Has consumer behavior ever changed as quickly as it did in 2020? In a matter of weeks, a new, digitally enabled Indonesian consumer, focused on promotional and preventative care, emerged—and they’re here to stay. With the consumer health industry racing to adapt, we spoke to the C-suite leaders of three companies in Indonesia to understand how they’re managing the transformation.
Consumer health leaders have seen dramatic changes in the public’s attitude towards healthcare. Notably, there is now much more focus on disease prevention, driving companies to quickly adapt their product portfolios to the changed demands. Consumer and self-care literacy improved significantly as a result of the COVID-19 pandemic.
At the same time, the way consumers access healthcare has shifted, driven by a massive increase in the use of digital technology to engage with doctors and buy products. The proportion of consumers who consulted about over-the-counter medications with a general practitioner via teleconsultation or other digital means tripled during the pandemic.
The consumer health industry is following consumers and physicians online. As leaders in the space told us, companies are spending more on their digital platforms as they follow the migration of consumers and physicians away from the traditional channels. The conventional trading channel remains critical to success, but it now needs to be complemented by a fully realized digital strategy.
Consumer health companies are expanding their field forces to cover digital channels such as teleconsultations while also stepping up their direct-to-consumer activities on social media. Even so, the transformation of consumer and physician behavior may be outpacing the industry’s response to the trend. Companies need to accelerate the improvement of their digital capabilities to keep pace.
The new, more digitally focused strategy requires a different skillset. Consumer health leaders we spoke to are gaining access to the required skillsets by making new hires, such as the appointment of a digital transformation leader to help digitize and simplify business processes, and by partnering with service providers that have deep expertise in the digitization of healthcare.
For companies with regional or global ambitions, the strategy must be adaptable to different regulatory environments. Expanding beyond Indonesia also entails collaboration across regions for technical operations, logistics, supply chain and more.
Change management will be crucial to the success of attempts to adapt to the new environment. There is now no doubt that consumer and self-care literacy improved significantly as a result of the pandemic, and that companies need to accelerate their digital strategies. The challenge now is to react quickly to the shifts and manage the impact of the changes on employees and organizations. How companies rise to that challenge will shape their prospects for years to come.
To find out more about how healthcare leaders in Indonesia are reorganizing and rebuilding their organization’s growth, watch the full interview series here or read the 5 key capabilities for pharmaceutical businesses to emerge stronger in the COVID-19 era and beyond.