Firms, Markets and Behaviour

(Microeconomics)

By Rohit Arora (410) Swapnil Gugnani(417) Neha Chaudhary(459) Amit Khandelwal(427) Rasagya Bagga(411) Abhay Mishra(433)

1

micro-vascular surgery and free tissue transfer. the historic developments in operating microscope led way to procedures like Reconstructive. The market structure revolved around the process. Recently. best possible marriage partner and mainly get rid of any deformity that they feel impacts their self-confidence and self-esteem. in the area of cosmetic surgery. Bangalore. The service is based on the provider and hence there is no homogeneity involved. Kolkata. and thus made it possible to Perform relatively more accurate and complex reconstructions. With the increasing participation of non-traditional cosmetic surgeons. Keeping in line. the California legislature passed a law which authorizes oral surgeons 2 . Cosmetic surgeries were associated with celebrities and people of the affluent class at a point of time. Advent of cosmetic surgery Developments in the field of dermatology and dermatologic surgery. more and more men and women from the upper middle class group are opting for cosmetic procedures to get attractive looks in order to grab lucrative jobs. Plastic and reconstructive surgeries in the modern times are represented by a combination of different surgical skills and techniques which seek to re-establish normal and functional anatomy from the congenital or traumatic abnormality resulting from a diseases process like cancer or infection. but today these surgeries are increasingly being taken by the burgeoning middle class whose demand for them is based on their needs. Background In the 1950’s. obstetricians and ophthalmologists. Delhi. Chennai.1. Introduction Cosmetic surgery has been practiced in India for a long time but this branch of plastic surgery gained considerable importance and popularity in the last 10-12 years. the interaction during the process and the final end result. which include primary care physicians. Historic records suggest that the general field of cosmetic surgery has highly benefited by the significant contributions made by the aforementioned surgical specialties. the task of a plastic surgeon is to correct a wound to regain the original form and function of the affected body part. ophthalmology and ophthalmic plastic surgery and plastic and facial surgery over the years have given rise to the discussion of the scope of cosmetic surgery in modern times. Pune and Chandigarh. This industry is a service industry and hence there is no product as such. has directed the future of the aesthetic market on a positive track. At present. Practically. The industry is akin to the healthcare industry in the country operating from general hospitals and specialized clinics. 2. dentists are also trying to make a place for themselves in the field of cosmetic facial surgery. More and more non-traditional surgeons are incorporating aesthetic procedures into their practices. There has been a notable surge in the Indian cosmetic or aesthetic surgery during the past five years mainly because of the increasing demand for aesthetic procedures from people in the urban cities of Mumbai. 3.

As it has blossomed out of the healthcare industry. Cosmetic surgeries are most popular in the United States followed by the UK. Also. it takes a while before the business picks up pace. tummy tucks. make the barriers to entry very high. 5. the requirements and government role is the same as it was in the industry. who are engaged in performing aesthetic procedures. United States is the undisputed leader with an annual contribution of US$13 billion. Today there are a host of procedures. Barriers and Government Role The cosmetic surgery industry is also a burgeoning industry. Aesthetic treatments are offered through two different categories of invasive (surgical) or noninvasive (non-surgical) procedures. Hollywood actress Kate Winslet opines that plastic surgery and breast implants are fine for people if it makes them feel better about who they are. It allows dental surgeons to perform facial cosmetic procedures. This implies that even thou it falls under the ambit of ‘Health Care’. The scope of cosmetic plastic surgery continues to evolve. on the other hand. ophthalmologists and other specialists. Global cosmetic surgery industry Worldwide. Some of the most sought after cosmetic surgical procedures are breast enlargement. which can be performed efficiently and safely and still allow a person a quick return to work. this may be a very big drawback as well. However.000 traditional cosmetic surgeons are operating that include dermatologists. The active person demands the maximum benefit with the least amount of down time. and liposuction. high government policies and regulations and restricted market demand.000 non-traditional surgeons are also operating in this industry that includes primary care physicians. shorter time of procedures. and less recovery time. rhinoplasty (nose surgery). do not involve breaking of the skin and holds attractiveness largely due to their lower cost. it does not qualify for insurance and does not have the government’s support as it does not benefit society as a whole. Italy and France. Invasive procedures involve radical measures taken to alter the appearance of a patient. otoplasty. plastic surgeons (facial plastic surgeons and anti-ageing specialists) and other aesthetic surgeons. This implies that for a new firm the market is very risky. This industry is cosmetic in nature. In the global US$30 billion cosmetic surgery industry. in the cosmetic surgery industry. high expenditure on equipment. and face-lift.(DDS dentists) to perform all sorts of facial cosmetic surgeries. Another 150. Therefore. surgical face-lifts. obstetricians. 3 . like rhinoplasty. around 30. the business largely depends on viral and word of mouth marketing. The combined factors of low trial rate. which are usually termed as complex. Non-invasive procedures. The growth is rapid but it is not rapid enough to credit separate regulations. 4.

