“Change is the only constant in life “
This statement has a great significance in business when we talk about the long run. No business can sustain itself in the long run if they don’t adapt to the changes around, whether its technology, consumer’s tastes, competition or the social situation.
Netmeds is the perfect example, of how one uses the changes to their benefits. Netmeds is a 100-year-old legacy which started with the name Tamil Nadu Dadha Pharmaceuticals Ltd. In 2010 Pradeep Dadha came up with Netmeds as an extension of their age-old family business. Netmeds is an online hub for all things health whether its medicines, sanitary items, fitness related products, medical devices or personal care products.
India enjoys a nice monopoly in the pharmaceutical industry though there are different countries involved in the industry, India is the greatest supplier of generic drugs. With the growing health concerns pharmaceutical is a growing industry if the attention is focused on the products to treat chronic diseases.
The industry is expected to grow at 22.4% over 2015-20.
Coming to the offline pharmacy, the market is expected to grow at 15% per annum.
The brand aims to make healthcare accessible to all & with the same motives, they are now introducing their offline stores. Where one can easily grab their requirements without any wait. It aims to establish about 1000 stores in the next 5 years.
History Of Netmeds
In 1914 the Dadha Family entered the business of retail & import of pharmaceutical products, with time they also entered the manufacturing sector. In 1972 The firm entered the manufacturing sector & later in 1996 it was merged with Sun Pharma. The group provided with wholesale products in Kerala. In 2010 the brand expanded itself to larger geography through its online portal called Netmeds founded by Pradeep Dadha.
Unique Selling Proposition of Netmeds
100 Years Of Experience
The basic feature that sets the brand apart in the industry is its 100 years of experience in the pharmaceutical & pharmacy industry. The brand has been serving its customer since 1914 & the landmark change in the retail process that took place in 2010 has helped the brand reach a larger audience. With the help of the online platform, the brand has been able to cater to the needs of people in metro cities, tier II cities & tier III cities as well.
It’s been a trusted brand for years due to its quality, affordability & accessibility. The brand ensures quality by seeing that all the products they keep a stock of are from recognized world-class pharmaceuticals which are produced under government supervision. Next, the brand ensures affordability by providing generic substitutes of medicines which have the same salts to cure the illness as the branded counterpart. The brand understands the importance of accessibility & hence is beginning to expanding itself offline as well to reach out better to the immediate demand of their customers.
The brand doesn’t just offer medicines, it also offers ‘over the counter products‘ such as wellness products like diet/fitness products, medical Kit, herbal products, & so on. They also offer products from different manufacturers. SO Customer can make their own choice, instead of being pushed to a decision because of limited product & hence cater to customers’ needs well. They also provide choice concerning the method of treatment like Ayurveda, homoeopathy etc. Also, the brand has a strong distribution system hence ensuring updated stock at all times, along with that they help their franchise owner with stock planning & inventory decisions. So one can expect their stores to offer a large variety too.
Benefits of Owning a NetMeds Franchise in India
By being associated with such a big name in the business, you gain a share of their goodwill i.e. compared to a new pharmacy in the business, you wouldn’t have to struggle much, to prove your standard of quality. In addition to the existing brand name the brand also conducts national marketing campaigns to come in the sight of new future consumers.
Assistance from the Brand
The brand assists its franchise owners with all basic support starting from choosing the location to ensure maximum footfall to inventory planning & stock keeping.
It also provides IT support & marketing.
Through this support, the brand ensures that you work as per their principles & better their goodwill as you enjoy the benefits of it.
Facilitates The Process Of Getting A Loan
The brand is currently in the process of tying up with different banks. To help their franchise owners get business loan comfortably; with the pre-condition being the applicant is eligible for the given amount of loan.
Considering there is no external factor playing its role. We can say that being associated with Netmeds will help you keep your stock game on point, Thanks to their supply chains. The brand currently has 13 warehouses & 35,000 stock keeping units across the tier II & tier III cities along with this it has about 8 fulfillment centers across the major metro cities.
Requirements Of Starting A NetMeds Franchise In India
A minimum of 300 sq. ft. is required to set up a franchise.
The brand pays high emphasis on choosing the location properly, the brand claimed that a location on the ground floor, around the main road of a colony, could expect a footfall around 100 consumers a day.
The brand looks for the following 2 skills in a franchise owner:
- INVESTMENT ABILITY
The brand expects you to be able to invest a minimum of Rs.10 lakh to initiate the franchise. To boost people’s investment capabilities, the brand is actively trying to tie up with banks for business loans.
- ENTREPRENEURIAL SKILLS
In this new venture in business, the brand looks for trustworthy individuals willing to come forward & take the chance without fearing the risks. The brand is looking for people with the skills to uphold a business in the long run.
Regions Of Operation
The brand started in Chennai & has been serving customers all over India for about 5 years through its online portal. Up till now, the brand has served over 30,00,000 customers in more than 14,000 pin codes. The brand now wishes to enter the offline pharmacy sector. Netmeds reason their this “click to brick “move as a way to reach out to people better, by fulfilling their immediate needs, without them having to wait for a single day.
In 2018, the brand opened its first offline store in Nanded, Maharashtra.
Along with the basic assistance, the brand provides the franchise with training in Technology & Operational activities. The brand also trains the franchise about turnkey operation i.e. How to install & setup a product while providing it to the customer. The brand also provides with guidance on licensing & assurance of ongoing compliance.
Pharmacy sector is the one to be least affected by the recession. The demand for Pharmaceutical is almost price inelastic, i.e. demand of medicine isn’t much affected by the price, one may move to a generic subsitute but they’ll still purchase medicine. One can’t postpone that purchase hence making it a somewhat risk-free business in terms of sales.
The image looks a little too rosy right now as this seems like the ideal business to start. Well, I won’t say it’s not but would rather throw some light on how to keep the picture as ideal as it sounds. First & foremost choose the location properly, the business does have a lot of potential if exploited properly. With location, our main focus is to place it around a colony, around a hospital or in a village basically in areas wherein your product is easily accessible. Secondly, make sure you are maintaining proper stock.
This will help you not just fulfill people’s need but also providing them with a choice for them to take the final decision. Now that we’ve talked about how we can work this business well, I’d like to discuss as to how being associated with Netmeds does you good. Currently, the pharmacy sector is somewhat unorganized as there are just individuals into the retail process. Netmeds wishes to unify this sector by adopting the franchise model which shall help you gain an instant name without personally putting much effort into the marketing of your store. Along with that being associated with Netmeds will help you learn from their experience & hence flourish better.