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The adoption of Ozempic in China: implications for public health and obesity control

The adoption of Ozempic in China: implications for public health and obesity control

In 2022, 38% of the population was overweight and 8% obese. China is experiencing a rapid rise in obesity. This phenomenon is worrying the health authorities and has prompted reaction from the public. Among the many fashionable weight-loss techniques and diets, there has been a boom in specialist drugs such as Ozempic (semaglutide).

GLP-1 and ozempic drugs

Ozempic, produced by Novo Nordisk under the name NovoCare in China, belongs to the GLP-1 class of drugs. Initially approved for type 2 diabetes, its field of action has recently been extended to the treatment of obesity. These drugs work by mimicking a hormone that regulates blood sugar levels and helps suppress appetite, making them useful for weight loss.

Regulatory and market advances

In 2024, the NMPA approved Ozempic for long-term weight management, a first for GLP-1 drugs in the country. This approval is seen as a response to rising obesity rates. At the same time, Eli Lilly’s tirzepatide has also been approved, signaling an opening of the market to these treatments. For the time being, the two companies together account for around 94% of total sales of GLP-1 drugs in China.

Questions and mixed opinions

Despite the popularity of Ozempic and other GLP-1 drugs, concerns remain about their side effects and high cost, which could limit their uptake. In addition, social networks reflect divided opinions, oscillating between enthusiasm for their efficacy and mistrust due to negative experiences.

Prospects for GLP-1 drugs on the Chinese market

Strong demand and public health concerns continue to stimulate interest in GLP-1 drugs. Players in the Chinese pharmaceutical sector have initiated their own research and development into GLP-1 drugs. Currently, Shanghai Benemae’s beinaglutide, the first GLP-1 drug developed in China, is undergoing clinical trials for the treatment of weight loss, with potential approval expected soon.  The companiesHengrui Medicine

Gan & Lee Pharmaceuticals and Haosen Pharmaceuticals are also investing heavily in research and development to bring GLP-1-based treatments to market.

Source: 36Kr, Designed by daxue consulting, GLP-1 anti-obesity drugs being researched in China

With patents about to expire and the emergence of potentially cheaper local products, the market could become more competitive and accessible. Transparency about the long-term effects and results will be crucial to winning consumer confidence.

For the full article and more details, see the Daxue dossier: Behind the burgeoning popularity of weight loss drug Ozempic in China

VVR Medical and Daxue Consulting specialise in providing strategic and operational support to companies in the medical sector on the Chinese market. Do not hesitate to contact us at contact@vvrmedical.com to receive advice and support from our experts for your project.

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Press release: Daxue Consulting joins VVR International

Press release: Daxue Consulting joins VVR International

Press release

Consulting and business services – China / Asia
Daxue Consulting joins VVR International

Paris / Shanghai, July 25, 2024 Daxue Consulting, a market research and strategy consulting firm that has supported over 400 clients in China and Asia since 2012, and VVR International, a consulting and organization services provider having facilitated the industrial and commercial development of over 1,000 companies in China since 1999, today announce their strategic merger to form a leading group on China-related issues.

The skills and expertise of Daxue Consulting, specialized in identifying and mobilizing the growth levers of its customers in China and Asia, remarkably complement the operational capabilities of VVR International, whose mission is to define and implement innovative organizational models that will enable the Group’s clients, whatever their sector of activity, to develop in these markets ambitiously, securely, and sustainably.

With more than 70 consultants combined (excluding PEO employees), including over 60 in China, spread across 8 offices managed by an Executive Committee of 9 French and Chinese partners, the Group aims to become the leader in strategic and organizational consulting for companies in China. VVR International and Daxue Consulting provide their global clients – multinationals, ETIs, SMEs and start-ups alike – not only with a clear, quantified vision of their growth opportunities, but also with the ability to implement this vision, via a set of particularly innovative and solid operational, regulatory and HR services.

Capitalizing on their strong brand awareness, both entities will continue to operate under their own brand names. The Daxue Consulting and VVR International teams in Shanghai are joining forces immediately, to accelerate synergies and foster the rapid development of an integrated consulting and services offering. In particular, the Group will increasingly draw on the unrivalled expertise of its consultants in the fields of business development, digital, medical technologies and capital partnerships in China.

