Business Plan To Start An Online Pharmacy Business · The online pharmacy sector in India has led...
Transcript of Business Plan To Start An Online Pharmacy Business · The online pharmacy sector in India has led...
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E-PHARMACY SECTOR IN INDIA
KINDS OF EPHARMACY BUSINESSES
COMPETITOR ANALYSIS
LAWS APPLICABLE
MANDATORY CONDITIONS APPLICABLE
PROCESS TO START AN ONLINE PHARMACY BUSINESS
MARKET SEGMENTATION
BUSINESS MODEL
RISKS INVOLVED
FINANCIAL PREDICTIONS
SUMMARY OF TOPICS
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E-PHARMACY SECTOR IN INDIA
e-Pharmacies in India are online pharmaceutical platforms which enable customers
to purchase medicines, health supplements, nutraceuticals, etc. online without the
need to visit the physical chemist shops or pharmacies.
The online pharmacy sector in India has led to an increase in medicine deliveries,
especially for the elderly customers who have found ease of access and
convenience of getting their medicines delivered at their doorsteps.
The penetration of e-pharma sector in India has been primarily in the urban and
metro regions, and leaves scope for new players to expand to the Tier 2, 3 and 4
markets in the country.
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Third largest Pharmaceutical market in terms of volume.
Thirteenth largest Pharmaceutical market in terms of value.
Technology-powered secure way to get medicines delivered.
High discounts and lower prices than the local chemists.
INDIAN E-PHARMA SECTOR AT A GLANCE
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Increase in Health insurance access
Government Schemes such as National Health Protection Scheme
100% Foreign Direct Investment (FDI) policy in medical devices
manufacturing businesses.
Increased Spending on medicines by Indian households.
Changing and Growing patterns of diseases.
FACTORS THAT HAVE CONTRIBUTED TO THE GROWTH OF
E-PHARMA SECTOR
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STRENGTHS
High Profitability and Revenue
New Technological Innovation
Quicker Shopping
Lower Maintenance Cost
WEAKNESSES
Lack of Awareness
Multiple checks required to sell online
Shipping and delivery restrictions
THREATS Legal and Regulatory changes
Technology threats and breaches
Chance of Drug Abuse by customers
OPPORTUNITIES
Less Competitive Market
High Market Demand
100% FDI
Easy availability of products
S.W.O.T. ANALYSIS OF THE E-PHARMACY SECTOR IN INDIA
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MARKET SHARE
512
3657
2018 2022
E-Pharmacy Market In India in
US$ Millions
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KINDS OF e-PHARMACY
BUSINESSES
INVENTORY BASEDMARKETPLACE
BASED
HYBRID
MARKETPLACE
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1MG
Launched in 2014
Marketplace-based model
Deals in non-prescription, over the
counter and wellness products,
diagnostic tests PAN-India.
MEDLIFE
Launched in 2014
Inventory based model
Provides online doctor consultation,
laboratory tests, generics and
ayurvedic brand PAN-India.
PHARMEASY
Launched in 2015
Marketplace-based model
Has features like medicine reminders,
subscription-based medicine refills,
online doctor consultation, sample
collection, etc.
NETMEDS
Launched in 2012
Inventory based model
Provides diagnostic and telemedicine
services along with delivery of drugs
and medicines.
COMPETITOR ANALYSIS
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LAWS APPLICABLE
• Drugs and Cosmetics Act, 1940
• Drugs and Cosmetics, Rules 1945
• Pharmacy Act, 1948
• Information Technology Act, 2000
• Narcotic Drugs and Psychotropic Substances
Act, 1985
• Drugs and Magic Remedies (Objectionable
Advertisement) Act, 1954
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There must be a pharmacist and registered chemist on the
Board.
The drug prescriptions must be valid for accepting orders
The bills must be signed by a registered pharmacist or chemist.
All drug orders must be monitored by a registered pharmacist
Drugs must be sent from a chemist with a retail drug license in
case of marketplace model.
