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Canon bets big on medical equipment sales

By Wang Xing (China Daily)
Updated: 2009-11-06 08:39

Yasuhiro Matsuda [File photo]

Technology firm Canon Inc is hoping to make sizable inroads into the growing medical equipment market in China after enjoying success with its digital cameras and printers.

The company expects to clock a 50-percent increase in medical equipment sales this year, said Yasuhiro Matsuda, general manager of Canon's healthcare business.

"Demand for healthcare equipment has been increasing in China," said the general manager. "We expect medical revenue to account for 10 percent of our total revenue in China in the next few years," he said.

The Chinese government had earlier this year said it would invest 850 billion yuan ($124.5 billion) over the next three years to revamp the medical system. Nearly one-third of the amount would be used to build new hospitals and upgrade existing facilities.

That, Matsuda said, is expected to further stimulate China's medical equipment market, especially in rural areas.

Canon entered China's healthcare market in 2007. Last year, its sales of medical equipment, mainly the digital radiography system, increased 100 percent.

Digital radiography system is a new X-ray imaging equipment where digital X-ray sensors are used instead of traditional photographic film. The new system is time efficient as it bypasses chemical processing. Digital radiography system also has the ability to digitally transfer and enhance images.

Matsuda said nearly 40 percent of Canon's products in China are sold directly to hospitals through the company's distributors. The balance is part of the whole system set up by other medical solution vendors such as Neusoft and Shimadzu Corporation.

He said the digital radiography system shipments are expected to touch 1,000 units in China this year.

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According to research firm Frost & Sullivan, China's medical equipment market revenue touched 83 billion yuan last year, accounting for one-eighth of the country's total healthcare industry.

The research firm said China's ongoing healthcare reform is expected to create a huge demand for basic medical equipment such as X-ray machines, CT scanners and ultrasound scanners, many of which will be procured by the government.

Matsuda said the price of a whole digital X-ray system is about 2 million yuan, whereas Canon's digital radiography system is sold for 1.5 million yuan.

The company plans to further reduce medical equipment prices to make it more affordable and also intends to launch more products in the Chinese market soon.