The pharmaceuticals retail space has witnessed significant innovation ever since the inception of e-pharmacies in the region. With increased internet penetration, smartphone availability, and a shift in consumer preferences this space is likely to witness significant growth over the coming years. Accelerated by COVID in 2020, the sheer convenience of doorstep delivery and availability of genuine and authorized drugs at the click of the consumers’ fingertips make this a promising market in the upcoming years.

Insight 1 – Discounts offered remain a strong driver for online ordering: Among the various value-adding factors of using e-pharmacies such as convenience, availability of products, guided consultation, the authenticity of products, and many others, a study among participants of regular e-pharmacy users revealed that ~ 60% users reported discounts as key deciding criteria when it came to purchasing medicines online.

Insight 2 – Impact of reducing discount varies across customer segments: While the study revealed that discounts was the number one ranked key purchase criteria, it also revealed that 45% of customers would continue to buy online even if the discounts were reduced and that 37% of the participants would reduce purchase spends by only 20%.  This retention rate was significantly observed in the age bracket between 41-50 years attributable to reasons such as change in consumer preferences, increased inclination towards convenience and decreased price sensitivity.

Insight 3 – Online pharmacies had higher NPS as compared to traditional pharmacies: Among various players in the retail pharma space such as local pharmacies, larger pharma chains, and pharmacies adjoining hospitals, it was noted that online pharmacies had the highest Net Promoter Score (NPS) of roughly 74%. Net promoter scores above 70 are indicative that marketplaces have a great relationship with their existing customer.

Insight 4 – Offline pharmacies to remain relevant in the future to fulfil immediate requirements: The participants ranked ‘immediate requirements’ as their top reason for purchasing offline. The study also revealed that the flexibility to order 24/7 which also alluded to fulfil immediate requirements at any point in time, was ranked second for offline purchases of medicines.

Insights summarized:

• Discounts on medicines was ranked as the top criteria for purchasing medicines online. ~60% of consumers claimed that discounts were their key purchasing criteria
• 45% of consumers will continue to buy medicines online regardless of discounts, the most retention was amongst consumers of 41-50 years of age
• Online pharmacies had an NPS (Net promoter score) of 74% indicative of healthy relationships with the consumer
• The highest ranked criteria for offline purchases of medicines were for urgent/immediate consumption, followed by the flexibility to order 24/7 – gaps that are yet to be addressed by online pharmacies