MANDATORY CONDITIONS APPLICABLE
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PROCESS TO START AN ONLINE
PHARMACY BUSINESS
Business
Registration
FDA License
FSSAI License
Additional
Government
Licenses and
Permits
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State Drug License
FDA License for retail sale of drugs
within the premises of the state for
which the license is granted
Business Registration
Basic business incorporation as:
1. Private Limited Company
2. Limited Liability Partnership
3. One Person Company
4. Sole Proprietorship
5. Partnership Firm
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Food Safety & Standards
Authority of India
(FSSAI)License
License from FSSAI to sell food-related
items such as wellness products,
nutraceuticals, etc.
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Shop and
Establishment
Certificate
Trademark
Warehousing LicenseGST Registration
ADDITIONAL LICENSES AND REGISTRATIONS
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MARKET SEGMENTATION
45% Consumers
prefer online
mode in urban
and metro
regions
People aged 35-
74 years
purchase
medicines online
200 Million+
online users
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OVER-THE-COUNTER
DRUGS
BEAUTY AND WELLNESS
PRODUCTS DIAGNOSTIC TESTS
PRESCRIPTION MEDICINES
PRODUCTS AND SERVICES
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REVENUE MODEL
Margin between buying
prices and MRP when drugs
are purchased in bulk.
Sponsored Advertisements
on the web or mobile based
store.
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BUSINESS MODEL
For an e-pharmacy business, a digital
presence is a must. There are 3 kinds of
business models for an e-pharmacy business
in India.
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The business stocks its own inventory from
different brands and sells it online. No third
party or middleman is involved.
INVENTORY BASED
BUSINESS MODEL
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The digital platforms are simply an avenue
for customers to buy medicines from local
chemists.
100% FDI Allowed
MARKETPLACE
BUSINESS MODEL
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When brick-and-mortar stores take their
reach to digital channels and work on an
offline as well as online mode.
HYBRID BUSINESS
MODEL
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ONLINE CHANNELS
Paid Advertisements
Social Media Channels
Discounts
Sponsored Company Ads
OFFLINE CHANNELS
Radio/TV Promotions
Newspaper/Magazine Ads
Billboards
Ads at local vendor shops in case of
Marketplace Model
MARKETING PLAN
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FIRST
Customer visits the
Mobile/Web based App
THIRD
Prescription of the doctor
uploaded
SECOND
Medicine search
FOURTH
Payment and Delivery
OPERATIONAL PROCESS
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Customer
Mobile/Web
Based
Platform
Licensed
Pharmacy
INVENTORY BASED
OPERATIONAL PROCESS
Customer
Marketplace
digital
platform
Pharmacy 1
Pharmacy 2
Pharmacy 3
HYBRID
OPERATIONAL PROCESS
Customer
Mobile/Web
Based
Platform
Brick-and-
mortal
Pharmacy
MARKETPLACE BASED
OPERATIONAL PROCESS
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VENDOR TIE-UPS
Finding the right local pharmacies that can supply the products to the business.
LOGISTICS
Affiliating with logistics services provider or managing shipping and deliveries itself.
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TECHNOLOGY STRUCTURE
Backend and
Frontend
Backend stack to
develop the admin panel
(and seller panel), and
the store’s catalogue.
Frontend stack to
develop the face of the
platform
eCommerce
platforms
Choose an ecommerce
platform to start your
online store, such as
Magento, Shopify, etc.
Web Hosting
Web Hosting enables
you to connect to your
audience, for a large
platform, Dedicated
hosting is preferred over
Shared Hosting
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HR PLANNING
FoundersChief
Officers
Technology
Sales
Accounts
Marketing
Logistics
Pharmacists
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An online healthcare business that deals in pharmaceuticals is vulnerable
to an endless list of threats that can hinder its operations and lead to
legal hassles for the business. Understanding the major risks involved in
an online pharmacy business is, therefore, the key to plan ahead and
mitigate such risks.
RISKS INVOLVED
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MEDICATION MISTAKES
COUNTERFEIT MEDICINESWEBSITE OR ACCOUNT
HACKING
POTENTIAL DRUG ABUSE
BY BUYER
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FINANCIAL PREDICTIONS
CAGR of
17.7% by
2023
5-15% Total
Pharmacy
Market
Penetration
512 Million
Users by
2025
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