Now is the time for your brand in China. Especially if you are in Healthcare.
But, the issue with most of these reports and thought pieces is that they are just that…numbers on paper. Of course no one questions whether China is a massive economy, but the part that is harder to understand is what does this mean (if anything) for your company and brands?
I can tell you that it means a whole lot, and if China isn’t already on your radar, you are likely missing significant opportunities for growth.
You already know that China is the world’s second largest economy. That probably fills your mind with images of vast consumerism. — and rightly so. eMarketer has forecasted that China will overtake the U.S. as the largest ecommerce market by 2018.
If you dig deeper into those numbers an interesting (and likely surprising) trend appears: 70% of China’s ecommerce in 2014 came from B2B (source: iResearch Data). And interestingly, it’s not just the giant global companies that are making up these numbers. Indeed, 50% are SMEs.
So were exactly are the opportunities for B2B “western” brands? According to McKinsey, two of the top five fastest growing sectors are B2B, including logistics and importantly, healthcare.
If healthcare is a surprise to you, it shouldn’t be. With China’s massive growing middle class, the need for modern healthcare is increasing right along with it. And it’s not just volume, the quality of services are growing significantly as well. For example, Deloitte predicts that the domestic Chinese market for medical devices and drugs will grow significantly in the coming years.
What’s behind this growth? The large expansion in the delivery of quality healthcare. The government is investing heavily in the development of new urban hospitals throughout the country. In just a few years (2020), the overall investment in domestic healthcare in China will be US$1 trillion, or 7% of the GDP. Stack that up to any market opportunity on the planet and I believe you will see the importance of establishing your brand there NOW.
Is China an opportunity for your brand? To help you sort that out, you don’t want to miss the upcoming Aloft Sessions webinar on doing B2B business in China. You will learn from Chinese brand strategy expert, Mike Golden, and be able to ask questions and join the discussion live.