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C O R P O R A T E
P R O F I L E
Shimadzu (Hong Kong) Ltd.
Shimadzu (China) Co., Ltd.
Overview of Shimadzu China
2
Shimadzu (Hong Kong) Ltd.
Shimadzu (China) Co., Ltd.
1980
0.472 billion dollars(As of March 31, 2017)
1,126 (SHK and SSL)(As of March 31, 2017)
5
Established:
Consolidated Sales:
Total Number of Employees:
Consolidated Subsidiaries:
China in Overall Shimadzu Group Operations
We are expanding our global organization to meet the needs of each region.
Percent of Net Sales by Region(Year ending March 2017)
Japan
51.1 %
Americas
12.4 %
Europe
7.3 %
China
16.4 %
Middle East, Oceania & Africa 2.9 %
Other Asian
Countries
9.6 %
DubaiSingapore Australia
ShanghaiSanjo Works
at Kyoto Head OfficeDuisburg, Germany
California, U.S.Maryland, U.S. Sao Paulo, Brazil
South America
ChinaJapanEurope
Middle East & AfricaAsia & Oceania
North America
3
Shimadzu China 2017 Net Sales by Division
(Results for Apr. to Dec.)
Model 2016 Results 2017 Results Year-on-Year
Analytical & Measuring
Instruments285 334 117 %
LC 103 113 110 %
GC 47 49 104 %
MS 51 61 120 %
Other 84 112 133 %
Medical Systems 28 42 153 %
Industrial Machinery 39 42 109 %
Total 352 418 119 %
Achieved 19 % growth (YoY) overall, with particular expansion in Analytical &
Measuring Instruments and Medical Systems segments.
Analytical & Measuring Instruments segment also achieved high growth in
other categories (environmental, large projects, testing machines, and NDI).
(MUSD)
4
Analytical & Measuring Instruments
Net Sales by SectorPublic sector demand: Served as driver of sales for several years, but growth has slowed due to
convergence in government projects and privatization of some institutions (from Entry-Exit Inspection and Quarantine Bureau to contract analysis). Startup of 13th 5-year plan is expected to increase demand.
Academia: Over 20 % growth achieved for two consecutive years, due to the government's "Double First-Class University Plan."
Private sector demand: Demand is strong in pharmaceutical (regulatory compliance) and contract analysis (privatization) fields. Continued growth is expected, due to recovery in chemical engineering and petrochemical markets and other factors.
5
民需
官需
大学
2015 2016 2017
15 % 15 % 16 %
34 %31 %
27 %
51 %53 %
58 %
Private sector demand
Public sector demand
Academia
Analytical & Measuring Instruments
Net Sales by Segment
FY 2017 Percent of Main Industries
Growth slowed in FY 2017 due to fewer government projects in pharmaceutical, food, and
healthcare fields, but growth continues in the pharmaceuticals market, which accounts for the
largest portion. Growth is high in chemistry, electrical, and machinery fields, due to strengthened
Shimadzu capabilities within China and continued recovery of market activity. Government and
academia sales are in a transient period of government projects, but sales to academia are strong,
mainly for the Double First-Class University Plan. Contract analysis sales are growing significantly,
not only in food and environmental testing fields, as before, but also in the healthcare field.
Industry17/16
Sales Ratio
17/15
Sales Ratio
Pharmaceuticals,
Foods, and
Healthcare102 % 121 %
Chemical,
Electrical, and
Machinery138 % 133 %
Government and
Academia106 % 122 %
Contract Analysis 146 % 178 %
Other 138 % 135 %Overall 117 % 130 %
6
35%
23%
20%
12%
10%医薬・ヘルスケア・食品
化学・電気・機械
官公庁・大学
受託分析
その他
Pharmaceuticals,
healthcare, and foods
Chemical, electrical, and
machinery
Government and
academia
Contract analysis
Other
China vs. Japan—Net Sales by Division
The Analytical & Measuring Instruments sales ratio versus Japan decreased from 1:1.7 to 1:1.5, where China headed toward becoming the number one region in the world.
