The US market is an excellent place to sell the world’s most advances medical
technologies, as it has the highest number of wealthy consumers. There are more than
three times as many millionaires in the US than in any other country (Chow), and the US
market accounts for one third of the world’s luxury goods sold.
Global Spending on Luxury Goods:
Saudi Arabia; South Korea;
Switzerland;
1,40%
1,40%
1,60%
Other;
Russia; 2,20%
7%
Spain;
1,90%
Canada; 2,40%
Brazil; 3,30%
US; 32,50%
China; 5,70%
France; 5,70%
Japan;
11,80%
UK; 6,30%
Italy; 7,30%
Germany;
9,60%
(Euromonitor International)
Meanwhile, both the overall population as well the proportion of Americans aged 65
years or older are increasing. (Administration on Aging) By combining census data from
the US Department of Health, it is clearly visible that demand for products that address
the needs of the elderly in the US is therefore increasing exponentially.
Table for Population Aged 65 Years or Older:
100 000 000
90 000 000
80 000 000
70 000 000
Population
60 000 000
50 000 000
40 000 000
30 000 000
20 000 000
10 000 000
2050
2040
2030
2020
2010
2000
1990
1980
1970
1960
1950
1940
1930
1920
1910
1900
-
Year
The combination of these factors, in light of the distinction between Swedish and
American willingness to pay for healthcare services out-of-pocket, (Newsweek) make a
Direct to Consumer marketing strategy an attractive method for initially entering the US
market, as it allows Bioservo to test the market’s acceptance or rejection of the product
without incurring the additional costs of demonstrating its efficacy to clinicians and
payers.