Chinese CGM Manufacturers Surpass Expectations in Europe Market Competition

The continuous blood glucose monitoring (CGM) market in China has witnessed a remarkable surge in sales over the past two years. In 2023, domestic CGM manufacturers successfully reduced the prices of CGM devices through intense competition. Just two years ago, CGM products were priced between 400 to 600 yuan. However, the average price has now dropped by approximately 50%. During the 2023 Double 11 shopping festival, leading manufacturers such as Sinocare and Yuyue Medical offered CGM devices for as low as 100 to 200 yuan. This aggressive pricing strategy stems from their desire to quickly penetrate the market as relatively late entrants.

Sinocare and Yuyue Medical, in particular, showcased their determination to capture market share by significantly increasing their advertising investments before Double 11. They utilized targeted elevator advertisements to enhance product exposure and gain a competitive edge in consumers' minds. Additionally, they leveraged the promotional period to reduce the price of CGM devices, attracting customers with their price advantage. As a result, Sinocare sold over 100,000 boxes of CGM devices, generating online sales revenue exceeding 210 million yuan during the Double 11 period. Yuyue Medical also experienced substantial growth, with CGM device sales surpassing millions and a 30% year-on-year increase in blood glucose meter sales.

The success of these domestic CGM manufacturers reflects a broader trend of seizing market share from established overseas giants like Abbott and Medtronic, thus increasing the localization rate of CGM devices. Presently, with factors such as costs, brand recognition, distribution channels, profitability, and competition coming into play, pricing in the domestic CGM market has started to stabilize, and industry players have reached an unspoken agreement to avoid continuous price wars. After consolidating their positions in the domestic market, companies such as Sinocare, Yuyue Medical, Sinocare Bionic, Weitai Medical, and Jiuno Medical are setting their sights on international expansion, aiming to ride the wave of medical device globalization and export Chinese CGM devices worldwide.

Europe, with its well-established healthcare infrastructure, has emerged as the most promising destination for Chinese CGM manufacturers. Looking back, October 2023 served as a pivotal time frame, Europe as the key location, and venturing into international markets as the defining event for the Chinese CGM industry. In October 2023, Sinocare became the first domestic CGM manufacturer to receive the EU Medical Device Regulation (MDR) certification, issued by TÜV Rheinland Greater China. Shortly thereafter, SIBIONICSGS1, a CGM product from Sinocare Bionic, also obtained the EU MDR certification. Another player, Yuyue Medical, stated its intentions to apply for MDR certification for its CGM products during an investor Q&A session. Following product approval, Sinocare and Sinocare Bionic set their sights on commercialization in Europe. Sinocare stated that they would leverage their experience in selling blood glucose meters and employ cross-border e-commerce platforms and local teams to enter the EU market.

Notably, even before this development, Jiuno Medical, Weitai Medical, and Moveck Technology had already obtained the CE Mark certification, allowing them to commence extensive sales in the European market. Jiuno Medical's CGM products have entered more than 30 countries and regions worldwide, Weitai Medical's AiDEXG7 CGM product began commercialization in the European market as early as March 2021, and Moveck Technology's CGM products have been incorporated into the healthcare systems of countries such as Denmark, Sweden, Italy, the Netherlands, and the Czech Republic since 2018.

To expedite their international expansion, Chinese CGM manufacturers have significantly increased their participation in exhibitions and academic promotion activities, aiming to swiftly penetrate the European market. For instance, the European Association for the Study of Diabetes (EASD) Annual Meeting, held in October 2023, attracted over 15,000 representatives from more than 130 countries, making it the largest diabetes conference in Europe. Chinese companies such as Sinocare Bionic, Sinocare, Yuyue Medical, Moveck Technology, Weitai Medical, and Jiuno Medical all participated, showcasing their latest products and aiming to attract distributors from various European regions. These exhibitions served as platforms for establishing connections and negotiating collaborations, allowing them to gain a foothold in the European market. In addition to the EASD Annual Meeting, these companies also targeted conferences in different European countries based on market characteristics and corporate strategies.