BCG：China’s Digital Healthcare Market to Grow to RMB 700B in 2020
Boston Consulting Group (BCG) released a report recently titled “China’s Digital Healthcare Market Revolution”. The report predicts that from 2014 5o 2020, revenues from the applied digital healthcare services and e-commerce will grow from 20B to about 700B in RMB. There will be radical changes on every part of the value chain, including the diagnostic and management approaches of patients, the work styles of medical practitioners, the operation modes of hospitals, the supply and usage of medicines and medical devices, as well as the product structure and services of insurance organizations. Industry players on the value chain should all react fast to catch up with such emerging trends and meet the new challenges. .
- New players: to establish partnerships with hospitals, doctors and related organizations and to take advantage of its own digital tools such as mobile payment, social media and search engines
- Pharmaceutical/Medical technology companies: to improve sales and marketing efficiency by means of digital tools, provide solutions for patient management, and utilize big data analytics to support product decisions and improve R & D efficiency. Work with e-Commerce companies to meet the increasing online/mobile purchase interest of healthcare products. Currently, consumers are buying non-prescription/OTC medicines, healthcare products and supplements, and medical devices online; but in the near future, they are expected to purchase prescription medicines as well.
- Distributors/Retailers: to take quick actions so their roles wouldn’t be replaced by e-Commerce providers, including building their own e-Commerce capabilities and/or facilitating corporation with top eCommerce providers.
- Insurance agencies: to develop new business that covers digital healthcare service, such as remote diagnostics or remote patient monitoring, in order to attract new customers in a short timeframe. They could also take good use of big data to lower cost and improve patient management solutions.
For more information, please check out the BCG site on http://www.bcg.com.cn/cn/newsandpublications/publications/reports/report20150916001.html