If you want to develop your business in China with distributors, we can help you, and I recommend to all pharmaceutical managers to read this article.
The Chinese and their health
Health has always been a central concern for Chinese people. Traditional Chinese medicine relying on a balance between mind and body exists for centuries and is still practiced today.
Traditional Chinese medicine is a part of Chinese culture, and local pharmaceutical brands understood it when selling modern medicine products. Moreover, with the important air pollution in China and the current outbreak crisis, the pharmaceutical sector is booming in China.
As you know, people are striving to get masks, hydro-alcoholic gels, but they also strive to get vitamins, ampoules and other types of products to boost their health and immune defence.
More than ever, Chinese people’s relationship to their health is at the top of their priorities. Even though the pharmaceutical market was already booming in China before the coronavirus outbreak, this market’s potential has increased tenfold as much in B2B as in B2C!
Pharmaceutical Chinese market
The pharmaceutical market in China is huge and it’s no surprise! With 1.4 billion people to take care of, health is one of the largest markets in the country.
Few things you should know about China’s pharmaceutical market:
- Over 90% of drugs registered in China are generic
- A prime operating revenue of about 2.6 trillion yuan in 2016
- Representing around +13% year-on-year growth
- 3 times more foreign drug applications in 2017 compared to 2016
And about this market’s future:
- Expected to reach $161.8 billion by 2023
- It will represent 30% of the global market!
And these numbers are underestimating the real market potential since they were made before the outbreak crisis.
To sum up, Chinese people are looking for safety and quality products coming from reliable brands.
Foreign pharmaceutical Brands in China
We can take many examples of foreign pharmaceutical companies that succeeded in China. Some of them even set up R&D centers within China.
- Novo Nordisk
- Eli Lilly and Company
- Hoffman-La Roche
- Johnson & Johnson
Some of those companies/brands are established in China for decades or just several years and they all flourish in the Chinese market!
Innovative or simply new drugs from foreign brands have every chance to be successful in China, especially with the current situation if the pharmaceutical product can help. Otherwise, offering to Chinese consumers or companies a product that will provide them value is the most important thing to keep in mind.
Pharmaceutical distributors in China
To do business in China when producing pharmaceutical products, the most important thing to look for is a reliable distributor. And what can be more reliable than China’s top pharmaceutical distributors?
- Sinopharm Group
- Shanghai Pharmaceutical
- Guangdong Jiuzhoutong Pharmaceutical
- China Resources Pharmaceutical Group
- Jointown Pharmaceutical Group
Other options exist as regional distribution companies:
- Nanjing Pharmaceutical
- Guangzhou Pharmaceuticals
- Chongqing Pharmaceutical
- Huadong Medicine
- Sichuan Kelun Pharmaceutical
There are also other distributors you can consider as Nepstar Chain Drugstore which is the largest pharmacy chain in China or foreign companies that has a pharmaceutical section in their stores like Watson’s or Walmart.
If you need help to find pharmaceutical distributors, contact them and deal with them.
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