Suppliers invest in R&D, distribution and brand marketing
The OTC (over-the-counter) market continued to expand, with vitamins and mineral supplements experiencing the strongest growth.
Major health care companies invested heavily in R&D, acquisitions, supply chains and distribution networks.
Corporate transactions included two major joint ventures: Simcere and Merck in Shanghai; and Zhejiang Hisun and Pfizer. In addition, Shanghai Fosun Pharmaceutical (Group) Company became the largest single shareholder of US-based medical care company Saladax Biomedical Inc. And China Kanghui Holdings, a maker of orthopedic devices, was acquired by the US medical technology company, Medtronic. CR Sanjiu purchased Shandong Huawei Medical, a traditional Chinese medicine provider.
Trust and the need for need for product reliability remained a key challenge for OTC suppliers. Marketing campaigns aimed at strengthening consumer confidence. The brand value of the health care category grew 67 percent in the BrandZ™ ranking. Macro trends, including health care reform and the aging of the population, are expected to sustain category sales growth.