According to the World Health Organization (WHO), there are more than 569,847 new cases of cervical cancer worldwide each year, and the death toll is about 311,365. According to the "Global Women's Cancer Problems" published in The Lancet, Global cases of cervical cancer may increase by at least 25%, and more than 700,000 confirmed cases in 2030.

According to China's cancer data from 2000 to 2015, the number of cervical cancer cases in China has increased from 9.6 per 100,000 in 2000 to 18.4 per 100,000 in 2015. Contrary to the decreasing incidence of cervical cancer in developed countries, the incidence of cervical cancer in China is increasing.

PaDetector is an HPV early screening device. We skillfully use the female menstrual blood to design a reasonable and accurate detection device, which can realize the HPV typing. Users can complete the HPV infection detection without pain.

Starting from the early screening of cervical cancer, PaDetector serves women, pays attention to women's physical health, uses science to protect both sexes, and utilizes technology to care for the world.

2. Industry background analysis

2.1 Medical industry analysis

From 1920 to the present, cervical cancer screening technology has undergone several major evolutions, chronologically followed by visual inspection, Pap detection (Pap smear), acetic acid and compound iodine staining (VIA/VILI), TCT, HPV infection detection.

The American Cancer Society released an annual report that recommended that women aged 21-30 should have a cytology test every three years. Women aged 30-65 should have a cytology and HPV test every five years or a cytological test every three years. Current cervical cancer screening is based on cytology, supplemented by HPV testing. This means that the inspection methods are all invasively scraping female cervical epithelial cells. However, in the use of menstrual blood detection, there is no market data showing existing products, and no product development in the domestic market similar to Padetector.

What is more, the pathologists in China are extremely scarce, and there is a huge gap in the talents for cancer early detection. There is also a large false-positive rate in the current cervical cancer early detection method. Traditional microscopic examinations use subjective diagnosis methods, human error is large, and the results of cell diagnosis are different due to different hospital and doctor experience. At the same time, the hospital maintains the pathology department and needs to spend more money on labor.

PaDetector uses DNA amplification to directly perform HPV early detection within a few hours, and classify high-risk groups of HPV, which not only reduces labor costs, but also make the detection more convenience.

2.2 Analysis of pads manufacturing industry

The development period of China's pad industry is relatively short, but the overall industry penetration rate is relatively high, and the market scale shows a slight steady growth trend. By 2018, the pad retail market has exceeded 80 billion, with a consumption of 12 million pieces and a penetration rate of 100%. From 2008 to 2018, the market compound annual growth rate was 9.1%, and the consumption of pads increased by 5.6% year-on-year. This shows that the consumption potential of domestic feminine hygiene products is considerable.

Studies have shown that the current growth of the pad market is mainly driven by the increase in prices brought about by consumption upgrades. At the same time, the proportion of high-end products continues to increase, quality assurance (such as no fluorescent, imported cotton material), unique features (such as ABC's special formula, more convenient sleeping pants), outstanding value (such as Sophie's pocket magic series) and brands gradually won more market share.

In summary, the pad market has sufficient potential. The consumption of pads has been upgraded, and female users’ attention to health and comfort has been increasing, and functional pads will be more popular. Under such a condition, it is expected that the size of the pad market will exceed 100 billion in 2021.

2.3 Comprehensive Health

The comprehensive Health industry has become the world's largest emerging industry. The health industry in the United States accounts for more than 15% of GDP, and in Canada, Japan and other countries account for more than 10% of GDP, while China's health industry accounts for only 4%-5% of GDP.

The Chinese government’s action on early detection of women’s two cancers (cervical cancer, breast cancer) has not yet fallen. The policy strongly supports the grassroots to carry out the two-cancer screening, which brings strong demand for primary pathological diagnosis.

In the context of developing a comprehensive health industry, policies about promoting cervical cancer/HPV screening in China.

National policies related to cervical cancer screening in recent years (China)

At present, according to the Health China Action Promotion Committee's document “Healthy China Action (2019-2030)”, the coverage rate of cervical cancer screening county in rural women in China is 52.6%, and the coverage rate of developed countries is 80%, the gap is still very obvious.

