China’s Volume-Based Procurement (VBP) program has reshaped the MedTech landscape. As procurement prices gradually return to more rational levels, the previous extensive growth model—characterized by high margins and heavy marketing investment—has reached a bottleneck.
MedTech now face pressing challenges:
How can they break away from single-product model and low conversion efficiency in innovation?
Under the new promotion model, how can they conduct professional, evidence-based academic promotion?
How should they enhance channel efficiency while balancing cost control with distributor relationship management?
Solving these “survival issues” will not only help MedTech overcome difficulties but may also unlock a new cycle of growth.
Leveraging keen market insight and extensive practical experience, iHEALTH, a boutique of Illumienra, has officially launched “MedTech PPC Growth Strategy Model”. This framework focuses on Product , Promotion and Channel to help MedTech integrate the innovative R&D, professional promotion, and channel optimization in a VBP environment. It strengthens core competitiveness, reshapes enterprise value, and enables the shift from short-term breakthroughs to long-term sustainable growth.
01 Product Strategy: From Homogeneous Competition to Value-Driven Innovation
As VBP list expands, grouping rules for MedTech products continue to be refined based on clinical value and product characteristics. Following the National Healthcare Security Administration’s proposal of the “One product, One policy” principle, precise grouping and pricing mechanisms increasingly steer the market away from price-driven homogenization and toward value-oriented competition rooted in technological innovation and product upgrades.
For MedTech, integrating R&D innovation with real clinical needs becomes essential. They must move beyond low-level competition and invest in differentiated products with higher precision, enhanced safety profiles, and robust clinical performance. By cultivating a strong professional brand supported by solid clinical value, MedTech can build a competitive moat and better withstand price pressures brought by VBP.
02 Promotion: From Relationship-Based Marketing to Academic Promotion
The era of "win the bid, win the market" is over. The traditional relationship-driven marketing model is facing unprecedented challenges:
Medical institutions now possess greater autonomy, and procurement volumes are no longer rigidly tied to tender agreements, reducing the assurance of actual purchasing volumes.
Under more scientific grouping and bidding rules, relying solely on low prices or personal relationships has become insufficient. Clinical endorsement of a product has become a key determinant of real-world performance during the VBP cycle.
Therefore, MedTech should shift toward academic promotion, leveraging professional conferences, clinical training programs, and expert collaborations to deliver robust clinical evidence and clearly demonstrate usage value to frontline physicians. Building long-term brand trust through clinical validation is now indispensable.
03 Channel: From Multi-Level Distribution to Efficiency and Flat Structures
After VBP, shrinking profit margins make traditional multilayer distribution models increasingly unsustainable. Long, costly distribution chains no longer match the tightened economic environment. If manufacturers simply transfer cost pressures to channel partners, distributors will face heightened financial strain and operational risks—resulting inevitably in declining loyalty and weaker collaboration.
Instead of pursuing short-term gains, MedTech must proactively plan for more efficient future channel models. This includes:
Streamlining channel structures.
Establishing strategic partnerships with major distributors.
Exploring direct-to-hospital supply models.
Redesigning profit-sharing mechanisms to build healthier, more resilient channel ecosystems.
Driving Breakthroughs with the PPC Model
With the MedTech PPC Growth Strategy Model, the iHEALTH team has helped numerous MedTech break out of homogeneous competition through diversified product portfolios and differentiated innovation. By strengthening academic promotion grounded in clinical evidence and optimizing channel efficiency while reshaping distributor relationships, MedTech achieved resilient, counter-trend growth in the VBP environment.
As VBP continues to reshape the industry landscape, Illuminera will remain committed to providing expert strategic empowerment. By virtue of a deep understanding of VBP policies and extensive project experience, we will continue assisting MedTech in adapting to policy shifts, developing sustainable growth strategies, and achieving systemic transformation—enabling them to navigate evolving policy cycles with confidence and resilience.
MedTech PPC Growth Strategy Model
Product
New Product Development and Launch Insights
Product Portfolio Strategy and Optimization
Product Lifecycle Management
Promotion
Product Market Performance Monitoring and Insights
Product Core Value Verification and Enhancement
Product Market Positioning Planning
Key Decision-Maker Relationship and Engagement Strategy
Channel
Channel Model Transformation and Optimization
Supply Chain and Logistics Optimization
Supply Chain Cost Analysis
For more relevant information, please send an email to marketing@illuminera.com.
