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Medtech Value Brands: Stepping Down May Boost The Top Line

 
• By Chuck Gammal, Chris Barr, Crystal Hsu, and Susan Huang

The medtech industry has traditionally grown through innovation – new products with improved features and benefits have fueled revenue growth. However, innovation alone does not garner the price premium it once did, and manufacturers must decide whether to pursue a value brand strategy alongside their traditional premium brand, says global management consulting firm Simon-Kucher & Partners.

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As the medtech industry's customers become increasingly value-oriented, a widespread acceptance of products that are simply “good enough” threatens to further undermine the position of innovation in the value hierarchy.

As a result, going “the wrong way” down the value staircase can create solutions that are aligned with customers' needs...

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