1. Offline to Online pharma models currently play in the ~8-10% organized portion of pharma retail in India

​Indian Pharma Retail Market (FY 20), Market Size, USD Bn

Note: Indian pharma retail estimates are inclusive of imports, 1 USD = 70 INR

The sector is largely dominated by the unorganized retailers, and accounts for almost 90% of the market. However, critical factor to note here is the shift of the Offline market to Online.

2. With Apollo and MedPlus being the leaders

Leading Offline to Online Pharma Players

While Apollo and MedPlus are leading the segment, their online strategic elements have been different. Apollo bets on integrated platforms with additional services such as AI-led COVID tests, Diabetes management and others whereas MedPlus focuses on providing a faster delivery mechanism, pan-India expansion and exclusive partnerships.

3. This omnichannel model has a strong potential to resolve some key consumer need gaps

​Potential to resolve the need gaps (by Pharma models)

Some of the gaps that the players need to resolve are affordability, better customer experience in terms of buying experience, availability of products, emergency needs, access problems and more importantly safety concerns especially after COVID.

4. Therefore, offers a lot of growth potential to players entering into this space

ePharmacy market GMV Estimates, USD Bn

Note: 1 USD = 70 INR; ePharma includes both prescription and OTC medicines sold through online platforms

We believe that these offline to online pharma retail models are well placed to address most of these need gaps as they are able to bring in strengths of both offline and online pharma retail together. And given the huge opportunity size we expect some new players entering and disrupting the space in the coming times.