Franchise is alternative to smaller pharmacies face competition

Sao Paulo-the largest consolidation of large networks of pharmacies, systems such as associations and franchises earn even more relevance to small and medium-sized. Although both ensuring an integrated management and a bargaining chip in negotiations with the supplier, the second stands out for greater agility in decision-making.
"Today it is very difficult to an independent stay in the market. Both the franchising as associations are key to the sustainability of smaller drugstores, "points out the Director of Stylo Farma, Stefan Passold. The network, which began acting for franchises in 2008, already operated also by means of another model.
Before the two experiences, the Executive stated that, despite the two formats being beneficial, franchises allow a far greater agility in deployment of new services. "To give an idea, it took us three months to deploy a loyalty card in our network. If it was through the Association it would take us a year and a half. "
The Director of marketing and expansion of PoupAqui, network that operates since the beginning of last year by franchising, Evandro, is a fan of the same opinion: "in the franchise you makes the decision and spreads down, now the Association is a lot of planning and execution. There is a large bureaucracy and difficulty of meeting the combined, "said the Executive, who also was Director of an associative network. Despite the benefits, according to data from the Brazilian Franchising Association (ABF), only 36 networks operate today by the model. In terms of units are 2,165 in operation. According to the market intelligence Director, Carlos Tieghi, whereas the largest rise of system in the drugstore sector began only in the last decade, the number is representative. "Is a recent phenomenon, which was largely influenced by the greater need for professionalization of pharmacies," he said.
According to him, in addition to the organic expansion of independent stores conversion is gaining space in recent years. "We already have a number, but there is still a large potential for growth in the franchising," he points out.
Manage and buying
For him, in addition to the integrated management and greater coverage at the time of purchase, another advantage of the relief is the "opportunity to make a more consistent and frequent marketing". In connection with the purchase of products, the Executive points out that there are two models used by franqueadoras: one in which she holds the stock and delivers to the franchisees; and another in which she endorses some industries and the franchisee itself performs the purchase.
"The two formats generate economy in negotiating prices. The only difference is that the first is required more capital from the franchisor. In, in addition to demand less capital, the risk is lower, "he says.
Precisely for these reasons, the Network, which has 22 units spread throughout the interior of São Paulo, opted for the second of them. "We negotiated the best conditions with the industry and the values of the logistics operation, but the request is done individually for each store. Inventory management the same thing, although channel, each makes its own control, "says the owner of the company, Roger Eddy.
Even so, the network does strong work in the commercial management, promoting studies regionali-ISED and developing strategies of consumer loyalty.
Expansion plans
In addition to operational benefits, the fact the franchise allow faster expansion was another point cited by the three companies, and that causes all have aggressive expansion plans. The Network, for example, which adopted in 2013 the franchise system, hopes to get to 150 stores by 2020. For this year the forecast is close with eight more operations. "We also intend to invest in a distribution centre [CD]," says Eddy, completing, however, to justify the creation of a CD the company would need to have at least 80 shops. According to him, the Center would be only for work products of '' the curve '', i.e. those that have a larger cute in stores.
In terms of revenues, the network expects to complete 2016 with an increase in the order of 27% while maintaining the same level of the first half of the year, compared to the previous year.
The Stylo Farma, which had revenue growth of 18% up to August this year compared to the same period last year-expect to keep that same rate at the end of 2016. On the expansion plans, the company says that from 2018 intends to enter in other States. Today, there are 62 operations, all in the State of Santa Catarina.
Already the PoupAqui plans to get the 20 units by the end of this year and to 2017 the intention is to reach the threshold of 60 stores. About the billing, Rao says that the expectation is to close in 2016 10 million R$.