Go-to-market strategy development Middle East
Over the past years, we have seen several developments which have fueled the demand in the Middle East for innovative medical devices and diagnostics solutions.
The most important developments are:
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More demand for digital solutions - Growth in demand for high quality medical devices and (technology powered) digital health services. This growth is driven by several reasons like an increase in spending on healthcare by a larger population as well as regional governments but also an increased awareness on the importance of prevention (among others on Non-Communicable Diseases - NCDs) and the adoption of new technologies to manage your own health;
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Evolution of insurance - Mandatory insurance has resulted in a larger population having access to affordable and quality healthcare services. Government spending on healthcare as a percentage of total spending has increased over the past years which has, among others, resulted in an increase in hospital and clinic projects and an increased demand in medical devices;
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Growth of medical tourism – Some countries have developed a high-level healthcare infrastructure catering to the region and beyond. An example of this is Dubai Healthcare City in the UAE which has become a specialty healthcare hub with world-class facilities.
Next to that, the local medical device manufacturing industry has been relatively small focusing mainly on low-tech products such as consumables, surgical instruments and dental products. As a result, most medical devices and In Vitro Diagnostics (IVD) are still being imported.
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​The region has therefore lots of potential for foreign manufacturers. But its important to recognize that a strategy that works well in your home market must be adapted to face local circumstances of individual Middle Eastern markets.
Let us support in creating a successful go-to-market strategy by looking at following aspects:
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Product and service offering: which products of your portfolio offer good opportunity in the market given the existing competition, procedures? Do they need customization given local culture, language and usage? For instance: does the IFU also contain the Arabic language?
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Regional strategy: market sizes differ, buying power and development levels differ and the regulatory requirements between the individual markets differ. This could result that you start selling your products in a relatively easy to enter market like Bahrain or Qatar while completing registration in KSA or Egypt. Some distributors might cover several markets with local branches but for the larger markets we would advise to work with a strong local partner having the right connections
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Pricing strategy: ask yourself whether you have to create a list price or just a bottom price (whereby the distributor can sell at whatever price they want)? Since most manufacturers work with different distribution partners to cover the region, a regional pricing strategy is important especially if distributors are active across borders
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Channel strategy: it’s good to remember that a certain business model or channel strategy might work in one country but should be adapted in another. For instance, a model whereby the capital equipment is leased or even given for free while revenue is made on the consumables is not working in every market. There is also a difference between the % public and private markets. In public markets tender business is often dominant while in private markets individual private clinics and institutions will have different expectations on pricing and service requirements
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Organization and support: how are you internally going to support the Middle East operations and manage local partners? What resources are required (for instance in product localization, marketing or even local manufacturing)? It’s good to consider that in the Middle East building personal and business relations is key. This means that you must visit the market and invest in the relationship with the distributor and/or customer
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Communication: English is spoken by most businesspeople in the Middle East, but Arabic is in most countries the dominant language (apart from Turkey and Iran). The point is, understand who will be using your products and how to communicate with them