Matthieu David, CEO and founder of Daxue Consulting:

The alliance between Daxue Consulting and VVR will enable companies worldwide which are invested in China to benefit from business development solutions at both strategic and operational levels. For Daxue and its team, VVR’s operational offering is the ideal complement to Daxue’s mission to serve our clients in both the strategy and execution of their ambitions in China. It should be added that this merger will enable Daxue to draw on VVR’s expertise in the medical field, negotiation, and distribution issues.

Camille Verchery, CEO and founder of VVR International:

The integration of Daxue Consulting’s expertise will enable us to offer our clients high-quality strategic market research and relevant marketing skills, particularly in the healthcare and BtoC sectors. The new group will achieve sales of 10 million euros. What’s more, the group’s growth will justify greater investment in new technologies. Last but not least, the culture, the DNA of our teams and our values are incredibly similar, which is ultimately the most important thing for the development of our employees, and therefore performance for our clients“.

About Daxue Consulting

Founded in 2012, Daxue Consulting is a strategic market research and consulting firm specializing in the Chinese market, with offices in Beijing, Shanghai and Hong Kong.
Through strategic market research tailored to the needs of its clients (large international companies and SMEs), Daxue Consulting’s team defines unique and fine-tuned growth strategies in the Chinese market.
Thanks to a combination of digital data collection tools and traditional investigation methods, Daxue Consulting has supported over 400 clients through 600 projects, in sectors as varied as F&B, beauty, food, cosmetics & luxury, healthcare, video games, e-commerce and numerous industrial sectors.

About VVR International

Founded in 1999, VVR International is a consulting and services company that assists companies from all over the world in their industrial and commercial development in China.
VVR International’s core business is to secure and perpetuate its clients’ development in China by setting up sustainable and innovative organizations.
Over the past 25 years, VVR International has managed more than 1,000 projects in China, including over 350 distribution projects (strategic diagnosis, development of sales networks, recruitment, PEO and setting up of sales structures), 250 capital partnership projects (technology transfer, setting up of own operations, joint ventures, fund-raising, mergers, acquisitions), and over 400 purchasing/quality projects (sourcing, auditing, product development, quality control) in 20+ business sectors.
VVR International is a founding member of Globallians and Medicallians.

Download the press release:

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Navigating the New Wave of Opportunities: M&A Expansion in China

Navigating the New Wave of Opportunities: M&A Expansion in China

The Chinese market, with its impressive growth trajectory, has established itself as fertile ground for mergers and acquisitions (M&A), creating a landscape rich in opportunities for international companies ready to venture in. In 2023, the data reveals a dynamic M&A scene, marked by figures that underline the renewed confidence of investors and the vitality of the market.

A vibrant M&A scene

The Chinese M&A market had a dazzling year in 2023, with inbound deals jumping 68% and outbound deals growing by 31%, a clear indication of China’s growing appeal to both local and international investors.

Consolidation in sectors such as technology, renewable energy and financial services reflects a maturing economy seeking to capitalise on global trends and innovations. Renewable energy, for example, has captured attention thanks to government-backed initiatives, propelling China to global leadership in the sector.

Focus on Sectors and Key Transactions

M&A activity was concentrated mainly in the industrial sector, which accounted for 21.5% of the market or $66 billion, followed by commodities (14.6%) and high technology (13.3%). This illustrates a strategic interest in key industries that are at the heart of China’s economic growth and integration into the global economy. A major acquisition this year was the partial acquisition (10%) of Rongsheng Petrochemical by Aramco Overseas Co for $3.4 billion.

 

Investment focus : Beijing, Shanghai and Guangzhou

The 2023 M&A market in China highlights the importance of leading cities as investment centres. Beijing recorded $70 billion in transactions, Shanghai followed closely with $60.5 billion, and Guangzhou posted $58 billion. Despite a downward trend on the previous year, these figures confirm the crucial role of these metropolises as strategic investment hubs in China, acting as incubators for companies setting up there.

This regional dynamic underlines the potential of these cities not only as economic centres, but also as privileged points of entry for international companies exploring opportunities in China. (More information on the main Chinese cities in our article : here)

Navigation Challenges and Strategies

Although investment flows and the Chinese market in general are growing exponentially, there are a multitude of factors that need to be taken into account in order to set up effectively in this market, including regulatory nuances, cultural differences and business practices. Success in China requires a deep understanding of the local market, the ability to establish solid strategic partnerships and the flexibility to adapt to market dynamics.

