WestCoast Pharma foray’s into online pharmacy store

AHMEDABAD: Ahmedabad-based WestCoast Pharmaceuticals has launched an online pharmacy store, thus foraying into a niche segment of e-commerce.

Drugneed.com is owned by DF Pharmacy Ltd, a part of WestCoast Pharma, and was launched after a year-long pilot project.

Retail experts estimate online retailing to grow at 40%, but feel niche categories will grow faster. “It’s a low cost and high-return venture, provided the strategies are properly chalked out,” says Parth Patel, chief executive officer, of DF Pharmacy, and eldest son of WestCoast chairman Kamlesh Patel.

The company claims to have 5,000-plus products from 18 categories and 1.5 lakh registered users. “We have targeted products by SMEs, those which have demand but do not have access to larger markets,” says Parth Patel. Forty-per cent of the store’s stocks are made by SMEs and 20% are international brands.

Piyush Sinha, the chairperson of Indian Institute of Management-Ahmedabad’s Center for Retail, says specialised e-commerce business has more scope for performance than the general e-commerce business.

Most pharma companies are SMEs, so the margins will be higher, he said, adding, specialised e-commerce can bring together customers having similar requirements.
“Indian online retailing market will grow to 40% on compounding growth rate. Sector focused companies in OTC drugs, fashion, online streaming and other specified consumer driven FMCG companies have better a chance to grow,” says Shobhan Pandya, head-investment banker, Corporate Strategic Allianz Ltd, a merchant banker in Ahmedabad.

Online shopping or ecommerce services are estimated to be at Rs 31,598 crore in India; with travel industry accounting for 76%, says a recent study by Internet Mobile Association Of India (IAMAI).

There are 17.5 million active internet users out of which 13.6 million accesses the net for information and 7.4 million have bought product/services through online shopping. The other popular ecommerce services are from the retail and discount coupons category. However, niche segment like online pharmacy is still a virgin area to be explored by Indian entrepreneurs.