The diagnostic services market is expected to continue growing at 27.5% for the next five years.
India is a land full of opportunities for players in the diagnostic service industry and is witnessing a huge growth. This growth is likely to be driven by improving healthcare facilities, medical diagnostic and pathological laboratories, private-public projects, and the health insurance sector. The diagnostic services market is expected to continue growing at 27.5% for the next five years.
Though a major portion of the diagnostic business is being managed by the so-called unorganized sector, the diagnostic service market is expected to become much more organized and consolidated with a lot of small and independent laboratory players becoming franchisees for the larger players.
The Franchise model has helped the diagnostic centres and path labs to increase their footprints and profits. Here are the following reasons why franchising is viable for the diagnostic sector.
Rural areas in India have always suffered from the lack of hospitals and diagnostic centres. To address this issue, the diagnostics chains in India decided to adopt the franchise model with the aim of increasing the network in small towns. Along with being the cheapest easiest manner of expanding the business, franchising also provides them all-India reach. Franchise model allows the path lab chains to establish their footprint in every nook and corner of the country.
For starting a path lab franchise one doesn’t need to have to be from a medical background. Anyone who fits the eligibility criteria can opt for a diagnostic franchise. Thus, one of the major benefits of franchising model for a diagnostic chain is that, in addition to expanding in almost every area, they will also be able to gain knowledge of that market. The franchise partners know their area very well and have the idea of what will work there and how to attain success in that particular location.
Establishing Brand Name
The diagnostic centre is highly unorganised, but with franchising, the lab chains are establishing a niche for themselves. The franchising model offers them high scalability as it allows an entrepreneur to expand the business more effectively and efficiently. This helps in establishing the brand name and thus distinguishing them from the competition. People trust the brand name, franchising helps in creating awareness about your brand and thus, increases profit.