Because Q’s sales approach is through Europe’s complex distributor network, it is important to understand the current environment and challenges these independent operators present to the typical start-up company with an innovative new device, and for Q to succeed in selling through them.

The distributor market in EMEA is highly fragmented; many small to medium sized companies make up for 90% of the market. Only a few larger distributor corporations are active, which are mostly found in the larger countries and are also mostly associated with high-volume- low-technology type of products.

As an example, the Netherlands alone has over 700 companies involved in the distribution of medical devices, which, if extrapolated, would imply that in EMEA over 16.000 companies are involved in this market.

To find out who really matters is based on long term experience Q has materialized almost 20 years of experience in a web based database including valuable information on hundreds of key distributors from all over EMEA who have proven their effectiveness over time.

The distributors that Q would be looking for are mostly the smaller sized companies where the owner is still actively running his/her company. This is where one will find personal interest in successfully representing a product, since the owner’s money is involved and his/her personal credibility is on the line. These companies are also more often used to dealing with innovative products, whereas the larger corporations more often handle me-too-products with a lower price point.

There are also, within the EMEA, large regional differences of distributors based on the different healthcare systems, languages, public hospitals vs. private clinics and geographical differences (small countries vs. larger countries).

For example: France has a reimbursement system for implants that determines the prices and therewith the volume of the market. Other countries do not have such a reimbursement scheme.

In countries like Italy, sub-dealers and agents still play an important regional role in generating sales. Distributors often manage a network of agents and a small group of direct sales people. Obviously, this drives up the price in the market. In Northern Europe one will not find such an industry structure.

Some countries face late payments (e.g. 36 months) by hospitals and factor their pre-financing in the hospital sales price.

In the Middle East one has to actively pamper the customers and wine and dine them vs. Germany where this is officially forbidden by law.

In Northern Europe the market is highly institutionalized and the sales process goes through many organizational layers. In Southern Europe one sells to the end user and he/she will make sure the order comes in. In Southern Europe one frequently uses tenders whereas this system is practically absent in Northern Europe. The list of local differences and commercial nuances is almost endless and requires a tailor made approach to lead to success.

Q Medical International provides this approach.