More life sciences companies turning to emerging markets: Brazil, India, and China

“Growth strategies for big pharma companies are increasingly dependent on expansion into emerging markets,” says a market research analyst at Infiniti Research.

LONDON–(BUSINESS WIRE)–#CompetitiveIntelligence—

Emerging markets are highly promising and offer a plethora of opportunities for pharmaceutical companies. As a result, there is an unprecedented increase in the number of companies in the life sciences industry that are turning to emerging markets such as Brazil, India, and China to set up their businesses. Pharma industry experts at Infiniti Research believe that big pharma companies that are innovative and advanced in terms of manufacturing, logistics and distribution, and understanding customer needs are more likely to gain an edge over the others in these coveted markets. Despite several efforts, some big pharma companies often fail to gain a major foothold in these regions. This issue occurs due to several reasons. Sometimes, new entrants in the big pharma market discover that operating and selling in emerging markets can be challenging due to market access requirements including manufacturing, logistics, and supply chain can be complex. Furthermore, unfavorable regulatory environment, dynamic pricing and reimbursement practices, and talent management challenges also pose major challenges for big pharma companies in emerging markets.

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In this article, Pharma industry experts at Infiniti Research share some of the key strategies that big pharma companies can use to succeed in new and emerging markets:

• Group customers into clusters: Customer submarkets in emerging countries can be identified within a national or regional market by analyzing and grouping consumers who have common health needs. Creating customer clusters in emerging markets will help big pharma companies to identify various customer challenges in the market and create tailored solutions to cater to the needs of these groups.

• Identify cross-border commonalities: Constricting emerging market entry to national boundaries is a common mistake that big pharma companies make. An approach that is too focused on national or regional boundaries could mean that customer similarities across markets are not being sufficiently leveraged to create solutions that can move across borders. Identifying cross-border insights can enable big pharma companies to serve groups or clusters of customers more effectively and efficiently.

• Timely and cost-effective execution: Given the fact that most life sciences companies operate in functional silos, executing solutions across markets in a timely and cost-effective manner could prove challenging. Therefore, big pharma companies must focus on creating a single, coherent strategy rather than trying to coordinate separate strategies. Two capabilities that are especially critical when planning the rapid execution of an emerging-market strategy include developing the ability to understand and to get close to the customer and improving the risk management capabilities.