Innovation Does Not Always Help - Germany -See You At RehaCare

It seems to be common sense that innovation is one of the most intelligent ways to flee the price war in the rehab industry. In two weeks we all will see a lot of innovative products at Europe’s biggest rehab show in Duesseldorf. But is the common sense also proven truth? I doubt as far as Germany is concerned.
Firstly, innovation is a brought term. I will use a pragmatic approach and take “any new product “ as an innovation. This includes also products which are only renewed in order to keep the pricelevel by adding additional features. Not very innovative from a technical point of view, but thecompanies have invested R&D capacity in these products. The goal was show something new to protect/enlarge the profitability.

On the German market the most innovative company over the last 7 years is without any doubt Invacare if you count newly launched products per year. There is also no doubt that it was not the most successful company. The lowest level of innovation during the same period showed Sunrise. Among the big players in Germany it is certainly the one which protected its position best.

Even if you look to real technical innovation you will find that Otto Bock started to be a player in the power wheelchair business only after they offered the C-/M-Line which is technologically less innovative than the former RABBIT power-chair.

One reason for this phenomenon is certainly the German dealer market. You mostly do not find “dealers” but handicrafts (craftspeople). They are definitively no deal-makers but mostly conservative personalities. In fact a market study some years ago brought up that only 2% of the German dealers would like to have more innovative products.

Another reason is the insurance system which promoted for a long time re-use of products and saw innovation as a trick to undermine this strategy. The registration system in Germany is a result of this thinking.

In my opinion, the secret for a successful innovation on the German dealer market is to offer a service related innovation.

One of the most successful new products of the last 5 years was the X1 of Meyra. Technologically it is not a big surprise. But Meyra launched it with such a good marketing campaign that the German dealer-handicrafts get an easy sell.

Users were enthusiastic as well as therapists and finally the insurances could not stand the wave of demand. It was brilliant marketing but at least it was service to the distribution channel.

So, if you come to Duesseldorf go to find this kind of innovation. It will be successful even in Germany.

My personal tip: Look for the groove.