Localization in Emerging Markets is Among Top Pharmaceutical Industry Trends

It’s a road the pharmaceutical industry has been down before. Previously untapped markets glisten with the promise of sustainable growth, only to offer seemingly unsurmountable challenges. Until now, that is. It seems the story is not over with regards to focusing on emerging markets as a top pharmaceutical industry trend. Rather, the story is best described as ‘the value of a lesson well-learned’. As detailed in the briefing of Booz&Co’s comprehensive survey entitled “Pharma Emerging Markets 2.0 How Emerging Markets Are Driving the Transformation of the Pharmaceutical Industry”[http://www.scribd.com/fullscreen/132396458?access_key=key-28z7x46lw1mw45titxx3&allow_share=false&show_recommendations=false], & ldquo;27 percent [of top pharmaceutical executives] see insufficiently tailored strategies as the biggest strategic misstep”.
This time around, pharmaceutical companies are placing a much stronger emphasis on localization. Additionally, the term itself has an added layer. While the need to recruit local talent and identify local manufacturing capabilities in the targeted region is most certainly important, the countries in each emerging market need to be researched and analyzed as well. According to AlixPartners, a consulting firm known for its expertise in turnaround management, “management teams must build emerging-market strategies by country—not by region”.[http://www.alixpartners.com/en/WhatWeThink/General/OneSizeDoesNotFitAllEmergingMarketStrateg.aspx] This means analyzing economic and political conditions, as well as demographics and government regulations. Despite these challenges, localization- in every sense of the term- is crucial for ensuring sustainable growth in the pharmaceutical industry. As the Booz&Co briefing highlights, “By 2016, the global pharmaceutical industry is expected to generate an estimated 30 percent of its total sales in emerging markets. But these expectations will be met only if the industry moves toward more bespoke market strategies. A comprehensive understanding of these highly significant but very diverse markets is therefore essential”.

For detailed insights into the growth and marketing strategies within emerging markets, be sure to review our Digital Pharma Sales Agenda:


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