Tech advancements driving growth of ePharmacy sector

TECHNOLOGICAL advancements have played an important role in driving the growth of India's ePharmacy industry, with companies developing several capabilities tailored specifically to the unique needs of the sector, including secure and user-friendly digital flows for prescription validation.

- Our Bureaus, New Delhi, Mumbai

Additionally, supply chain technologies such as temperature-controlled logistics systems have enabled the storage, handling, and timely delivery of sensitive medications, opine experts.

India's ePharmacy industry has grown significantly, achieving an annual growth rate of around 20 per cent over the past five years. Currently valued at approximately $1.4 billion, the market still represents only around five per cent of the overall retail pharmacy sector in the form of organized ePharmacy. Key companies in this space include Tata 1mg, PharmEasy, Netmeds, Apollo 24/7, MedPlus, Flipkart Health+, and Amazon Pharmacy.

With the rising adoption of artificial intelligence, ePharmacies can unlock the potential of their vast customer data to enhance their offerings. Players will be able to drive more personalization, introducing targeted marketing and providing customized health recommendations, ultimately improving customer experience and deepening engagement, according to Prashant Tandon, CEO and co-founder of Tata 1 mg.

There are several significant trends emerging in the sector, including that companies increasingly integrating pharmacy services with diagnostics and online doctor consultations, seeking to be 'one-stop shops' for their customers' health needs. Another major trend is the adoption of omnichannel strategies, with online-first players establishing physical stores to cater to consumers preferring in-person transactions/needing immediate product access, he added.

Quick commerce is also emerging as a notable trend and its increased penetration is set to further bolster customer experience and drive wider adoption of online pharmacy services, especially for urgent medicine needs. He added that the consumers are now sticking with ePharmacies for reasons much beyond discounting – especially around convenience, comfort, availability, accessibility, etc.