Sherbourne Consulting

Case Study: India Market Research for Healthcare

Despite the relatively low government spending on healthcare (as a percentage of Indian GDP), the market is expected to grow at 10% annually.

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Background

Our client, an SME in the healthcare sector, was looking to understand whether it was feasible to enter the market in India with a range of branded consumer medical devices — sold both to hospitals and to pharmacies.

The company already had achieved limited sales of one product using a distributor, but was not making satisfactory progress.

In order to develop a new strategy in India and to build a robust business case for the board, we needed a detailed understanding of:

  • all aspects of the healthcare market in India for medical devices,
  • the regulations governing medical device,
  • the distribution channels and regional differences in India,
  • and the issues to be tackled for successful establishment of the right type of business entity.
Photograph of Graham Barker, China consultant

For enquiries, please contact: Mr. Graham Barker
Healthcare Market Consultant
+44 (0)1789 731 803
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Research

We began by assessing market size, government, and private ownership, as well as overall attractiveness and key regulations.

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Our research revealed a lack of sufficiently detailed information, but was useful to provide background about structure and end-users:

  1. We assessed the suitability of a range of market research and consulting companies based in India. We then obtained detailed proposals and prices from 6 companies with demonstrable medical device experience. Visits were made to these companies across India to assess methodologies, capability and desire to work with the client on this and subsequent phases of work.
  2. Further discussions were held with two shortlisted Indian companies, both with a very strong research and consulting pedigree, and a final partner was selected.
  3. We worked closely with the chosen researchers: leading the work through to presenting final reports and conclusions to the client. Our research covered key opinion leaders, hospitals, pharmacies, and a variety of market players. Interviews explored market demand/trends, channel structure, channel pricing, approval processes, strengths/weaknesses of competitor products, and market strategies.
  4. Data collection was supported by our market visits to hospitals, pharmacies, industry groups, and distributors. Conducted with the client, these would build understanding and explore the key market drivers.
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Significance

Despite strong levels of competition from other MNCs, our research gave the client confidence that, with the right approach, they could still successfully enter key sectors of the fast-growing market with their products.

Some 80% of medical equipment is either imported or manufactured locally in India by multinational corporations.

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We set out the critical issues to be investigated in the second phase of work, in order to justify the establishment of a joint venture or Indian subsidiary company.

We examined the specifics with local law firms and accountants to investigate the client’s existing commercial arrangements and future options.


Sherbourne Consulting has extensive experience in India, and across a wide variety of industries; please contact us with any enquiries.