What is more, although the coverage rate of two cancer screenings is increasing, the incidence of cervical cancer in China has increased year by year. According to the misdiagnosed data of the Chinese Medical Association, the number of misdiagnosed clinical clinics in China is about 57 million, the total misdiagnosis rate is 27.8%, and the misdiagnosis rate of malignant tumors is 40%. In order to promote equalization, generalization, and convenience of cancer screening, new technologies and new means are urgently needed.

3. Market and potential analysis

3.1 Potential market

According to the population data of the National Bureau of Statistics in 2018, the total female population in 2018 is 681.87 million, accounting for 48.87% of the total population.

The age structure of China's female population(A). Chinese female urban and rural population statistics(B).

From the hospital's point of view, the female population whose age is not covered by the policy is about 336 million. If women age from 20 to 30 years have TCT tests every 3 years, about 200 yuan / time, 31-65 years old to do a joint inspection every five years, about 550 yuan / Second, the potential market for cervical cancer screening is about 32.5 billion yuan.

From the government's point of view, the free screening for two women in rural areas generally use cytology. According to the National Bureau of Statistics' 2014-2017 population sample survey data, the proportion of women aged 35-65 in China is relatively stable, about 44.13%, occupying a large share. According to the population data of 2018, there are about 122 million rural women in China who need to be screened. If they do HPV detection every 3 years, the market size will reach 2 billion yuan.

From the point of view of related product, as people's awareness of sexual protection continues to increase, the number of women who spontaneously receive cervical cancer (HPV) vaccines is growing rapidly.

Chinese women's awareness of early screening of HPV has gradually been established, and people's attention to their own health has also increased. Based on such demand, the market for portable test products in the future will be very broad.

3.2 The market of detection kit

For HPV testing, there are currently three main modes of HPV detection kits in China: gene chip method, fluorescent PCR method, and hybrid capture method. Due to certain technical requirements for operators, the main sales channel for the kit is the hospital.

According to the data, the current domestic market share of HPV testing is 6 billion. Under the government's "two cancer detection" call, all top hospitals in China have already carried out HPV testing. These numbers are still rising with the year.

At the same time, in many developed countries in Europe and America, family self-inspection has become a prevalent disease monitoring model. This wave is also coming to China. According to the questionnaire, 78.51% of the population were also happy to use or accept HPV home self-test products such as PaDetector.

4. Marketing strategy

4.1 Path strategy

Compared with other detection products, PaDetector will be operated by consumers independently, which is more convenient and avoids the leakage of privacy caused by complex paths. It is compared with the market path of the most common hospital testing kit and HPV testing products that are currently on the market.

Comparison of market path

4.2 Pricing and selling strategy

Stage 1: Survival and competition

At the beginning of the product launch, the sales channel was initially established, and grasping a certain share of the market and business expansion will become the top priority. To this end, we will price with the main goal of market survival and competition.

We decided to sell at a price that exceeds 140% of the cost of the product. Compared with the most popular products of the HPV family self-test products, PaDetector will conduct initial sales and wholesale shipments at a price lower than the market price of 16.7%.

Stage 2: Expand the market

At this stage, the products have taken root, the company is in the growth stage, the brand reputation is initially established, and expanding and preempting the market will become the top priority. To this end, we will create more new products based on the existing market and sales situation, broaden the scope of the business, expand sales channels, and price with the main goal of maximizing market share.

During this period, we will unite more hospitals and experimental platforms to expand online and offline sales channels with reliable advertising effects. We will also build brand credibility through charity and other activities, and cooperate with public organizations such as the government to broaden market coverage.

Stage 3: Diversification

The products achieve comprehensive coverage in the domestic market. At this time, we will develop diversification and diversification of products, lead the market, and promote the internationalization of HPV household self-inspection products. Therefore, we will stabilize the price of basic products and introduce new products at higher prices.

4.3 Sales channel strategy

4.4 Market service

(1) Reasonable sex education

Although the gender liberation movement has been widely respected and recognized so far, the popularity of sex education knowledge is not in place. In our product design, we will add science information to protect education knowledge, let people learn how to start from protection, pay attention to their own health, and care for others' health.

(2) Comprehensive public service development

In the middle and late stage of enterprise development, we will combine the culture and product characteristics to carry out charity activities. The initial heart of Pasdetector is to achieve a comprehensive early screening of cervical cancer, and we will use our actions to prove our commitment to our goal.

