Rapid evolution and growth of the hospital sector

According to the World Health Statistics, India has just nine hospital beds per 10,000 population; compare that with the global average of 30 beds. Two decades ago, the government owned 70% of the hospital beds in the country; today, that ratio has reversed. With 100% FDI allowed in the healthcare sector, foreign inflows are on the rise. There has been active participation by the private sector – nearly 80% of the total new beds in the last 10 years have been added by them, across a wide variety of hospitals particularly in tier II cities and smaller towns.

Even as the industry continues to see double-digit growth, the proliferation of new private players has resulted in many new segments – low-cost chains, small single or multi-specialty hospitals, doctor versus corporate owned, etc. Each of these have very different needs and buying/purchasing behaviour.

Our client – a leading provider of furniture to hospitals in India – was keen to establish

• The market opportunity for their 30+ products
• The buying preferences by type of hospital
• The price sensitivity and decision-making by type of hospital

Built market sizing & segmentation model for hospitals

ValueNotes developed a market sizing model for the client, with demand-side estimates that were validated by supply-side intelligence. Interviews with nearly 200 hospitals across 19 cities in the country helped us segment the hospital market based on their ownership (government/private) and size (average number of beds).

Apart from determining the market size and future growth of the hospital furniture sector, our research findings –

• Identified key growth regions & cities for hospitals
• Established usage patterns, procurement processes & average spends on hospital furniture by types of hospitals
  • Government / private, single- / multi-specialty, premium / affordable, size (based on # of beds)
• Mapped the competitive landscape – key players’ state-wise market shares, sales network, distribution models, product pricing, customer segment focus, financials, growth strategy

Aggressive strategy for high-growth cities

Our study provided strategic inputs to help our client’s go-to-market strategy. They were able to take informed decisions on

• The need for specific products by different types of hospitals
• The regions / cities of importance
• The best route to reach the target customers in each product segment
• The role of channel players and project consultants