Illuminate a path to consumer health success
Across Europe e-Pharmacy is taking hold, but in one market – Germany – consumers have adopted online shopping for OTC and other self-care products more than anywhere else. But why? Here are three reasons behind the strength of e-Pharmacy in Germany:
1. Experience and LogisticsExhibit 1: Mail-order shopping has a long-established history in Germany (Source: IQVIA Consumer Health research, Otto, and Quelle)
Exhibit 2: Comparison of pharmacy density between Germany and Spain 2012-2022 (Source: IQVIA PharmaTrend)
So, with less access to retail pharmacies, the convenience of online shopping has led Germans to e-Pharmacies in ever increasing numbers, especially for non-urgent products such as weight-loss or habit control, where e-Pharmacies in Germany have a 54% and 40% share of the market respectively.
3. PriceExhibit 3: OTC Market (Categories 1-19+97), Pharmacy (Retail + e-Pharmacies), Sales Million €, Ranked by Share of Sales e-Pharmacies MAT 03/23 (Source: IQVIA Consumer Report Apotheke)
With maturity comes complexity
Given the maturity of the German e-Pharmacy market, the country could be seen as a harbinger of how the online pharmacy market may develop in less mature markets. A decade ago, the consumer health buying journey was quite simple. As a consumer, you went offline to a brick-and-mortar pharmacy or you went direct to an e-Pharmacy. Today all that has changed.
Exhibit 4: German consumer health shopping journeys have become more complex (Source IQVIA Consumer Health)
The journey now is much more complex (as Exhibit 4 shows) involving not only direct purchasing routes to retail and/or e-Pharmacy but layers of other services, such click and collect, price comparison sites – tapping into the German love of value for money – as well as marketplace websites such as Amazon, Google Shopping and formerly fashion-focused websites such as Zalando.
Furthermore, a number of platforms in Germany are backed by wholesalers, pharmacy cooperatives and other players to enable the brick-and-mortar pharmacies to benefit from the growing trend for online shopping.
Conclusion - Opportunities and Threats
Germans’ comfort with e-Pharmacies, combined with with the growing complexity of the online shopping journey, has led to a new opportunity and threat environment. From opportunities around reaching a wider audience, to risks around pricing and dependency on large e-retailers hitting margin, you need to be prepared for all eventualities to succeed in the German e-Commerce market (see Exhibit 5).
Exhibit 5: Business opportunities and threats in the German e-Commerce market (Source IQVIA Consumer Health)
To find out more how IQVIA Consumer Health can help your business thrive in Europe’s most mature and valuable e-Pharmacy market, do get in touch with us by clicking the CONTACT US button in this page.
Visit our Global Consumer Health Trends 2023 webpage to hear more from Thomas Heil.
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Global Consumer Health Trends 2023 gives you expert-driven local insights on today's global challenges, so you can succeed in a dynamic, fast-changing consumer health market. Get the latest on 4 crucial market-impacting trends: consumer mindset, pricing, e-Pharmacy, and digital innovation.
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