As the population ages and healthcare reform is implemented, demand for bandages and dressings is projected to rise, driving price growth in the three years to 2016
Los Angeles, CA (PRWEB) November 18, 2013
The bandages and dressings market has a buyer power score of 3.9 out of 5, reflecting a high degree of buyer power to negotiate lower prices. Market prices have been declining over the three years since 2010; however, IBISWorld expects prices to slowly revive over the next three years, according to IBISWorld analyst Jonathan Noury-Elliard. This slow growth is good for buyers because it shows there will be minimal fluctuation in demand, which aids buyer power. The market is in the later part of the product life cycle, which lends itself to market-based pricing and works in the buyer's favor. In addition, the large number of suppliers and prevalence of bandage and dressing products boosts buyer power through lowering switching costs and increasing the availability of substitutes. Consequently, buyers are able to negotiate with different suppliers and access a wide variety of products.
Due to the high number of suppliers in the market, vendors have been increasingly customizing their products and boosting specialization to stand apart from competition. As a result, the market has become very specialized, detracting from buyer power by forcing prices up, says Noury-Elliard. Part of the reason suppliers have been able to produce these specialized products is the security in this market. There is minimal risk associated with bandages and dressings, because there will always be a need for healing products, which limits buyer power. Major suppliers include Cardinal Heath Inc., 3M Company, Medtronic Inc. and Kimberly-Clark Corporation.
Buyers procuring bandage and dressing products can feel secure knowing that the majority of the power lies in their hands. Suppliers are anxiously looking for business, which allows buyers to be very particular about whom they do business with. Negotiations should be carefully constructed to ensure the best deal is struck with a single or with multiple suppliers.
The benchmark price for bandages and dressings has a very wide price range. Bandages come in many sizes and shapes, have different applications and may have medicinal additions, such as antibiotic ointments. There are fabric bandages, plastic bandages, water-resistant bandages, flex bandages for sports, breathable bandages and bandages with antibiotic ointments, among others. The variety of products available lends itself to a wide range of prices for each type of bandage.
Dressings differ from bandages in that they are applied to a localized wound, while bandages may treat a larger area. The dressings segment follows this trend as well, which only further increases the price range. Medicinal dressings include athletic wraps, gauze pads, gauze wraps, ointments and topical applications. Dressings are priced by length, chemical concentration and size of the product. Brand names also play an important role in pricing, as companies like Neosporin and Vaseline tend to have higher prices than their generic counterparts. For more information, visit IBISWorld’s Bandages and Dressings procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of bandages and dressings. These products are used for medical, surgical, dental or veterinary purposes and are sold through manufacturers, retailers and wholesalers. This report does not include surgical healing products or practices, such as stitching or pins. Specialized topical ointments, wraps, bandages and protective pads (e.g. gauze) are included in this market.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.