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CBI EXPORT GUIDELINES
b) Consumption
Consumption is calculated using the following formula Total production + Total
Imports – Total Exports. Consumption data, however, can be misleading for
several reasons. For example, production data used for the calculation of
consumption are reported voluntarily. The production data is therefore not
always accurate. Moreover, consumption fails to adequately take into account
re-exports i.e. when imports are not consumed locally but exported after
companies have added value to the product. Moreover, companies that purchase
products in bulk might store (part of) the bulk to sell or re-export in the
following year. This can lead to improper conclusions drawn from consumption
data. Therefore, it is better to study trends relative to time periods that
spans more than three years.
Sources
• Chapter 1 on consumption in the CBI survey ‘The medical devices and
disposables market in the EU’
• World Health Organisation - http://www.euro.who.int/programmesprojects -
provides information on the status of health care and consumption of medical
products
c) Primary research
Conducting primary research is paramount. Examples of primary research are
questioning and observing what happens in the potential market. This can be
facilitated by approaching persons active in the industry, conducting surveys of
end-users, and approaching trade associations to gain insight into the
particular market.
The medical devices and disposables is a large industry with a significant
amount of
information freely available. However, when conducting primary research and
approaching industry representatives to gather market insight, you must realize
that price information is one of the more sensitive subjects in the market.
Persons active in the industry are not likely to share price information,
especially for the low value, high volume market.
For more information on ways of conducting your own research please refer to the
CBI Export manual ‘Your guide to market research’ (chapter 2.2.3.). For more
information on the global and European medical devices and disposables market go
to http://www.devicelink.com.
d) Competitor analysis
Understanding the competition in a potential market is of significant importance
in the country selection process. By conducting a competitor analysis of the
main players in the market, you will gain a better understanding of the
industry: specifically, missed opportunities of prospective competitors on which
you could capitalize or gain ideas on how to improve your product to add value
to your product. It is likely that as a potential exporter, you will be
competing in the market with products from exporters from other DC.
For a detailed competitor analyses please refer to Table 3.2 in the CBI sector
surveys covering the market in individual EU countries. In the table you will
find the most important competitors per product group divided into countries
within the EU, outside the EU (excluding developing countries) and developing
countries.
e) Common sense
One of the principle notions in business is common sense or business acumen.
Business acumen is an intuitive and applicable understanding of how one’s
company is run. It involves an understanding of what drives profitability,
having a market focused approach to your business practices, and having a
general understanding of the interrelationships that dominate your market.
f) Priority
Employing the criteria discussed above is important, however, certain activities
are more important than other. As mentioned before, conducting primary research
and conducting a competitor analysis is paramount. Surveying import and
consumption statistics will have little meaning if you cannot put them into
context. By approaching and questioning people familiar with your market, you
will you be able to better judge the validity of the import and consumption
statistics. You will also gain insight into future trends and what the market
currently requires.
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