Boston Consulting: medical technology in the third world, emerging markets will have one
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Last Update: 2017-05-22
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Source: Internet
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Author: User
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Source: BCG released its latest report medical technology the next outlet for emerging market enterprises on May 22, 2017 Emerging markets now account for a quarter of global healthcare technology revenues, the report said But with the rapid growth of China and India, the emerging market will reach one third of the global medical technology market by 2022 Compared with other industries, medical technology companies in emerging markets can be said to be rising stars, the report said Emerging market companies accounted for only 2% of the revenue generated by the world's top 200 medical technology companies in 2015 However, with the growth of emerging markets, emerging market enterprises rapidly gain the leading position in the local market by virtue of their understanding of the local market and innovative products At the same time, they actively expand the international market by means of overseas mergers and acquisitions Luo Ying, the report's lead author and head of BCG's Greater China medical technology industry, said: "although multinational companies are in a strong position in the emerging market medical technology industry, their advantages will change rapidly Multinational companies that ignore these companies will be at risk " Compared with European and American competitors, the cost of medical technology enterprises in emerging markets is still lower, and they are better at customizing products according to the needs of local customers, adopting innovative marketing strategies and getting support from local governments, the report said More and more medical technology enterprises in emerging markets have begun to move to the international market Although the current market share of emerging market enterprises is relatively small, the development of other industries in recent years shows that emerging market enterprises are very good at catching up Christoph Schweizer, one of the report's authors and senior partner of BCG, said: "M & A is a shortcut to enter the international market, and we expect more and more emerging market enterprises to gain global leading position through M & A." In the face of low-key competitors from emerging markets, multinational medical technology enterprises need to learn from the experience of other industries and adjust their strategies "Many multinational companies have not adjusted their product lines and marketing models according to the specific needs of emerging markets, and even mistakenly believe that the future answer is to lower their standard product lines," said Huang Peijie, chairman of BCG's Greater China region and director of healthcare BCG believes that multinational companies should adjust their product mix, reduce costs, adopt localized marketing strategies, and start to acquire emerging market competitors The growth history of emerging market companies tells us that when they target an industry, they usually catch up with and surpass their multinational competitors unexpectedly The medical technology industry is likely to be the next to suffer from this accident, unless multinationals learn from it.
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