BRICs not delivering promises of high growth in health care markets, says F&S

Health care organizations expanding into emerging markets such as the BRICs (Brazil, Russia, India and China) are realizing there are no shortcuts. This is proving particularly challenging, considering the current health care environment, especially in the USA. Companies must change the dialogue around BRIC, as it is now more about establishing value, customizing to local needs, and building regional partnerships to build a sustainable business, according to market research group Frost & Sullivan.

"While mature economies across the globe grapple with reducing cost, towering budget deficits, and anemic growth, the BRICs are expanding rapidly and driving the global economy," said Frost & Sullivan partner Reenita Das during a recent analyst briefing. Ms Das continued: "Although emerging markets are often touted as the way forward for health care companies, recent protectionism laws and fierce competition from generics may have reduced the appeal of countries such as India and China, leading some to believe they aren't the ‘promised land' they once were."

"There are currently needs often overlooked or investments in these areas that have not been sufficient enough," said Ms Das, "for example, the level of education and training of physicians in the BRIC countries, particularly away from the Tier 1 cities, is often a lot lower than that of physicians in mature markets. Another weak point is the lack of partnerships with local governments, NGOs and other trade organizations – this is really a very critical aspect and shows governments the level of commitment organizations are willing to make."