What Are The Challenges & Strategies In Indian E-Pharma Space? A Case Study For MBA Project

Though Online pharmacy is still at a nascent stage in India and a big challenge for online pharmacies is the lack of adequate online pharmacy laws in India but all players in the e-pharma industry in India understand the importance and seriousness of the business, that they are taking care of people’s lives. The industry deals with medicine, it has to be dealt with the utmost accountability and responsibility. However, the government has only government registered e-portals can sell medicines, and they must retain prescriptions and verify details of patients and doctors. It is expected that some clarity in terms of policy and guidelines for operation of licensed e-pharmacies as prescribed under the Drugs and Cosmetic Act of 1940 in the coming months.

Indian e-pharma market

A recent report by EY, ‘E-pharma delivering Healthier Outcomes’ says that the combined market size of Indian e-pharma players is expected to reach $2.7 billion by 2023, up from the current size of $360 million, in the next four years.

Key Growth Drivers for Indian E-pharma Industry are

• Increasing internet penetration and smartphone ownership

• Ease of ordering medications through an ecommerce platform

• Increase in chronic diseases

• Rising per capita income

• Resultant healthcare spend

Nearly 35% of the domestic pharmaceutical market relates to chronic medications and the remaining 65% to acute medicines. Of this, e-pharmacies are expected to target 85% of the chronic market and 40% of the acute medicine market by 2023. Major players in the industry are (i) Netmeds, (ii) Tata 1 mg, (iii) PharmEasy, (iv) Apollo Pharmacy etc. Also a detailed study of the e pharma industry has to be carried out as part of MBA project work.

Advantages of e pharma in India   

Indian e pharma market will bring a change in Indian Pharma market by providing medicines at affordable price and accessible to customers across the country. As a fully licensed pharmacy, the e pharma companies shall be committed to adhere to all the guidelines and standards as prescribed under the Drugs and Cosmetic Act of 1940 as they will not be able to process any order without a prescription, and each should be through stringent verification process by certified pharmacist.

Challenges of e pharma in India

Delivering medicines, particularly to remote areas is a great challenge for the Industry. The basic strategy should be accessibility, affordability and providing quality healthcare across India. Accessibility means being accessible across the nation. By affordability, we mean that the e pharmacy companies are not charging extra, and even rewarding customers with some percentage of discounts. Quality health care means the companies should be providing consumers in non-metros the same quality of medicine and healthcare that people in metro cities enjoy. The challenges can be considered as problem of the MBA project study or why this has been taken as a MBA project.

Strategies for e pharma in India

Most important initiative for the e pharma companies is engagement and educating the consumers. A challenge that the industry faced was getting consumers to upload valid prescriptions, as many Indians continue using old prescriptions or even buy medicines without one. There are rules about what makes a prescription valid, and thus the companies should have adequate number of videos to showcase and educate consumers about it. They should have all initiatives for changing the consumer mind-set and behaviour, as purchasing medicine offline and online is different. To educate consumers about this, short videos should be made, and content marketing should become an important part of the e pharma companies’ marketing plans.

The content should be divided into three verticals. The first vertical should be information about medicines, wherein an epharma company should posts informative short videos about various medicines such as their side-effects etc. The second vertical are to be curated content for general health and chronic conditions. Depending on the customer’s condition, curated contents are to be sent to them, so that a consumer with diabetes is sent curated content on diabetes while one who suffers with hypertension, gets the relevant content. Content are to be curated and this content is meant for the consumer base, to educate them and take care of them in terms of their health and wellness. There should be social media efforts who should be focussed on engaging with consumers.

Conclusion

In addition to medicines, the online Pharmacies should also sell homeopathic and ayurvedic products and even non-prescription health, wellness and personal care products. They should act as one-stop “health and wellness” platform. Should also launch services like online consultation with doctors’ and online lab testing soon, where customers can book appointments for lab facilities online.

A detailed study on challenges & strategies in Indian e-pharma space can be carried out as part of MBA project work under strategic management to know the challenges in Indian e pharma industry and how to address them through a sound marketing strategy by individual player and how to become successful in the e pharmacy space. Dedicated faculty of madembaezy can help student during the MBA project study and to find a subject, select a topic, find an organization for the MBA project work and plan the MBA project and will act as a liaison between the student and the host organization.