Saturday, April 21, 2007
Healthcare Goes Retail
Chemists Check Competition
By now everyone acknowledges that retail is the flavor of the month, and if any business can go retail, one can be sure it will. I have written about the levels of activity in the healthcare space, with many players setting up retail pharmacy chains, integrated health centers and so on.
But this has to be the most interesting move of them all. The All-India Chemists and Druggists Association (AIOCD) has appointed Ernst and Young, and Accenture to help chemist stores "migrate" from traditional shops to professional stores. Plans are afoot to provide AC storage facilities for drugs, Blood Pressure and routine check up facilities like blood sugar levels, consultation, home delivery etc. The AIOCD is also in talks with leading pathology labs to offer these diagnostic facilities at the chemist stores.
Clearly, this move is prompted by the coming of the big boys into pharma retail. The numbers are mind-boggling. The next few years could see more than 5000 outlets being set up by the new entrants alone (Reliance Retail-4000, Fortis Health World-1000, Dabur-400). Am sure existing players like Apollo, Medicine Shoppe, LifeKen etc will have their own ramp-up plans. Most of these retail chains intend to provide a host of value added medical services such as BP check, blood testing, health related consultancy, home delivery, prescription reminders, membership facilities, NRI schemes and telemedicine.
To counter these, the association has pooled in resources through its members, and one can already see multiple initiatives at the state level (Maharashtra and Kerala). It is estimated that there are around 5.5 lac traditional chemist shops across the country. However, such value added services are likely to be offered only by the larger outlets, typically based in the metros with space of around 200 s.ft.
According to Mr.A.N.Mohan, President of the AIOCD, these steps are being taken to safeguard the interest of the members and shift the conventional age-old pharmacy to a modern, and professional format.
By now everyone acknowledges that retail is the flavor of the month, and if any business can go retail, one can be sure it will. I have written about the levels of activity in the healthcare space, with many players setting up retail pharmacy chains, integrated health centers and so on.
But this has to be the most interesting move of them all. The All-India Chemists and Druggists Association (AIOCD) has appointed Ernst and Young, and Accenture to help chemist stores "migrate" from traditional shops to professional stores. Plans are afoot to provide AC storage facilities for drugs, Blood Pressure and routine check up facilities like blood sugar levels, consultation, home delivery etc. The AIOCD is also in talks with leading pathology labs to offer these diagnostic facilities at the chemist stores.
Clearly, this move is prompted by the coming of the big boys into pharma retail. The numbers are mind-boggling. The next few years could see more than 5000 outlets being set up by the new entrants alone (Reliance Retail-4000, Fortis Health World-1000, Dabur-400). Am sure existing players like Apollo, Medicine Shoppe, LifeKen etc will have their own ramp-up plans. Most of these retail chains intend to provide a host of value added medical services such as BP check, blood testing, health related consultancy, home delivery, prescription reminders, membership facilities, NRI schemes and telemedicine.
To counter these, the association has pooled in resources through its members, and one can already see multiple initiatives at the state level (Maharashtra and Kerala). It is estimated that there are around 5.5 lac traditional chemist shops across the country. However, such value added services are likely to be offered only by the larger outlets, typically based in the metros with space of around 200 s.ft.
According to Mr.A.N.Mohan, President of the AIOCD, these steps are being taken to safeguard the interest of the members and shift the conventional age-old pharmacy to a modern, and professional format.
# posted by Srivathsan @ 9:00 PM 
Comments:
<< Home
Yes, it is interesting how companies like MedPlus are expanding so rapidly. However, what is the word on margins and profitability? I am assuming that they must be operating at a loss at this stage of the game. I have always been surprised as to how much expansion can you have in a margin based sector. However, retail is hot and businesses are able to get soooo much VC and PE money these days.
Anyway, there is a company in Hyderabad called MedEx that has a delivery model for medicines. I was really sick last week, and called many places including Apollo, MedPlus, Subhiksha and some local drug stores, and they did not have my brand of medicines, and the ones that did refused to deliver to me. So I googled around and came across a company called Medex (http://www.medex.in/) and ordered medicines from there, and the service was extraordinary. They stock a wide range of medicines and they delivered promptly. And guess what - I found out that they don't even have a store-front. It is a 100% delivery model. Awesome company!! Here is their number: (040) 40 11 50 11. In this day and age of retail retail and retail, this company is doing something very unique, and their focus on service is the right thing.
Anyway, there is a company in Hyderabad called MedEx that has a delivery model for medicines. I was really sick last week, and called many places including Apollo, MedPlus, Subhiksha and some local drug stores, and they did not have my brand of medicines, and the ones that did refused to deliver to me. So I googled around and came across a company called Medex (http://www.medex.in/) and ordered medicines from there, and the service was extraordinary. They stock a wide range of medicines and they delivered promptly. And guess what - I found out that they don't even have a store-front. It is a 100% delivery model. Awesome company!! Here is their number: (040) 40 11 50 11. In this day and age of retail retail and retail, this company is doing something very unique, and their focus on service is the right thing.
Your blog has interesiting views on the health care sector in INDIA.
How come you are not writng these days?
i like to discuss with you, few issues on this topics,if this blog is still active.
vrkvrk@gmail.com
How come you are not writng these days?
i like to discuss with you, few issues on this topics,if this blog is still active.
vrkvrk@gmail.com
This surgery is needed when the heart valve Replacement does not work properly. A heart valve may not open or it may have problem closing.
Heart Valve Replacement Delhi India
Post a Comment
Heart Valve Replacement Delhi India
<< Home
