German Company Offering Joint-Venture and Co-operation Opportunity to Develop TCM Market in Germany and Europe
Invitation to a JV-conference on 28. 12. 2004 in Beijing to discuss the markets, the developments and the strategies to be successful and form partnerships to increase market shares and leadership.
I. Market chance
In recent years the Traditional Chinese Medicines (TCM) are becoming more and more popular overseas. The markets of traditional drugs and nutritional food are booming in Europe, especially in Germany. With a population of nearly 100 million, high personal income, large amount of health expense, strong consciousness of healthcare and tendency to natural medicine and food, Germany is one of the biggest market worldwide for TCM. From Germany, it is easy to expand into other European countries because of the united market and the harmonized medical regulations. The 25 countries in European Union make up the world´s biggest economic unity and have a herbal medicine market of over 10 billion turnover per year.
Today in Europe, the effects of the herbs (like ginsen, ginko), acupuncture and Chinese massage are widely acknowledged and accepted. As TCM is included in the health insurance system in European countries and the trend for homotherapy is growing, the interest and demand for the nature-based TCM treatment is increasing drastically. . The TCM market volume in Europe is expected to double from 2004 to 2010, reaching 14,6 billion Euro. It provides good oppurtunities right now for the Chinese medicine companies to develop their markets in Europe.
II. Market barriers
However, the Chinese companies have not profited much from the European TCM markets until now. Chinese TCM export only counts for 1% of the total Europe´s herbal medicine trade. The first barrier of entering the market is the strict drug approval and registration. The complicated evaluation process and the high quality & safety requirements e.g. the EU´s GMP (Good Manufacturing Product) certificate dwarf many Chinese suppliers or let them to export their products just as food or nutrition products, instead of medicine.
On the other side, marketing and running expenses are very high in Europe. To register a company, rent an office, hire an employee, launch a product and hold promotion activities are all very expensive in Germany and other European countries. This forces many middle and small sized companies to sell only through distributors, what is indirect and inefficient.
Moreover, the cultural and social difference between China and Europe brings more difficulties for the business activities. The society´s attitude, consumers´ behaviour and business convention in the healthcare branch are very diversified in various countries. For an inexperienced foreign player, the risks in this branch are higher than in other branches.
III. Market strategy
Recognising these difficulties, Helmut Kaiser consultancy (www.hkc22.com), a Germany-based leading consulting company in Life Science industries for over 20 years, is willing to co-operate with Chinese partners to develop the TCM market in Germany and Europe. We are to use our knowledge and experience in the international pharmaceutical and healthcare business to help the Chinese companies to enter and develop the markets. Our activities include:
1. Offering information, such as the quality and safety standards for medicines e.g. EU GMP certificate (Good Manufacturing Product), the suitable classification of products (as medicine, food, nutrition, and so on), the registration procedure and the requirements for drug approval, the distribution channels and the information of distributors, searching for investors etc.;
2. Registration service, we offer the complete service for Chinese companies to register their products and companies in Europe, to enter the market and to apply for the drug approval;
3. Entering database, we offer the further service to enter the medicine and herb databases of the major distribution channels in Germany and Europe. The right A,B,C classification is very important for the sales.
4, Searching for distributors, we can help the Chinese companies to establish distribution channels and find the right distributors for their products;
5. Promotion activity, we can plan and organize promotion activity targeted at various groups, such as doctor, pharmacists, drug stores, healthcare professionals, end-users, and others;
6. Sales, we can conduct sales for Chinese partners, selling TCM products to pharmacists/drug stores, health shops, food shops, end users and others.
7. Usage of products, the right instruction of usage is essential to the drug and other healthcare products. Giving precise and compact information to professionals and patients is not negligible to the success of a good product. We will provide complete service in this field.
8. After-sales, The after-use follow-up is another important aspect of building a brand image. We can help to construct a fast and effective model to get the feed-back, make proper reaction and minimize any negative result.
IV. Co-operation
There are different ways of co-operation, including:
1. Service on request, we can provide all the above mentioned service on your request separately, such as:
-Examination of suitability of the formula and ingredients of products for European market (reports showing the product suitability by countries)
-Searching for distributors in Europe
-Registering in TCM on-line database
-Developing market entry strategy and realisation
2. Joint Venture, We are to build up a TCM Joint-Venture in Germany and glad to invite you to participate in this activity. Through this joint-venture, which will be an alliance of several Chinese healthcare companies and Helmut Kaiser Consultancy, the TCM companies can directly enter the German and European markets. The office and running expenses can be saved when they are shared. The registration and application can be facilitated. The quality and package requirements can be reached. The marketing, distributing and promoting will be much more efficient and effective with a portfolio of products and intercultural understanding.
