding in growth of the global smart fitness market.

Furthermore, growing government initiative programs related to health awareness is another factor propelling growth of the market. For instance, in May 2004, in the 57th World Health Assembly (WHA) endorsed the World Health Organization ((WHO), Global Strategy on Diet, Physical Activity, and Health. The aim of this strategy is to promote and protect health by guiding at each individual, community, national, and global level such that it helps in reducing disease and death rates related to unhealthy diet and physical inactivity.

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High price of smart fitness equipment is the major factor that limits growth of the market. This pushed start-up gyms & fitness centers and in-house users to buy second-hand equipment. Therefore, high prices of these equipment is a major factor hampering purchase of new equipment for commercial purposes. This is expected to negatively affect sales of new smart fitness equipment.

Global Smart Fitness Market: Segment Trends
On the basis of product type, the smart watch segment accounted for the largest market share in 2017 and is expected to retain its position during the forecasted period. This is owing to high demand for wireless health monitoring devices. For instance, according to the Coherent Market Insights' analysis, the total unit of smart watches sales in 2016 was US $ 36 million and it increased to US $ 76 million in 2017, globally. These smart watches carry out multiple functions such as real-time heart rate monitoring, fitness monitoring, tracking footsteps, tracking number of calories burnt, overall sleep statistics, tracking exercise training, and tracking of user's daily routine to offer valuable insights on their health. This further helps doctor to diagnose their patient's health remotely. This …