A new strategic partnership between Pharmacy Alliance and DaigouSales.com aims to future proof independent retail pharmacies against the disruptive shifts in the Australian retail environment as well as mitigate against the introduction of Amazon health in the future.
The partnership, which consists of a number of programs, involves the introduction of “Australian Products” sections throughout independent pharmacies giving Australian shoppers the opportunity to buy Australian and initiatives to encourage Chinese shoppers (Daigou) to purchase Australian health and well-being products from independent pharmacies without affecting the stock of products on shelves.
The focus is to encourage Australians to shop at local independent mum and dad pharmacies instead of big box retailers and Amazon and to equip the pharmacies to also capture the fast growing Daigou market.
The new programs will see up to 650 independently owned pharmacies across the country introduce a Chinese cross border offering, meaning consumers wanting to buy and send authentic quality Australian products no longer have to take products from the shelf but will have these orders sent directly from the warehouse and thus reducing product shortages for local Australian buyers. Additionally, each pharmacy will have their own WeChat eStore that can take purchases in Chinese currency and have their products sent directly to the buyer in mainland China.
Amazon signalled its intention to move into the pharmacy market in the last week with the purchase of US based mail-order drug-seller PillPack for an undisclosed sum. The announcement has ended months of speculation and anxiety in the health care sector that Amazon, affectionately known as the “Destroyer of Industries”, was coming for the pharmacy sector next.
“This is a big announcement for the healthcare sector and we anticipated it was coming,” said Dr Mathew McDougall, a leading China expert, founder of DiagouSales.com, a WeChat Marketplace, and President of the Australia China Daigou Association.
“While Australia is a good market for Amazon, we are a smaller market and so we expect Amazon health care being rolled out across other territories before it reaches our shores. Our new partnership will ensure independent retail pharmacies within the Pharmacy Alliance group are ready and that they have a key entrenched advantage in the market before Amazon health arrives.”
“The Mum and dad pharmacy businesses are under attack from everywhere at the moment,” Darren Dye, CEO of Pharmacy Alliance, said. “Our job at the Pharmacy Alliance is to support and assist our members to grow and prosper and to continually develop new initiatives to give Australians another reason to shop at local independent pharmacies instead of the large impersonal chains and online giants. Buying local keeps money circulating in the local economy, keeps Australians in business and creates jobs for Australians.”
Dye added, “We are really pleased to be partnering with DaigouSales.com to launch this new program and we are looking forward to offering the Australian community another reason to shop at their local independent pharmacy. Not only is the partnership good for business, it is a good future proofing strategy for all of our pharmacy members. And with the way technology is driving business, it is important to be on the front foot, particularly in our sector.”
The partnership will support emerging Australian businesses by providing them with the ability to place their products on shelves in what is a highly competitive retail sector. The “Slingshot” program, a cross-border incubation program, will enable Australian brands to achieve sales and exposure in the Australian market space through Pharmacy Alliance members and also enter the Chinese market through the growing Australian based Daigou sector.
