The emerging markets are touted as the next engines of growth probably owing to the growing young population and extremely low penetration of healthcare services. In emerging markets, appointing a distributor of Medical supplies or consumables is yet to be well structured when compared to developed markets such as Europe or the USA. However, digital access today has accelerated awareness of treatment modalities and the latest technologies for the drug or a medical device as available in developed markets.
This changing market orientation is influencing healthcare policies thereby increasing the importance of market access functions required in appointing distributors for medical and surgical supplies. It is important to build influence (Price, Channel, promotion etc. & and engage with all stakeholders (Medical councils, government authorities, certification agencies etc.) together to support distributors.
Some of the key success factors that a hospital and healthcare supplies manufacturer should consider if they wish to appoint a top medical supply distributors and gain smooth market entry:
In addition, the distribution strategy has to be closely aligned with other corporate functions and implemented through appropriate tactics to ensure product success.A pharmaceutical or medical device company in emerging market may require a different approach altogether when compared to mature market like EU. The healthcare landscape in the emerging markets is complex and does not follow a structured drug approval process & has to be customized to local challenges, when compared to the developed markets.
For e.g. in EU the regulations are integrated and uniform throughout the EU countries when compared to Indian subcontinent where India, Bangladesh, Nepal, Sri Lanka and Myanmar all may different set of rules and regulations.
Growth for any pharmaceutical or medical device company will depend on its performance in emerging markets. Emerging markets require a customized market entry planning integrated with the right processes and talent to mitigate risks and challenges.
Mckinsey (a global consultancy company) recommends that medical device companies entering emerging markets should look to establish local leadership and customize new products with local R&D, and should move from a hands-off distributor management to a proactive hybrid model.
Selloverseas.com consultants recommend that medical device companies entering emerging markets should look to establish local leadership and customize new products with local R&D. This may help them to move from traditional hands-off distributor management to a proactive hybrid model.