Over the course of 2013, one of the plans we have in the works for this platform is to slightly expand our area of focus, specifically in senior care, from purely China to other emerging economies. Part of what is driving this is that many American, European and Oceana senior care companies, architecture firms and healthcare providers are beginning to re-evaluate the role of China in their strategy. As was mentioned in my last senior care post, 2013 is likely the year of the gut check. For those companies not already in China, or still in the planning phase, the question they should be starting with is not “how do I get to China?”, but rather, “of all international markets, which ones are the best fit for me to export my business into?” Answering this question is holistic in the sense that it looks at more than just demographics and potential market size. It also looks at regulatory barriers, government incentives, cultural adaptability to your business or healthcare model, caregiving infrastructure, referral sources, marketing strategies and access to clinical and vocational workers.
In my estimation, a number of senior care companies have been over-eager to get into China when other low-hanging fruit exists that would be more accessible and also would allow your business to evaluate the ability of a particular care model and management team to enter a new international market. This was certainly one of the many insights from Sunrise’s experience in Germany. Admittedly, several senior care companies are successful internationally and, equally relevant, China is a compelling market opportunity. But the idea of having an over-arching expansion strategy that has China as part of where you hope to take your business, but maybe not where you want to go today, is a line of thinking that is worth pursuing. If that is the case, the question is how you go about the due-diligence process. Obviously, one way to do this is to retain a consulting firm to look at demographics, regulatory barriers, cultural factors, government incentives, etc. to help craft a strategy to export your model. China may end up being the first place you should go. But maybe not. Second, executives in the senior care and home healthcare businesses should be looking for opportunities to get a sense of what is going on in this space outside of China. When I reflect on last year’s conference schedule, one of the best conferences that managed to incorporate both China and other regional and international senior care markets was Ageing Asia. There are several conferences, and they each have their strengths, in particular ones that have a concentrated focus on China. What I enjoyed about last year’s Ageing Asia Investment Forum was its presentation of the general demographic challenges for the region as a whole, and the opportunity to hear from other countries and learn about the business opportunities each offers.
This year promises to be a similar venue. Already, senior care businesses from Malaysia, Singapore, Japan, Hong Kong, India, and China are confirmed as presenters. As you make travel plans for 2013, keep this conference in mind if for no other reason than an opportunity to get your own gears turning related to China in the context of senior care and home healthcare opportunities in the region as a whole.
About the Author