5. Competition analysis

5.1 Competitive product analysis

(1) Hybribio

Since 2012, it has become the standard for the domestic HPV testing industry. The main detection technology is the dual control technology of amplification control and hybridization control. Currently with more than 30% of the market, it is the largest seller of HPV kits in China.

(2) DAAN GENE

DAAN GENE proposed a one-stop solution for “HPV DNA+liquid-based cells”, which achieved rapid growth under the background of “two cancer screening”. In 2010, it contributed a profit of about 4.46 million.

(3) QINGEN

QINGEN currently (2014) is the only traditional gold standard for testing technology certified by the US Food and Drug Administration, European CE and China Food and Drug Administration.

(4) Genetel pharmaceuticals

The gene chip method is the most widely used kits (26 types) in the Chinese market, including most subtypes of HPV.

(5) BGI

In 2018, the family self-test HPV test kit was launched, creating the first self-test market for cancer families in China.

(6) Roche

Cobas 4800 uses fully automated sample preparation and qPCR reactions, and amplification cassette detection technology. At present, it has obtained the US FDA, EU CE, and China CFDA certification.

In general, compared with many competitors, PaDector has the advantage of technological innovation and convenient detection, but our shortcomings are limited detection range and high sensitivity.

Summary of PaDetector's comparison with other competitors

5.2 SWOT

6. Risks analysis

6.1 Market risks and countermeasures

PaDetector has received about 90.34% support of our main user group, which means that there may be similar products leading to market and price competition, bringing survival risks to the company.

The rise of China's household self-inspection industry is unstoppable, but at present, the product types and object-oriented products of household self-inspection are mainly for the prediction of cardiovascular diseases, and are less related to cervical cancer (HPV infection). Opening the market may be difficult.

In addition, the impact on social ethics cannot be circumvented. The degree of user acceptance of the detection method varies from person to person. The use of menstrual blood and the issue of safety ethics may become a major challenge for the sale of products.

For the risk of appeal, we plan to enter the market at the appropriate market price, and guarantee the quality of goods and the output of goods under the premise of ensuring no vicious competition in the market. At the same time, we will also establish a win-win economic development model with the same series of products or complementary products, reducing the possibility of over-price.

We will provide personalized services, design different product promotion methods according to the characteristics and needs of audiences in different regions, different age groups, different countries, and minimize the impact of public opinion.

6.2 Competitive risks and countermeasures

Technology development and product design will be our key and the inevitable need for long-term development. At present, there are very few products on the market, the market potential is huge.

With the strong support of the National 2020 Women's Development Program and other policies, the future may attract a large number of competitors. Competitors may imitate or use alternative technologies, use products with lower prices and different forms of detection to crowd out the market and suppress products, hindering the development of PaDetector.

In response to technical barriers, we can obtain intellectual property protection through legal channels. For each unique product, we must continue to carry out research and development follow-up, strive to reduce product price or reduce false positives, and maintain the appropriate leading edge of technology, we must seize market opportunities.

Different characteristics of each product can use media propaganda combined with market research to launch products that most consumers need most. And we will establish our sales and service network.

6.3 Financial risks and countermeasures

In the early stage, the company started construction and the project funds needed more support. Companies are subject to financial risks such as cash idleness, unstable net cash flow, and exchange rate movements.

In response to financial risks, we will adopt a variety of financing methods, such as risk financing, bank lending, etc., to maintain the company's early operations. We will also establish good credit relations with public institutions, and receive more financial support with the help of the government's venture capital support and angel investment.

6.4 Manage risks and countermeasures

Talents are the source of development for our company. The company needs talents in marketing, technology, management, information systems, etc. The core of an enterprise lies in its employees. If the system is not properly managed and management is not timely, the pressure will directly affect corporate culture and indirectly interferes with business operations.

We will establish a relatively sound team management system. We will continue to improve team building, from basic research and development to leadership management, to form a complete enterprise system, improve product development, promote innovation and ensure development.

7. Financial analysis

Our cost is about $14.41, which supports a full detection. You can see the full business plan on the end of this page for more financial budget and profit analysis.

8. Outlook

Our company is a health medical technology company. At present, the company owns the project as PaDetector, but as the company's profitability and team research capabilities continue to improve. We plan to develop a variety of different detection products, and expand in the health testing market.

Future development outlook of our company

9. Full text of business book

Team:ZJU-China/Entrepreneurship

1. Proposition of value