India Pharmacy Retail Market|India Pharmacy Store Market |Hyperlocal Delivery Pharmacy India

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India Pharmacy Retail Market Report - 2020
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• The pharmacy sector in India has been rapidly
  evolving over the years from FY2010-FY2015 with
  a constant establishment of new pharmacies across
  the country. There has been intense competition
  amongst stores and consolidation among providers
  of pharmacy products. In pharmacy retail, notable
  changes have been observed in organized
  pharmacies.
• The pharmacy retail market in India has witnessed
  revenues worth INR Billion in FY2015 and has
  grown at a CAGR of 19.4 for the period
  FY2010-FY2015.

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• With an increase in penetration of organized
  players, the market has become highly competitive
  hence innovative marketing strategies and new
  business models are being introduced in the
  market in order to sustain profits.
• This market has been segmented on the basis of
  various sectors such as organized unorganized,
  hospital based standalone, prescribed drugs,
  OTC drugs private label products and generic
  and patented.

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• With rising awareness among people, there has
  been a noticeable shift of customers towards
  organized players such as Apollo, MedPlus and
  other organized pharmacies which offer high
  quality medicines and drugs.
• The total number of pharmacy stores in India
  stood at during FY2015 due to increasing
  government expenditure on healthcare as well as
  surge in per capita healthcare expenditure. New
  trends such as hospital based pharmacies and
  wellness stores concept have also contributed in
  the expansion process and growth of the overall
  market.

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• The pharmacy retail market in the India has
  witnessed an unprecedented growth in the recent
  years on account of improvement in medical
  awareness through the efforts of media. The surge
  in growth has been complemented by improvement in
  accessibility of pharmacy stores, diversification
  of products and an increase in health
  consciousness amongst the people. The organized
  pharmacy retail market in India is comprised of
  several companies such as Apollo Pharmacies which
  posses a large product portfolio of
  pharmaceutical products.

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• These companies have faced stiff competition from
  the unorganized market, as they command a higher
  share of the industry in terms of both revenues
  and number of pharmacies.
• The sale of OTC drugs is expected to drive the
  market as enhanced self medication trend has
  developed in the population of India. More
  number of people has been purchasing medication
  on the basis of self attained knowledge from
  internet and other media sources which have
  significantly reduced the need for specialized
  prescriptions for many medical requirements.

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• The retail pharmacy market is likely to enhance
  since there is an increase in government spending
  on health care sector along with initiatives
  taken to increase health related awareness in
  rural regions of the country. In the future, the
  market is expected to reach INR billion by
  FY2020.
• Standalone pharmacies include both organized and
  unorganized standalone pharmacies and it has been
  dominating the pharmacy retail market in India
  since the past many years, registering a share of
  92.7 with 827,405 pharmacies in FY2015.

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• Hospital based pharmacy on the other hand,
  formed 7.3 of the overall market sales with
  64,783 pharmacies in the fiscal year 2015. The
  demand of medicines and other pharmaceutical
  products in a hospital based pharmacies is
  primarily driven by in-patients and out-patients
  of the hospital which comes for consultation. In
  the absence of competitors in the hospital
  premises, hospital based pharmacies have monopoly
  over the others.

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• India pharmacy retail market is majorly driven by
  small and unorganized pharmacy stores in the
  country. In the present scenario the market is
  highly dominated by the unorganized players with
  their contribution in revenue by in FY2015.
  The organized chains of pharmacies are quite new
  in the business. They will require a couple of
  years to create their own customer base along
  with expanding their market share.
• Due to the wide availability of unorganized
  pharmacies, these retailers have witnessed a
  higher number of customers which have in turn
  bolstered their sales revenues.

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• The increase in personal disposable income of the
  population has contributed significantly to the
  growth of the market as there has been elevation
  in focus on personal healthcare. Changing
  lifestyle and increasing stress levels have been
  observed as the key growth drivers of the
  pharmacy retail market in India as they driven
  sales of medicines. This trend has developed due
  to a huge increase in urbanization and working
  population in the country.
• The growth of the Indian OTC market has been one
  of the fastest in the world.

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• The Indian OTC market is extremely competitive at
  present. Both organized and unorganized players
  have added new sections of OTC drugs in their
  stores due to the trend of self-treatment by the
  young Indian population.
• Additionally, in order to drive sales, many
  organized retailers have also established their
  online presence. This has resulted in an
  increased reach of the retailers which has in
  turn driven their sales revenues.

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• There are several aspects that need to be
  considered for establishing a retail pharmacy in
  India. In the below mentioned case, a land area
  of square feet is required to set up a pharmacy
  store in a semi-urban area. The area for
  standalone pharmacy is taken on a rental basis
  where the promoters contribution is of the
  total investment. There is an initial cost of
  furnishing, required furniture and the computer
  software such as LIS and PIS is also taken into
  account.

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• Based on the sales realization and the operating
  expenses, the pre-tax profit would amount INR
  per year. This would generate return on
  investment of and pre-tax profit on sales of
  .
• Apart from the above mentioned quantitative
  factors, in order to successfully operate a
  pharmacy store in India, owners must establish a
  strong procurement network which can comprise of
  wholesalers, distributors or manufacturing
  companies.

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• Online pharmacies have changed the global
  pharmaceutical distribution chain quite
  significantly. The era of online pharmacies began
  more than a decade ago with the launch of drug
  distributing websites in Canada in the late
  1990s. Online Pharmacies have been a preferred
  method of buying medicines in overseas countries
  such as Europe, USA and others but in India this
  segment is at its miniscule stage and is growing
  at a tremendous rate.

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• The population is becoming more Tech savvy and
  wishes to purchase almost every product through
  online means, since it saves a lot of time and
  also provides flexibility in terms of making
  payments and other factors.
• In India a limited numbers of online pharmacies
  are operational through different means. Apollo
  Pharmacy has installed fax machines in clinics of
  doctors, from where prescriptions are faxed to
  Apollo stores, which then deliver the medicines
  to customers at the desired location.

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• The online pharmacy Retail market in India has
  mainly emerged in the current fiscal year
  FY2015. This has posted the revenues originated
  by online pharmacies at INR million during
  FY2015. Medidart has been the leading player in
  this category which has accounted for
  approximately of market share in the overall
  online pharmacies market during FY2015. Some of
  the other players that have their presence in the
  market are namely Medplus.com, buydrug.in, online
  pharmacy and several others.

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• The major demand for online pharmacy products has
  emerged from Tier 1 cities which have accounted
  for of the overall GMV during FY2015. The
  domination of urban class population in these
  cities alleged with higher tech savvy population,
  supported by better distribution networks in
  these cities have helped the market to generate
  higher amount of revenues especially from these
  cities.

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• Online pharmacy products are majorly been
  demanded by males, which have accounted for of
  all the orders placed, while on the other side,
  females have accounted for volume of the
  orders placed in FY2015. Cash on Delivery was
  the most preferred mode of payment which
  accounted for a share of in the overall
  payment made in FY2015. This mode is more
  prevalent as customers are unsure about the
  quality of the products that are being delivered
  to them and are reluctant to pay the money in
  advance.

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• Read Detail Report here https//www.kenresear
  ch.com/healthcare/pharmaceuticals/india-pharmacy-s
  tores-market-report/3896-91.html
• ContactKen ResearchAnkur Gupta, Head Marketing
  Communicationsankur_at_kenresear.com
• Website www.kenresearch.com

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