Conclusion: A Future of Mutual Growth

The M&A boom in China is an open invitation to international companies to explore this market. With a strategic approach and an in-depth understanding of current trends, companies can not only successfully establish themselves in China but also contribute to the country’s dynamic economy, creating a virtuous circle of growth and innovation.

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Journey to the Heart of China’s Major Business Cities

Journey to the Heart of China’s Major Business Cities

With its sustained growth and immense market potential, China has become a popular destination for many foreign companies. However, the country is vast, and each city is a universe in itself, with its own peculiarities and opportunities. The art of succeeding in China lies not only in understanding its culture and economy, but also in choosing the right location in line with your strategy and objectives.

The economic pillars: Shanghai and Beijing

Shanghai: The Gateway

Formerly known as the “Paris of the East”, Shanghai is now at the heart of China’s economy. In addition to being a major financial center, this dynamic metropolis is a cultural melting pot that attracts talent from around the world. Its importance as a commercial hub offers a wealth of opportunities for foreign companies, whether in finance, trade or technology. A large proportion of the population has considerable purchasing power and a lifestyle compatible with the consumption of Western products. Shanghai is therefore a prime market for foreign companies, whose strategic interest is reinforced by the rich industrial fabric nearby.

Beijing: the heart of the nation

Beijing’s splendor is not limited to its historical and architectural heritage. As the capital of China, it is the nerve center where the most important political decisions are made. This proximity to power is an asset for companies looking to build strong relationships with regulators or understand the nuances of government policy. It is also a popular tourist destination for foreigners, but especially for Chinese who take advantage of their vacations to spend a few days in the capital. Beijing is also home to a growing technology ecosystem, with Zhongguancun often referred to as the “Silicon Valley of China”. Between innovative start-ups and established companies, the opportunities for foreign companies here are vast.

Innovation hubs: Shenzhen and Hangzhou

Shenzhen: the epicenter of innovation

Once a small fishing village, Shenzhen has become a global innovation hub over the past four decades. Today, it is home to technology giants such as Huawei and Tencent. The city’s electric atmosphere, combined with business-friendly policies and a commitment to innovation, make it a prime destination for start-ups and foreign technology companies.

Hangzhou: the cradle of entrepreneurship

Just an hour by train from Shanghai, Hangzhou, famous for its picturesque scenery, is the birthplace of e-commerce giant Alibaba. In recent years, the city has seen the emergence of a dynamic entrepreneurial environment supported by government initiatives. Hangzhou’s high-tech zones, such as the Qiantang River Valley Science and Technology Park, provide incentives for start-ups, and the presence of e-commerce leaders offers great opportunities for foreign companies to collaborate and integrate.

Diversity and potential: Guangzhou, Chengdu and Tianjin

Guangzhou: trading with the world

Guangzhou, one of China’s oldest trading cities, is still a major commercial hub, especially for import-export. The Canton Fair, China’s largest trade fair, attracts companies from all over the world every year. With privileged access to the Pearl River Delta, one of the world’s major manufacturing centers, Guangzhou is strategic for production and distribution-oriented companies.

Chengdu: Charm of the West

A world away from the hustle and bustle of the coastal cities lies Chengdu, the peaceful capital of Sichuan. Known for its pandas and spicy cuisine, the city is also a burgeoning technology hub. Thanks to government incentives, Chengdu is attracting both domestic and foreign companies. Its strategic location as a gateway to western China makes it ideal for companies looking to position themselves in this fast-growing market.

Tianjin: Industrialization and Modernity

Close to Beijing, Tianjin is a major industrial center with a modern infrastructure. It is home to several economic and technological development zones that facilitate the establishment of foreign companies. Tianjin is also a port city, which facilitates trade and export logistics.

Conclusion: Which destination to choose?

Although interconnected and open to the country as a whole, each city has its own advantages and challenges for companies looking to set up in China. The choice of location should be made after a careful assessment of your company’s needs and the opportunities each city has to offer. Whether you’re attracted by the dynamism of Shanghai, the innovation of Shenzhen, or the potential for expansion in Chengdu, it’s important to align your choice with your company’s long-term vision.

But it’s also important to remember that, far beyond its megacities, China has a wealth of densely populated, fast-growing secondary cities that could become the hubs of tomorrow. Analyzing and developing a strategy with the help of an expert with detailed knowledge of China’s economic geography, such as VVR International, can be the key to ensuring a successful first step in the country.

