Uncovering Innovation in China’s Liquid Bandage Market with Big Data
Introduction:
Recently, a Global Consumer Healthcare company approached yet2 with the goal of gaining a comprehensive understanding of the liquid bandage market in China. Regulatory changes in China around Class I and Class II medical devices required brands to re-examine where their products were placed from a regulatory standpoint.
As a result of the evolving regulatory landscape, yet2 was asked to identify the in-license or buy-brand-sell opportunities for liquid bandage manufacturers in China.
The Global Consumer Healthcare company was previously aware of numerous Contract Manufacturing Organizations (CMO); however, a systematic investigation was required to support CMO screening to identify the strongest possible partner given the shifts in the regulatory landscape, and to inform future negotiation strategies.
The client was rapidly advancing toward the negotiation stage with a few initial candidates and thus had strong urgency to swiftly complete this additional investigation.
yet2 employed their proprietary Big Data approach to quickly ingest and analyze thousands of data points across their database of 5,000+ CMOs, reducing the analysis time from months to days.
Approach:
In order to quickly scout and validate potential options in the greatly accelerated timeframe, yet2 turned to our proprietary and growing database of 5,000 global CMOs. This dataset contains crucial decision-enabling information on CMOs across industries, including data points such as product lines, certifications, locations, capacities and MOQs, R&D services, analytical testing capabilities, audits, and more.
Using yet2’s proprietary searching algorithm, we initially filtered the database to a subset of CMOs sourced from the Chinese CFDA database.
yet2 identified initial candidates and further segmented them by 3 must-have criteria: market share, certifications, and ingredients. Market share was the most important parameter for the Global Consumer Healthcare company. Using analysis across datasets, yet2 was able to tie the brand to the manufacturer, information that wasn’t readily available publicly.
Another category of data segmenting was Class I and Class II products by regulatory certification, which was already captured in the CMO database.
Finally, yet2 further segmented candidates by matching specific product ingredients to the Global Consumer Healthcare’s company preferred and approved ingredients list.
These 3 key criteria helped further narrow the potential partner population to 50 noteworthy candidates.
Additionally, yet2’s analysis revealed that the supply chain was actually managed by contract manufacturers behind each brand. yet2’s Big Data analysis was crucial for matching this information to the China CFDA database.
Once the initial pool of candidates was segmented, yet2 conducted due diligence and further qualification by confirming companies’ reputability, funding status, and identifying red flags such as potential lawsuits. Without yet2’s Big Data capabilities, identifying the 50 promising candidates and extracting these insights would have taken the client months, and not days for the analysis.
yet2 delivered final results to the client in days because of their existing dataset, searching algorithms, and big data analysis capabilities. yet2 narrowed down the recommendations to a concise final report, categorizing ideal candidates into tiers based on market shelf importance.
Searching across data and key client criteria, a process involving meticulous validation, we were able to further narrow down the candidate population to a few final promising options.
Recommendations:
yet2 advised the Global Consumer Healthcare company to initiate discussions with the top 10 Class I manufacturers, focusing on medical device Class 1 products with regulatory certification (Global Consumer Healthcare company’s preference). The yet2 proprietary CMO database already contained this information which is kept up to date through data ingestion, greatly streamlining the scouting process.
Productive conversations ensued with potential contract manufacturers all facilitated by the information provided by yet2.
yet2 recommended subsets of data categorized by highly recommended, recommend, and backup. As of 2022, Global Consumer Healthcare company chose the top 10 in market share but has since expanded to Tier II, a list of candidates previously not know to the Global Consumer Healthcare company.
Conclusion:
Without yet2, the Global Consumer Healthcare company would have been limited to 10 major suppliers only found through shallow data research on e-commerice website, not meeting their screening requirements in the quick turnaround they needed.
Instead, they turned to yet2 Big Data for access and matching capabilities of the extensive dataset, greatly accelerating identification and expansion of potential candidates.
yet2‘s contribution provided extensive options, presenting a vast list of companies that the Global Consumer Healthcare company hadn’t considered as viable partners for producing a liquid bandage.
For example, data matching would prove challenging due to companies using different names than their legal names in the dataset, which yet2 easily reconciled through big data algorithm capabilities. This collaboration showcased the power of Big Data capabilities at yet2 while uncovering innovative opportunities in the Chinese market.
Through our Big Data capabilities, we can customize and configure the database output results to easily match their requirements and evaluation workflows, streamlining comparison and selection of potential partners. Contact us at info@yet2.com to see how you can leverage our proprietary CMO database and algorithms to greatly expand your search for partners while also narrowing your population of potential partners to only the most promising.
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