The overall organised pharmacy retail market is growing and eyeing mostly the small towns and cities for expansion. Read on to know how...
India owns a majority of the population who are not well equipped with the possibly best medical services and do not get the proper medication on time, due to lack of facilities.
The private pharmaceutical companies are targeting the small towns and cities, where at least people get their medications timely, which is why small towns and cities are the next targets for growth for the top pharmacy franchise brands.
According to reports, the overall, organized pharmacy retail market valued around Rs 1.3 lakh crore is the third-largest in volume terms and the 13th-largest in value, globally. It grew from $28.5 billion in 2014 to nearly $30 billion in 2017 and is expected to clock a CAGR of 11.3% to reach $55 billion by 2020.
The growth is primarily driven by high disease burden, steady economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved healthcare financing.
Tussle Between Online and Offline Pharmacies
While many pharmacy retail brands have already made their presence in the digital space, there is still scope for the offline space, because the digital space has not gotten active in small towns as compared to the metro cities.
Unlike the metro city population, the small towns’ population finds it difficult to operate the e-pharmacy model and due to lack of awareness, the locals do not order medicines online.
Also, there are a lot of confusions about the online space since the government is yet to clear the amendments to the Drugs and Cosmetics Act, to regulate online pharmacies.
Startup Vs Franchise Brands
Even though a lot of online pharmacies and offline pharmacy startups have made their way into the market, the population from small towns still prefers the renowned brands, they have known all this while.
There are a lot of franchise brands who want to open franchisees like Sanjivini and Dava India.
One who wants to take franchisee of any brand needs to finalize which brand they want to get into partnership with and they only need to fulfill the basic requirements addressed by the brand along with the drug license.
You would need to fix a legal structure like a sole proprietor, partnership firm, LLC or incorporated organization. The paperwork would depend on the structure you choose. You would need to register it as a pharmacy store and then go through the process of getting permits and licenses.
The marketing and branding will still be taken care of by the brand itself, but you can use them for promoting your store as well.
It is always advised to take up franchisee rather than starting from scratch if you want to taste the fruit of success early.