Image: Research suggests that medical device organizations need to align with the business landscapes of targeted countries in order to achieve commercial success (Photo courtesy of iBS).
An aging global population, growing health awareness, and rising income levels in most emerging markets are driving the need and opportunity for high-quality medical device solutions in these regions. However, in order to capture market share in growth regions such as Asia-Pacific (APAC) and Latin America (LATAM), medical device organizations need to align their emerging-market strategies and business models in line with the regulatory and business landscapes prevailing in the target countries and markets.
These are the findings of a study by Best Practices, LLC (Chapel Hill, NC, USA), a benchmarking, consulting and advisory services firm serving biopharmaceutical and medical device companies worldwide. The study involving 23 commercial, marketing and sales leaders from 20 leading medical device companies was conducted to examine their successful approaches to drive business growth in the key emerging markets such as Brazil, India, China, etc. and other high-potential global markets like South Korea, Taiwan, Australia, etc.
The participants in the study reported that in 2017, emerging markets contributed an average of 28% of their total global revenue. Medical device companies anticipate continued growth with the study participants expecting the emerging markets to account for 34% of their total revenue by 2020.
The study also found that close to 80% of the companies presently use a distributor model in the APAC markets, except for Australia, which uses a direct sales model. However, the study participants expect an increase in the use of the direct sales model across the APAC, with 63% anticipating the use of a direct sales model in the next three years in India, followed by China (43%) and South Korea (43%).