Health care products market, credit crisis slow development of the bottleneck to
United Nations Industrial Planning Department, said: "sunrise industry in the 21st century were based on two major technology-based electronic information industry and in life science-based health industry." The health and medicine is the most potential for the development of life science industries . As people's living standards and household incomes, rising Health Products Demand will keep rising. However, health care products market in China in recent years, there is a clear credit crisis, development is very slow. This is one of the causes are complex, the main bottleneck in the following six: R & D bottlenecks
Health Products Barriers to entry low, but the product is very high profits, far more than the average profits of other industries. Many investors enter the pre-health industry has clung to the "fishing a" mentality, it invested heavily in a short time to do advertising. After putting in a lot of funds in order to attract customers quickly, rapidly increase sales to recover advertising costs, health care products companies often choose to "functional image enhancement", "commitment to take effect" and other illegal means of advertising performance, exaggerated use of effects of health care products, the final result two consequences: first, lack of funding health care products companies develop products and conduct business itself, the second is a health food consumers from the negative evaluation of development to cast doubt on the entire industry, which led to a credibility throughout the health food industry crisis market share back and forth and so on.
Huge publicity since the costs and causes of their own development strategy, China's health food products developed and do not scale. R & D investment led to products with low technology content is low, the slow replacement, product homogeneity serious speculation triggered vicious competition, product concepts, and also ruled out. Also, because the government authorities to declare health products limited function, and many health care products company is also holding speculation?? Which is easy to declare which of the declaration, and thus more to promote the homogenization of the product function, leading to market declaration of health products on the ease fatigue and immune regulation of these two functions to account for a third.
Cost bottleneck
With the development of the media and consumers become more rational, cost of advertising by large investment to expand brand awareness, brand awareness and use of strong end-market into the retail marketing model has become increasingly difficult to operate. On the other hand, "channel is king," the reality of health care products industry to greatly increase the cost channels, channels one after another raise barriers to entry. Terminal and unequal power between manufacturers has become increasingly apparent. Any sale terminal manufacturers can not be separated, but sales of health products to the terminal face of the many there is a huge choice. This power not so difficult a direct result of product promotion. And even entered the terminal, it also faces the difficulty of the problem of payment, payment for goods. Manufacturer's profit margins are lower, therefore, was the terminal free tie up working capital. Also, because China's credit system lag, bad marketing killed off in what has become common, the last century 90's rapid demise of Giant Group, which is a major cause of death too much money into accounts retrieved. These are different degrees of increased operating costs of enterprises.
I am an expert from Cheap On Sales, usually analyzes all kind of industries situation, such as essential oil burners , electric candle burners.
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