The Medical Systems sales ratio versus Japan decreased from 1:5.7 to 1:5.4, but the gap is still large. Measures need to be implemented strategically.
The Industrial Machinery sales moved significantly closer to Japan, with the sales ratio versus Japan decreasing from 1:3.3 to 1:1.6, due to major expansion of TMP and glass winder sales. Measures to maintain the strong expansion are expected to be deployed.
7
152期 153期 154期 155期
中国年間
日本年間
中国上期
日本上期
152期 153期 154期 155期
中国年間
日本年間
中国上期
日本上期
Big difference
in sales
compared to
Japan
2017201620152014
Analytical & Measuring Instruments
Sales in Japan and China
Sales
catching up
to Japan
2017201620152014
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
152期 153期 154期 155期
中国年間
日本年間
中国上期
日本上期
Sales moving
significantly
closer to
Japan
2017201620152014
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
Medical Systems Sales in Japan and China
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
Industrial Machinery
Sales in Japan and China
China vs. Japan—Net Sales by Model
(Analytical & Measuring Instruments)
In the first half, LC, MS, GC, and environmental results exceeded Japan.
In addition to environmental and spectrometry products, where China continues to achieve the highest regional sales in the world, China has also surpassed sales in Japan for the first time in two years for LC and GC products and for the first time ever for MS products.
8
152期 153期 154期 155期
Net Sales—LC
中国年間
日本年間
中国上期
日本上期
152期 153期 154期 155期
Net Sales—MS
中国年間
日本年間
中国上期
日本上期
152期 153期 154期 155期
Net Sales—Environmental
中国年間
日本年間
中国上期
日本上期
152期 153期 154期 155期
Net Sales—GC
中国年間
日本年間
中国上期
日本上期
Exceeded Japan
for the first time
in two years.
Maintained highest
sales in the world.
Business expected to
expand further.
Achieved
higher sales
than Japan for
the first time
this term.
Exceeded Japan
for the first time
in two years.
2017201620152014
2017201620152014
2017201620152014
2017201620152014
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
China—Full Year
Japan—Full Year
China—First Half
Japan—First Half
Large Network in China
9
3 R&D centers
4 Manufacturing locations
5 Analysis centers
14+ Sales and service locations
90+ Joint research laboratories
Group Companies and Branches in China
Consolidated Sales: Approx. 0.6 billion dollars
Total Number of Employees: Almost 1,800
(Including 55 Expats)
• March 2018 estimate
Sales/Service Subsidiaries(1) Shimadzu (Hong Kong) Ltd. established in 1997
(2) Shimadzu (China) Co., Ltd. established in 1998
(3) Shimadzu (Guangzhou) Analysis & Technology
Services Co., Ltd. established in 2006
(4) Shimadzu Research Laboratory (Shanghai) Co., Ltd.
established in 2007
(5) Shimadzu-GL Sciences (Shanghai) Laboratory
Supplies Co., Ltd. established in 2007
Manufacturing Subsidiaries
(6) Beijing Shimadzu Medical
Equipment Co., Ltd.
Established in 1992Production of medical X-ray diagnostic imaging systems
(7) Tianjin-Shimadzu Hydraulic
Equipment Co., Ltd.
Established in 1994Manufacturing and sales of hydraulic gear pumps
(8) Shimadzu (Suzhou) Instruments
Manufacturing, Co., Ltd.
Established in 1998Production of analytical instruments and environmental measurement instruments
(9) Ningbo Shimadzu Vacuum
Technology Development Co., Ltd.
