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E-Pharma vs Offline Pharmacy : Which Segment To Invest In?

19 October, 2020 Ritika Bajpai


The pharmacy (Drug-store) business has come out as one of the most money-making pieces/parts in the healthcare industry. Manufacturing experts believe that India is soon becoming one of the top ten countries in terms of individual medical expenses. Medicine payout in India is projected to grow 10 to 12 percent over the next five years.

Therefore, given the projected growth, promising future, and (money made/good things received), everyone wants a slice of the pie. However, the two-headed problem happens while deciding the medium of transportable into the Online Medical Store business. The drug-based part/section has mostly been an unorganized market with a maximum number of independent businesses. Now and Also, with the coming into view of (buying things online) and increased perforation of the internet, another branch of pharmacy has changed (and get better) - E-pharmacy.

With different formats available to the (person or business who gives money to help start a business), it might get (overloading and surrounding with too much of something) to narrow down on one part/section to invest their money in. But worry not; we have written down both the pros and cons of e-pharmacy and the offline business to help you make a smart choice (based on learning things) before investing.

Facility Of Merchandising

Beginning and building on an online pharmacy in India is a difficult/scary job because of the laws connected with it. The owner will need to buy plenty of medical insurance in the case of a (related to something you owe) claim. and those numbers will likely increase due to the still somewhat uncontrolled online healthcare space.

To one side of this, you will have to pay for a website developer, courier service, advertisement, etc. So, the first investment maybe 70 lakhs. Also, the law only allows selling certain drugs online without a prescription. You have to go through every small detail and then talk to your Advocate before you start a supply (store).

On OTOH, the offline pharmacy offers you the ease of setting up a business. With the franchising model rising in every part/area, pharmacy franchises are newly appearing as the most preferred option. which includes licensing and (paperwork that proves or supports something). Also, most of the franchisors take care of the marketing and advertising, sparing you from that expense.

Surplus Margin

The (how much money is being made) in offline pharmacies usually ranges between 15-26% for called/labeled medicines, which may go up to 40-50% in the case of plain and common things/not brand-name drugs. Even with offering 12-80% discounts to attract customers, franchisors secure/make sure that they're (companies permitted to do business under a bigger business' name) gain more than 15% margin.

On the other hand, cash burn in the e-pharma industry is a common problem because the discounts (up to 35% for some) go beyond the margins in the chain (about 30-32%). While the race to scale up needs/demands greater adoption and discounts which are an important part of growth, a money-making state cannot be (accomplished or gained with effort) only by operational (wasting very little while working or producing something) and lowering of delivery costs; discounts have to come down to reasonable levels to (accomplish or gain with effort) breakeven and any meaningful a money-making state.

Person (who uses a product or service) Acceptance

This is the major reason why offline pharmacies are flourishing. they improper have the cadence to wait 3-4 days for their order to get delivered. People (who use a product or service) mostly prefer offline stores due to its hand-to-hand delivery of medicines and believability, also a respectable brand name adds a (praise and approval you got from someone) for offline pharmacies.


Increasing downloads of the mobile computer programs, certain challenges like trust shortage (arising from the fear of receiving (make fake money or goods) medicines), customer support issues (linked to appropriately-timed delivery and quick (correct or make up for things that happened in the past that were mean or unfair)al), language (something that blocks or stops something) (lack of mobile apps in (related to a large area) languages), access (unable to reach remote parts of cities) and data privacy (especially with health records and prescriptions) remain in the online space. Online Medicine  App in India have to depend on new and interesting digital marketing (success plans/ways of reaching goals) to increase their customer base, user engagement, and transactions/user.