Competitor analysis: PharmEasy
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Assignment: Competitor Edit Master text styles Analysis
Name: Avi Tankaria
Industry: Online Medicine
Product Management August 2021 Batch (Cohort-18) Email: avitankaria@gmail.com 8/29/2021
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Online pharma market in India • Online Pharmacy or e-pharmacy operates over the internet where customers can order medicines and healthcare products online and get them delivered at their home within a short period of time without having to go anywhere.
• E-Pharma market in India is at a very nascent stage and slowly gaining attention in the e-commerce space mostly dominated by fashion and electronics. • According to Frost & Sullivan, the e-pharmacy market in India is estimated to grow at an exponential CAGR of 63% and reach $3.6 bn by 2022 from the current $512 million market (2018). [1] • Moreover, according to NetMeds, the e-pharmacy presently accounts for ~1.5-2% of the total pharma sale and by looking at the rapid growth that the industry is seeing today the penetration level can go to over 10% by 2023. [1]
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Major players in the online medicine space [2] ➢ ➢
➢ ➢ ➢
➢
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PharmEasy and Medlife (latter acquired by PharmEasy) Netmeds 1mg Practo Apollo Pharmacy Amazon Pharmacy
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Introduction: PharmEasy [3] PharmEasy is a health tech start-up founded in 2015. Offering services such as home diagnosis and testing, medicines, free consultation and guidance, health and wellness supplements, laboratory equipment’s and healthcare related equipment’s.
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Overview: PharmEasy [4] Company Ethos
A health tech company
Core Team and LinkedIn Profile
1. Dharmil Sheth (CEO and co-founder) https://in.linkedin.com/in/dharmilsheth
2. Mikhil Inani (co-founder) https://in.linkedin.com/in/mikhil-innani
3. Dr. Dhaval Shah (co-founder) https://in.linkedin.com/in/dr-dhaval-shah68783947
Headquarters
Lal Bahadur Shastri Marg, Mumbai, India
Revenue/Turnover
Rs. 637 crores (FY 20)
Net Worth/ Valuation
$ 1.8 Billion (June 2021)
Total Funding
$ 671.5 million
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Continued…
[4]
Target Segment Parent Organization Available Channels
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People who have mobile phones and access to Internet. API Holdings Private Limited Website (https://pharmeasy.in) Android and iOS application.
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Aim [5] Along with technological innovations in the health care sector PharmEasy aims to •
Making the industry data driven by providing doctors and patients the most accurate information to make decisions.
•
Making healthcare a universal right by making it quantum's cheaper and accessible. Constructing a feedback loop for pharma companies enabling them to make better drugs to combat diseases like never before. Eradicating fake medicines which contribute 30% of drug volume in India. Reducing drug dependency and drug abuse.
• • •
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Competitors of PharmEasy Business Model
Direct
Indirect
E- Market place
Netmeds, 1mg
Physical medical stores
Healthcare products seller
Amazon Pantry, Flipkart Zeno Health Pharmacy Grocery, Grofers, etc.
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Overview: Netmeds (Direct Competitor of PharmEasy) ❑ Netmeds: Acquired by Reliance Retail for Rs. 6.2 Billion on August 18, 2020. ▪
One of the largest players in the Indian e-pharmacy market.
▪
Pradeep Dadha is the Founder and CEO of Netmeds
Pradeep Dadha LinkedIn Profile: https://in.linkedin.com/in/pradeepdadha ❑ Major Companies under Reliance Retail include ▪ Reliance Fresh, Reliance Smart, Reliance Jewels, Reliance Digital, Reliance Trends, AJIO, Hamleys, etc. ❑ Goal “To make medicines affordable and accessible to every Indian, and to reach even the most outlying corners of the country. Setting up fulfilment centres in Tier II cities help us achieve that objective.” [6] ▪
❑ Available Channels: Website(netmeds.com), Mobile apps (Android and iOS) 8/29/2021
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PharmEasy VS Netmeds Order Online
Medicines
Health Care Products
Diagnostic Tests
Surgical Products and Equipments
Beauty and Wellness products
COVID Essentials
Payment Modes
Pharmeasy
Yes
Allopathy, Homeopathy, Unani and Ayurvedic
Yes
Yes
Yes
Yes
Yes
Cash on delivery and Online Payment.
Netmeds
Yes
Allopathy, Homeopathy, Unani and Ayurvedic
Yes
Yes
Yes
Yes
Yes
Cash on delivery and Online Payment.
