News and Publications
December 17, 2010
- New manager at Psyma-China -
Psyma China is pleased to announce the addition of Alan Jin to the Psyma China family. Alan is joining the Psyma team to head the healthcare division based in the Shanghai office. He will assume the management of pharmaceutical and medical device research projects for international and domestic clients in China. This post was previously held by Levis Ye who has left Psyma China on amicable terms to pursue other interests. We would like to thank Levis for his work and wish him the best of luck for his future.
Alan Jin is a trained radiologist and medical doctor who will contribute first-hand knowledge of the Chinese hospital system to advance clients’ projects. Furthermore, Alan has extensive experience in the area of pharmaceutical research.
For several years he has been working with international clients like Bayer and Ely Lilly. He adds:” The sum is greater than its parts. I am looking forward to work with my new team.” In addition to Alan, clients can rely on the other seasoned researchers at Psyma China’s pharmaceutical division like Jeffry Wu and Lily Song.
September 25, 2010
- Psyma-China Moves to New Office -
Psyma-China has moved to its new home. It is not far away from the old office, even in the same building. From now on, Psyma-China is located on the 19th floor at 777 West Yan’an Road in Shanghai. Everyone is happy to be in the new office. We are sure our clients will be delighted, too. The new office has a large and tastefully decorated client lounge that will make every visitor feel extremely welcome.
June 25, 2010
- New Beijing Office Manager at Psyma China -
Psyma China has appointed Mrs. Elaine Liu as office manager for its Beijing office. Mrs. Liu has comprehensive knowledge of the market research industry in China.
Previously she worked as account executive for several Chinese market research firms where she successfully directed high profile projects. Her experience spans more than 15 years and includes successful business relationships with many clients form the pharmaceutical and FMCG industry.
At Psyma, one of China’s prominent marketing research firms, Mrs. Liu will be responsible for client relations and business development.
December 18, 2009
- Innovation in China -
During the past 10 years, China has witnessed unprecedented change. More people have access to rapid transportation such as planes, trains and automobiles than ever before. In addition, China is has more internet users than any other country in the world. Many of them live in large urban areas that attract ever more people.
With these changes comes the need for innovative products and services that compliment changing lifestyles. For foreign companies this situation poses a dilemma. On the one hand, they want to participate in this large market; on the other hand, they face hurdles that are hard to overcome such as a complicated language and a culture that is rooted in traditions that are not easily understood.
This is where market research can offer valuable insights, according to Matthias Fargel, the CEO of Psyma China. During a recent workshop at the German Chamber of Commerce in Beijing, Fargel said that through a combination of research and cultural understanding, market researchers in China can aid foreign firms to decipher the often unarticulated needs of their potential customers. This helps to segment them according to the most appropriate criteria.
Armed with this knowledge firms can build their brand and tailor their products to maximize customer choice, customer experience and customer loyalty in China.
November 12, 2009
- Up to Speed -
As all three of China’s mobile phone operators unleash their third generation (3G) networks and let users access the worldwide web on the go, now is port China Mobile’s home-grown TD-SCMA 3G standard. China Unicom’s 3G network and phones will use the WCDMA standard, which is common with the rest of the world.
Big impact of small apps
It is fair to say that the iPhone, with its slick user interface and the ability to run many programs that utilize the internet, is the beacon of a paradigm shift in the world of mobile communication. Much of the functionality of a PC has been squeezed into a small, handheld device and users are beginning to expect mobile devices to work as fast as their broadband-enabled PC at home. If AT&T’s iPhone experience is any guide, then Chinese users will also want to download all kinds of different programs to their smart phones. China Mobile recognized this and preparations are underway for an online application store similar to Apple’s App Store on iTunes.
Essentially, the iPhone has converted the venerable mobile handset into a mobile PC with mass appeal. Making calls is also possible but it is not necessarily the most important, most fun, or most often used function of smart phones. This is underscored by the fact the App Store now offers 85,000 applications and there have been more than two billion downloads since the store’s launch.
New business opportunities
The potential of internet-connected smart phones for creating new business opportunities, especially in China, is significant. China currently has more than 710 million mobile phone users; even if just half of these users switch to smart phones in the next few years, they would outnumber the total number of mobile phone users in the United States.