Established in 2005Manufacturing and sales of vacuum furnaces
Beijing Branch established in 1980*
Beijing Analysis Center established in 1994*
Shenyang Branch established in 1985*
Shenyang Analysis Center established
in 2008*
Nanjing Branch established in 2000*
Henan Branch established in 2012*
Shanghai Branch established in 1982*
Shimadzu Global Application Development
Center established in 2008*
Shimadzu China R&D Division established
in 2011*
Suzhou Office established in 2003*
Wuhan Branch established in 2008*
Shenzhen Branch established in 2003*
Guangzhou Branch established in 1984*
Urumqi Branch established in 2001*
Xian Branch established in 2001*
Sichuan Branch established in 1994*
Chengdu Analysis Center established in 2012*
Kunming Branch established in 2002*
Chongqing Branch established in 2001*
10
R&D Centers
11
January 2011
Analytical instruments for China markets
Established:
R&D Field:
Shimadzu China R&D Division
March 2013
Advanced mass spectrometry technologies
Established:
R&D Field:
Shimadzu Research Laboratory
(Shanghai) Co., Ltd.
Application Research and Development Center
12
October 2015
MS applications for China and
world-wide markets
Clinical, food safety,
environmental, pharmaceuticals,
chemicals, etc.
Established:
R&D Fields:
Shimadzu China Mass
Spectrometry Center (Beijing)
Manufacturing Locations
13
SSM (Suzhou)
BSME (Beijing)
NSC (Ningbo)
TSH (Tianjin)
Analytical Instruments Industrial Machinery
Medical Systems Fluidics Devices
Analysis Center
14
Shanghai, Beijing, Guangzhou,
Shenyang, and Chengdu
Various contract analysis
and analysis on request
LC, GC, LCMS, GCMS,
ICPMS, AA, UV, FTIR, etc.
Analytical Fields:
Xian Analysis Center to be established
in May 2018
Offering Customers Total Solutions
15
Shimadzu (Guangzhou) Analysis & Technology
Services Co., Ltd. (SAT)
Analysis service for automotive, consumer
electronics, toys, fibers, and food industries
Company:
Business Fields:
Contract Analysis Service
Shimadzu-GL Sciences (Shanghai) Laboratory
Supplies Co., Ltd. (SGL)
Sale of consumables for analytical instruments
(For Shimadzu and non-Shimadzu brands)
Company:
Business Fields:
Consumables Sales
Large Network of Joint Laboratories
Breakdown by Industry
Pharmaceutical
Food
SafetyEnvironmental
Academic and Research Institutions
Public Safety and Police
Contract Analysis
Materials
Entry-Exit Inspection and Quarantine Bureau
2017 Shimadzu Joint Laboratories
16
0
17
History of Business in China
Shimadzu Corporation Business Development in China(1) From 1956: Transactions started and
(2) From 1978: Chinese economic reforms started
18
Year Events in China Shimadzu China
1949 People's Republic of China established.
1953 First 5-year plan started.
1956Guangzhou/China Export Product Exhibition held
(predecessor of Canton Fair).
Participation in First Beijing-Shanghai Japan
Trade Fair
First Shimadzu delegation to visit China (Toyozo
Nishikawa and others)
1958
Nagasaki National Flag Incident and all China-Japan
trade canceled.
Chinese Great Leap Forward campaign started.
1960 China-Japan trade resumes. (Friendly trade starts.)
1966Third 5-year plan started.
Cultural Revolution starts.
1968 Cultural Revolution continues and Deng Xiaoping exiled. First Annual Cooperation Agreement signed.
1972Japan-China Joint Communiqué signed and Japan-
China relations normalized.
1973 Deng Xiaoping reinstated in Beijing. Participation in Canton Fair
1976Premier Zhou Enlai dies (January 8).
Chairman Mao Zedong dies (September 9).China Automation Equipment Exhibition
1978
China-Japan Peace and Friendship Agreement signed.
Path for Chinese economic reforms and Deputy
Premier Deng Xiaoping visits Japan.
1979Prime Minister Ohira visits China and officially offers
Japanese-government-backed yen loan.
Analytical instrument service station
established in Beijing.
1980Special economic zones designated in Shenzhen,
Zhuhai, Shantou, and Xiamen.Beijing Branch established.
1982 One-child policy started. Shanghai Branch established.
1984Prime minister Nakasone visits China and 21st Century
Committee for Japan-China Friendship inaugurated.Guangzhou Branch established.