Source of table content: pharmeasy.in and netmeds.com
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Company Backgrounds: PharmEasy and NetMeds [7] Pharmeasy
Netmeds
Founder/s
Dharmil Sheth : Co-founder Dr. Dhaval Shah : CEO and Co-founder Mikhil Innani : Co-founder
Pradeep Dadha: Founder and CEO
Company Ethos
E-commerce, a health tech company
E-commerce, a health tech company
Goals Founded Headquarters Parent Company Legal Name
Products 8/29/2021
To make and affordable healthcare accessible to To make medicines affordable and accessible to one and all most outlying corners of the India. 2015 2010 Mumbai, Maharashtra, India
Chennai, Tamil Nadu, India
API Holdings Private Limited Axelia Solutions Private Limited Medicines, health care and wellness products, beauty products, surgical products, diagnostics, doctors consultation, sample collection
Reliance Retail Netmeds Marketplace limited Medicines, health care and wellness products, beauty products, surgical products, diagnostics, doctors consultation, sample collection 12
Continued… Pharmeasy Revenue
Rs. 637 crore (FY-2020) [8]
Netmeds Rs. 7.7 crore (FY-2020) [9]
No. of 501-1000 Employees Total Funding $ 1.2 Billion
501-1000
No. of Investors33 (Series F)
4 (Series C)
Acquisitions
Thyrocare Technologies Pvt. Ltd. and Medlife
Kivihealth, JustDoc and Pluss App
Marketing Campaign
Take it easy Pharmeasy
India ki Pharmacy (English Transalation: India’s Pharmacy)
$ 99 Million
Target Market People from all age groups who own a mobile or People from all age groups who own a mobile or a computer and have internet connectivity a computer and have internet connectivity
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Business model comparison: PharmEasy and Netmeds PharmEasy
Netmeds
Business Model • B2C model offering doorstep delivery of the products ordered online. [10]
• B2C model offering doorstep delivery of the products ordered online. • Currently evaluating B2B model where medicines offered to pharma businesses will be at wholesale prices. [11]
Franchise and partnership
Yes
Yes
Value Added Services
• Blogs • Medicine subscription • Medicine information with dosage and side effects • Q&A Section answered by doctors • Recommendation of cheaper medicines with same composition.
• Blogs • Medicine subscription • Medicine information with dosage and side effects • Q&A Section answered by doctors • Recommendation of cheaper medicines with same composition. • Cost per tablet.
Geographical Area
1000+ cities in India some of them being Mumbai, Pune, Ahmedabad, Kolkata, Delhi, Hyderabad etc.
12 Major cities in India some of them being Mumbai, Pune, Hyderabad, Guwahati, Raipur, Chennai, Kolkata etc.
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Revenue model: PharmEasy and Netmeds PharmEasy
Revenue model
YoY revenue
▪ Advertisements of sponsored products ▪ Commission on products and lab test appointments ▪ Attractive discounts [12] Nearly doubled from Rs. 340 crore in (FY19) to Rs 637 in (FY-20) [12]
Netmeds
▪ Advertisement of sponsored products ▪ Commission on products and lab test appointments ▪ Attractive discounts ▪ Shipping charges [11] Revenue fell 44% from Rs. 13.93 crore (FY19) to Rs. 7.7 crore (FY-20) [13]
Average orders per day 3000 Average delivery 22 Hours time
Approx. 1000 (Based on lower geographical area covered) Approximately 24 hours
Average order value
Approximately Rs. 1000 ( Since, delivery changers are nil if order value is Rs. 1000)
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Approximately Rs. 1000
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Shift in business model : Netmeds ❖ Netmeds founded by Pradeep Dadha of Dadha Group of Companies, which has over 100 years of experience in dispensing quality medicines in India.
❖ Pradeep Dadha set up company’s retail internet pharmacy seeing the rising tide of internet users in India. ❖ The company along with entering in e-pharma market and competing neck to neck with its competitors has also started offering lab tests at heavy discounted rates as almost all the e-pharma companies are doing so. ❖ Netmeds has tied up with various payment wallets and apps to provide exciting offers and coupons to their customers on every purchase. ❖ Netmeds also plans to enter the B2B market soon. It will provide medicines and healthcare products at wholesale rates to pharma businesses as none of the e-pharma players are currently offering services to B2B market.
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Strengths and Weakness Pharmeasy Strengths PharmEasy serves larger geographical area of the country.
Netmeds Weakness
Weakness
Search Engine Optimization Score is 83/100 [14]
Netmeds serves a smaller geographical area of the country.
Aggressive marketing strategies Parent Company API Holding have led to increased customer Pvt. Ltd. is much smaller base. 12 mn+ customers. [15] compared to Reliance Retail.