Many companies are discovering mobile marketing via smart phone applications as an effective tool which can help to build a brand in countries where 3G networks are already established. The big difference between those markets and China in terms of opportunity is size. There will simply be many more smart phone users in China than in any other country and smart phone applications represent an alternative to traditional online advertising where marketers can interact more directly with potential customers. Although many marketing apps in existence today are available for free and not a significant source of direct revenue, they represent a unique opportunity to push the envelope in terms of targeted marketing and branding.
Outlook for China
The largest impact on the lives of smart phone users in the U.S. does not come from simply having ready access to the internet. Instead, it is the fact that many little applications are now available to organize, inform, and entertain users on the go and make a real difference in their lives. Along those lines, Chinese smart phone users won’t stay far behind and will find creative ways to use their 3G phones.
Clearly, the advent of mobile internet to a large part of the world’s population is nothing short of a revolution. Its impact is far-reaching but cannot yet be fully gauged. Still, many companies have already started to explore how to use this technology to increase sales and reach customers through more targeted marketing. With the largest mobile phone user population in the world, the impact of 3G technology in China will be an important trend to watch as well.
This article was originally published in the November 2009 issue of AmCham Shanghai’s Insight magazine. www.amcham-shanghai.org
October 19, 2009
- Broadcasting Focus Groups from China to your Desktop -
Market researcher Psyma-China has joined forces with Active Group and Focus Vision to offer video conferences and virtual focus groups from within China. This innovative service enables clients from around the world to watch focus groups and in-depth interviews in real time. Psyma-China is one of only a few companies in China certified by Focus Vision. Clients can interact with participants while the video conference is in progress.
For an immediate quote and availability information please call Frank Fan in Shanghai (0086-21-51.87.11.98) or send an email to Frank.Fan@Psyma-China.com. We will get back to you promptly. For your convenience we speak English, German and Chinese.
September 17, 2009
- Critical Success Factors for Doing Business with SME's in China -
SMEs in China are under attack. During the financial crisis, credit is not easy to obtain and global demand for exported goods and services from China is decreasing. Add to this mix the frequently encountered cash
flow problems and rising costs and you end up with a recipe for disaster for many SMEs. With a growth rate of 9% in 2008, the Chinese economy is still better off than most other large economies, but the business climate for midsized local companies is challenging nevertheless. Many of them have already closed their doors, forcing millions of unemployed laborers to return to their home provinces.
Undoubtedly, many businesses will tighten their belts to survive the downturn. Even at a time of slower growth, Chinese SMEs can be lucrative targets for products and services. The economic crisis has even opened up new sales opportunities in this segment. In order to reap the benefits of this situation marketing executives need to
understand the idiosyncrasies of Chinese SMEs and find a way to cater to their specific needs.
1. It's all in the family
Like with Germany's ‘Mittelstand', many SMEs in China are family owned. As a result, the decision process can be significantly different than in companies with other ownership structures. The 65 year old family patriarch is likely to make different technology choices than his 40 year old daughter, who will succeed her father in due time. If a company employs family members, the stability and survival of the firm is usually the primary focus that influences every decision. Managers in SMEs are therefore often tempted to be risk averse since their
"face" is directly connected with the survival of the firm. Taking these characteristics into account and incorporating them into the marketing campaign can help in finding the right approach to tailor products to SMEs.
2. Forget about SOHO vs. SME!
In western countries like the US, there is a fairly clear distinction between SOHOs (small office home office) and SMEs. In the mind of Chinese entrepreneurs and consumers, the idea of what constitutes a SOHO and SME has not yet been firmly established. Business owners do not see themselves primarily as part of an SME or a SOHO, their first and foremost concern is to do business and make money.
3. SMEs and technology
Many SMEs cannot afford their own and dedicated IT staff. Therefore many services that large companies run in-house are outsourced or need to be implemented and maintained by third parties. At the same time, it is SMEs that could benefit more from well implemented IT applications and software-as-a-service (SAAS) than large companies. Facing shrinking profit margins, SMEs need to find new ways of controlling costs and increasing efficiency. Investments in technology can help in this respect.
4. Finding a competitive angle
One possible answer for Chinese SMEs to the challenge of a slowing economy as well as a long-term increase in global competition can be to modernize their internal operational environment. A solid IT infrastructure,
energy saving measures, product innovations, increased efficiency in production, a streamlined supply chain and careful cash management are all helping SMEs to gear up for survival in lean years. Western companies with innovative products and services in these areas can win business from Chinese SMEs. Although SMEs will surely not engage in a spending frenzy any time soon, expenditures which are regarded as helping to secure the future of the business are less likely to be held back.
