Focus on outcome of distributors ensures generic meds

São Paulo-against the land transport sector, which dropped by 9.5 percent in the first half of this year, according to the IBGE, the distributors of drugs closed the period with high of 11.9% in sales. Focusing on generics, in cost reduction actions and training of representatives, they have managed to pass off the recession.
The companies that provide distribution services and logistics of medicines and hygiene and beauty products, made in the first six months of this year R$ 7.72 billion, according to the Brazilian Association of logistics and Distribution of pharmaceutical products (Abradilan). In terms of units sold, there were over 470 million.
To the Executive Director of the Association of Distributors of Medicines do Estado de São Paulo (Admesp), Geraldo Monteiro, the healthcare industry as a whole was little affected by the crisis, especially for dealing with essential items. "People are buying medicines, even if they have to give up other products", States, completing the industry had a slowdown with the crisis, but that even so the growth rate continued at high levels.
Focus on generic
According to him, another point relevant to good performance is the fact that companies focus on generic medicines and the like, which have gained greater customer preference with the crisis. "Our core business is just that, offering the most competitive products. This is what allows a more accelerated growth: the fact the buyer today worry about the price, "he says.
One distributor Medicines, which operates in the State of São Paulo and serves more than 4000 customers, is a definite example of this reality. From January to June, the company''s sales advanced 36%, in the year-to-year comparison. Year to date, the company has already made R$ 29,293,000, being that in 2015 the billing closed around R$ 22,615,000, according to the owner of the company, mark Avelar.
"As we work with generics and similar to crisis until it was positive for us because she encouraged consumers to worry about price and opt for these products," says the Manager. Given this, the One Medicines has invested strongly in this segment, and generics and the like respond today for 75% of the company''s sales, while the perfumery items represent 25%.
Another key aspect to overcome the period of economic instability is constant investment that the company is called sales representatives. "We are working to get raise high quality professionals, and give weekly training for them," he says. The three sales channels, the representatives are those with greater participation in total, accounting for 65% of the whole. Already selling online is only 10% and the other 25% teleshopping.
The JK Medicines, which serves about of 7500 customers per month, has also been betting on preparation of the representatives as a way to boost sales. The company operates only with that channel, and currently owns 97. "We give constant trainings and recycle bin from 12:00 pm 12 months", pointed out the owner of the company, José Carlos de Souza.
The company also has a focus on generics, representing 65% of sales. The JK works with the sale of non-prescription drugs (or OTC, the acronym in English), and the like, that are responsible for 25% of revenues.
Despite the actions adopted by the company have ensured that she kept the stable revenues in the last 14 months, Souza says that the cost of the operation greatly increased with the recession, which has compressed the profit margin. "In the last two years, the operating cost had an increase of approximately 3% to 5%. In our gross margin, that reflected in a reduction in the 10% ", explains the entrepreneur.
He also States that another aspect that has undermined business competition with companies from other States, who grew up in recent years. Still, the expectation of the Executive is to close the year with an increase of about 5% to 7% in the Distributor''s revenue, compared to 2015.