As
the retail boom sweeps across India, shopping habits of the average urban Indian have started undergoing a sea change. But, when it comes to purchasing a drug, our own crowded neighbourhood pharmaceutical stores continue to enjoy dominance over organised drug stores led by Apollo pharmacy, Fortis Healthcare, et al. However, as the buzz around the possible entry of corporate majors, including Walmart and ADAG into Indian drug retailing space gets louder, conventional wisdom is being challenged yet again.And rather then making a hue and cry over things later – as neighbourhood grocery stores are doing against Reliance Fresh stores now – the drug retail bodies across India are prudently planning a line of attack in advance. The drug retailing associations have not only started shaping themselves into corporate entities, but have also initiated talks with both global and domestic pharma majors for entering into exclusive supply deals. “We are in preliminary stages of negotiations with global giants like Pfizer, Sanofi-Aventis and Indian majors like Wockhardt, Alkem and Lupin for exclusive marketing and distribution tie-ups,” AN Mohan, President of India’s largest drug retailing body - AIOCD told 4Ps B&M. Needless to say that associations in states like Maharashtra, Kerala, Orissa, Rajasthan and West Bengal are following suit.
Then again, as opposed to the swanky, new entrants, the erstwhile unorganised segment has a more holistic understanding of Indian market, and could therefore enjoy an upper hand. But, it cannot be discounted that these smaller players will have a hard time fighting the brand name and the sheer economies of scale that multinational giants like Wal-Mart may eventually come to enjoy.
Edit bureau: Manish K Pandey
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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