5. Do your homework!
It must be understood however that SMEs in China are a very heterogeneous group. They are both scattered in terms of geography and industries. SMEs in the coastal regions might have different needs and budgets than those inland. In order to offer the best product and maximize profit, it is necessary to study the SME market closely. Diligent market research is a good starting point to make the right decisions in a market that is changing constantly. Simply copying western derived concepts pertaining to SMEs in China often proves to be an ineffective and costly strategy. Instead, the idiosyncrasies of Chinese SMEs and the cultural aspects of doing business in China must be taken into account at every phase of strategy formation.# (This article was first published in 'GC Ticker') Contact: Lisa.Zeng@Psyma-China.com | Phone: +86 (021) 51.87.11.98
July 15, 2009
- Psyma China Opens New Office in Beijing -
Psyma China continues its successful growth in China by expanding further. A new office is ready to serve clients in Beijing. The new premises are located in Beijing’s famous Chaoyang district. The opening ceremony was held with Psyma China’s managing director Lisa Zeng in attendance. Besides room for additional staff, the new office has state-of-the-art market research facilities including the ability to broadcast focus group activities to anywhere in the world. The new office will further strengthen the company’s presence in China and enhance its ability to provide innovative market research services all over China. Contact: Lisa.Zeng@Psyma-China.com | Phone: +86 (021) 51.87.11.98
April 16, 2009
- Healthcare Market Research: Medical Doctors in China and the US -
AmCham Shanghai's Healthcare Committee hosted Matthias Fargel, CEO of the Psyma Group, a global market research firm, to present the findings of the Global Doctors Survey, a unique barometer of doctor drivers in countries around the globe. The Psyma study sought to identify various motivators of doctor behavior including research methods, hours worked, professional and personal image, and satisfaction. Fargel's presentation focused on the results of U.S. and Chinese survey participants in an aim to shed light on the thinking patterns of this leading intellectual sub-group, and how companies can harness this information to their advantage.
One of the questions focused on the most frustrating professional hurdle or challenge doctors face. While the global results indicated that doctors feel most hindered by bureaucracy, this was not so for Chinese doctors. Many Chinese doctors reported that the lack of insight into the disease process and dealing with fatally ill patients were most challenging. Fargel explained that this was due not only to the developing nature of China's healthcare system, but also to the fact that most Chinese doctors are significantly younger than the global average and are not yet accustomed to the realities of sickness and fatality. The study also found that while the vast majority of doctors around the world feel professionally satisfied with their profession, 51 percent of Chinese doctors do not feel fulfilled with their choice to become doctors. Chinese doctors are also the least satisfied in terms of overall happiness. Fargel suggested that this was due to a number of important factors, including a labyrinthine bureaucratic structure in China, dramatic changes within the healthcare system itself.
December 1, 2008
- China Might Have Second Largest Market for Over-the-Counter (OTC) Drugs Worldwide by 2010 -
With a population of 1.3 billion people, China’s drug market has huge potential. To date, per capita spending on medications is still one of the lowest in the world, but this figure is likely to change in the future: Increasingly higher income levels in urban areas as well as health awareness are leading to spending on more and more expensive drugs. With more people migrating to urban areas where access to hospitals and pharmacies is readily available, pharma spending will be boosted even more.
In addition, China’s population is ageing fast. The one child policy has triggered an increase in the proportion of elderly who generally have a bigger need for medication. Overall, not all types of drugs – generic, prescription and over the counter (OTC) – will benefit at the same rate from the growth in healthcare spending. As more people move into cities and lifestyles change, certain diseases will become more prominent and spendinrice regulation. Some drugs have a price cap that is determined by governmental organisations. Because hospitals also operate pharmacies and most drugs are dispensed by pharmacies, there is a cap on the mark-up for hospitals which is currently 15 per cent. In the future, hospitals and pharmacies might not be able to add any mark-up to the drugs they sell. Instead, they may add a fee for every prescription filled.
Currently, hospital pharmacies account for the bulk of prescription drug sales, or about 80 per cent. It could well be that in the future the government separates the generation of prescriptions and the sale of medicines, with the implication that hospitals may no longer be able to operate pharmacies. Moreover, there might be further regulation down the road that limits wholesalers’ profit margin. Altogether, the pricing system in China is in a state of change, and manufacturers as well as wholesalers and distributors must be prepared to deal with this situation.