1985 Import/export tariff ordinance implemented. Shenyang Branch established.
President Ryoji Uenishi meets
with Premier Zhou Enlai in 1973
Participation in the first Beijing-Shanghai Japan Trade Fair in 1956 gave Shimadzu a lead over competitors in starting trade with China.
Due to Chinese economic reforms in 1978, a service location was established in Beijing with the help of the China National Instruments
Import & Export (Group) Corporation in 1979. Representative offices were established in Beijing, Shanghai, Guangzhou, Shenyang, and
Chengdu to deploy activities closer to markets.
Later, an infrastructure of service centers and analysis centers were established to cover all of China.
Shimadzu Corporation Business Development in China(3) From 1990: Period of Introducing Market Economy
19
Year Events in China Shimadzu China
1992Deng Xiaoping gives "South Tour
Speeches."
Beijing Shimadzu Medical Equipment Co.,
Ltd. established.
1993 Jiang Zemin appointed as President.
1994General reforms implemented for
external trade system.
Tianjin-Shimadzu Hydraulic Equipment Co.,
Ltd. established.
Beijing Analysis Center established.
Sichuan Branch established.
1997 Hong Kong returned to China. Shimadzu (Hong Kong) Ltd. established.
1998Jiang Zemin visits Japan (first time
since the country was founded).
Shimadzu (China) Co., Ltd. established.
Shimadzu (Suzhou) Instruments
Manufacturing, Co., Ltd. established.
1999 Macau returned to China.
2000Jiang Zemin submits "Three
Represents" theory.Nanjing Branch established.
In the 1990s, China implemented a full-scale introduction of a market economy
and promoted rapid liberalization of trade. During that decade, China attracted
significant attention as the "factory to the world."
Medical Device Plant
(BSME)
1992
Hydraulic Equipment
Plant (TSH)
1994
Hong Kong Office
(SHK)
1997
Analytical Instruments
Plant (SSM)
1998
Trade Office (SSL)
1999
Shimadzu established joint venture
manufacturing subsidiaries for medical
devices in Beijing and gear pumps in
Tianjin.
Shimadzu also steadily established a
business base that integrated
manufacturing and sales operations in
China, such as by establishing a wholly-
owned analytical instrument
manufacturing subsidiary in Suzhou.
Shimadzu Corporation Business Development in China(4) From 2001: Opened markets by joining WTO
20
Joining the WTO in 2001 marks an era of opening markets, after which China
achieved dramatic economic growth. During that period, markets are hit by
waves of global competition and China began transitioning from a "factory to the
world" to a "market of the world."Year Events in China Shimadzu China
2001 China joins WTO.
Chongqing Branch established.
Xian Branch established.
Urumqi Branch established.
2002Policy to comprehensively build a
moderately prosperous society.Kunming Branch established.
2003Hu Jintao appointed as President.
SARS outbreak occurs.
Shenzhen Branch established.
Suzhou Office established.
2004Goals for a harmonious society
submitted.
2005Ningbo Shimadzu Vacuum Technology
Development Co., Ltd. established.
2006Eight Honors and Eight Shames
submitted.
Shimadzu (Guangzhou) Analysis &
Technology Services Co., Ltd. established.
2007Scientific Outlook on Development
submitted.
Shimadzu Research Laboratory (Shanghai)
Co., Ltd. established.
Shimadzu-GL Sciences (Shanghai)
Laboratory Supplies Co., Ltd. established.
2008Sichuan earthquake occurs.
Beijing Olympics
Wuhan Branch established.
Shenyang Analysis Center established.
G-COE established.
Due to the total support capabilities and R&D capabilities required for responding to such market changes,
such as application support capabilities and laboratory product/service package offerings, Shimadzu
decided to strengthen comprehensive customer support functions and start building R&D locations in
China.
