One of the fastest growing regions on the planet when it comes to medical technology, the Asia Pacific region can be considered the future of bio-tech advancement. There's no shortage of companies looking to tap into one of the fastest growing med-tech markets. However that's not to say that that there aren't challenges for any med-tech company looking to expand into the Asia Pacific region.
Despite these challenges, any med-tech hesitating to enter the region could find themselves losing ground. For this simple reason, these considerations must be factored when looking at the possibilities of expansion.
Factors for med-tech companies to expand into Asia Pacific
Time - Although there may be plenty of reason for med-tech corporations to pause, the fact is that the growth and expansion of bio-technology in Asia in unprecedented. Combined with the region's underserved patients, there's plenty of reason for med-tech companies to join suit.
Committing fully to Asia Pacific shouldn't be a difficult decision, considering the huge amount of bio-medical growth in China, Hong Kong and Singapore.
Growth - Some of the leading med-tech companies in the world are expanding into the Asia Pacific region, and for good reason. In fact most industry experts are estimating that Asia-Pacific will surpass it's Western rivals in the European Union by 2020. This would make the APAC region the second-largest med-tech market in the world.
Demand - In correlation to the region's expansive growth rate is the number of patients and the demand for life-saving medicines.
In the executive portion of the APAC survey, more than 55% responded that their product portfolio doesn't match local needs. The fact that local demand will drive global supply and increase the availability for affordable treatment is one of the sole determining factors.
Profits - The possibility of increased revenue and sales has forced many med-tech executives to rethink their strategy. Being able to move away from tiered distributor models and connect with end users, gives med-tech companies a greater insight on how to address patient needs.
The old model of relying on distributors to deliver products from Asia is a dying model, and not a clear cut path towards the future. Although it's certainly easier, the added margins of profit at each tier winds up costing companies far more than they realize.
Instead, being able to focus and develop market-appropriate products that are innovative and cost-efficient may be the single biggest reason to expand into Asia for many of these med-tech corporations.
These are the many reasons and considerations for companies to enter the Asia Pacific region. The expansion and growth of the medical technology in this region makes countries such as China, Hong Kong and Singapore the single most attractive destination for many leading medical corporations.
Despite the obstacles, to stay on the cutting edge of the medical technology industry expansion is required. Hesitation to enter this region could result in investors and competitors gaining ground and passing your corporation in short order.