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Advancing Frontiers: The Rise of Minimally Invasive Surgical Techniques

Advancing Frontiers: The Rise of Minimally Invasive Surgical Techniques

In the realm of medical science, the evolution from open surgical procedures to minimally invasive surgical techniques marks a significant stride towards better patient care and enhanced operational efficiency. This shift not only epitomizes the advancement of medical technology but also mirrors the relentless pursuit of reducing surgical invasiveness and the associated risks. The focus of this article is to unravel the various minimally invasive surgical techniques currently in use, the ongoing research aimed at honing these methods, and the global implications of such medical innovations.

Unveiling Modern Techniques

The scope of minimally invasive surgical techniques is continuously expanding, thanks to relentless innovations in medical technology. Here’s a glance at some of these modern techniques.

Laparoscopy

Known as keyhole surgery, laparoscopy is widely used in gastrointestinal, gynecological, and urological surgeries. Recent advancements include the integration of artificial intelligence (AI) and robotic assistance, enhancing surgical precision, but also Single-Incision Laparoscopic Surgery (SILS), Natural Orifice Transluminal Endoscopic Surgery (NOTES), and telementoring, which have shown promise in bettering surgical outcomes and patient recovery times. The global market for laparoscopy devices is projected to grow at a CAGR of 6.5% from 2020 to 2030, reflecting the escalating adoption of this technique.

Endoscopy

Utilizing an endoscope, this technique allows visualization of internal body cavities. Surgical polarimetric endoscopy, a recent advancement, has been employed for the detection of laryngeal cancer. The year 2023 saw the launch of Olympus’s EVIS X1™ endoscopy system, marking a substantial stride in endoscopic technology​. The convergence of artificial intelligence and robotics with endoscopy is a trend to watch, as these technologies are driving further advancements in this domain.

Robotic Surgery

Robotic surgery, once a futuristic idea, has become a reality with its application spanning across various surgical domains, including cardiothoracic, colorectal, urological (in particular with EDAP TMS’s FocalOne® robotic HIFU solution), general, gynecology, and head-and-neck surgery, driven by ongoing technological advances. The surgical robotics market, now exceeding $3 billion, is poised for significant growth, with an increased demand for Robotic-Assisted Surgery (RAS) across the globe.

Laser Surgery

Laser surgery employs beams of light to cut, remove, or cauterize tissue, and is hailed for its precision and minimal damage to surrounding tissues. Recent advancements in refractive surgery, such as the rise of Small Incision Lenticule Extraction (SMILE) and the introduction of technically competitive laser systems, mark a paradigm shift in surgical precision, efficacy, and patient outcomes​. Improvements in aesthetic laser devices, including longer dye lives and increased wavelength capacities, contribute to the enhanced precision and accuracy of laser treatment​.

These techniques, each with its unique advancements, contribute to better patient care, faster recovery times, and reduced healthcare costs, showcasing significant strides in the surgical domain.

The Spectrum of Benefits

Minimally invasive surgical techniques hold a plethora of benefits that significantly enhance both patient care and operational efficiency. Here are the key advantages underscored by recent data:

Reduced Recovery Time

Smaller incisions expedite healing, enabling patients to resume normal activities sooner, substantiated by reduced postoperative complications and shorter hospital stays.

Lesser Pain and Scarring

Patients experience less post-operative pain and minimal scarring, contributing to better cosmetic results and an improved recovery experience​.

Lower Risk of Infection

The minimized exposure of internal body structures to potential contaminants lowers the risk of post-surgical infections, aligning with improved postoperative pain control and shortened postoperative hospitalization​.

Cost-Efficiency

Quicker recovery times, lower infection risks, and shorter hospital stays contribute to lower healthcare costs, aligning with the medico-economic benefits associated with MIS​.

Trailblazing Research and Emerging Techniques

The voyage of minimally invasive surgical techniques into new horizons is steered by groundbreaking research. Here’s a glimpse into the contemporary research and emerging techniques that are pushing the boundaries.

