ANNUAL REPORT 2008/09 - Sonova

INNOVATION
INNOVATIVE PRODUCT DEVELOPMENT
MAXIMIZES CUSTOMER BENEFIT
Sonova’s core strength is the continuous development of world-leading
hearing solutions. To deliver improved performance and address the
needs of end users and hearing specialists, Sonova consistently focuses
on innovation.
Sonova stands for the very best in innovative hearing solutions.
As a key element of the company’s strategy, product
innovation allows Sonova to maintain its market lead
in technology, continuously expand its market share and
extend its global market leadership. Market research is
becoming increasingly important for Sonova as it strives to
ensure that its research and development initiatives can
be applied as effi ciently and as systematically as possible.
For product development to be successful, the company
has to truly understand the requirements of hearing special
ists and end customers. In the hearing instrument
industry, innovation is primarily about improved hearing
performance. This is mainly achieved through new or
refi ned hearing system functions. The product’s cosmetic
aspects, miniaturization and ease of use are also steadily
growing in importance. The support of the hearing specialists
in fi tting the instruments also plays a vital role.
Growing market for innovation
Demand for hearing systems has steadily increased in recent
years, and global market sales are currently estimated
to be in excess of 9 million instruments per year. Sonova
is active in more than 90 countries and is very well positioned
to cater to regional demand for hearing solutions:
Europe accounts for roughly 40% of the global market,
while around 30% of products are sold in North America,
about 20% in the Asia/Pacifi c region and the rest in South
America and Africa. The general trend of rising demand
for new and innovative hearing solutions is continuing. The
growth rates in emerging markets such as China or Latin
America are much higher than those in the industrialized
world.
Recent market studies in Europe and the USA have shown
that around 16% of the population suff ers from varying
degrees of hearing loss and would noticeably benefi t from
14 INNOVATION
a hearing system. Furthermore, the number of people using
hearing systems is set to rise as the population ages
and life expectancy steadily increases. Statistics from the
World Health Organization (WHO) estimate average
pop ulation growth at 1 – 2% over the mid-term. It is also
estimated that the number of people with hearing loss
caused by increasing noise pollution will rise by roughly
0.5 – 1% per year. Furthermore, cases of hearing damage
are being reported at an increasingly young age. At
pres ent, Sonova earns around 60% of its sales from existing
customers, because users replace their instruments
after around fi ve years. Longer average life expectancy will
also mean a rise in the number of hearing systems sold.
The greatest growth potential lies in the low market penetration,
however. In industrialized countries, only around
20% of people with hearing loss currently wear a hearing
instrument. In particular, continuous improvements in
technology, resulting in greater customer satisfaction, will
encourage wider acceptance of hearing solutions. The
low market penetration in emerging markets such as China
or India is an additional growth driver. The potential for
binaural hearing solutions has still not been fully
exploited.
Greater awareness of the diff erence that a sophisticated
hearing system can make is an important factor in improving
market penetration. Nowadays it can take up to ten
years for someone to decide to buy a hearing instrument.
During this period, only about 75% of people with
hearing loss actually consult a doctor about it, and of this
group only around 40% go on to consult an audiologist to
be fi tted with a suitable hearing solution. Sonova helps
hearing specialists not only to improve the quality of their
advice, but also to market their activities more professionally
in order to target people more effi ciently and attract
their interest to a hearing solution.