Worldwide, about 280 million people suffer from debilitating hearing loss, yet globally only 7 million hearing aids are sold annually. In the case of low-income populations, hearing problems affect two thirds of the population, because they face many problems in treating hearing deficiencies, which is reflected by the fact that less than a million hearing aids are sold in these majority markets.
Despite the staggering number of people in low-income countries whose lives could be significantly improved with a suitable and affordable hearing aid, expensive technology and complex distribution practices present major difficulties in reaching underserved majority markets effectively. The cost and complexity of measuring hearing loss makes treatment in developing countries difficult, as most of the population lacks the necessary financial means to consult professional medical assistance and purchase costly and high-maintenance hearing devices.
The technology company Conversion Sound has been working to find an innovative solution to address two main barriers faced by the private sector in serving low-income markets: affordability and effective distribution channels. With the help of IDEO, a global design company, an effective and innovative business model for affordable hearing aid was developed in India and tested in a number of countries, including Latin America.
Conversion Sound works under a simple premise: A cross-subsidized model where wealthier customers, with access to more complex and expensive devises contribute to keeping the cost of hearing aids low for underserved markets. The company’s innovation rests on two pillars: innovation in product design and distribution channels.
A digitally programmable and Bluetooth enabled hearing device with a solar-power rechargeable battery is the core of Conversion Sound’s strategy to reach the poor. The objective of the design is to keep the cost and need for expert maintenance at a minimum. Whereas traditional hearing aid devices require expert assistance and personal fitting, Conversion Sound’s innovative technology enables non-medical personnel with one week of training to fit devices in half an hour and repair them in 10 minutes, a critical factor in making hearing aids available for everyone.
Business in a bag: Conversion Sound’s high-tech, low-complexity product enables the exploitation of unconventional and innovative distribution channels that replace expensive specialized audiology stores. The choice of channels is almost as flexible as the technology itself, including retail stores, pharmacies, and multiple selling strategies that range from TV and door-to-door sales to distribution through government agencies.
In remote areas, where installed distribution platforms may be less developed, the model involves micro-entrepreneurs and social workers to do the testing, fitting and selling of the hearing devices., thus expanding the reach of the model to majority markets in truly underserved areas.
Distribution partners have already been engaged in India, China, Bangladesh, Nigeria, Mexico, Costa Rica and Brazil. In the case of Latin America, the IDB’s Opportunity for the Majority Initiative is strongly engaged in helping Conversion Sound open new markets and provide low-income populations in the region with increased access to better products and adequate and affordable hearing aids. The IDB financed an initial feasibility study and is working with Conversion Sound to scale the program.
