SOURCE: Kalorama Information

Kalorama Information

October 06, 2010 10:07 ET

Internet Sales Challenge Respiratory Equipment Manufacturers, Says Report

NEW YORK, NY--(Marketwire - October 6, 2010) -  Over six billion dollars worth of respiratory equipment is sold through online dealers, often discounted, one of the many distribution challenges that manufacturers of respiratory equipment will face in coming years, according to healthcare market research publisher Kalorama Information. Companies active in this product area will need to adapt their approach in order to stay relevant in this new environment, says Kalorama Information, in its latest market report on the respiratory equipment industry, "Market for Respiratory Equipment and Disposables, 4th Edition."

Kalorama Information believes that while product innovation and marketing will always be important in order to succeed in the $63.8 billion respiratory equipment market, distribution is also critical. The market includes items such as oxygen concentrators, ventilators, and airway masks, among many other items which improve a patient's breathing function or deliver anesthesia. Where once manufacturers' sales reps and a few key dealers sold to hospitals, distribution now includes not only specialized home health care providers and extended care facilities, but also retail drug stores, surgical supply houses, hospital and HMO-based stores, mass merchandisers and increasingly, internet-based dealers.

"Where a respiratory equipment product is sold has become as important as the product itself," said Kalorama Information publisher Bruce Carlson. "Internet price erosion is going to be a particularly important concern for manufacturers going forward."

Kalorama estimates that internet-based dealers now account for 10% of respiratory equipment sales and expects the internet to continue to grow in popularity. Products are often priced at a 25% to 30% discount online -- and manufacturers are likely to respond with new high-value products or with products priced for the discounted channels.

The report cites Respironics as an example of a company that has adopted multiple products at differing price points for various levels of distribution. Its REMstar Series CPAP systems are low-cost, obstructive sleep apnea therapy devices for the home care and internet market, while its BiPAP Pro and BiPAP Plus are more feature-rich devices for standard distribution.

Kalorama's report, "Market for Respiratory Equipment and Disposables, 4th Edition," covers the latest trends and developments in a variety of segments. The report provides market estimates and projections, and profiles of major competitors in the industry, aiding industry participants to re-assess the industry's growth areas and direct their resources to these areas. It is available at: http://www.kaloramainformation.com/redirect.asp?progid=79699&productid=2663595.

About Kalorama Information
Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter (http://www.twitter.com/KaloramaInfo) and LinkedIn (http://www.linkedin.com/groups?gid=2177845&trk=hb_side_g).

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