On October 21st, Omron Health Medical (China) Co., Ltd. (hereinafter referred to as Omron Health Medical) officially announced the appointment of Chen Xixiao as the Managing Director.

After taking office, Chen Xiaoxiao will be fully responsible for the business development and strategic planning of Omron's healthcare business in China, deepening Omron's strategic layout in China, continuously enhancing the brand's influence in the Chinese market, and solidly moving towards the beautiful vision of "Going for ZERO Preventive Medicine, Making the World Healthier".

The new helmsman takes office
Omron Group was founded in 1933 by Lishi Yizhen and is a globally renowned manufacturer of automation control and electronic equipment, with expertise in sensing and control core technologies. By continuously creating new social demands, Omron Group has over 28000 employees worldwide and a turnover of 818.8 billion yen. The products cover a wide range of fields such as industrial automation control systems, electronic components, social systems, and health and medical equipment, with hundreds of thousands of varieties.

In 2001, Omron Health Medical was established as a part of Omron Group's global business, and it has become a leader in the field of automation. In China, Omron Automation (China) Co., Ltd. has established research and development, production, technical services, and logistics bases. It also has sales companies in North, East, and South China, with more than 40 accounting firms and offices located throughout the country.

Chen Xiaoxiao, the newly appointed head of Omron Health Care, is a senior enterprise management expert with profound cross industry management experience. He has held important positions in enterprises such as home appliances, daily chemicals, food and beverage, and traditional medicine production and distribution, accumulating rich experience in branding, sales, supply chain, and investment.

Chen Xiaoxiao not only has outstanding abilities in market expansion and brand building, but also has rich experience in the pharmaceutical industry and commercial circulation. Previously, during his tenure as General Manager of Tonghan Chuntang, Chen Xiaoxiao actively promoted the improvement of the supply chain and the revitalization and upgrading of traditional brands. This experience also gave Chen Xiaoxiao a deeper understanding and comprehension of the development dynamics of China's big health industry.

After taking office, Chen Xiaoxiao has a very clear plan for the future. Omron will closely focus on the needs of Chinese consumers, expand the market for various consumer groups through diversified industrial layout, technological innovation, and product research and development, build a preventive medical and health ecosystem that serves individuals and families, and strive to become a trusted provider of chronic disease management solutions for consumers. Faced with the increasingly severe challenges of population aging and chronic disease issues, Omron actively responds to the "Healthy China 2030" planning outline, focusing on chronic disease areas such as circulatory system, respiratory system, and pain management.

Business Crisis in China Region
After years of development, Omron Group's medical products mainly focus on three major disease areas: cardiovascular, respiratory, and pain management.

Cardiovascular: including stroke and myocardial infarction caused by hypertension due to changes in diet and other lifestyle habits, with 17.5 million people worldwide suffering from these diseases. Related products include: blood pressure monitors, electrocardiographs, blood glucose meters, arteriosclerosis diagnostic devices, etc.

Respiratory diseases: including respiratory diseases caused by air pollution and other factors, affecting 440 million people worldwide. Related products include atomizers, air purifiers, oxygen concentrators, and sensors for early detection of asthma symptoms.

Pain management: including lower back pain and joint pain that may interfere with daily life. In Japan and the United States, approximately 73 million people suffer from chronic pain. Many people rely on medication to alleviate their condition. Omron's products in this field include Knee TENS, which reduces knee pain by applying electrical stimulation below the knee. Athletes can also use this product to relieve muscle pain.

Although Omron Group has a relatively rich product pipeline and a wide market, it has frequently lowered its profit forecast since the beginning of this year. It is worth noting that Omron Group has launched a global layoff plan, which will lay off 2000 people domestically and internationally. This layoff is also Omron Group's first large-scale layoff since 2002.

Data shows that in March 2023, the total number of comprehensive employees of Omron Group was about 28000, and the 2000 people affected by this layoff accounted for about 7% of the company's total workforce. Among them, Omron Group expects to lay off about 1000 employees in Japan, equivalent to 10% of the company's workforce in the country.

And this layoff plan is also closely related to the lowered profit forecast mentioned earlier. In the financial report of Omron Group as of March, the annual comprehensive net profit is expected to decrease by 98% to 1.5 billion yen. Due to the decline in the control equipment business (including factory automation mainly in China), Omron Group lowered its profit forecast for the second time this year on February 5th.

Due to the difficulties faced by Omron Group's business in the Chinese market, global layoffs, cost reduction, and efficiency improvement are also corresponding measures. For the sudden decline in performance, Omron Group believes that it was due to the previous excessive focus on semiconductor and electric vehicle battery manufacturers from China. Now Omron Group is intensifying its search for customers in the United States and Europe.

On the other hand, Omron Group also hopes to regain the market occupied by Chinese factory automation equipment manufacturers. In addition, while striving to clear excess inventory, Omron Group will explore the demand in industries including food, daily necessities, and medical products.

Source: https://news.yaozh.com/archive/44415.html