LARGE PHARMACEUTICAL NETWORKS DOMINATE THE DOMESTIC MARKET

After winning almost $ 50 billion in 2012, the retail pharmacist must double this value over the next five years resting on the entry of new companies in the Brazilian market, changes in consumer behavior and, mainly, in the merger and expansion of major players. According to a study done by Brasilpar, financial advisory company, based on data from IMS Healthy, the five largest pharmaceutical networks of the country accounted for R $ 14.4 billion of total revenues last year.
To pay less, which is among the five biggest in Brazil, reflects the positive moment of retail pharmacist. In an exclusive interview to the DCI, the President and founder of the network, Subramanian Queiroz, comments sharp growth of the player, which is expected to increase from 18% to 20% gross sales revenue up to the end of this year. "We are doubling revenue every four years. On average, the increase is more than 20% per year. In addition, the forecast is to have 100 stores opened in 2013, reaching a total of 685 thousand at the end of the year and until 2017. "
The founder of pay less focus on organic growth to expand the brand. "The advantage of this type of expansion is that you open wherever, whenever, however. Today there are 610 stores in operation. We closed last year with 585. Is a national plan, we have opened stores in the State of São Paulo, Acre, Maranhão. The idea is to rely on a unit in cities with more than 70 or 80 thousand inhabitants, and in the big cities, one by each 100 thousand. Since 2009 we are present in all Brazilian States, "says the entrepreneur. Among the cities that received the new shops pay less recently are Criciúma (SC), Petrolina (PE) and Curitiba (PR).
Market dominance by the big networks and the increasing expansion of these must be confirmed in the next few years. Is the Managing Director of Brasilpar, Luiz Eduardo Costa, in an interview with DCI. "There is a trend of consolidation, so that the large players become. There are 60 thousand pharmacies in Brazil, and the major networks has a total of 3 or 4 thousand. But for Brazil, a continental country, growth should be strong, because today is still relatively small. "
Currently, small businesses account for 47% of the market, but the picture should reverse in the coming years. According to the Executive, the representativeness that small and medium-sized enterprises have in the industry owes much to weak presence of large companies in smaller cities. "This is the crossroads of the sector. You have the Regionals, which are already beginning to suffer competition from big players. This is the challenge for smaller chains, choose what alternatives can follow as fetching a financial investor or regional consolidations, for example. There is need for the entire industry to rethink the business. " The prediction of Brasilpar is that in ten years, the independent shops have only 30% of the market, while medium and large with a 70% share.
To the Managing Director of financial advisory, large foreign players can also settle in Brazil. In February, the CVS Caremark group, considered the largest of the United States, bought the Brazilian network Onofre. "What we're seeing is perhaps the biggest world player entering a promising market in Brazil. Will certainly bring other, is not the only one to look for the Country ", says Luiz Eduardo Costa. CVS had revenues of R $ 128.301 billion in 2012.
Market
The other major drug networks must also take advantage of the sector to expand its activities. The DPSP, a result of the merger between Sao Paulo drugstore Drugstores Pacheco, search and consolidate its presence in the country. Is the Director of marketing for DPSP, André Elias.
"In 2013 should open about 100 stores. At the moment, we are strengthening the operations already started. The latest inaugurations occurred in Goiás, Espírito Santo, Minas Gerais and São Paulo. We have, however, to open up new markets ".
The RaiaDrogasil, the country's largest network in billing, closed the first quarter of 2013 with a total of 895 sales points in operation, of which 36 openings. The gross revenue generated amounted to r $ 1.4 billion, 11.8% higher compared to the first quarter of 2012.
Brazil Pharma group, formed by networks of drugstores Farmais, Guararapes, Rosario, more economical, Samir and Big Ben, recorded revenues of R $ 814.7 million in the first quarter of 2013, an increase of 16.5% compared to the same period in 2012. The Brazil Pharma had 1,115 stores at the end of the first three months of the year, being own 709 406 franchises.