Contract Analysis
Subsidiary (SAT)
2006
Basic Research
Laboratory (SRLS)
2007
Consumable Sales
Subsidiary (SGL)
2007
Application
Development Center
(G-COE)
2008
Shimadzu Corporation Business Development in China(5) From 2010: Becoming the World's Second Largest Economy
21
In 2010, China's GDP surpassed Japan's to become the second largest economy in the world. Though
China continued to achieve over 6 % growth, various problems were also revealed, such as environmental
problems, overproduction, and zombie companies. Meanwhile, China continues to increase their presence
in the global economy with measures such as the One Belt and One Road Initiative and Asian Infrastructure
Investment Bank (AIIB). Within China, they are developing a new service-based economy and aim to
become the world's number one IT country.Year Events in China Shimadzu China
2010
GDP surpasses Japan to become the world's second
largest.
Expo 2010 Shanghai China
2011Environmental protection philosophy "Lucid waters
and lush mountains are invaluable assets" submitted.
Shimadzu China R&D Division
established.
CIPO (Procurement Department)
established.
2012 Xi Jinping appointed as President.Henan Branch established.
Chengdu Analysis Center established.
2013 Air pollution action plan announced.
2014
One Belt and One Road Initiative announced and
Chinese economy reaches new normal state.
Anti-corruption problems surface and APEC forum
held in Beijing.
2015
Tianjin explosion accident occurs.
One-child policy eased.
"Bakugai" (explosive spending) becomes a popular
new term in Japan.
Shimadzu China Mass Spectrometry
Center established.
2016Asian Infrastructure Investment Bank (AIIB) started.
G20 Summit held in Hangzhou.
2017First International One Belt and One Road Initiative
Collaboration Summit held.
Shimadzu Vacuum Equipment
(Shanghai) Co., Ltd. established.
2018 Presidential term limits abolished. Xian Analysis Center established.
As China evolves into a global market and
achieves additional growth, Shimadzu
established high-end development
locations specialized in mass
spectrometers and other R&D locations.
Using talented human resources within
China, we aim to release products and
applications designed specifically for
Chinese markets.
Given the many companies in China with
expertise in AI and other new technologies,
we intend to strengthen alliances and
develop businesses that originate in China.
22
Policies for Business in China
Vision
23
Shimadzu Brand Products Originating in China
and Expanding Throughout the World
This expresses Shimadzu's global identity.
Thus far, we have achieved a certain amount of
success by implementing activities based on
business expansion as our greatest mission.
However, in the future, we must establish
business capabilities able to achieve sustained
growth, from short, medium, and long-term
perspectives.
Given the expanding influence of businesses in
China within the Shimadzu Group, it is essential
to create awareness and capabilities for taking a
leadership role within the Group. Due to the
rapid market expansion and changes in China,
there are many potential business sprouts.
Therefore, accurately identifying such
opportunities is a key prerequisite for deploying
new businesses.
Strengthen ability to create
businesses.1
Strengthen ability to expand
businesses.2
Acquire ability to deploy businesses
in a smart manner.3
Develop human resources able to
achieve sustained growth.4
Basic Policies
Using Self-Awareness and an Action-Oriented Approach to Lead Global Businesses of the Shimadzu Group
24
25
Key Measures
Direction of Market Changes in China
26
• Increased investment in environmental issues indicated in the 13th 5-year plan (air, water, and soil pollution)
• Increased number of environment monitoring stations for regulatory compliance in China
Expanding
Environmental Markets
• Healthcare reforms and increased number of secondary hospitals and medical checkup clinics to reduce healthcare costs
• Shift from treatment to increased investment in prevention (pharmaceuticals and health foods)
Expanding Healthcare Markets, Including
Medical Treatment and Foods
• Academia markets activated, mainly due to "Double First-Class University Plan"
• Increased investment in science and technology at various scientific research institutions
Expanding Academia and Scientific Research
Markets
• Government structural reforms are expanding rights that were previously concentrated at prefectural-level institutions out to regional/city-level institutions as well.
• Increased investment in prefectural-level projects and expanded use of contract analysis companies
Development of Peripheral Markets
• Technological reforms are progressing due to national policy for becoming the global leader in AI by 2030.
• Building large-scale network infrastructure by retaining domestic companies
Rapid Development of
Information Communication
Technologies
27
1. Strengthen Capabilities Establish System with Seven Locations—Strengthen Inland
Business Locations
In the past, locations were expanded based on economic development in coastal regions and functions of respective locations were strengthened based on coastal regions.
