Post on 23-Jan-2018
What the Competitors Never Tell YouBest Practice for Traditional Chinese Medicine Companies to Improve Traceability and Brand Protection
NanoMatriX International Limited
Agenda
1 Trends & Challenges in Pharma & TCM Market
2 Existing Strategies/Cases Analysis
3 Brand Protection Strategy
4 Best Practices for Implementation
Traditional Chinese Medicine Status Quo Overview
• The Chinese Pharmaceutical market is currently the 2nd greatest pharma market globally, after the US and in 2014 was worth $105 billion.
• It is forecast to increase dramatically to $200 billion by 2020 and increase its dominance as a leading player in Asia.
• According to the Ipsos Report, total production value of Chinese medicines in the PRC increased from approximately RMB213 billion in 2009 to RMB632.4 billion in 2013, representing a CAGR of approximately 31.3%.
• The total production value of Chinese medicines is expected to further increase at a CAGR of approximately 21.2% from approximately RMB775.3 billion in 2014 to approximately RMB1, 665.5 billion in 2018
Source from:http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0630/03737_2310762/E114.pdf
Key Growth Factors of the Chinese Medicine Industry in the PRC
• Fast growing GDP and disposable income
• Increasing health consciousness and healthcare spending
• Growing urbanization trend
• Aging population
• Increasing government support related to the Chinese medicine industry
However, the Fake Medicine Industry is ExplodingWe are Apathetic
Graphic illustration on counterfeits and failed identification Chinese medicine appear in 7 Primary Herb Markets in Mainland China.
Pharmaceutical Crime Incidents by Region 2015
Source from: http://www.nature.com/articles/srep18723
Status of Counterfeit Products and Penalties in HK
Penalties in HK SAR• Penalties of drugs counterfeiting, the
highest penalty imposed was a fine of HK$100,000
• The penalties are too light or insufficiently enforced. The deterrent effect is doubtful considering the lure of profit from the counterfeit drug business.
Hong Kong SARHK SARAccording to official data, 2% of pharmacies (3000 - 4000 community pharmacies in HK) were selling counterfeit drugs. that would indicate 60 to 80 offending pharmacies (averaging 3-4 per district).
Source from: http://www.hkmj.org/system/files/hkm1308p286.pdf
Victims of Counterfeit Chinese Medicine
The most immediate victims of counterfeit Chinese medicine components are the pharmaceutical manufacturers and brand owners. They are suffer:
• Loss revenue from product sales
• Damage brand image and value
• Economic loss for drugs brand owners
• Lawsuits and compensation from customers (The accidents are caused by brand piracy counterfeits but you can’t prove they are not your products)
Victims of Counterfeit Chinese Medicine
In more grave cases, counterfeit consumer Chinese medicine with inferior quality and fake products are
• Resulting in adverse effects, drug resistance, and even life-threatening accidents
• Causing Economic loss for patients
• Bring unwanted Lawsuits
• Loss of confidence in health systems and health workers
Anti-counterfeiting Countermeasures
1. Improve Package Design• Overt, or visible feature
• Covert, or hidden markers
2. Improve Monitoring Abilities on Drugs Supply Chain
• Serialization/Track and trace
Strategies Used by Leading Organizations to Fight Counterfeiting
Optical Security Label
• Hologram• Security label• Anti-counterfeiting
Portrait
Optical Security Label
• Security graphic• Optical Security
Label
Counterfeit Medicine Still, Seems to be RisingWith low risk (less severe punishments), low-tech solutions and high reward, counterfeit drug use still increased dramatically.s A sign for a Macau,
China, drugstore assures customers there are no fake drugs being sold in the shop. But retailers often have no clue what’s real and what’s not.
A single technique can no longer be used universally to protect the Medicine brand!
For the Rest Slides, Please Visit the Following Website to Download the Entire Presentation:
https://www.nanomatrixsecure.com/blog/successful-webinar-for-traditional-chinese-medicine-industry
Please do not hesitate to contact us for any further queries: NanoMatriX International Limited
Tel.: +852 2523 9959Mobile: +852 6056 9938
Email: alfonsf@nanomatrixsecure.comWebsite: www.nanomatrixsecure.com