How to succeed with welfare export to China
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Transcript of How to succeed with welfare export to China
HOW TO SUCCEED WITH WELFARE EXPORT TO CHINA?
Lisa Lin Halskov
First question – Why China?
Process reaction of Danish companies going to China
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Attractive Overwhelming
Struggling …
Content
• Welfare Sector opportunities in China
• Will Chinese in fact pay what it cost?
• Challenges
• Reference case – Aalborg Care Consortium
Welfare Sector opportunities in China
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China's demographics are significantly changing Longer life and power of the one-child policy
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Source: Global AgeWatch index 2014
100 million more elderly in 2025
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Young Chinese are under extreme stress Unbearable for many couples in their 30s
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0-15 year
30-40
50-65
Care plan from the authorities (2025)
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3% on
nursing
home
8,4 mio. pers.
7% on
Care station/
Day care center
19,7 mio. pers.
90%
Care at home
254 mio. pers.
• There must be 30 nursing home beds per 1,000 elderly (over 60)
• Planned capacity by 2025 is 8.4 million beds in nursing homes (2011-level was 2 million beds)
• There are approximately 1 million carers (2011), where only 10% are professionally trained, demand is 10 million
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Subsidies per bed in
nursing home
No tax as operator
Free land development
Fast project approval
Free cable installation
Lower electricity, water, gas
prices
Lower land price
Support schemes from the local Chinese government
Will Chinese in fact pay what it cost?
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Consultancy and knowledge is difficult to sell. Physical product which can see and touch, with a
bit of technology and a good design will have a good chance.
For example, assistive equipment for supporting daily living at home.
Chinese consultancy in nursing industry
Bao mu’s salary has been increased triple for the last two years. I hope
there is a technology like robot can replace Bao mu
Home care customer / middle to
high income family
A technology can be used also for other family members. Medical supply importer
I have seen many Danish welfare technologies
which design for improving live quality of
elders and care giver condition , the meaning
is very good and inspirational. We will try to source similar Chinese welfare product for our
nursing home, the Danish products are too expensive, in case there
is a problem with the product, we are not sure where to find the service.
CEO of Chinese nursing home
operator
Danish welfare products have good quality and
guarantee for 10 – 15 years. But in China, we don’t need such a long time guarantee, 3-5 years guarantee is good
enough.For example, a good lift system or a wheel chair, you don’t expect to
pass on for next generation.
Medical chain supplier
What do Chinese say about Danish welfare product?
Source: McKinsey Global Institute China Consumer Saving Behavior Survey
China's savings population - precautionary savings
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Challenges
Chinese‘s needs and expectations?
We look at Chinese with Danish eyes A big culture challenge
Challenge 1 - Mentality and behavior difference
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Think it their way & Go behind the words
Personal visits to the best nursing homes in China
• Guangzhou Youhao Nursing Home & Hospital Project
• Chengdu Sunset Nursing Home
• Hebei Yanda Golden Age
• Chengdu No. 2 Social Welfarecenter
• Chongqing Medical University,Qinggang
• Relevant authorities
Often real estate project more than nursing home
Low-grade material, and designs reminiscent of hospitals
Sporadic training, personnel coming without education
Designed as hospitals, Chongqing Medical University Nursing Home Project, Qinggang
Youhao nursing hospital project, Guangzhou
19 Good facilities can be founds in some good nursing homes, even in Church.
Mega- project in Hebei, Yanda Medical City
Challenge 2 : Language barrier
Lost in meeting and conversation
= Lost opportunities
Challenge 3 : Afraid of being copied
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RMB 678/pc RMB 1257/pc RMB 14/pc
Copy products search from Taobao website
Case study
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AACC offers a one-stop shop to a Chinese client who is interested to enter senior living industry
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Jinan Hot Spring and Senior Living Project
Our tasks
• Set a benchmark for building Danish inspired senior living home
• Investigate the needs of local elders
• Overall planning, design of physical building and affiliated service
• Design business model
• Provide care service and run care operation
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What is missing from AACC solution?
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AACC Consultancy
Care operation
team
Welfare technology providers
Senior living
One-stop shop is in demand
“One dragon Service” is what Chinese want in the eldercare industry. They want solutions, not simply products and service. Each consortium player has different contributions to the solution.
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一条龙服务
• Solution build on extensive knowledge used to configure the right solution for customers and are
difficult to copy.
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• Focused on delivering complete solutions
TO SUCCESS
What we have learned from our process
• Keep distance short - Communication efficiency and accurate
• Always follow up
• Customer service
• Being in the same boat – need to help them to solve their problem first
• Be flexible and adapt quickly
• Pass on and share information among the consortium
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No short cut No cheap and simple
CHINA
GERMANY
China is not for everyone!
You Dare or You Don’t
Thank you
Lisa Lin Halskov Innovation Consultant Copenhagen Living Lab