Anesthesia fee. Cost of medicines in the post operative period. Over and above which the clinic charges a tax of 10. Depending upon the nature of surgery and anesthesia the actual cost may vary.6. week But do not include: 1. 7. etc. Variable – It depends on the client’s requirements. 5. The price includes both the price of the services provided and also the fixed cost incurred on the equipment contributing to the total cost. medicines. Cost of the Implants. it must maintain competitive prices with respect to the international markets. 3. 2. fixed capital (equipment) is used by the service professional in order to give the end result. Cost Structure The business is one of service. Registration charges.3 %. Stay up to two nights. Therefore. Cost of multi stage procedures if required. Hence the industry depends on Medical Tourism. Having said all this. 2. Hence. 8. ex. Pricing Policy The Approximate price of most commonly done cosmetic surgery procedures is mentioned here. Surgeon's operation fee. All medicines and disposables required for operation OT charges. the cost structure is divided into 1. Dressings in the first post op. 2. However the components Prices of surgeries include: 1. it is important to know that in India the market is growing. Fixed – This includes the cost of equipment and other infrastructure. implants. 4. 3. Nursing fee. 6. 4 . The client is charged according to the service he or she wishes to purchase. 7. Here.

About the demographics – people. who are opting for cosmetic surgeries.9. liposuction and rhinoplasty. Conclusion The market is risky. Delhi. The growing interest of plastic surgeons to enter into the field of aesthetics market is evident through the increasing membership of the Indian Association of Aesthetic Plastic Surgeons. who mainly opt for procedures like hair transplant. the consumer must also be made into an advocate for the business to function. Lakshyajeet Dhami. The Consumer Several practicing plastic surgeons have started doing cosmetic surgeries. It is also obvious that a person undergoing cosmetic surgery must have complete trust in the doctor. for new entrants. Therefore the focus is on quality. Ashok Gupta says that the age group of people undergoing aesthetic procedures have widely expanded in the recent past ranging from 15 to 90 years. according to Dr. who wish to look good after marriage or post pregnancy. however it caters to a premium segment in spite of low infrastructure cost. Dr. The growing interest of teenagers to take up cosmetic surgery is further adding to the market growth. 5 . The consumer seeks perfect aesthetics. Hence. Dr. and the people falling in the age group of 30 to 45. They are more worried about the end result than the amount of money they have to pay. an aesthetic surgeon associated with Sir Ganga Ram Hospital. an aesthetic surgeon from Mumbai believes that the market growth is largely driven by the young people ageing between 20 to 27 years. Teenagers are approaching cosmetic/aesthetic surgeons for facial hair removal and scar revision to rhinoplasty and gynaecomastia (male breast reduction) to breast reduction and augmentation (in girls). Vasundhara Oberoi. which has reached 200 from +10 around a decade back. the margins are extremely high due to which the number of players in this market are increasing rapidly. 10. This can only be achieved through recommendations by personal sources. Hence.

cosmeticsurgeonindia.com/ http://www.com/liposuction.indiamart.indiaprofile./2002070700501300.htm www.csisite.com/industry/cosmetics-toiletries.tour2india4health.php www.com/pay.com/.com/ 6 .thehindubusinessline.csisite.11..html http://www.forerunnershealthcare.html www.com/ea/qst_question.html http://www.asp?qstID=1737 www.prlog.com/medical-tourism/surgeries/cosmetic-dental-surgery.htm www..html dir.com/trm_cosmetic.marketingprofs.org/10465859-cosmetic-surgery-trends-in-india-in-2010.References http://www.

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