Affordability vs Convenience: The Indian Diagnostic Conundrum

I’ve always been fond of the Indian diagnostic sector, and it’s not hard to see why. Close to 600 million people are below the age of 25, who will eventually age and need to do more medical tests. Talk about organic growth.

I won’t do a full breakdown of the sector now, but think about the different reasons you get a diagnostic test done:

• Basic Sickness: You’ve caught a cold, fever, or some other common illness. It’s lasting longer than expected, so to be safe, you decide to get a blood test, stool test, or something similar. These tests are reactive, infrequent, and all about quick relief—nothing too complicated here.

• It Might Be Serious: You do a basic test and realize that you may be dealing with something more concerning, like a heart condition, cancer, or kidney disease. These follow up tests are critical, and decisions are driven by doctors.

• Chronic Condition: You’re managing long-term health issues like diabetes, hypertension, or thyroid disorders. These tests are frequent, and consistency in reporting is essential.

• Preventive Check-Ups: You’re proactive and value your health. These tests aren’t tied to illness; they’re about wellness. Think of them as an investment in catching problems before they arise.

There is, of course, some overlap in these categories, but for simplicity, think of them as four distinct situations. Now let’s think about these four situations in the Indian context:

• Basic sickness test-takers don’t usually care much about where they’re getting their tests done. When you're sick, the focus is on getting better. If you have the money, convenience is the deciding factor—you’ll go to the lab that fits into your schedule or lets you book via an app. But if you're on a tight budget, the cheapest option is typically the winner.

• Chronic issues are a different story. For people dealing with long-term conditions like diabetes or hypertension, the stakes are higher. The tests matter. The health record matters. The doctor’s recommendations matter. In this case, if patients can afford it, they’re more likely to visit established, trusted diagnostic chains rather than standalone laboratories. Here, the consistency, accuracy, and credibility of an established chain could outweigh price considerations.

• Serious illnesses require absolute trust in your doctor and prioritizing the best medical care you can afford. When your health is on the line, there’s no room to compromise. A misdiagnosis can be very costly.

• Preventive check-ups come down to money and awareness. With a GDP per capita of less than $3,000, the majority of the population isn’t focused on health prevention. If you're someone who says, “I’ll get a check-up just to be safe,” you're probably in the minority. But here’s the thing: even if just 10% of India’s population decided to invest in preventive healthcare, that would still be larger than the population of 185 other countries. This represents a potential market that could reshape the entire diagnostic industry. The real issue, however, is that awareness simply isn’t there—even among many of those who are wealthier.

Now, I might be wrong here, but I believe Indian diagnostic companies seem too focused on being the “most convenient” or the “most affordable.” And I don’t blame them at all. In a price-sensitive market, where most decisions are often based on these two factors, it’s a game worth winning! After all, that is what customers seem to care about.

But here’s the thing that seems to be getting overlooked: accuracy. In a country with poor health awareness, diagnostic companies may need to remind people of one fundamental truth: you only get one body. You can’t trade your health for a small sum or an easy experience. Sure, convenience and affordability matter, but when it comes to your body, you want to be right.

People with chronic conditions or serious health issues, of course, understand this—because they have skin in the game. They’ve experienced the consequences of inaccurate readings or delayed interventions. Similarly, those who are committed to annual check-ups already care about their health and understand this to some degree.

And thanks to India’s demographic structure, we’re going to see more people in this situation in the future. But it’s no longer just about the tests you take at a lab. With wearables and patient genetic information, we’re now looking at a vast ecosystem of data. In this new landscape, you want to trust the people who can interpret that data with precision and provide personalized, reliable, and, most importantly, accurate insights.

I hate to bring marketing into the picture here, especially coming from finance, but I really do think diagnostic companies need to position themselves better. It’s all about the framing—where you place yourself in the conversation.

You’re not just selling a test; you’re offering people the ability to make informed decisions about the most important thing they have: their health.

As Rory Sutherland put it in Alchemy, small changes in perception can have a huge impact on outcomes. Positioning diagnostics as not just a service, but an essential part of maintaining your life could change the way people approach their health. And that’s a huge opportunity, given India’s scale.

PS - I come from finance and don’t work in marketing or brand positioning, so if you think, “He has no idea what he’s talking about,” you’re probably right.