Master Presentation
Transcript: Phase 2 Once, we have setup our own fulfillment centers, in those areas, we can offer a prime membership. This would be a subscription service, which gives the members the following benefits: No Minimum Order value for free delivery 2-4 Hours delivery guaranteed Doctor-on-call (for basic medical requirements) Order is routed to the nearest pharmacy Phase 1 Secured platform Current Worldwide Prescription Drug Sales – 980 Billion USD. Worldwide Prescription Drug Sales Forecast to exceed 1.1 Trillion USD by 2017 Low manufacturing costs leading to increased foreign investments Scope & Growth Improved shopping experience Roll out to 2 metro cities, such as Mumbai/Bangalore/ Delhi. Enroll 1,000 stores in our network. Our own fulfillment centers Branding Existing Stores Phase 3 Customer orders the medicine using the application India has a huge middle class population which has grown rapidly from 25 million people to 153 million in the 5 years till 2010. Around a third of the population (34%) is expected to join the middle class in the near future. The middle class population is rapidly acquiring the purchase power necessary to afford quality medicine. Pilot Launched in Kolkata by September 2015 200 Partner stores enrolled. Initial target is to attract 5,000 users to order on our platform. Customer Acquisition Strategy Aggressive Social Media marketing. Deals such as "20% off on first order". Lucrative referral offers. Print Advertisement. Word of mouth. Why m-commerce is the next big thing for India! India is among the top 6 pharma producers in the world and accounts for 10% of global pharma production. Over 3000 pharma companies and 10,500 manufacturing units are present only in India. The Opportunity Internet penetration has increased by a CAGR of 30% from 2007 to 2012. There has been an increase in internet user base and such trend is expected to continue. A significantly high (81%) not using internet population of in 2014 is an indicator of the sector’s huge growth potential in India. Roll out plan Customer Flow The order is packed and dispatched Once we have an established distribution network (app and offline), we can look to further deepen our presence. The next step would be to reach the source of pharmaceutical demand. The doctors chamber. By creating a free application for doctors to maintain patient history as well as create digital prescriptions. We can integrate the prescriptions to link to our application, thus, the patient can order all his medicines, with the touch of a finger. Pharmaceutical Industry Business Model Source: PWC Analysis E Commerce Industry Business Model India's population is currently just over 1.1 billion and is projected to rise to 1.6 billion by 2050- a 45.5% increase that will see it outstrip China as the world's most populous state. Thank you M Commerce Industry Pre-Launch Mobile Internet connectivity Almost 90% of the pharmaceutical market is dominated by branded generics. Top 20 players constitute 61% market share in fragmented domestic market. Rolling out the platform will be done in three phases. The following slides explain each phase in detail. 2. The Middle class population In India The Vision India Market Size and Growth 4. Growth and shift in the Disease Profile Dhanwantary Continuous change in the disease profile With a robust distribution network, and our extensive data, we can market our own brand of generics, giving us a substantially higher gross margin. Existing E- Pharma companies Sasta Sundar 1. Population Explosion 2. Increase in order value 8 of the world's top 25 generic companies are in India. Founded: 2007 Projected Revenue 2015: $8 Billion Projected to have 100 Million users by 2018 1. Growth in Income According to the International Monetary Fund (IMF), personal disposable income has grown by 15.8% annually from 2007 to 2012 reaching to USD 1546 billion in 2012. Source : PWC-CII Summit Report 2010; IBEF Finances 3. Internet Penetration in India To, better evaluate this model, let us analyze what our potential competitors are doing. Existing E Pharma Industry Exclusive Tie-Ups To become India's largest Pharmaceutical distribution platform Once we have successfully rolled out in additional cities, we then look to roll out pan India. Along with which, we introduce value added features, which allow us to increase our gross margins, and further enhance customer value. The features are detailed in the following slides: In the world Success Stories Mobile Commerce (M Commerce) is rapidly taking over E Commerce as the de facto mode for online transactions. 39% of mobile phone users in India use their cell phones to buy goods or services as compared to 26% globally The total value of transactions through mobile phones in India grew from Rs7,800 crore ($1.25 billion) in 2012-13 to Rs36,000 crore ($5.79 billion) in 2013-14, according to data from Google and Forrester Research. That’s a staggering increase of 383% in a single year. Once the Proof of Concept has