There are many ways to the foreign market say the makers of Taiwan medical equipment. But they always begin with TAITRA trade shows like TAIWAN HEALTH knowing that they can gain agents, cooperative marketing alignments and draw up strategies with various hospitals and wholesalers to hit the world market.
Quality & Distribution:
Such makers also know that the quality, especially safety, of exports has a direct bearing on future business success and branding. As a result Taiwan products are subject to strict inspection before export.
And with the quality and distribution problems these makers know they are entering a market of vast prospects since Taiwan currently accounts for only 0.4% to 0.5% of the global healthcare and equipment market (IEK <Industrial Economics & Knowledge Center> ITRI June, 2008). And the Americas comprise the top market with the Western Hemisphere accounting for 53.6% of the global healthcare equipment market.
Case 1:
Chang Gung Healthcare Technology uses hospital distribution to expand on the international markets
Chang Gung Healthcare Technology has succeeded in going global by first winning the local market. The company occupies more than half of market share for new hospital bed tenders in Taiwan and has built up a rich product line of products based mainly on hospital-use electronic hospital beds, nursing trolleys, companion furniture, and headboard positioners.
Around three to four years ago, Chang Gung Healthcare Technology began attending major healthcare equipment shows in Germany, Dubai, and China. During those visits, representatives were approached by well-known regional distributors who expressed interest in starting business ties, particularly with hospitals with proven track records. .
Meanwhile, the firm has repeated its client-focus approach that it uses its experience on the Taiwan market to develop customized products for contacts in Russia, South Korea, and Iran. Currently it exports to more than 30 countries including Canada, USA, the UK, France, and the PRC. Chang Gung service regions include Europe, North America, Latin America, Africa, the Middle East, and Southeast Asia and its products are certified by such leading institutions as FDA, CE, GMP, ISO 9001: 2000, and ISO 13485/ .
Four tips of export success from Yingming Cheng (Chang Gung’s sales manager):
- Grasp the fullest understanding of patients and their hospital care needs
- Clinical feedback and comments from the medical staff are vital. Follow up!
- Build upon staff & R&D experience to create tailored products for clients
- Strive to build brand loyalty by delivering quality at reasonable prices
Case 2:
Chin Kou Medical Instrument uses several means to built success!
Chin Kou Medical Instrument has vowed not to enter into price wars that so beleaguer local makers who are increasingly slugging it out with Chinese-made goods. Instead, they have chosen a simpler and much more profitable approach of heading upstream for better markets.
This noted manufacturer of hospital-grade professional diagnostic healthcare equipment offers a full product line including stethoscopes, electronic stethoscopes, blood pressure monitors, and electronic blood pressure monitors.
In the early days, Chin Kou mainly served as an outsource supplier for healthcare equipment components. When its manufacturing technology became more mature, the company started building its own "SPIRIT" brand in 1979. It also began taking export orders from North America, Europe, Japan, and Southeast Asia. For the purpose of satisfying customer's quality requirements, Chin Kou strives to keep up with market trends. It adopted ISO standards in 1996 to bring its products up to par with international quality levels.
Through visiting trade shows they have built up a network of international distribution and partners. But there’s more. They lay down terms that spell out product positioning and strategies that aim at heightening product profile. And to better compete with PRC makers they have stressed the best in R&D, efficient service and timely delivery.
Case 3:
APEX Medical switching from distribution to manufacturing and building a brand based on outsourcing experience
APEX Medical, established in 1990, started in the business of "healthcare product exports". Later, with the rise of the Internet, profit margins became drastically lower for trading companies. That’s when APEX switched track to manufacturing and began investing heavily in R&D for key component technologies. Currently as much as 70% of the company's revenue comes from being an ODM/OEM. In addition to working together with the technical team from ITRI, it has also set up a Hsinchu R&D Center. APEX Medical regularly invests 3-4% of annual sales in product and technology development and this has let the firm win recognition for producing winning products in the Mediphar Innovation Awards, Taiwan Good Design Awards, and Taiwan Excellence Awards. Its creations include mobility scooters for the elderly, medical air mattresses, and CPAP machines.
Here are a few tips from Yucheng Chu, VP of Marketing at APEX:
- Accumulate and use experience from being an outsourcing supplier
- Developed relations with clients on foreign market and distribution channels
- Cultivate professional talent in brand management
"Enhanced brand familiarity and market share is closely related,” stated Yucheng Chu. APEX has built its own network of agents to achieve a market share target and to fully support their promotional projects, activities, and documentation.
Although APEX chiefly exports to Europe it aims to strike into the USA once it has consolidated sufficient strength and experience in peripheral markets.
Press Contact:
Sue Lu (Ms.)
Tel: (02) 2725-5200 Ext 2632
Fax: (02) 2725-3501
E-Mail: suelu@taitra.org.tw
