Japan’s Omron Seeks to Capitalize on China’s Bulging Health Problems

(Nikkei Asia) — As China faces a rise in diabetes and other diseases associated with aging and obesity, one of Japan’s biggest makers of blood pressure gauges plans a nationwide chain where a quick check can lead to early detection.

Omron will open 1,000 of the health centers in drugstores across China by 2030.

No licensed doctors will be on hand, but the staff will check visitors’ blood pressure and other vital signs, as well as test them for hardening of the arteries, glaucoma and other conditions. People needing further tests will be referred to a hospital.

This move responds to China’s dubious position as a global leader in lifestyle illnesses. An estimated 330 million Chinese have high blood pressure, while over 140 million are thought to have diabetes. The government started its Healthy China 2030 initiative in 2016 to combat this trend.

Omron sees the health centers as a foothold for expanding into telemedical services in the Chinese market. “Drugstores will become venues for promoting health,” said Minoru Yoshimura, senior general manager at subsidiary Omron Healthcare.

Omron Healthcare’s partners on this venture include China’s leading pharmacy network, GuoDa Drugstore, and No. 3 player Laobaixing Pharmacy Chain.

Omron Healthcare opened its first model center in Shanghai in May. The company sells its medical devices to the drugstores, and the health checks are generally free.

Participating drugstores will benefit from increased customer traffic. Pharmacists can offer advice to improve lifestyles based on the test results and conduct health seminars.

Growth in Omron’s flagship factory automation business has stalled this year owing to weaker demand from the automotive industry. Group sales are forecast to shrink 9% to 620 billion yen ($5.99 billion) in the fiscal year through March 2021.

Meanwhile, sales of blood pressure gauges and other medical devices remain strong. Omron launched a remote medical service for U.S. users designed to control hypertension. Such new businesses are expected to generate 50 billion yen in sales by fiscal 2025.

China accounts for nearly 30% of Omron’s entire health care revenue, topping Japan and the U.S.

Unlike in Japan, which requires more oversight for testing centers, China allows such locations to open as long as a pharmacist is there to supervise.

This article was originally published by Nikkei Asia.

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