In the past, almost all drug products were distributed by large government-owned medical distributors. Today, there is a growing number of small to mid-sized private pharmaceutical distributors who are generally more responsive and have better marketing skills than large government distributors.
Despite this overall increase in Chinese distributors, there are relatively few qualified pharmaceutical distributors that you can trust to distribute your drug products. There are also only a small number of private pharmaceutical distributors who are capable of providing national coverage. Thus, finding the right distributor for your drug products will require a good knowledge of the market and thorough due diligence.
Pacific Bridge Medical can guide you through this process and help you identify the most effective and trustworthy pharmaceutical distributors for your drug product in China.
China Pharmaceutical Distributor Search Challenges
- Number of Private Distributors: Within the past ten years, there has been an increase in the number of Chinese pharmaceutical distributors. However, there are still relatively few trustworthy and well-funded private pharmaceutical distributors. In addition, not many of them are able to provide coverage across the entire nation.
- Intellectual Property Rights: Copying another manufacturer’s drug is a widespread practice in China, and non-patented drugs are particularly susceptible to this risk. To prevent your drug from being copied, thorough knowledge of the market and due diligence are needed.
- Unreliable and Inexperienced Distributors: Many local Chinese distributors are eager to work with Western manufactured pharmaceutical products, but some distributors may not be qualified or trustworthy.
- Knowledge of Business Concepts: Does the prospective pharmaceutical distributor in China understand “conflict of interest” and other important business concepts? Do you see eye to eye with your China distributor on business philosophies? We make sure that these vital questions for your China distributor search process are answered.
- Size of the Country: Since China is large and fragmented into regional markets, several distributors may be needed to sell your medical products to the whole country. A reputable Chinese distributor in one province or region may lack market presence in another region. Western pharmaceutical companies usually collaborate with several Chinese distributors in order to cover sales in all areas of China.
- Relationships (guan xi): In China, relationships are crucial to conducting business. Our local networks in China can direct you to the best pharmaceutical distributor candidates, and more importantly, we can help you establish and cultivate a relationship with a distributor so that it can evolve into a committed and enduring collaboration.
- Language Barrier: Is the distributor able to communicate fluently in English, or do you have personnel or translators who can speak the local language? Not only are there many vastly different dialects spoken in China, even the form of Mandarin Chinese spoken in each region in China can have local colloquialisms that may cause communication issues. Our local office in China has experts with the necessary language capabilities to properly carry out these medical distributor negotiations.
Our China Pharmaceutical Distributor Search Process
- Step 1: Perform research from our local Shanghai office in order to find, qualify, and choose several potential pharmaceutical distributors.
- Step 2: Instruct prospective distributors on the functionality, distinctive features, market opportunities, and competitive landscape of the drug.
- Step 3: Potential distributors will need to submit sales proposals that include information such as their marketing strategy, sales projection, etc.
- Step 4: After a comprehensive review of the proposals, we will pick the most qualified distributors and help you with the contract negotiation and finalization process.
Pacific Bridge Medical has been in the business of searching for and overseeing excellent Chinese distributors for 30 years. Our consultants can help you form partnerships with dependable and competent pharmaceutical distributors in any region of China.
For a free consultation with our China distribution consultants, contact us today.
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