Germany stands as the 3rd largest market for healthcare and medical products. The national budget for its health care is estimated at 11% of the country’s GDP. According to recent studies, Germany’s universal health care service program and law-enforced health care insurance makes the country’s public healthcare services among the most expensive in the world.
At the same time, the German health care industry is growing at the rate of 5% per annum, providing more opportunities for healthcare businesses to enter this market and allowing German health care industry to infiltrate other countries. The Germans do not compromise on quality and seek for top industry players and products from all over the globe. Apart from optimum quality and precision, one would be required to get familiarised with other business regulations and culture aspects of the German medical industry to ensure a legally accepted business in this specialised sector.
Ways to enter the German healthcare market
According to Business Sweden Analysis, “Preparation and long-term strategy are of utmost importance when entering Germany.” There are ways to penetrate the healthcare industry of the country, but you must carefully weigh the perks and the disadvantages for successful business entry and expansion in the German healthcare market.
Here are a few tips to facilitate this process:
- Strategic partnerships can introduce you to German partners, which could give you flexibility and easier access to the industry. However, this could hinder your growth since you may not have complete control of your business in this market.
- Hiring local sales staff could give you an edge indirectly selling your products. Again, this could also limit your direct participation in the selling process.
- Controlling all the aspects of your business or green fielding is quite efficient and effective when entering this market. Although expensive, this method could ensure the full and proper implementation of your business strategy.
- Hiring a sales agent or a distributor will lessen risk and cost. However, it offers you the least chance to operate directly in the market compared to the other methods.
Preparation for export
Entering the German market needs legal documents to pass through customs. Tailor-made solutions are available to fit your needs when penetrating the healthcare industry in Germany.
Here are some basic but helpful ways to prepare for exportation to the country:
- You should have a fair amount of knowledge on the healthcare industry of Germany to succeed in business internationalisation.
- Plan your market entrance strategy with a focused vigour on details and other established stockholders within the German community.
- Establish a legal entity and adhere to all regulations, laws and requirements.
- Do not hesitate to ask for assistance when it comes to expanding your business.
Germany is the largest base in Europe in terms of care services and medical practitioners, so its healthcare services industry defines and regulates stability in Europe’s medical economy. There are opportunities and challenges along the way, but with careful planning, compliance to customs, rules and with some entrepreneurial spirit, one can flourish in this exciting sector.
For further information regarding the German healthcare industry, read more on its structure, trends and customs.