Leadpreneur's
Success Story of NetMeds...
India ki Pharmacy!
About Netmeds Pharmacy:
Netmeds, an online pharmacy, is a popular destination for all your healthcare needs in India.
Whether you're looking for prescription medicines, over-the-counter pharmaceuticals, general healthcare products, or traditional Ayurvedic and homeopathic medicines, Netmeds has got you covered.
With delivery facilities spanning across India, you can expect timely delivery of your orders.
What's more, Netmeds is a subsidiary of Dadha & Company, a trusted pharmacy brand with over a century of experience in dispensing high-quality medicines.
It's interesting to note that Netmeds' parent company is Reliance Industries.
Founder, Founding Year, and Headquarters of Netmeds Pharmacy:
Netmeds was established by the visionary entrepreneur Pradeep Dadha back in 2010, with its headquarters situated in the vibrant city of Chennai.
Product Marketing Countries of Netmeds Pharmacy:
India
Business Model of Netmeds Pharmacy:
Netmeds Pharmacy has an intriguing business model that encompasses both B2C and B2B
approaches. This interesting blend allows them to cater to a diverse range of customers,
providing them with the best possible service.
Lead investors of Netmeds Pharmacy:
It is interesting to note that Netmeds Pharmacy's lead investors comprise six institutional
investors, namely Orbimed, Daun Penh Cambodia Group, and MAPE, among others.
Interestingly, unlike many other startups, Netmeds.com has not received any funding from Angel Investors.
Growth of Netmeds Pharmacy:
Netmeds has emerged as a leading name in the online pharmacy segment, which has achieved some remarkable growth milestones. With over 3,000,000 patients across India and serving 19,000+ pin codes, Netmeds India provides prescription medicines and healthcare products.
Since its inception, the company has witnessed double-digit growth rates month-on-month, and in FY 2018, its revenue grew 2.5 times. The impressive growth continued in 2018, with a turnover of INR 10.05 crores, up from INR 3.94 crores in 2017.
Netmeds has around 35,000 stock-keeping units (SKUs) available across various tier-2 and tier-3 Indian cities. The company boasts eight fulfillment centers in Chennai, Bengaluru, Hyderabad, Delhi, Pune, Ahmedabad, Raipur, and Kochi, and currently operates from 13 warehouses.
To further expand its reach, Netmeds plans to set up warehouses in 16 metro and non-metro cities through tie-ups. The company's focus is on building its infrastructure to enhance overall efficiency.
Marketing Strategies of Netmeds Pharmacy:
Netmeds Pharmacy has a unique marketing philosophy that focuses on taking care of India's health. Their motto, "India Ka Khayal Rakhe, India Ki Pharmacy," emphasizes their core values of accessibility, affordability, and quality healthcare. They strive to provide the same level of healthcare to consumers in non-metro cities as those in metro cities.
Netmeds' marketing strategies have made it a household name with a large customer base. Their multi-crore advertising campaigns on TV, digital, and print media have been successful in gaining attention. In its early days, the company launched a TV commercial featuring actors Krushna Abhishek and Sudesh Lehri.
Moreover, Netmeds has signed MS Dhoni as its brand ambassador. The commercial featuring Dhoni has been highly successful and has garnered more than 34 million views to date. These insightful and interesting marketing strategies have helped Netmeds Pharmacy become a leader in the healthcare industry.
Technologies used by Netmeds Pharmacy:
Netmeds has implemented innovative technologies like Robotic Process Automation (RPA),
Machine Learning (ML), and Artificial Intelligence (AI) to enhance its operational efficiency.
For instance, RPA is used to update its product catalog by matching supplier data with its
inventory, allowing the company to quickly identify new products, changes in prices, and pack sizes. This process which could take weeks is now completed in no time.
According to Advait Suhas Pandit Director & CTO of Netmeds, these technologies have enabled Netmeds to reach markets that its competitors cannot. With over one lakh pharma products inthe market and varying prices and pack sizes, Netmeds' catalog and prices must be up-to-date to truly function as a pan-India pharmacy.
Additionally, the company uses AI to predict demand and procurement requirements by pin code and match them to the respective warehouse. These forecasts are generated based on historical sales data, product type, season, and marketing efforts. This AI-driven approach has helped Netmeds streamline its operations and improve its overall performance.
Future of Netmeds Pharmacy:
Reliance Retail's subsidiary, Netmeds, has made a significant move by entering the standalone pharmacy store market, which is worth Rs 2-lakh crore in India. Netmeds has been primarily focused on online sales and deliveries of medicines until now. However, the recent announcement of Reliance Retail's plan to open over 2,000 standalone pharmacy stores within a year will intensify competition in the market. The move comes soon after the discount supermarket chain Dmart announced its plans to set up pharmacies in its stores.
The majority of India's retail pharmacies are small, independent businesses, and concentrated in metropolitan and tier-1, -2 cities. E-pharmacies like Netmeds and Tata 1mg, along with biggies like Apollo and e-commerce platforms like Amazon and Flipkart Health+, pose serious competition for brick-and-mortar pharmacies. In response, e-pharmacies are experimenting with offline stores for an omnichannel experience.
Reliance Retail currently operates around 1,000 shop-in-shop pharma stores across Reliance Smart Bazaar in cities and Smart Point stores in towns and villages. The company plans to expand into alternative medicine categories such as Ayurveda, Unani, and Homeopathy. This move will help Reliance strengthen its omnichannel play and last-mile delivery, experts added. With the pandemic-related lockdowns, most FMCG and pharma companies and e-commerce platforms have ramped up their digital play. Interestingly, With only a small percentage of the Indian population ordering medicines online, this move will widen the customer base.