2021 Outlook For Retail Pharmacies In India

Traditional retail pharmacy stores in India have always sold a mix of generic over-the-counter drugs and FMCG products. Such pharmacies have thrived in most local areas across urban metro cities and smaller towns. However, the pandemic has changed the way people live and there has been a shift in preferences; an increasing number of people are now turning to modern pharmacy retail outlets that have a wide range of wellness products in addition to general pharmaceutical products. This shift in market sentiment is also echoed by "The Pharmacy Retail Market in India 2019" report that says that the pharmacy retail market in India is projected to reach INR 2,330.2 billion by 2024. The report also talks about how tough competition from online retailers and organised players is likely to rearrange the Indian pharmacy market.

This shift towards more organised markets has been long-in-the-making and a host of factors have fuelled this shift.

1. Increased awareness towards Wellness and Health:

The approach to health among Indians has seen a marked shift ever since the pandemic; there is now a clear pre-pandemic and post-pandemic phase. Before the pandemic, the approach towards health was all about Sickness, followed by Diagnoses, and then Treatment. However, the pandemic has made sure that people now sit up and take notice of preventive healthcare treatment. To this effect, immunity boosting drinks, foods, and vitamin products have become increasingly popular since the beginning of the pandemic. COVID-19 has thus changed the definition of health to Predict and Prevent.

This increase in demand for better quality healthcare and focus on wellness is now single-handedly driving up the growth of organised retail pharmacy in India. Stress, sedentary lifestyles, and unhealthy food habits are among the most common reasons for the increase in number of patients who suffer from lifestyle-based ailments. Consumers today are thus inclined towards products that can help improve their immunity, manage their sugar, blood pressure, and body weight. Hence, along with prescription based drugs, retail pharmacies are increasingly offering consumers wellness products that help with their general wellbeing. The idea of good health is thus migrating towards wellness and it is definitely aspirational in nature. And pharmacies aim to not just be a drug provider but become trusted wellness partners and advisors.

2. Omni-channel/Hyperlocal presence:

E-pharmacies have been making inroads into the market for the past few years. Essentially, they are technological innovations that offer a patient the benefit of convenience ordering through easy to use apps. However, with the market and customer pool becoming so diverse today, there is a need for pharmacies to offer and ace at all modes of service. This is known as the omni-channel model wherein pharmacies should be adept at offering seamless experiences whether it is in-person, app/website, phone-delivery or any other mode of service. An omni-channel model offers a much more holistic experience than compared to just an e-pharmacy or a local drugstore. Along with adopting an Omni-channel model, retail pharmacies also need to become focal for hyperlocal delivery points and create an ecosystem whereby they house and source all kinds of wellness products, this includes fresh fruit and veggie produce, organic and herbal items, and much more.

3. Need for Skilled Pharmacists:

Pharmacists are expected to become more integral to the healthcare system. Rather than simply dispensing medication, pharmacists will be paid for their cognitive skills. Building trust in a product takes time, personal interaction, and service, and organised pharmacy outlets will move towards building these linkages with their consumers, but this will happen only over a period of time in a gradual manner. Hence, there is a need for skilled pharmacists who will ensure that they help customers curate their healthcare products and focus on holistic wellness.

Increasingly, there is a blurring of lines between the online store and the traditional brick and mortar setup, and it is this convergence that is set to completely reorient the retail pharmacy space in India.

Availability of the right drug at the right time can save lives and the organised pharmacy sector is capable of bringing about much needed change in terms of drug availability. It will also bring about more systematic computerised operations that will enable proper inventory management. Organised retailers can therefore effectively stock and manage a wider range of SKUs (similar kind units). The COVID-19 pandemic has made people realize that healthcare is a real priority and that the organised retail pharmacy spaces can take care of an individual’s holistic wellbeing along with medical needs.