Pharmacy mail order remains on track in the first half of 2012

14.08.2012 10:59

The pharmacy mail order business with medicines and health products has established itself as a stable player with a market share of 11%. The growth rates have now leveled off in the single-digit range. However, the electronic ordering channel is currently experiencing a boost with double-digit growth in the cosmetics and medical supplies product groups. This shows that this sales channel is attractive for other product categories.

In the first half of 2012, the pharmacy mail order business achieved sales of 680 million euros at effective sales prices. This means an increase of almost 6% compared to the first half of 2011. Sales by pack increased by 9%. This means that mail order sales in the context of the entire pharmacy business account for a turnover share of 3%, because the offical pharmacies achieved a total turnover of almost 22.6 billion euros in the first half of the year (without taking into account any compulsory discounts from manufacturers, pharmacies and wholesalers for prescription drugs and without any savings through discount contracts). The share of mail order by volume is currently 6%.
The order business continues to record higher growth than the on-site pharmacy, even though the growth rates for over-the-counter medicines and health products are now in the single digits. In the early years, when the business started from a lower base, growth was often double-digit. To date, mail order sales in this segment have settled at a stable market share of between 11% and 12%. As in the pharmacy, the highest-selling categories in the mail order business are remedies for colds and pain. An important difference between the two sales channels is that larger packs are often ordered via mail order in order to take advantage of price advantages. This also includes the elimination of postage above a certain amount. In the mail order business, the product range is also more condensed, meaning that fewer products account for a larger market share. Furthermore, the mail order business with over-the-counter medicines and health products is almost purely consumer or self-medication behavior, as regulations play no role here. Only 1% of mail order sales are attributable to prescriptions of over-the-counter products. In the offical pharmacy there were at least 14% in the first half of 2012.

More and more product areas are becoming more attractive for the mail order business

Over half of the sales generated by mail order and almost three quarters of the packages sold are OTC preparations (OTC = over the counter = without a prescription). However, other product areas are also increasingly playing a role. For example, “Cosmetics and Personal Care” recorded sales in the first half of the year
an increase of 14% to 71 million euros in sales. This corresponds to a market share of 10% in the entire mail order business. The amount in this category even increased by 15%.

Products of the so-called medical supplies (tests, remedies and aids) achieved an increase in sales of 9% with a simultaneous increase in volume of 15%. These facts from the market show that pharmacy mail order is becoming increasingly important for companies from different product areas.

Prescription medicines account for almost a quarter of mail order sales (24%), but only 6% of the volume. There is little focus on drug categories. Looking at the ranking of the five highest-selling categories, there are little differences from the off-the-shelf pharmacy, with the exception of products for erectile dysfunction, which are among the “top 5” in the mail order business, but are not even listed among the “top 20” in the local pharmacy.