Trends for Success For many foreign medical device businesses, China’s up-and-coming rural

Trends for Success

For many foreign medical device businesses, China’s up-and-coming rural medical device market may be out of reach unless adjustments are made to certain products. Individuals living in China’s rural regions will have increased insurance and access to medical facilities. However, they remain poor compared to those living in China’s larger urban cities. The result is that China’s rural areas will exhibit increasing demand for devices—but mainly for devices that have fewer features and are thus cheaper than many top-of-the-line Western device products that sell in China’s coastal areas. It is important that Western device makers of Class A products also make a Class B line better suited to rural budgets.

The Chinese government’s next big medical focus seems to be the rural markets and second- and third-tier cities. It behooves medical device companies to begin adapting to this trend. However, medical device companies seeking to sell in China outside the major cities need to be cognizant of these populations’ needs and lower per capita income in order to be successful.