Rising internet use will encourage consumers and healthcare providers to buy from the industry
Los Angeles, CA (PRWEB) February 06, 2012
The $3.9 billion Online Medical Supplies Sales industry has been resilient during the recession, and it is forecast to continue growing in the coming years. While revenue is expected to grow 10.3% from 2011 to 2012, it is estimated to increase at a slightly higher average annual rate of 11.0% over the five years to 2012. According to IBISWorld industry analyst Nima Samadi, “demand for medical supplies has grown as a result of greater public and private health spending, continued innovations and new product introductions.” The growth of e-commerce and the shift from brick-and-mortar stores to online retailers have also helped industry revenue surge along. These trends are projected to continue during the five years to 2017.
Favorable demographics have supported industry growth. As the population ages, consumers need more healthcare procedures, which require medical supplies. The growth of the relatively new industry has also coincided with the increasing ubiquity of internet access, particularly broadband. The costs to obtain an internet connection and a personal computer (PC) are relatively low and have declined in recent years. Furthermore, broadband internet provides faster speeds, greater bandwidth and more stable connections than aging dial-up internet connections. The easier and more affordable it is to connect to the internet, the more accessible online retailers are, making consumers more likely to purchase from these stores. According to Samadi, “these factors have fueled strong industry growth over the last five years and are encouraging a rising number of consumers and healthcare practitioners to purchase their medical supplies online.”
Online medical supplies retailers have been able to successfully compete with traditional brick-and-mortar stores by providing the convenience of at-home (or office) shopping and offering a larger selection of items. Most importantly, they are able to compete successfully by providing discounted prices for the same or comparable products. Industry operators can achieve these lower price points because of lower overhead (due to their lack of a retail space) and the fact that they don't charge sales tax. However, proposed changes in state tax laws over the next five years threaten to negate that advantage. While the industry is highly fragmented, some important online medical supplies retailers include Allegro Medical, Medexline, Medex Supply and Medical Supply Depot.
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This industry includes online retailers of medical supplies, which includes equipment and tools used in healthcare for diagnosis, therapy or surgery. Industry operators sell products such as topical treatments and dressings, antiseptics, bandages, cotton, first aid kits, syringes, ice bags, thermometers and heating pads. The industry does not include retailers of nutritional supplements, vitamins, personal care products, eyeglasses and contact lenses.
IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.