Lake Region Medical – Guided to a Quick Start in China’s Rapidly Growing Medical Device Market

The Assignment

Having faced challenges trying to manage its own staff in China remotely, Lake Region Medical used Tractus’ business Incubator as a cost effective and low risk way of re-entering the China market.

  • Since 1960, Lake Region Medical has become the world’s largest OEM and contract manufacturer of wire formed medical devices (guide wires) and components for minimally invasive devices for cardio-, endo- and neurovascular use.
  • Lake Region Medical was supported by a range of 510(k) registered OEM delivery and vascular access products as well as several coating and material enhancement options.
  • From concept development, to prototyping, to scale-up manufacturing and dock-to-stock supply chain management, Lake Region Medical provides a wide range of outsourcing solutions.
  • Having faced challenges trying to manage its own China sales staff remotely from its headquarters in the US, Lake Region Medical Executives decided to use Tractus’ business Inc.ubator as a cost effective and low risk way of re-entering the China market, expected to become the world’s largest market for its products.

Tractus’ Solution

Utilizing Tractus’ business Inc.ubator solution provided Lake Region Medical with an on-the-ground presence and dedicated staff with close senior management oversight, without having to establish its own China legal entity

  • Since 2006, Tractus has provided a wide range of market entry services through our innovative business Inc.ubator service, allowing Lake Region Medical to have an on-the-ground China business presence without having to establish its own China legal entity, including,
    • market entry strategy assistance;
    • a legal entity through which Lake Region Medical employed a dedicated Sales Director and a Customer Sales Representative;
    • office space;
    • back-office support (bookkeeping, cashier, administration and payroll), and;
    • senior management oversight in China.
  • More importantly, Tractus’ business Inc.ubator included crucial oversight of Lake Region Medical’s sales team by Tractus’ senior Managers and Directors, ensuring they stayed focused on achieving their aggressive sales and marketing goals.
  • Over the years we have provided advice, assistance and oversight of Lake Region Medical’s business development activities to market and sell into China’s medical device market, including:
    • applying for Sino Food and Drug Administration (SFDA) approvals for its medical device products;
    • establishing a Foreign-Invested Commercial Enterprise (FICE);
    • FICE commercial support and administration;
    • office space and SFDA approved warehousing;
    • recruiting and hiring;
    • management oversight &guidance, and;
    • back office support (including accounting, cashier, book keeping and payroll).

Result

Utilizing Tractus’ business Inc.ubator resulted in over 35% compound annual growth over the last 10 years and a market leading position supplying guide wires into China’s medical device market.

  • When Lake Region Medical first entered the China market, they could only sell their low-value guide wires based on cost.
  • Due to continued relationships with customers and strong after-sales service, Lake Region Medical now sells high-value guide wires to repeat customers and has developed an enviable market share.
  • Compounded annual sales growth has averaged 35% over the last 10 years?

 

Note: 1 – In 20XX Lake Region Medical was acquired along with several other device manufacturers and is not part of Integer, a global leader in the design development of medical devices and power solutions for the medical and non-medical markets.

 

 

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