Business case study: E-pharmacies
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- čas přidán 2. 07. 2024
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This video is about the E-Pharmacy business in India. We’ve discussed which strategies successful startups like PharmEasy, Tata 1mg, and Netmeds used to grow. E-Pharmacy or Online Pharmacy business was nascent before 2015 but in the last two years, many big players have also entered into the E-Pharmacy business after the success of these initial startups. Tata has acquired 1mg while Reliance has acquired Netmeds. Flipkart is also coming up with Flipkart Health Plus after acquiring SastaSundar.
We can learn a lot from how these startups handled the initial challenges of building an E-Pharmacy business in India. I’ve explained the E-Pharmacy business model as well in this video. An E-Pharmacy app like PharmEasy had to face many regulatory as well as consumer mindset related issues in the beginning. But with persistence and the right steps, these Online Pharmacy apps have not only managed to scale their business but are also regarded as one of the best startups ever coming out of India.
These Online Pharmacy apps have focused a lot on creating an ecosystem in which they can sell multiple services and products. In this way, they have created a lot of value for the end consumer. Some examples of this would be PharmEasy Plus Membership and 1mg membership which gives you access to multiple services and offers such as free delivery for a small subscription fee. Special services like PharmEasy Sugicare and PharmEasy Surgicare are also a part of this ecosystem these startups are trying to create. As students of Business, we can learn a lot from these strategies.
Towards the end, I’ve discussed why big companies have shown interest in the E-Pharmacy business. We have touched upon how data from the E-Pharmacy apps can be very beneficial to apps like Jio Mart and Tata Neu. The e-Pharmacy business is anticipated to grow in the future. You can strive to create a career in any of the verticles in this Online Pharmacy space and hope to grow. Thanks for Watching. Subscribe to the channel for more content on Business and Startups.
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Chapters
0:00 - Intro
0:48 - E-pharmacy Industry roots in 2015
1:24 - 3 difficulties of entering the E-Pharmacy Business
3:25 - What did successful E-Pharmacy startups do?
7:00 - Why Amazon and Tata have acquired E-Pharmacy Startups?
8:28 - 3 Business Lessons from E-Pharmacy Industry Success
9:34 - Outro
Along with level of trust, inventory management is also very important here. Since this is an industry where the first thing customer notices is the "expiry date" hence optimal inventory management while ensuring stock sufficiency is also pivotal.
Level of trust is an important factor here. Once rural population gets adapted with these app based systems, these companies can see a huge profit.
Thanks for this enlightening video and this series of cases you present. Thanks alot
Very informative and gripping
Thank you so much!
Very informative, tysm for making the video
Adding fun fact - Very rarely it is seen that startup acquires listed company in this sector NetMeds acquired 66% stake in Thyrocare
Excellent analysis
Thanks a lot
Very well summarised analysis. Short and Crisp! Thank you!!
You're very welcome!
In times ahead these apps can also sell health insurance.
Good point!
Online pharmacy challenges: customer has to buy a full strip of tablet even if he/she requires only one or two tabs.
Second, in case doctor changes the prescription, return or exchange is a problem. In case of returns, companies will face a loss.
This is where omni channel players have the opportunity. @pavan, looking forward to your views
Hi Pavan, Can I conclude, In the coming day's Organized players will eat a lot of share from unorganized players? Rich will get richer?
Yes Tarun. Because, customers also like better discounts and trust. Which can come with scale!