Over the Counter
In recent years, the OTC market in particular has experienced strong growth. In 2005, it ranked fourth after those of the US, Germany and Japan. In the near future, this market is expected to increase even more. Estimates predict that China might have the second largest OTC market worldwide by 2010. In China, the use of OTC drugs is encouraged as a way to ease the burden on the healthcare system. In addition, a possible separation of hospitals and pharmacies will put a greater focus on self medication and OTC drugs. Because of these trends, the OTC market in China will grow fast. The size of the increase will depend on the overall economic situation as well as on how swiftly government initiated reforms are implemented.
Traditional Chinese Medicine
Traditional Chinese medicine (TCM) still plays an important part in the developing Chinese pharmaceutical landscape. Generally, TCM is dispensed in pharmacies after a doctor’s visit and ingredients are mixed in accordance with the doctor’s prescription. The patient then prepares the medicine at home, usually by cooking it. However, TCM may also be bought as an OTC product without a prescription. Of late, more and more TCM products are being sold in more convenient forms such as capsules, dissolvable granules, or ready-to-drink liquids. These easy-to-use TCM products provide many opportunities for TCM producers and may contribute to a disproportionately large part of overall OTC market growth. Not coincidentally, the topic of an international conference on TCM that took place at the beginning of October 2008 in Shanghai was: “Innovation and Development of Traditional Chinese Medicine and Natural Medicine”. What’s more, there is a third type of pharmaceuticals that innovatively combines Western and traditional Chinese medicines.
Consumer Attitudes to OTC
Not much is known yet about the attitudes and preferences of Chinese consumers in regard to self-medication with OTC drugs. A recent exploratory study, however, revealed some interesting indicators of future trends in urban areas. According to the study, most people would consider OTC drugs for at least some of their health problems. Only 13 per cent of the respondents would never buy any medication without prior consultation with a doctor. Therefore, a majority of the urban population would and potentially does spend money on OTC medicine products. The population group that earns below RMB 3,000 and is between 26-35 years old is most likely to purchase OTC products.
Types of illnesses and symptoms that urban Chinese people like to treat with OTC medications are largely the same as in other parts of the world. On top of the list are minor problems such as the common cold, headaches, digestive problems, allergies, minor injuries, as well as fever and body aches. It is interesting to see where urbanites in China turn to find out information about these minor illnesses. Many simply use their common sense or turn to their friends and family. This is followed by physicians and the Internet. The least attractive source of information about general healthcare problems is the advice of a pharmacist.
The properties of TCM and Western medicines for self-medication are perceived as widely different from each other: TCM is regarded as causing fewer side-effects than Western medicine and it is also seen as treating underlying illnesses and not just symptoms. But people think that it also takes too long to prepare and does not taste pleasant enough which can be a problem with children. Furthermore, the majority of respondents perceive that TCM acts slower when compared with Western medicines. Thus, the advantage of Western medicine when used for self-medication is seen to be mainly fast alleviation of symptoms, but at the cost of more side effects. In general, TCM remedies are preferred when dealing with a chronic disease, or for long term treatment and general well being. Western medicines appear to be the choice for acute and more serious diseases where fast relief is desired.
Asked about advantages and disadvantages of self-medication products, Chinese consumers in urban areas cite convenience, time saving and money saving as the main reasons for going to a pharmacy. As much as 85 per cent regard convenience as the main advantage of self-medication for minor health-related problems because it is not necessary to go to a hospital. Cost is also an issue, but to a lesser extent. Choosing your own medicine also has some drawbacks. People living in urban areas are concerned about taking the correct medicine for their illness. The pharmacist is often seen as a salesperson rather than a trusted adviser. For some people, a visit to the doctor at the local hospital is the preferred way of dealing with any health issue. This option is most often cited as appropriate for major health problems, as well as persistent, serious health issues.
The study’s findings indicate that the use of Western-style OTC medications coexist with the use of TCM drugs in urban areas in China. It also provides some indicators why the OTC segment of the market will become more important in the future. Overall, the speed and size of the increase in the Chinese pharmaceuticals’ market will depend on how China develops as a country, and how fast governmental modernisation is implemented.#
This article was first published in Business Forum China.