In the past few years, the industry has experienced a consolidation phenomenon characterized by the move of many hearing aid manufacturers into mass-retail stores. This move enables hearing aid manufacturers to bypass audiologists and other dispensers, increasing their control over the distribution channel and increasing their power in the market. However, the benefits of forward integration are limited as it requires the company to acquire its former customers. This article will discuss the benefits and drawbacks of this strategy.
The goal is to make the most of it
The forward integration process consists of the acquisition of another company. These companies then merge their products into one another. The goal is to maximize profits by combining the products and services of several providers. These mergers also make it possible to retain the original name and employees of the merged organization. This process is particularly lucrative for hearing aid manufacturers because it allows them to retain their brand identity and maintain their independence in the marketplace. In addition to this, it can result in the hiring of more experienced and skilled personnel.
In addition to this trend, there are also a number of aging Baby Boomers in the market. According to the Centers for Disease Control and Prevention, the average first-time purchaser of a hearing aid is 63. By 2029, this generation will make up 20% of the entire US population. For this reason, it’s important to ensure that these older consumers have a good experience when purchasing a hearing aid.