Basic Risk Characteristics of the Medical Device Industry

With the COVID-19 epidemic sweeping the world, the demand for reagents, masks, ventilators, etc., around the world has skyrocketed, of course, it also includes clinical medical equipment, such as synthesis reduction forceps, corneal cannula, sharp medical scissors, speculum tools, which has greatly promoted Chinese medical device companies to develop globally.

 

At present, foreign epidemics have not been effectively controlled, and the market development of medical devices will continue for a long time. Some analysts believe that after the epidemic is over, the entire medical device industry will have even greater dividends. After being hit hard by the epidemic, governments from all over the world will strengthen their construction and investment in the entire medical health and medical device industry, such as building new hospitals, updating and upgrading existing disease control centers, producing high-quality clinical medical devices such as disposable needle holders, high flow nasal prongs, etc.. But the medical device industry also has certain risks. We mainly introduce three kinds of risks.

 

 

1. Risks of Market Competition

China's medical device industry is developing rapidly, but the industry structure is at low-level. Most of the products are concentrated in low-end medical device products, and there is a large gap between the high-end medical device field and foreign countries. In recent years, domestic labor costs have continued to increase and companies are facing the implementation of the new version of GMP. Medical device companies have continuously increased their operating costs and market competition has intensified. In order to prevent and respond to this risk, on the one hand, the medical device industry has continued to research and develop, attracting customers through advanced products, on the other hand, it has strengthened sales and expanded market channels. enhancing the competitiveness in the market and maintaining the continuous growth.

 

 

2. Risks of Industry Policy Changes

The circulation products in the medical device industry and the medical device wholesale industry are directly related to human life and health. For this reason, the country has strict supervision on the above industries. In order to get rid of the use of medicines, improve the medical insurance payment system, develop social medical services, and carry out hierarchical diagnosis and treatment, the process of deepening the reform of the medical system in recent years has been moving forward during contradictions and disputes. The previous regulatory policy changes will trigger changes in the medical and health, medical security, and medical circulation systems, which will further have a significant impact on the operation and development of the industry. For this reason, changes in industrial policies are risks for the medical device companies.

 

 

3. Risks of Marketing Talent Loss

Marketing personnel are one of the key resource for the smooth business development of medical device wholesale companies. Medical device marketing talents with long-term stable sales channels and experienced medical device engineers are the objects of long-term competition in the industry. For this reason, it has triggered the frequent flow of such talents among medical device wholesale companies, which not only increases the operating costs of enterprises, but also brings operating risks to the enterprises. This is one of the risks that companies in this industry need to face.

 

 

Although there are many risks, the overall development prospects of the industry are still very good. Belle Healthcare, as a medical devices manufacturer for 11 years, has been firmly providing the market with high-quality medical equipment, such as medical forceps, medical cannulas, needle holders, medical suture scissors, if you plan to purchase medical equipment, please contact us.