According to the EY report titled E-pharma: Delivering Healthier Outcomes, e-pharma players are expected to attain the combined market size of US$2.7 billion by 2023 from the current US$360 million. The pandemic has played a key role in the increased sales of e-pharma companies as people prefer ordering medicines from the comfort of their homes, now.
Dharmil Sheth, Co-Founder, PharmEasy, says, “We saw an unprecedented surge in demand as soon as the lockdown was announced. The lockdown badly disrupted the traditional supply chain, which is why people chose us, seeking assured fill rates and on-time deliveries.
Though we faced difficulties in terms of operations, we tried to provide the best of services.” There was approximately 2.5 times growth (about 8.8 million) in the number of households using e-pharmacy services in the lockdown period, as per a report, informs Varun Gupta, Convenor, Digital Health Platform & SVP, Medical Affairs, 1mg Technologies.
“There has been a shift in demand towards at-home access to medicines during the pandemic. It is estimated that the e-pharmacy penetration level will reach 1.4 times of its pre-COVID household estimates by FY 25, and approximately tap 70 million households by FY 25,” adds Gupta. MedPlus Life recorded a 50 per cent growth in June and July compared to the same time last year. “The online part of the business constitutes around 20 per cent of our overall business and it grew fast.
In the last two months, growth in sales was recorded 25 per cent more than the sales during the same period last year,” adds Surendra Mantena, Chief Operating Officer, MedPlus Health Services Pvt Ltd. The sales of COVID related products, vitamins and supplements also increased during this period. E-pharmacies is expected to reach US$18.1 billion by 2023 from US$9.3 billion in 2019 at a CAGR of 18.1 per cent.
Apart from the ease of procuring medicines sitting in the comfort of their homes, people are choosing online portals because of the discounted prices and offers. For instance, PharmEasy gives a flat 15 per cent off on medicines and up to 60 per cent off on health products. Sheth says, “We have better fill rates and availability of all medicines. One can easily buy medicines on our website by following a three-step approach — Upload Rx (prescription), confirm medicines either by adding to cart or our pharmacist will call and confirm, and make payment online or at the doorstep.” 1mg Technologies provides the facility to reschedule the delivery.
“We deliver medicines and healthcare services across 22k+ PIN codes and have online in-app returns with dedicated customer support,” adds Gupta. Mantena of MedPlus also feels that the decision where to buy depends mainly on convenience and discounts offered. “We offer 20 per cent discount on prescription medicines and we have continued this offer despite operational challenges and increased manpower cost. Moreover, medicines are standardised and packed products.
The MRP is printed and hence uniform regardless of where you buy from. There is no fear of wrong product selection and you don’t have to touch and feel it before purchasing,” adds Mantena.
MedPlus even has the option of a pharmacist calling the customer, in case of confusion. “If the patient is not sure of what to order, we have the option of just uploading a prescription wherein a pharmacist will call the customer and complete the order,” adds Mantena.
Sellers say that people between 25-35 years of age are ordering medicines, but the medicines ordered are majorly for people who are 45+. Even representation from non-metro cities has increased due to the penetration of e-pharmacy industry.