As development increases in inland regions (central, southwest, and northwest regions) in recent years, it has become necessary to strengthen coverage in inland regions.
The ability to serve
customers needs to
be strengthened in
inland regions with
economic
development.
Source: National Bureau of Statistics of China; Note: "sales growth of industrial companies" refers to primary sales earnings of companies with primary sales earnings over 5 million yuan.
Economic Development Status Within ChinaIndustrial Company Sales by Region
Sale
s (
100
Myuan) 2.9 fold sales
growth of industrial
companies in
China during the
past 10 years
South
Southwest
Central
East
Northwest
North
Northeast
Percent of Industrial
Company Sales by RegionIndustrial growth was
high in inland regions.
Northeast North Northwest East Central Southwest South
Deployment of Shimadzu Sales
and Service Capabilities
Beijing Branch established in 1980*
Beijing Analysis Center established in 1994*
Shimadzu China Mass Spectrometry Center
established in 2015*
Shenyang Branch established in 1985*
Shenyang Analysis Center established
in 2008*
Nanjing Branch established in 2000*
Henan Branch established in 2012*
Shanghai Branch established in 1982*
Shimadzu Global Application Development
Center established in 2008*
Shimadzu China R&D Division established
in 2011*
Suzhou Office established in 2003*
Shenzhen Branch established in 2003*
Guangzhou Branch established in 1984*Chongqing Branch established in 2001*
Kunming Branch established in 2002*
Sichuan Branch established in 1994*
Chengdu Analysis Center established
in 2012*
Xian Branch
established in 2001*
Urumqi Branch established in 2001*
Wuhan Branch established in 2008*
The functions
performed at
locations in
respective regions
have been
strengthened as the
economy expanded
in China.
Northeast North Northwest East Central Southwest South
2015
2016
Given the overall market share,
there is room for additional growth.Analytical & Measuring
Instruments Sales Ratio by
Region in China
1. Strengthen Capabilities Establish System with Seven Locations—Strengthen Inland
Business Locations Based on expansion to inland regions with economic development, establish central locations in seven regions in China. (Establish
system with seven locations.)
In addition to sales functions, also establish and strengthen analysis centers at the central locations.
Centralize technical service parts and improve operating efficiency at three locations—Beijing, Shanghai, and Guangzhou.
28
Territories Districts Cities/Prefectures Cities
Sales of
Industrial
Companies
(100 B yuan)
Number of
Regular High
Schools
Gross Domestic
Product
(100 B yuan)
Number of
Regular High
School Students
(Tens of
thousands)
BranchesAnalysis
CentersParts Warehouses
SPK Northeast Jilin Province Changchun 22,322 58 5,530 43
Heilongjiang Province Harbin 11,719 81 5,751 66
Liaoning Province Dalian 33,243 116 7,732 29
Shenyang 7,272 40 r
North Hebei Province Shijiazhuang 45,648 118 5,441 42
Shanxi Province Taiyuan 14,624 79 2,735 42
Tianjin City Tianjin 27,970 55 16,538 51
Inner Mongolia Hohhot 18,926 53 3,091 24
Beijing City Beijing 18,865 91 23,015 60
Northwest Gansu Province Lanzhou 8,689 45 2,096 42
Xinjiang Uygur
Autonomous Region
Urumqi
8,204 44 2,632 18
Qinghai Province Xining 2,171 12 1,132 7
Ningxia Yinchuan 3,473 18 1,494 10
Shaanxi Province Xian 19,691 92 5,801 85 r
SSH East Anhui Province Hefei 39,064 119 5,660 53
Jiangxi Province Nanchang 32,955 97 4,000 59
Jiangsu Province Nanjing 147,074 162 9,721 81 r
Shandong Province Qingdao 145,629 143 9,300 32
Ji'nan 6,100 71
Shanghai City Shanghai 34,172 67 25,123 51
Zhejiang Province Hangzhou 63,214 105 10,050 48
Ningbo 8,004 16
Central Henan Province Zhengzhou 73,366 129 7,312 82
Hunan Province Changsha 35,410 124 8,510 57
Hubei Province Wuhan 43,179 126 10,906 96
Southwest Yunnan Province Kunming 9,830 69 3,968 44
Sichuan Province Chengdu 38,646 109 10,801 76
Chongqing City Chongqing 20,902 64 15,717 72
Tibet Autonomous
Region
Lhasa 136 6 377 2
Guizhou Province Guiyang 9,877 59 2,891 37
SKC South Hainan Province Haikou 1,662 17 1,162 15
Fujian Province Fuzhou 39,591 88 5,618 32
Xiamen 3,466 14
Guangxi Nanning 20,443 71 3,410 38
Guangdong Province Shenzhen 119,158 143 17,503 9 r (NDI only)
Guangzhou 18,100 104
Total 13 5 3
By City/Prefecture (2015) By Major City (2015) Development of Shimadzu Locations in China
Currently, there is no analysis center in
central China, so establish a central
location in Wuhan, the largest city in
central China.
