Healthcare Companies Develop Super Value Products For India
(3BL Media/Justmeans) - Global healthcare costs have risen in both the developed world and in developing nations, particularly in the markets of the developing world, where demand for medicines is set to continue to grow rapidly over the next 13 years. Many factors, from consumer awareness of health issues to higher personal incomes, from more focus on fitness to the urbanisation of emerging economies, have combined to create a new market for healthcare products. So, naturally, the world's leading pharmaceutical and consumer goods companies are eager to profit from this new region’s seemingly unlimited potential.
One country drawing a lot of interest is India, where affluence is increasingly reshaping its marketplace. By 2025, the middle class will number about 583m people – or 41 per cent of the population – making India the world’s fifth-largest consumer market. Household consumption has played a much larger role in India’s growth than it has in any other developing country.
The biggest global healthcare companies are beginning to take significant steps to develop products for the Indian mass market, not just the tier two and three towns, but also villages, where healthcare problems are critical. This trend is projected to continue, especially in the healthcare sector; spending on private healthcare and medicines is forecast to grow at nearly 11% per annum.
GE Healthcare has announced that it will be developing a range of new super value products in India that would be priced 25 per cent to 40 per cent lower than their lowest priced products previously developed for India and other emerging markets. The first of GE's super value products, a baby warmer, is planned to launch by the end of 2013. Many newborn babies die annually in this part of the world and the crisis needs enhanced technology to reduce infant mortality. Therefore, GE Healthcare’s new range of infant warmers and incubators will help to reduce infant mortality. India will become this company’s prime location for super value products, quality products at low prices, working on a range of product areas from cardiac care, infant care and maternal care. India contributed $570 million in revenues to GE Healthcare in 2012, about 5% of its total revenues.
This June, Philips' healthcare business launched a range of infant warmers and incubators in India at prices that it said were significantly lower than of equivalent products then in the Indian market.
We can expect more global healthcare companies to introduce more value products for the India market in the near future—good news for health, and health profits.
Photo Credit: Wikipedia