Robotic Assistance

The symbiosis of robotics with minimally invasive surgery is escalating surgical precision and control to unprecedented levels. The advent of sophisticated robotic systems is enabling surgeons to perform complex procedures with enhanced accuracy and minimal invasiveness. Recent innovations like the reconfigured robotic arm design, faster docking to reduce operative time, and fluorescence-detection to identify structures and lesions are notable advancements in this domain. Moreover, robotic-assisted surgery has become a popular trend offering prospective benefits to patients like shorter hospital stays, earlier recovery, and less pain, along with operational benefits to surgeons.

Artificial Intelligence (AI)

AI is the torchbearer of predictive analytics and real-time decision support during surgical procedures. It is fostering a paradigm of data-driven surgery, where AI algorithms aid in enhancing surgical precision and optimizing patient outcomes. While not aimed at replacing surgeons but rather at making most use of their experience and knowledge, AI has the potential to revolutionize surgery, particularly in technical skill assessment and integration into surgical robots, which paves the way for improved preoperative planning and intraoperative guidance.

3D Visualization and Augmented Reality (AR)

3D visualization and AR are revolutionizing the way surgeons interact with medical imaging data. Technologies like the XR90 augmented reality-based surgical visualization and navigation platform combine CT imaging with live ultrasound to perform minimally invasive procedures with enhanced precision. AR technology superimposes artificial targets onto a live view of patient anatomy, offering a more intuitive understanding of anatomical structures and enhancing surgical planning and execution.

Telemedicine and Remote Surgery

The combination of telemedicine with minimally invasive surgical techniques is greatly enhancing the application range for remote surgery and consultations. Telementoring, a form of remote teaching in surgery that includes more and more 3D/AR visualization modes, enriches the training options for surgical trainees, while telemedicine addresses some barriers to surgical care, especially in low- and middle-income countries, by providing remote healthcare services.

Advanced Imaging Technologies

Cutting-edge imaging technologies are the linchpin of successful minimally invasive procedures, offering clearer and more detailed visualizations crucial for surgical success. The evolution of medical imaging systems has been rapid, with the integration of artificial intelligence, cloud-based solutions, and mobile technology revolutionizing medical imaging.

Bridging Surgical Frontiers

The significance of minimally invasive surgical techniques extends beyond the operating rooms of developed nations to developing countries where healthcare resources are often limited. Moreover, the global reverberations of advancements in minimally invasive surgery are palpable, with countries like China embracing and investing in these techniques to foster a robust healthcare ecosystem.

VVR medical, a conduit for European innovators in medical technology and diagnostics, facilitates a smooth entry and establishment in the Chinese market, accelerating China market entry through strategic diagnosis, qualification, and efficient commercialization of products and services. This symbiosis of surgical advancements and market access strategies elucidates a promising trajectory towards a global surgical landscape that is not only efficient and effective but also inclusive and progressive, steering the global healthcare community towards a horizon where surgical care is more accessible, less invasive, and profoundly impactful.

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China, dream or real market opportunity for French startups?

Last 4th April 2023, on the occasion of the SNITEM Start-up day, Irénée Robin, founder and partner of VVR Medical, expert of Chinese health market, was with the MEDICALLIANS experts from UK – Germany – France – USA – Middle East, to present the development opportunities in the main international health markets.

During a workshop focusing on China, Irénée Robin, founder and partner of VVR Medical shared his vision of the Chinese healthcare market, and the business strategies for French companies.

Irénée Robin, founder and partner of VVR Medical shared his analysis

Irénée Robin, founder and partner of VVR Medical shared his analysis

Here are the key takeaways from his speech:

China is (still) striving for the world’s best & cheapest healthcare

The pandemic delayed the process and highlighted structural issues…

  • Suboptimal use of all components of the healthcare chain
  • Deficits in early diagnosis and treatment

…but has triggered changes providing new opportunities

  • Generalization of smart hospital systems
  • Clear vision of Big Data in healthcare

The triptych to achieve this objective in MedTech: Innovation, Scaleability, Affordability

  • Accelerated regulatory proceedings
  • Volume-Based Procurement
  • Promotion of local manufacturing

Those changes raise new questions and challenges for MedTech innovators

  • Market access, distribution channels
  • Realistic bottom line, value chain
  • IP protection, local partners

VVR Medical experts can help you !
Click here to contact Irénée Robin, Co-Founder & Managing Partner at VVR Medical, member of MEDICALLIANS.

