Business opportunity to increase demand for medical equipment 1,312 business talks
SME Support, Japan held the ASEAN Medical Equipment Business Meeting from February 22 to 24, 2017. Thirty-eight businesses and groups from four ASEAN nations (Association of Southeast Asian Nations) including Indonesia, Malaysia, Thailand, and Vietnam, along with 232 small to medium businesses from Japan (including small to medium businesses registered with J-GoodTech) worked together, resulting in 1,312 business talks, breaking the 1,000-talk barrier. The demand for medical equipment is predicted to increase due to the increasing aging population in developed nations, and small to medium enterprises (SME) showed their strong resolve to find business opportunities among this rising demand. The business meeting was full of energy with business persons passionately explaining products while holding samples or a tablet in one hand.
Finding business opportunities in the aging population
“The demand in the medical device field will further expand along with the worldwide aging population.” Many SMEs are aware of this fact. Your company is good at making specialized, complicated, precision components for medical equipment, something that cannot easily be duplicated. There are many Japanese SMEs who would like to enter the market as early as possible and take the initiative to become a new pillar in the medical device industry. A Kanto area plastic component manufacturer plans to expand their plastic medical component business into the Indonesian and Vietnamese markets, with further plans to accelerate development into other ASEAN areas. Although they are currently focusing efforts on other products, they are uncompromising in efforts to make medical components their core product.
“At the sales meeting we noticed people from Japanese businesses who fervently promoted their products. A component manufacturer from the Kinki area engaged in business talks with AWA (Indonesia), who is involved in import, sales, and manufacture of medical devices. One company explained a component that softly coagulates blood while the surgeon applies suction during abdominal surgery. The presenter talked about the benefits of the component and how it can reduce the workload of the surgeon while showing a sample. AWA was highly impressed, and agreed to further negotiations such as a sales contract or even establishing a joint venture. The presentation resulted in an effect that far exceeded the initial anticipated sales volume.
Partner agreements were also made
The business meeting also resulted in expanded future expectations for a medical venture from the Tohoku area. This particular company manufactures reagents and test paper for urinalysis and Mebiphar (Vietnam) expressed their interest in becoming partners during talks. This interested Mebiphar, who was focusing on their original specialized products that make use of genetic characteristics, and also exploring the possibility of technical collaboration and joint ventures instead of simply focusing on importing. Both companies have already agreed on a partnership contract, so we look forward to what they will do together in the future. Not all companies reached some kind of agreement, but many businesses were highly motivated to continue talks, showing a renewed interest in development of medical devices for overseas.
ASEAN companies asked about incorporating the high level of technology possessed by Japanese businesses in order to accelerate the development of the Asian market. Attendees mentioned that although medical devices produced in Japan are expensive, they are high in quality, safe, and reliable. All of the companies gathered at the meeting were confident in their ASEAN sales network, and showed their resolve to use Japanese technology to manufacture products locally and expand their share. The ASEAN Medical Equipment Business meeting was held in Kobe on February 22 and in Tokyo on the 23 and 24. At the Kobe venue 81 companies participated, resulting in 433 business matches. At the Tokyo venue 151 companies participated, resulting in 879 business talks. The medical device market is expanding the world over, with sales increasing from 20.5 billion US dollars in 2009 to 37.3 billion US dollars in 2013 for Asia, excluding Japan. Sales are projected to increase to 78.4 billion US dollars by 2018.