| Organised Pharma Retailing - Analysis -
June 17th, 2008
Executive summary
The retailing arena in India has historically been dominated by traditional formats and only 2% of retail flows through organized sector vis a- vis USA where 85% retail sales come from Organized sector like Super markets. However, In recent years, a large number of business houses have invested in setting up stores/ malls and have built businesses within retail. Many Corporate houses have already announced their retail plans, which includes many Pharma companies too. Imagine walking into a one-stop shop for your entire healthcare needs. Going by an ORG-Marg study on the emerging scenario of Pharma retailing in the country, small chemists are likely to close shop with the emergence of big retail Pharma chains promoted by Pharma companies themselves, thereby marking the end of unorganised Pharma retailing in the country. The emergence of organised Pharma retailing would result in elimination of intermediaries and customers will thus be benefited by the margins saved.
The Major players involved in the organised Pharma retail chains are Lifespring, The medicine shoppe, Apollo Health and lifestyles limited and Subhiksha. According to these big retail players, organised Pharma retail chains have great prospects in India. The Value added services offered by them differentiate them from the neighbourhood chemists.
However, a research study done to find out the response of consumers to such a concept reveals that, although all the unique facilities and services offered by these retail chains are desired and respected by the consumers, the old concept of neighbourhood chemist is still dominant. Hence unless and until these retail chains make their presence everywhere by way of franchising or rapid expansion, they will not get the acceptance they desire. Thus it is evident that in the near future, once these organised retail chains expand their geographic coverage, they are bound to get success.
But on the other hand, the unorganised chemists, which are in big numbers, are also getting united and started counterattacking the organised retail chains through an integrated approach. This will eventually be beneficial to the ultimate consumer who will get various facilities and services at a cheaper rate and will also lead to improved healthcare standards of the country. | 
Re: Organised Pharma Retailing - Analysis -
August 1st, 2008
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