Pharmaceutical Market in Brazil

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A Current X-Ray and Future  and everything indicates that it will continue like this in the coming years! Brazil is the sixth largest pharmaceutical retail market in the world, and despite recent crises in our economy, we have already generated almost R$120,000,000,000.00, according to the latest data . Difference between pharmacy and drugstore Before we understand Brazilian pharmaceutical retail data, we need to understand this crucial concept. But after all, is there a difference between a pharmacy and a drugstore? If so, which one is it? Drugstores: Drugstores are establishments that sell medicines, pharmaceutical supplies and related products, according to article 4, XI, Law 5,991/73 . In practice, what predominates in a drugstore is the sale of medicines and generally industrialized items, that is, the manipulation and fractionation of medicines is not allowed. Pharmacies These are establishments that manipulate formulas and sell drugs, pharmaceutical supplies and related products. Now that this basic concept has been explained, let's understand the types of pharmacy that exist in Brazil? Types of pharmacy in Brazil In Brazil, the sector is basically divided into 3 areas: Independent individual pharmacies; Association networks/franchises/licensees; Own networks. Below, we will see a brief explanation of each type of pharmacies/drugstores listed. Independent individual pharmacies An individual and independent pharmacy is one that is not linked to any franchise or similar brands.

They are normally characterized by neighborhood pharmacies, with Colombia Mobile Number List their own brand and centralized management in a single store. Specifically in this area of ​​pharmacies, there is a clear division between establishments managing to perform in an exemplary manner, with high revenue, but also many others left to the mercy of time, with old facades, little or no investment in marketing and an uncertain future. Association networks/franchises/licensees This modality, which is greatly strengthened by entities such as Febrafar and ABF , is only growing and enabling businesspeople in the sector to “fight” the large networks with more “ammunition, more professionalism and management. Small and medium-sized pharmacies grow with associations, it's the old motto: Unity is strength. In the first half of 2018, association networks affiliated to Febrafar grew 19% compared to the same period of the previous year! How does association for pharmacies work in practice? In general, an independent individual pharmacy, when joining an association network, starts to share: Unified brand identity (façade, marketing, advertising material, etc.); Purchase of stock at lower prices due to network negotiations; Training and professionalism in management, regarding points such as costs, taxation, inventory management, pricing, marketing, service, etc.; Benefit from network marketing actions, such as radio, television and social media.



Many individual pharmacies have joined networks of this type, or franchises, and achieved better results, but it is obvious that there is no miracle, a large part of the success will depend on the owner applying the know-how passed on by the network. Own networks Yes, these are the big chains you are thinking of, with hundreds or thousands of their own stores, spread across states or the entire country. And who are the leaders in revenue? Raia Drogasil; Drugstore Pacheco São Paulo; Pharmacies Pay Less; São João Pharmacy; Panvel; Extrafarma; Araújo; Nisei; Venâncio; Tapajós. In 2018, 25 chains associated with Abrafarma had 7,400 stores in all Brazilian states. Future of pharmaceutical retail In the midst of a world where technology and online retail grow exponentially, what is the future of pharmacies and drugstores in Brazil? With the growing trend of franchised, associated and licensed chains, towards greater symmetry in the fight against large own chains, will this alone be enough? The amount of investment in technology and research by large proprietary networks is enormous! And we still don't see the same concern in other network modes, which generates some concern. It may be that association networks gain equal space in the offline world, compared to the number of stores owned by their own chains.