As domestic manufacturers experienced lower profit margins, a more stringent regulatory environment, and increased pricing pressure, their focus shifted towards growth in emerging market sales. Europe is the top destination, driving 48% of shipments compared to Asia’s 24%.
The top growing markets that show good potential for further expansion include BRIC countries China and Brazil.
The Global Over-the-Counter market has been posting steady growth at 2% per year and the trend will continue in the upcoming years driven largely by the emerging markets. One of the key factors contributing to this market growth is the increasing switch from prescription to OTC drugs and the stronger focus on the consumer. In Europe, consumers continue to enjoy easier access to OTC medicines, and consumer appreciation of convenience is shown by relative growth of non-pharmacy channels.
A fast growing market, expected to grow at more than 6% CAGR in the upcoming years and reach ~$205 billion by 2017.
The growth drivers are: the aging population, increases in disposable income, rising healthcare costs, channel proliferation (due to a robust OTC market). In developing nations, the middle class growth translates to increased disposable income because of reduced tax structures.
Distributor Search Evaluation and Selection
Whether you are looking to enter a new market or just to expand your existing network of medical distributors, choosing new distributors is crucial for your future success. Choosing the wrong partners can lead to significant loss in revenue and adverse feedback from end users. A distributor that is a poor fit for your products can damage your brand name in the new market and seriously diminish your potential for future success in that market.
It is vital to understand the market potential and the barriers to entry before you decide to enter a new market. We help medical device manufacturers to select distribution partners that are the best fit for their products. Our distributor selection process has 2 Steps.
Step 1: we create a distributor profile based on your specific needs. We then crosscheck this profile, with our general database of medical distributors in the particular market and we generate a short list of potential distributors.
Step 2: we perform a market test in which we actively pitch your products to the distributors selected in Step 1. Using the feedback received from discussions with potential buyers during the market test we will help you select the distributors that best fits your needs and we will determine the most effective market entry strategy.
We help our clients navigate the entire process and deal with the local authorities in all the countries we cover. We work with local partners that have a clear understanding of the system and established solid relationships with local regulatory bodies.