 

Modern B&M Pharmacy

Traditional/ Unorganized
Pharmacy

E-Pharmacy

 

e Limited discounts (based
on relationship and
negotiation)

well as Tier 2 and beyond
cities due to higher
turnaround time

Lack of profitability till date

 

 

 

 

could mismanage
inventory resulting in
lower turns and lower
fulfilment rate

¢ Competition from e-
pharmacy

 

serious threat to the brick-
and-mortar retailers

 

Opportunity © Changing retail e Demand bedrocked in Acceleration in growth due
preferences in favour of traditional retail as it to COVID-19
modern retail contributes 90% sales of Growth in internet
¢ Ability to ensure COVID the industry growing at a penetration leading to wider
appropriate behaviour CAGR of 7% adoption of e-commerce
¢ Growth in demand for Ability to cross sell related
wellness products products and services
© Greater proliferation of
private labels
¢ Omni channel offering
¢ Allied offerings like
diagnostics
Threats * Non tech led companies © COVID-19 has posed a

Competition from physical
retail stores

Fluidity in regulatory
framework

 

Source: Technopak Research

Market Share of different channels

 

While traditional retail channels historically constituted a large portion of the pharmacy retail market in India, there has been a
recent shift towards modern retail channels such as e-commerce and B&M stores, with consumers now increasingly inclined to
purchase regular prescription drugs and other wellness products from modern organized pharmacy retail outlets that offer the
benefit of an enhanced retail environment, the assurance of authentic drugs, transparent discounts and a wide variety of products.
This trend has been accelerated by the outbreak of the COVID-19 pandemic.

The table and graph below set out the market share of modern retail channels vis-a-vis traditional retail channels as of financial
years 2015, 2019, 2020 and 2021, and projected as of financial year 2025.

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

CAGR | CAGR | CAGR | Gown ey
Values in INR Crore | FY2015 | F¥2019 | F¥2020 | Fy2021 | F¥2025 | FY 2015- | FY 2020- | Fy 2021- | Growth
2020-21
20 5 25
Total 1,10,000 | 1,57,158 | 172,500 | 1,81,125 | 2,72,500 9% 10% 11% 5%
ern ee 5,500 Fry ra 25% rr
E-commerce (including 100 1,816 3,750 5,625 23,000 106% 44% 42% 50%
omni-channel)

‘Omni-Channel Players 7 300 350 600 2,500 223% 48% 43% 71%
Online Only Players 99 1516 3,400 5,025 20,500 | 103% 43% 42% 48%
er 5,400 11,239 | 13,500 | 14850 | 30,500 20% 18% 20% 10%

ane) PRT 1,55,250 PECK) 8% 7% ra EB
Bey COmnt Channel {00 | 546i 11,539 13,850 15,450 33,000 21% 19.0% 21% 12%

Pharmacy Chains

 

Source: Technopak Research

E-commerce includes digitally (voice and data) enabled sales by Brick chains and sales by online only players

133

 
