Ferns N Petals (FNP), a brand synonymous with celebratory bouquets and cakes, has set its sights on a rather unexpected market — medical tourism. Enter MediJourney, a new vertical designed to whisk patients away on a voyage not of sentimentality but of sutures and second opinions.
The new vertical will specialise in services including expert consultations, assistance with medical visas, telemedicine options, and post-treatment care. The firm does seem to have its ducks, or rather, stethocopes, in a row. The treatments offered span 30-plus segments, including cardiology, oncology, eye surgery, and in vitro fertilisation (IVF). The company has collaborated with over 1,500 doctors and surgeons and over 300 hospitals globally. It has assembled a team of multilingual staff endorsed by medical embassies to ensure a standout experience for clients.
The good thing is, the prices don’t appear prohibitive — not at least to international tourists. Its IVF package, for instance, will set one back by around $1,200, if one goes by the rates listed on its website.
Over the past few years, FNP has stepped into verticals such as wedding planning (with FnP Weddings and Events and Shaadi Central), hospitality (Udman Hotels), catering (U Kitchen), digital content production (FnP Media), death care (Last Journey), and baby care (BabyBless). After adding the new business unit, the company is targeting a revenue of 700 crore in FY2024, up from607 crore in FY2023.
But what is the synergy between cakes, kitchens and medical tourism? Isn’t unrelated diversification fraught with risks? Vikaas Gutgutia, founder and managing director, FNP, says, “Our forte is to be the organised player in an unorganised market. We see a lot of potential in India becoming the health capital of the world because of our hospitals, unique facilities and doctors. We plan to target countries without these resources with our offerings.”
To begin with, the services will be offered to inbound tourists only. FNP’s existing digital capabilities in the gifting business will come in handy in marketing and running MediJourney’s online operations. The company has set up two offline offices in Dubai and one in Bangladesh.
The market is lucrative indeed. Vikram Venkateswaran, partner, Deloitte India, points out, “The medical tourism industry in India is estimated at $2.89 billion and will grow to around $13 billion by 2026. Every year, almost 7% of the tourists that come to India visit the country because of medical reasons.” Cities that have gained popularity as therapeutic centres will be key focus areas. “This includes Chennai for liver-related therapies and Hyderabad for gastroenterology. In addition, we have many tourists visiting India for Ayush and wellness-related therapies,” he says.
Thorns in the way
Challenges remain. Says Kalyan Kumar, co-founder, KlugKlug, “Diversifying into a completely unrelated sphere presents significant challenges for FNP. Establishing credibility and trust in the healthcare industry requires different expertise and resources vis-à-vis gifting. It might be hard for the firm to make a name for itself quickly.”
Establishing credibility, navigating regulatory frameworks across different countries, ensuring the quality and safety of the services, and competing with established players all pose significant roadblocks. Managing logistics, such as visa arrangements and travel coordination might prove tricky, Kumar adds.
One of the biggest hurdles to clear, however, is transitioning from a low-involvement category to a high-involvement one. Says Vikram Bhalla, founder & director of Vivify Asia, “There is more evolved decision-making in medical tourism while the gifting business is perceived as a low-risk, low involvement.” Bhalla points out that the company possesses extensive consumer data, including age and location. This can be used to strategically craft and time its communication.
“FNP should harness the positive associations of its original offering linked with celebrations to design a positive communication strategy in the field of medicine, traditionally associated with challenges and negativity,” concludes Bhalla.
Power & perils of unrelated diversification
Pros
Reduced risk: Allows firms to enjoy the benefits of uncorrelated market cycles
Growth opportunities: Opens doors to new revenue streams
Financial flexibility: Can provide access to new financial resources and capital markets
Cons
Brand dilution and confusion: Can damage overall brand image if unsuccessful
Lack of expertise: Firms may lack the necessary market/regulatory knowledge
Management difficulties: There could be difficulty in forming synergy between multiple businesses