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PEO in China: the beginning of a development strategy

PEO involves using a company based in China to provide physical and legal housing for a foreign or Chinese employee. It allows companies that do not have an office in China to recruit and work with an employee locally. PEO solution is an important and sometimes decisive step to ensure a safe and successful development in China: the company can start its development while limiting risks and investments

It’s a transitional option between setting up and establishing a structure in China. The “portage” company offers support throughout the process of creation and acquisition of full autonomy.

In this way, PEO service offers companies wishing to enter the Chinese market the opportunity to gain an insight into the market without the need for a physical presence or a legal entity in China. This solution offers great flexibility and efficiency in deployment and customization. The employee is almost immediately ready to operate locally.

Thanks to its support and in-depth knowledge of the Chinese labor market and its legislation, the PEO services company enables the foreign company to start its business in China without the need for specific experience or multicultural management skills.

The company delegates the management of the employee’s payroll and related administrative formalities to all local authorities. In effect, the third-party company becomes the local employer of the employee, who benefits from a local contract. As such, the umbrella company will take the necessary steps to obtain work visas and residence permits for foreign employees coming to work in China. The company will act as an intermediary for the payment of salaries and the various taxes and charges associated with the employee (insurance, contributions).

Our HR Team in China is responsible for managing and monitoring the employee’s expenses and is the local contact person for maintaining solid contact with the employee in China. Finally, if necessary, the company can rent office space or any other premises required for the company’s activities in China.

PEO IN CHINA: SPECIFICS AND LEGAL FRAMEWORK

PEO is strictly regulated in China. Few companies can legally offer this service. In fact, VVR International is the only European company to benefit from licenses recognized by the Chinese authorities, such as the Labor Dispatch License. It should be noted that the portage of a Chinese employee and that of a foreign employee are not regulated in the same way by law.

In China, PEO requires the PEO company to pay all taxes and social security contributions in the employee’s place of residence. Thanks to its multiple locations, including four strategic regions of the country – Shanghai, Beijing, Guangzhou and Shijiazhuang – VVR International offers a wide choice of zones in which to develop the company’s activities according to its field and strategy.

VVR INTERNATIONAL: EXPERTISE IN HUMAN RESOURCES AND MANAGEMENT OF FRANCO-CHINESE TEAMS

Differences in culture and work practices can be an obstacle, leading to misunderstandings that negatively affect a company’s operations in China. VVR International, with its strong presence in France and China and its experts in human resources and in the management of Chinese teams, ensures that the collaboration is set up in the best possible conditions and helps to manage difficult and unforeseen situations (accidents, resignations, epidemics, etc.).

VVR INTERNATIONAL: CUSTOMIZED RECRUITMENT, YOUR OUTSOURCING SOLUTION IN CHINA

The choice of employees is crucial to the success of the first stages of development in China. That’s why, in addition to our PEO services, VVR International’s teams can take care of the recruitment of a new Chinese or foreign employee.

Thanks to the expertise of its dedicated VVR RH department, VVR International will search, interview, sort through a unique process and finally select the best talents to offer you the ideal candidate for recruitment. To do this, our teams will carry out a diagnosis of the company and its needs in order to define the profile best suited to the position.

Download our fact sheet on PEO in China.

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Interview with Camille Verchery, in the newletter of the Club Chine de l’EM Lyon

Camille Verchery, Director and Founder of VVR International, discusses the strengths and dynamics of the Chinese market and highlights the opportunities for French companies in an interview with the Club Chine de l’EM Lyon.

ENERGY: AT THE HEART OF CHINA’S DEVELOPMENT STRATEGY

First and foremost, Energy has become a strategic sector for China in just a few years. Lacking fossil fuels, the country has invested heavily in research and development of alternatives to increase its independence from the rest of the world. As a result, China is now a leader in wind and photovoltaic energy, as well as nuclear power. It is also a major player in the battery industry and hydrogen technologies.

The challenge for French companies at the forefront of these fields will be to position themselves on the Chinese market, which is hungry for innovative technologies.

THE BOOMING CHINESE HEALTHCARE MARKET AND MEDICAL DEVICES

The Chinese healthcare market is extremely dynamic. Growth is driven by an aging population and increasing demand for healthcare services. China is keen to benefit from the excellence of foreign companies in this sector and is pursuing an attractive policy.

Finally, the introduction of social security as part of the government’s drive to improve the overall health of the population offers numerous development opportunities for innovative French healthcare and medical device companies.

