The Hindu Business Line : Pharma retailer Fortis to be one-stop shop for health needs

Chennai, Jan. 10 Customer delight is, or should be, one of the chief concerns of those in the retail business, and pharma retail is no different in this aspect. So when your friendly neighbourhood pharma retailer calls to remind you it’s time to fill your prescription again, it means that he’s trying very hard to tell you he’s different from the rest.

Speaking to Business Line, Mr Ashish K. Pandit, CEO of Fortis HealthWorld, which has opened 30 health stores since last April, says the prescription reminder service has been a “huge success” with customers. Customers get an SMS alert or e-mail when it’s time for them to replenish their supply of prescribed medicines, he said.

The greater challenge for pharma retailers in the Indian situation is that consumers are used to brands. Abroad, doctors prescribe or suggest the generic medicine but here, it’s the brand that’s recommended. And there’s quite a bit of resistance to buying another brand if the one recommended is not available, Mr Pandit says, adding that the brand equity of the Fortis name comes in handy when a consumer has to be educated about the other options.

Fortis HealthWorld is promoted by Ranbaxy Laboratories and Fortis Healthcare. The chain of stores is at present confined to North India; the company wants to set up a 100 stores by end-2008. The stores are intended to be one-stop shops for all health-related needs ranging from pharmaceuticals to diagnostic lab to telemedicine to setting up an appointment with the doctor. They also sell drugs prescribed in alternative medicine systems such as homeopathy and Ayurveda as well as some fast-moving health goods and personal care products.

Enough room

Only 3 per cent of the Rs 30,000-crore pharma retail industry is organised, says Mr Pandit, adding that there’s enough room for both the local chemist and corporate-backed stores such as his own to grow. The entry of the likes of Fortis HealthWorld would only spur the local chemists to raise their standards and it would all be to the benefit of the consumer, he says, adding that he doesn’t see this as a conflict between small and big retail.

Fortis HealthWorld has acquired 50,000 loyalty programme members since its launch. The stores range in size from 500 to 3,200 sq ft. About 60 per cent of the product launch is pharmaceutical. The stores are a mix of company-owned ones and franchises, though there are only five of the latter so far, Mr Pandit said.

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