Complaining that intermediaries are to blame for price increases is a classic.

Historically, one of the most important costs, included in the price of a product, has been providing customers with access to it. Your #distribution #logistics. #distribution.

This is what #Amazon is dedicated to, #Amazon, putting its large logistics network at the service of the trade and the consumer (#B2C). In this case the cost reduction to the customer is charged in commissions to the trade. Amazon always wins… if they sell through them.

At the #pharma level this is the business model of #Luda, for example.

What is the risk of this dynamic?

Well yes, that the #manufacturer decides to go directly to the #consumer, skipping the middlemen and lowering the final price.

No more #distributors!

So far the main barrier is the #logistic costs of the #parcel. But, if these can be lowered, who is stopping them?

We already have cases of abandonment of the #pharmacy channel in this way. Years ago, T.LeClerc stopped distributing its #makeup, of the highest quality and price, in the pharmacy in Spain and only sold through its website. Its advantage: expensive and lightweight product. It was more expensive to reach the points of sale in Spain than to distribute their own product from France. They relied future sales on the loyalty for the quality of the product. Or the more current Dyson, which already recommends buying directly from the manufacturer in their #TV spots.

These are cases of what is already here, the #M2C.

Does it affect #pharmacies?

Yes.

Can it be prevented?

No.

It has arrived and our obligation is to adapt the #business to the new circumstances.

We have said many times that the future, fundamental role of a pharmacy should be #advice and #prescription.

It is an essential function, even in #ecommerce. In this world of over-information, if someone comes along, #influencer or not, with #credibility or popularity who says how wonderful a product is and ends up buying it… it is priceless for the manufacturer.

This aspect of the business needs to be enhanced so that pharma remains the channel of choice for the industry to introduce new products and encourage the trial effect… at the very least.

This may lead to greater volatility of product ranges on the shelves and a shortening of the product life curve. This will require you to be up to date with what’s happening in #rrss and will force you to be constantly on the lookout for new products.

Remember, now, the fast fish eats the big fish.

#BeFarmaPro adapting your business to the new market circumstances.

info@befarmapro.com

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