START-UPS AND INNOVATION: CHINA AT THE FOREFRONT OF THE INTERNATIONAL SCENE

China has become one of the world’s leading incubators for start-ups. This success is driven by government funding and incentive policies that recognize the critical and strategic role of innovation in the international political and economic game.

In this context, the challenge is to identify the sectors in which France is a leader and to analyze Chinese advances in order to develop strategies that will enable French companies to benefit from them.

REGIONAL EXPERTISE FOR GLOBAL SUCCESS

Given the current market dynamics and challenges, the international development of companies is often destined to go beyond China. That’s why VVR International co-founded Globallians. Today, this network of partners brings together 16 international development support companies, each specializing in a particular region of the world.

By working together through the Globallians network, these companies are able to help companies expand internationally while providing the expertise needed to address the unique characteristics of each target region.

Read the full interview online on EM Lyon’s LinkedIn page, or click here to download the PDF.

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RAW MATERIALS INDEX RATE – MAY 2019

Here-under, the index rate of raw materials in China throughout the last 6 months.

Available in PDF : Download Newsletter VVR 2019 MAY

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THE ROBOTICS EMPIRE

Subtitle

 

The seventh China Information Technology Expo took place between the 9 and the 11th of April 2019 in Shenzhen. In this event which gathered the World leaders of technologies, the visitors could discover and try the news and innovation like the Youxiaomei robot of the that served cups of tea. Although the exhibitors were from different nationalities, this event was a veritable vitrine for the Chinese progress in this sector.

According to the « made in China 2025 » which objective is to make China become a leader in the high-tech industry, investments are colossal in the Research and Development field. China would like to establish in the Global market of the innovation and strategic sectors. China has the ambition to export their technologies designed and developed nationally in order to put an end to their role of “world factory” that was occupied so far in the international trade. Thus, the high-tech is on the way to become the motor of the Chinese economy. The country counts the strongest growth of the world in the Robotics sector and would largely dominate it in the coming years. Even if the International Robotic Federation (IRF) pointed a delay for China in 2013 based on the number of robots per worker (25 units for 10 000 workers), the progresses were considerable as in 2016 it already counted, 68 robots for 10 000 workers. In 2018, 340 000 were employed in the Chinese factories. The number of companies which activity is linked to the robot construction is rising: in 2017, the country already counted more than 6500. But the Robotics field take off does not only concern Chinese companies, numerous foreign groups interested in the Robotic industry growth and the opportunities that offer the Chinese market set up their manufacturing workshops in China.

In the services sector, the Robotics field records in China the most important growth thanks to the Artificial Intelligence progresses and would represent a market of more than USD 2.9 billion by 2020. The strong enthusiasm of the companies for those technologies fulfils their will of performance and rentability also contributes to the sector dynamism.

Even though the robots are expensive to buy, they quickly permit to make significative cost reduction and improve efficiency. There are a lot of examples of uses in the services sector. The RobotHe restaurants of the Alibaba group only employ robots for the service permitting to increase the speed and save a considerable amount of money from employees. The robots are also used in the post services. Since 2016 they do the parcel sorting for one of the dominating mails operators of the country. In the distribution field, the e-commerce company JD.com significatively uses the robotization. It has warehouses all robotized. To deliver the orders, the company also uses robots, drones or autonomous vehicles. Thanks to those innovations, the group has improved its sales performances and delivering times. The robotization extends to the Health field. In some hospitals in Bejing or Shanghai, robots work at the reception desk: they have the capacity of answering thousands of questions and guide the patient to the required service. Operational since 2018, the robot developed by the Chinese group iFlytek is able to identify the diseases and realize the diagnosis. The education field gives way to the Robotics. In 2018, almost 600 nursery schools in China were using the teaching assistant Keeko developed to interact with pupils.

Finally, in the industry field, China is also leader in the Robotics market.  In 2016, the country represented 30% of it. The IRF plans that in 2020, China will use 950 300 robots in their factories and will produce 150000. The country is already a leader in the purchase and the use of robots and is about to lead the design and production.

From the daily life to the industry, the use of robots is massive. There would be approximately 3 million robots in the world in 2020 only in the industrial sector. The Chinese contribution to the development of robotics is huge. This increasing importance shows the change of the country position in the international market: once “workshop of the world”, it is today one of the leaders. The Chinese progress in the field of high technologies is living up to the desire of industrial development and the will of expend its influence in the key areas of the global economy.

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