14 Mar The Future of Retail Pharmacy: Integrating Daigou Sales
Few industries have seen as much change as the retail pharmacy industry. Healthcare reform, consumer expectations are shifting, pharmacist and technician roles are expanding, technology is improving, the industry is consolidating, and players like Chemist Warehouse are redefining the status quo.
The retail pharmacy industry in Australia is evolving and adapting; looking for ways to stay relevant and to remain commercially viable. The pharmacist is among the most trusted of professionals in the health industry so the retail pharmacy’s need to consider ways to leverage this status. Clearly, Australian consumers are quite happy purchasing everything from infant formula, vitamins/supplements to medical devices in the retail pharmacy. So what opportunities exist for the independent pharmacist grow their business?
Daigou can transform the Pharmacy Business
For some pharmacy’s they have seen the massive opportunity of selling to Daigou – just look to the Regents Park Pharmacy, 20 kilometres from the Sydney CBD whose business is estimated to turn over $300 million annually by selling into the Daigou community. For others, they have established bespoke relationships with Chinese customers who are looking to secure a supply of vitamins or infant formula. But for the vast majority of Australian Pharmacy owners they have yet to understand how to participate.
A pharmacy can sign up to the DaigouSales marketplace simply by using the “Sign Up Now” button on the home page. Then the merchant team will reach out and commence the on-boarding process where your Flagship eStore will be built to include your brand banner, logo and information. Importantly, you need to select a products that are in demand (maximum of 20 SKU’s) and set pricing at a level that competes with alternative locations. Daigou look for well-known brands as their buyers in China are requesting them to purchase and in China their knowledge is limited to the category leaders. That said, you can also introduce emerging brands to the Daigou as they can act as ‘brand advocates’ and are commonly recommending products that they find interesting to their networks back in China.
Your Flagship eStore is Open; Now What?
It is important to note that this is your eStore – it just happens to be run and operated by DaigouSales. Therefore, you need to incorporate your D2C (Daigou-to-Consumer) channel into your retail B2C business. On a practical level, you can print out your eStore QR code (which is viewed via WeChat) and provide to your Chinese Daigou buyers when they are looking to buy. This allows you to provide them with stock from the warehouse and not from the shelves where your other customers maybe looking to buy these same items. Furthermore, through your eStore you can offer your Daigou customers cross border shipping, so they can send their orders directly to their buyers in mainland China. You have a complete Daigou solution, ready to run in just a few days.
Daigou love being engaged by brands and for the Pharmacy you have a lot that you can offer. The Pharmacy can run Daigou specific events at the store to drive awareness and interest in their new products or to create a specific group buying activity that gets the Daigou to purchase a specific number of products in order to secure a set price.
At the end of the day, having a Flagship eStore on DaigouSales provides the Pharmacy with a new business proposition that may result in additional revenue streams and edge competitive of their Pharmacy neighbours.