Market Size and Growth Potential for Each of NANOTECH Product - Research Paper Example

Introduction NANOTECH is launching new products into the global marketplace. One of the countries the company considers as potential for its products is China. Thus, the primary objective of this paper is to evaluate the market potential for all of NANOTECH’s products and determine the best way to enter and succeed in China’s market. NANOTECH’s products are composed of the following categories: energy patch, pain relief patch, sleep patch, anti-aging patch, weight-loss patch and anti-oxidant patch. Lately the company is trying to promote its latest innovation, the anti-radiation patch. Unlike any other patches available in the market, NANOTECH’s patches are non transdermal. This means that with NANOTECH’s products, no chemical can enter into the body which further implies absence of undesirable side effects. Part of this study is the investigation of the following areas: the market size and growth potential for each product of NANOTECH and PESTLE (political, economic, social, technological, legal and environmental) analysis on China. Table 1. Imports of China on medical devices from 2006 to 2008 in million dollars (2009 Country Commercial Guide for US Companies, 2009). China has become one of the US’s trading partners. In fact, China is US’s third largest export market (2009 Country Commercial Guide for US Companies, 2009). This only shows that China is a very potential market for US products and services. In fact, the importation of China on medical devices from 2006 to 2008 reached up to 2, 504 in million dollars which is 34% of the total percentage of importation around the world. The figure shown in Table 1 only shows the good trust China is giving on medical devices produced through the US technology. As noticed, from 2006 to 2008, the share of imported medical devices from US by China remains to be on top which is more than 30% for three consecutive years. This is a significant result showing the probable growth of potential products coming from the US. The case of NANOTECH products is not a different story. In fact, the products produced by NANOTECH may either belong to consumer or medical goods. One thing that gives NANOTECH products their good market potential in China is the fact that Chinese people have greater confidence on the technology and products of the US (2009 Country Commercial Guide for US Companies, 2009). China’s population is 1.3 billion and it is expected to reach up to 1.4 billion in 2050 (Hubacek et al., 2007). This is a huge population and in fact, China is second to the country with the largest population, India. This means that the opportunity for NANOTECH products in China with its current population is huge. It talks about billions of people who can probably be the users of NANOTECH products. This would also mean a minimum of 1.3 billion of dollars of opportunity for each of NANOTECH’s product line considering that everyone can use the product. There are different products produced by NANOTECH. One of these products is the energy patch. Unlike any other energy drinks and other medical products providing energy, energy patch can be used to activate body energy without chemical intake. This ensures better market opportunity for energy patch for it promotes zero undesirable side effects from chemical intakes. Chinese are known to use energy drinks such as tea and other herbal products. They are also known for their acupuncture as one of the ways to boost their energy level. This is a clear evidence to support the fact that Chinese people are aware of the thought about enhancing their energy level. Billions of people and not only Chinese are aware of this medical practice. It would not be hard for NANOTECH to convince Chinese about the principle of its products because it works much the same with acupuncture. This means that there are billion of Chinese people who are significant market potential for energy patch. This further means a minimum of 1.3 billion dollars market potential for energy patch. Like energy patch, the same market potential goes to pain relief patch. The reason is due to the fact that Chinese people are using acupuncture and other modern pain relievers. Like energy patch, the overall market potential for pain relief patch can significantly reach more than 1.3 billion of dollars considering the present population of China. In fact, people of different age can significantly use NANOTECH products without having fear for any undesirable side effects. Another product produced by NANOTECH is the sleep patch. Many people are suffering from inability to have complete sleep and on a timely basis. China is home to aged people who consist 18% of the world’s population (Dong and Ding, 2009). People who are aging have the inability to obtain regular sleep. This means that the sleep patch of NANOTECH can potentially have significant minimum market share equivalent to 18% of the world’s population. This market potential can probably reach billion of dollars in the future. Anti-aging patch is another line of