This year China Food and Drug Administration will permit medical device companies to open online shops. Medical device companies can operate in the online business after applying to get a medical device Internet license. Prior to this change, currently the medical devices are only allowed to buy or sell in online pharmacy stores, and medical device companies are not allowed to have their own online stores.
In year 2014 China has witnessed a boost in the rapid development of medical devices e-commerce. China’s medical device market size is about 255.6 billion Yuan. In the retail market, the traditional retail sales accounted for 45.4 billion Yuan, 74.18% of the total retail market, and Internet channel sales for about 15.8 billion Yuan, 25.82% of the total. The number of Internet drug licenses has doubled, while the traditional retail store sales stayed with almost no growth in 2014. The increment of the medical devices retail market is almost entirely occupied by the Internet supplier.
The old policy that medical devices companies cannot open online stores has hindered the development of medical devices e-commerce. In order to successfully conduct e-commerce, some medical device companies have to make the acquisition of online pharmacies to get online sales channels.
Now CFDA has realized and acknowledged the need for change. The medical devices online store is on the verge.
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