Reliance Retail is a giant in almost every sector, can help Netmeds grow in no time.
Netmeds is still expanding and the customer base is far less than Pharmeasy. 1mn+ customers. [16]
Fighting aggressively with the competition to stay ahead of the game.
PharmEasy has a total operational experience of 6 years.
Netmeds has a total exp. of 100+ years in offline retail and 11years in online retail.
Struggling to take on the competition despite being 5 years olders than PharmEasy.
Has a strong partner and franchise network. [15]
Customer Staisfaction Rating 3% given by Indian Consumer Complaints Forum (www.consumercomplaints.in)
Customer Staisfaction Rating 71% given by Indian Consumer Complaints Forum (www.consumercomplaints.in)
Partner and franchise Network is not as strong as PharmEasy.
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Search Engine Optimization Score is 79/100 [14]
Strengths
[16]
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Pain points of cutomers PharmEasy
Netmeds
Too many promotional emails and messages.
Order confirmed but not delivered.
Money deducted from the account but order not delivered.
Order not confirmed but payment deducted.
Medical test report not shared.
No updates on order status.
Expired medicines delivered.
Delivered wrong product.
Unavailability of medicine.
Misplaced products.
Incomplete and pending diagnostic test reports.
Defective products delivered.
Table content Source: PharmEasy - https://www.consumercomplaints.in/pharmeasy-b115940 Netmeds - https://www.consumercomplaints.in/netmeds-b115778 8/29/2021
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Product details and performance: PharmEasy vs Netmeds PharmEasy
App downloads
Android Playstore: 10 mn+ • Place medicine orders online • Upload prescription • Get medicine information • Book diagnostic tests • Apply for medicine refill and subscription
Android Playstore : 5 mn+ • Buy medicines online - doorstep delivery • Money-saving medicine deals • Consult best doctors online 24X7 • Book lab tests online • Free access to health information • Medicine refill reminders • Track orders
Android Playstore: 4.5/5 Apple App store: 4.4/5
Android Playstore: 4.3/5 Apple App store: 3.8/5
App features App ratings Social Media profile
Facebook: 111k Instagram: 37.6k Android Playstore: No. 1 in Medical Category Apple App Store: Chart No. 29 in Medical Category Rating Category Alexa Ranking(India) No. 548 8/29/2021
Netmeds
Facebook: 265k Instagram: 7338 Android Playstore: No. 3 in Medical Category Apple App Store: Chart No. 117 in Medical Category No. 676 19
Continued… PharmEasy Number of website visits
NetMeds
89573 (Source 58410 (Sourcehttps://www.siteworthtraffic.com/report/pharmhttps://www.siteworthtraffic.com/report/netmeds.co easy.in) m)
Traffic source (Google search) 51% (Source: Alexa Ratings) 64% (Source: Alexa Ratings) Average time spent on website / user 3 minutes 28 seconds (Source: Alexa Ratings) 2 minutes 59 seconds (Source: Alexa Ratings) Average Bounce Rate 51.4% (Source: Alexa Ratings)
55.1% (Source: Alexa Ratings)
Delivery time
24 to 48 hours
24 to 48 hours
Return Policy
0 to 30 days 0 to 30 days App is easy to use and majority of the User feedback includes blend of positive reviews complaints are service related on Android App and negative reviews for the app and same for store. service as well on Android App store.
User Feedback 8/29/2021
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Future initiatives by Netmeds 1. Since, PharmEasy is becoming a giant in the e-pharma space day by day. To compete netmeds should aggressively expand their operations in the country and also concentrate more on increasing their digital presence. 2. Netmeds should take advantage of poor customer service provided by PharmEasy and improve the service provided by them. 3. Along with concentrating on customer acquisition, Netmeds should focus on customer retention as well by using various techniques and strategies used by competitors and adopt some new ones too. 4. Netmeds is planning to enter the B2B vertical along with their current B2C business. This will help them capture the large medicine market of India and be a major part of the pharma eco-system.