product produced by NANOTECH. It is the current trend of the world that almost everyone wants to stay young and healthy. Anti-aging products are in demand. China is home to anti-aging products. Almost billion of people in China are currently using products with anti-aging feature. In fact, most of China’s herbal plants are claimed to contain anti-aging effects. Just like with the other previous products of NANOTECH, anti-aging patch may have significant and minimum 1.3 billion dollar market potential. Finally, the weight-loss patch may also have significant potential market. At present, there are 200 million people who are overweight in China (Zhang et al., 2008). A minimum of 200 million dollars may be at stake for weight-loss patch product. However, considering the fact that people are health conscious and becoming educated about weight control, most likely the market potential for weight-loss patch in China will significantly reach to a maximum of billion dollar market potential in the days to come. As US’s second largest trading partner next to Canada, China to US trade grew to $409.2 billion dollars. In 2008, US exported $71.5 billion goods to China. China’s medical equipment in particular grows at 15% annually (2009 Country Commercial Guide for US Companies, 2009). Based on this trend, the NANOTECH can significantly expect a positive growth rate for its products. If the trend for medical equipment grows at 15% annually, then NANOTECH can significantly assume to have at least 15% at minimum demand for its products and even more. Economic Consideration Knowing the fact that the US continues to make China as its trading partner is a significant indication of China’s blooming economy. With the current status of China’s economic condition, it is safe to say that it is favorable to the marketing and sale of the NANOTECH products. In fact, the continuing growth of China benefits the US economy (2009 Country Commercial Guide for US Companies, 2009). US exportation of products in China increases. This is to say that the marketing of NANOTECH products in China may generate potential sales in the future due to continuing acceptance of products coming from the US. Political-legal consideration China lacks a sense of predictability in its business environment (2009 Country Commercial Guide for US Companies, 2009). In this case, it is important to consider consistent and transparent laws that would make the business environment predictable. Due to its mercantilist style of policies, China sometimes is over protecting its local firms from importation and encouraging exportation on the other hand. This can be a significant problem when it comes to the conduciveness to the sales and marketing of NANOTECH products in the future. Socio-cultural consideration NANOTECH products work in principle the same as with Chinese medicine such as acupuncture in particular. With this consideration it would not be hard for NANOTECH to promote its products to China knowing that Chinese people are already educated on how acupuncture works in principle. It would be easy to educate the market in China with the products of NANOTECH as the latest innovation of acupuncture. In doing so, it would not be hard to educate the entire world knowing the fact that China has become one of the leading exporters of different products in the world. In totality, whatever products China is offering to the world can eventually gain specific level of popularity. Therefore, it is timely to introduce NANOTECH products in China as innovation to traditional Chinese medicine like acupuncture. NANOTECH products do not differ with traditional principle of acupuncture which can be a clear point that these products may gain socio-cultural acceptance in China. Technological consideration As mentioned earlier, China shows great evidence of trust on US technology. This is one of the most obvious reasons why it continues to accept products from the US with high level of trust and acceptance. Promoting NANOTECH products as latest technological innovation in the field of medicine is a great opportunity. Anything that is something new and as a form of innovation coming from the US is such a good thing worthy of a try in China. What NANOTECH may provide now is thorough education about its products to Chinese consumers. It is through this that the latest breakthrough of technology it is offering can be significantly appreciated to the fullest. References 2009 Country Commercial Guide for US Companies (2009). “Doing Business in China.” US Commercial Service. Dong, B. and Ding, Q. (2009) “Aging in China: A Challenge or an Opportunity?” Journal of the American Medical Directors Association, Vol. 10(7): 456-458. Hubacek, K., Guan, D. and Barua, A. (2007) “Changing lifestyles and consumption patterns in developing countries: A scenario analysis for China and India.” Futures, Vol. 39(9): 1084-1096. Zhang, X., Dagevos, H., He, Y., Der Lans, I. and Zhai, F. (2008) “Consumption and corpulence in China: A consumer segmentation study based on the food perspective.” Food Policy, Vol. 33(1): 37-47. Read More