The region’s healthcare sector seems to present something of a contradiction.
Agencies are being forced to tread a path through an increasingly unfriendly regulatory environment - the direct-to-consumer (DTC) sector is one of the most heavily-legislated sectors on the consumer landscape globally.
But, spurred by the potential of an ageing demographic and rising consumer affluence, they’re investing heavily in acquisitions and start-ups - note Ogilvy Healthworld’s recent buyout of Pharmax Korea.
According to Frost & Sullivan, it’s a market which is valued at US$50 billion in Asia-Pacific alone. Couple this with the fact that in Korea, the proportion of elderly will have trebled by 2022. In China, meanwhile, the number of aged consumers will have risen to nearly 300 million by 2030.
Notes Graham Edwards, CEO, Ogilvy Healthworld Asia-Pacific: “Healthcare is an area that many agencies from North America and Europe are only now starting to see fit to tackle.”
Critically, agencies are moving quickly to broaden their communications to include online, a channel which makes DTC - generally banned for prescription products and at least closely regulated for OTC - a viable proposition.
Typically, strategies have focused on traditional channels like trade advertising, public relations, government lobbying, media education and healthcare practitioner relations, but online is quickly becoming a favourite son, thanks to its ability to skirt regulations.
While it appears that governments are embarking on gentle sector reforms to make prescription healthcare more affordable and accessible through pricing schemes and subsidies, agencies suggested that regulations regarding DTC would likely tighten in the future.
“We’re seeing more participation by consumers in their health management, with a greater focus on early intervention and improved appreciation of healthcare insurance. It’s a fact that increased wealth, particularly in markets such as China, India, Korea, Taiwan and Vietnam, brings with it better choice and greater knowledge,” says John Cahill, regional healthcare director, McCann Erickson, which as Media went to press had launched a specialist unit to better navigate regulations, Complete Medical Group (CMG).
Candy Wan, who heads Grey Healthcare’s Hong Kong operation, says the shift by consumers online, coupled with increased knowledge, has seen brands evaluate their strategies, with more adopting an FMCG-like approach. “This means an increase in competition for specialised agency healthcare players, thanks to brands’ willingness to turn to more mainstream partners,” she says.
Online may indeed provide a bridge to cross one particularly troublesome chasm - that the regulatory environment surrounding traditional Chinese medicine (TCM) brands across Asia-Pacific is considered far more relaxed than the environment which Western brands enjoy.
Despite heavy government lobbying from agencies and brands alike to level the playing field, little headway has been made. “It’s a critical issue, but whether or not we’ll see the gap close is hard to say,” observes Feiyan Shen, China general manager of Publicis’ healthcare unit, Medicus.
“TCM is so common for most Chinese people, that it is difficult for governments to justify taking action in terms of regulations.”