5. Along with selling healthcare products they can also provide diet recommendations to existing patients and spread awareness about health and wellness. 8/29/2021
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References •
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TELEVISORY. “Boom in the online pharmacy market in India and the challenges ahead”. TELEVISORY (blog). Date Published on July 29, 2019. https://www.televisory.com/blogs/-/blogs/boom-in-the-online-pharmacymarket-in-india-and-the-challenges-ahead. [1] G-BEEZ. “Top 10 Online Pharmacy stores in India for Buying Medicines on Discount 2021”. Great Buyz (blog). Date Published June 18, 2021. https://www.greatbuyz.com/blog/best-online-pharmacy-stores-india/[2] and Crunchbase Inc. “PharmEasy”. Crunchbase. Accessed on: August 26, 2021. https://www.crunchbase.com/organization/pharm-easy [2] Your Story Media Pvt. Ltd. “PharmEasy”. YourStory. Accessed on: August 26, 2021. https://yourstory.com/companies/pharmeasy/amp [3]
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References Continued... • Purbalee, Dutta. “PharmEasy – Ordering Medicines Online has become a
Child’s Play”. Published on: July 6, 2021. https://startuptalky.com/pharmeasy-successstory/#:~:text=API%20Holdings%20Private%20Limited%20is%20the%20 Parent%20Organisation,its%20revenue%20in%20FY20%20to%20Rs%206 37%20crore. [4] • PharmEasy. About[LinkedIn Page]. LinkedIn. Retrieved August 27, 2021, from https://www.linkedin.com/company/pharmeasy/about/ [5] • Economic Times. “Netmeds to add 12 fulfilment centres across the country by 2020”. Economic Times. Last Updated: May 09, 2019. https://economictimes.indiatimes.com/smallbiz/startups/newsbuzz/netmeds-to-add-12-fulfilment-centres-across-thecountry-by-2020/articleshow/69249290.cms [6] Contd.. 8/29/2021
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References Continued… •
•
•
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Crunchbase Inc. “PharmEasy”. Crunchbase. Accessed on: August 28, 2021. https://www.crunchbase.com/organization/pharm-easy [7] and Crunchbase Inc. “Netmeds”. Crunchbase. Accessed on: August 28, 2021. https://www.crunchbase.com/organization/netmeds-com [7] Purbalee, Dutta. “PharmEasy – Ordering Medicines Online has become a Child’s Play”. Published on: July 6, 2021. https://startuptalky.com/pharmeasysuccessstory/#:~:text=API%20Holdings%20Private%20Limited%20is%20the%20Par ent%20Organisation,its%20revenue%20in%20FY20%20to%20Rs%20637%2 0crore. [8] Tofler. “NETMEDS MARKETPLACE LIMITED”. Tofler and TWS Systems Private Limited. Accessed on: 28th August, 2021. https://www.tofler.in/netmeds-marketplacelimited/company/U51505TN2010PLC077105 [9]
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References Continued… • Purbalee, Dutta. “PharmEasy – Ordering Medicines Online has become a Child’s Play”. Published on: July 6, 2021. https://startuptalky.com/pharmeasysuccess-story/#PharmEasyPharmEasy-BusinessModel [10] • Lakshya, Singh. “Netmeds Leading India’s Online Pharmacy Segment”. Published on: July 15, 2021. https://startuptalky.com/netmeds-success-storyfounder-funding/#netmeds_business_model_revenue_model [11]
• Purbalee, Dutta. “PharmEasy – Ordering Medicines Online has become a Child’s Play”. Published on: July 6, 2021. https://startuptalky.com/pharmeasysuccess-story/#PharmEasyPharmEasy-RevenueModel [12] • Tofler. “NETMEDS MARKETPLACE LIMITED”. Tofler and TWS Systems Private Limited. Accessed on: 28th August, 2021. https://www.tofler.in/netmeds-marketplacelimited/company/U51505TN2010PLC077105 [13]
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References Continued… •
SEO Site Checkup. “Your general SEO Score”. SEO Site Checkup. Accessed on: August 29, 2021. https://seositecheckup.com/seo-audit/pharmeasy.in and SEO Site Checkup. “Your general SEO Score”. SEO Site Checkup. Accessed on: August 29, 2021. https://seositecheckup.com/analysis [14]
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Team Inc 42. “PharmEasy in talks with SoftBank to Raise Funds at $5.6 Bn Valuation”. Inc 42. Published on: July 09, 2021. https://inc42.com/buzz/pharmeasy-in-talks-withsoftbank-to-raise-150-200-mn-at-5-6-bnvaluation/#:~:text=PharmEasy%20has%20a%20customer%20base%20of%2012%20Mn %2B%2C,according%20to%20a%20report%20by%20financial%20daily%20ET. [15]
•
IBEF Research. “NETMED.COM: JUST A CLICK AWAY”. India Brand Equity Foundation. Updated on: Feb, 2020. https://www.ibef.org/research/case-study/netmedcom-just-a-clickaway#:~:text=Netmeds.com%20has%20a%20customer%20base%20of%20nearly%20one ,approximately%20US%24%2015%20billion%20in%20asset%20under%20management. [16]
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