Query:
I am stock market investor. I want to get in Pharma sector . What are business opportunities available? I am looking at Wholesale Business as possible candidate. Kindly advise how to go about it?
Response:
In pharma sector, there are many business opportunities available like chemist/retail, wholesale/distribution, c&F, pharma marketing company, own marketing at franchise/pcd basis, consultancy etc. You can research about at what type of business you want to go.
For starting wholesale license, you need following documents and formalities to apply. Read here whole process for wholesale/Distributor/Stockist License
In pharmaceutical market, there are different type of wholesaler/Distributors present. Some deals in Branded Drugs, Some deals in generic medicines, few deals in otc segments and some specially work at franchise/pcd basis. Before starting you should research which type of distribution you want to start. Every type has its own advantages and drawbacks. Read about different type of marketing in pharma sector here.
Read What are the drawbacks/advantages of generic/ethical/pcd/Franchise marketing here
Above articles are related to marketing types but these will also help you in understanding distribution level of each type of marketing. Each type of distribution is different to other type. In branded/ethical distribution, you only have to handle distribution and collection of payment. Products are sell out by company’s medical representatives. You have fixed margin i.e. mostly 10%. In generic distribution, you have main role in sale also. Company representative do work but your face value also matters. Generic market is rate based market. You have to play game at rate. How much you can give low the rate, is the main thing of your sale.
For Franchise/Pcd marketing, you should have good knowledge of sale and marketing in pharma sector. But you can do one thing, you can become distributor of marketing persons who don’t have own drug license number and doing own marketing of pcd/franchise company. At that time you can take same percentage of margin as you are getting in branded/ethical distribution. OTC products segment is also good option in pharma distribution.
We recommend you to conduct research which one will be better option for you to start. In wholesale and distribution, you have to invest in both to chemist and in products. Collecting payment from market is key at success in pharmaceutical wholesale market. Multinational companies stockist ship and distribution provide advantage in market. They have good and regular sale.
Search for good companies distribution ship and start at small level. If possible, look for experienced person in pharma sector. Start with Partnership or at commission basis with him. Get tie-up with few pcd/franchise marketing persons also. They also provide good margin. Meet few distributors in your area and understand their method of work.
Hope this article was helpful for you..
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com