Given the increase in new plants and
other facilities in Xian in recent years,
new service locations are being
established or being strengthened.
Establish/strengthen analysis
centers.
Establish technical service parts
centers (Shanghai, Beijing, and
Guangzhou only).
Requirements for Central Locations
Recent Trends and Future Development
Note: "" Planning to establish; "r" Small location
Source of data broken down by city/prefecture or by major
city: National Bureau of Statistics of China
1. Strengthen CapabilitiesStrengthen Service Capabilities and Establish Multi-Level Revenue
29
Product sales growth rate exceeds competitors, but strengthen capabilities for
aftermarket service and consumables sales. Infrastructure has been built for
commercializing businesses, such as establishment of a TMP service center in Xian, but
now foster businesses that will fully make a major contribution to the profitability of
Shimadzu China.
Pre-sales
Post-sales
Customer Service
Feedback
1. Integrate Call Centers with R&D Dept.
Improve the ability to generate inquiries/sales
leads by improving customer satisfaction with
improved customer response capabilities, by
increasing the number of Shimadzu fans, and
by strengthening pre-sales coverage.
2. Strengthen Online Sales Capabilities
In addition to previous direct sales and
distributor sales networks, also establish online
sales capabilities for consumables.
3. Establish New Revenue Sources
Fully start operation of a reagent sales
business.
2. Market Measures Accommodate China-Specific Needs—Strengthen
Development Capabilities
Technology Research Laboratory
BUBusiness Units
ADCApplication
Development
30
SRLS RDCMSC(CSC)
Head Office
in Japan
Shimadzu China
Shimadzu has three development departments in China—SRLS (basic
research), RDC (product development), and MSC (application development).
To strengthen the ability to satisfy needs unique to China, such as on-site
analysis and portability, change systems so that the organization can
accurately identify and quickly respond to market business opportunities in a
comprehensive manner from within China, including development,
manufacturing, and sales.
31
3. New Business Development Expand Alliances in the Clinical Medicine Market
Given the government's measures to strengthen preventive and basic healthcare,
clinical medicine is currently one of the fastest growing markets in China. However,
entering the market requires overcoming high barriers to entry, such as developing
specialized reagents, establishing diagnostic methods, and obtaining CFDA
certification.
Getting up to speed in this rapidly expanding and developing market and capturing
market share will involve the essential problem of building an alliance with a Chinese
company that already has established the expertise for satisfying the market.
Therefore, we will actively build alliances to quickly enter the market.
32
In order to achieve business operations that provide reliable high profitability in
rapidly changing markets, another important issue for the future is achieving a
business structure that can provide diverse sources of revenue, not only from
hardware, but also from software, consumables, and service, for example.
Consequently, we will actively start new businesses toward reforming the profit
structure accordingly.
1.• Expand network business
2.• Expand reagent sales business.
3.• Launch cell-related businesses.
4.• Satisfy online business.
3. New Business Development Start Businesses to Establish Multiple Revenue Levels
33