The aim of our joint-venture is not only the simple export of products, but also to build up the brand and increase the product value. The joint-venture will devote itself to standardizing the product quality and package. The marketing activity is as well targeted at establishing a TCM brand image among pharmacists, professionals and consumers, what usually would cost single company too much time and effort. Yet, as an alliance, the joint-venture will save the investment significantly and reach the success faster.
3. Establishing TCM online-database and building TCM industry standard, Meanwhile we will establish an TCM online-database, which will collect the Chinese TCM products and their manufacturers and suppliers. All the products selected in our database will be examined and approved by Chinese and European health institute and expert panel. The list of selected companies will be sent to over 10,000 European TCM distributors, clinics, homotherapy practitioners and related professionals and can be accessed per internet. Through this effort we try to establish a standard for TCM export in Europe, which will guarantee the product quality, raise the image of TCM in total, increase the European consumers´ confidence and elevate the product value.
V. Conference invitation
Mr. Helmut Kaiser, general manager of Helmut Kaiser Consultancy, will visit Beijing at the end of December and hold the conference “How to enter and develop TCM market in Germany and Europe – information and co-operation”.
The themes of conference include:
a. State of European TCM market 2004 and its development 2005-2010;
b. Analysis of the target groups for purchasing and using TCM products in Europe;
c. 25 leading TCM products and herbs counting over 70% of the total sales in Europe;
d. Drug approval process and classification of healthcare products in Germany and Europe;
e. Legal and financial issues to notice for entering the German and European healthcare market;
f. Major distribution channels and their market share;
g. How to find the right distributor in Germany and Europe, with a list of major distributors;
h. Tips for promotion and sales in Germany and Europe;
i. Strategy to build brand image of TCM products in Europe;
j. Co-operation
The conference will be held in:
Beijing Sheraton Great Wall Hotel
10:00-16:00 Dec. 28. 2004
Conference fee: For the first participant of a company, 390 Euro (or 3900 RMB)
For the second person and more 150 Euro (or 1500 RMB)/person
The fee can be paid in CASH at the conference. 10% discount for transfer in advance.
The conference fee includes about 200 page conference documents, containing detailed information about markets, leading products, companies, market entry conditions and target groups. Conference documents can be obtained separately as well for 250 Euro (or 2500 RMB).
Every interested Chinese pharmaceutical and healthcare companies, universities and investment companies are sincerely invited. Related ministries and associations are invited as well. There are limited free place for journalists, please make the reservation in advance.
If the time of conference is inconvenient for you, we would also be glad to contact with you individually.
*In 2003 we have elaborated the market study : “Traditional medicine and related nutrition, functional food and food markets worldwide 2003-2015”. This study, based on the new market data and interviews with companies and experts, makes analysis of the state of world TCM markets and their development. The contents include the application of high-tech, such as biotechnology, information technology and nanotechnology, in TCM; the comparison of Asia, Europe and America markets (divided by countries) and the development of segments of medicine, nutrition, nutraceuticals, functional food, equipment and so on. Details please click here.
VI. Reply form
Helmut Kaiser Consultancy
Tel: +49 (0) 7071 67001
Sigwartstr. 20 Fax: +49 (0) 7071 68086
72076 Tübingen
www.hkc22.com
hku-tuebingen@t-online.com
“How to enter and develop TCM market in Germany and Europe – information and co-operation”.
_________ Persons of our company will attend the conference
Conference fee: For the first participant of a company, 390 Euro (or 3900 RMB)
For the second person and more 150 Euro (or 1500 RMB)/person
The fee can be paid in CASH at the conference. 10% discount for transfer in advance.
The cost includes about 200 page conference documents, containing detailed information about markets, leading products, companies, market entry conditions and target groups.
Conference document only 250 Euro (or 2500 RMB)
We would like to order the following service
Examination of suitability of the formula and ingredients of products for European market
(reports showing the product suitability by countries) On request
Searching for distributors in Europe On request
Registering in TCM on-line database On request
Developing market entry strategy and realisation On request
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