Big changes are afoot in the consumer healthcare sector, thanks to the shifting global demographics and evolving consumer needs that together are creating a new battleground between manufacturers of consumer healthcare products. This increasingly intense competition has resulted in accelerated growth of the consumer healthcare industry, which is poised to be worth $737 billion by 2018.
Although the United States currently dominates the industry with a global market share of 31%, countries like China, Japan, Italy, and Germany are leveraging innovation and technology to drive sales and seize a larger market share. To establish themselves as an industry leader, manufacturers are considering expanding their product portfolio, as well as reach to developing economies like India, South Korea, Indonesia, and Poland.
Stronger consumer trends in prevention, wellness, and healthy ageing have increased sales of vitamins, nutritional supplements, and weight management products. Manufacturers that want to stay competitive must support the customers’ holistic approach to self-care through product innovation.
Harnessing the potential of enabling technologies, such as cloud computing, Big Data, and data analytics can also benefit companies operating in the consumer healthcare sector in a variety of ways. Using these technologies, manufacturers can execute business processes more efficiently, get a deeper insight into consumers’ needs, and develop products that support the latest trends in health and wellbeing.
Rapidly evolving buying behaviors of consumers also remain a primary challenge for consumer healthcare products manufacturers. Accenture recently conducted a survey of 2,000 patients that revealed a significant gap in the services that patients want pharmaceutical companies to provide along with the products they sell. From detailed information about the products to monitoring of blood glucose, physician referrals, and financial assistance, pharmaceutical companies can provide a variety of complementary services to patients to enhance their satisfaction levels.
In addition to increasing demands from customers, consumer activism via social media remains another major challenge for the consumer healthcare sector. Social media channels have provided customers with an easy-to-access platform to report product abuse, share product reviews, and provide their opinions on product quality and deceptive marketing practices of manufacturers. As a result, companies are compelled to reevaluate and modify their marketing and reputation management strategies in order to effectively manage defamation incidents and expand their reach to a larger audience while ensuring regulatory compliance.
At Allen Austin, we have an in-depth understanding of the diverse range of challenges confronting the consumer healthcare industry and we help our clients overcome them with talent solutions that are designed around the unique needs of a business.
Being a leading executive search firm, Allen Austin is uniquely positioned to offer advice on recruitment and leadership needs and devise strategies that focus on recruiting the best candidates who have the experience and business acumen required to anticipate and overcome challenges.