Illuminate a path to consumer health success
Across industries, 2020 has been a year like no other for eCommerce. In a recent report “Inside Australian Online Shopping 2020”, the latest statistics show that total online shopping year on year growth was over 80%1. Across general retail in a pre-COVID-19 world online shopping was responsible for 9% of Australia’s total retail sales2. COVID-19 has shifted the trend upwards, and it is estimated that online sales will account for 15% of total retail by the end of 20203.
Since 2017, Australian pharmacy has seen an increase in the proportion of sales shift from brick and mortar stores to online pharmacy platforms. With most of the major pharmacy retailers also hosting an online store, e-pharmacy penetration is continuing to rise. In the MAT June 2020, 4.1% of pharmacy consumer health sales were purchased online. The proportion of online sales in June 2020 jumped to over 10% of sales for many categories4. The shift was most notable in potentially sensitive products, products with an export component, those with convenience factor as well as beauty categories.
The convenience of online shopping is a huge attraction for consumers, but online pharmacy retailers in Australia continue to face headwinds:
Online sales experienced substantial growth with the onset of COVID-19, and higher online demand is expected moving forward. In June 2020 online pharmacy sales were up 71% on June 2019, compared to a -13% decline in pharmacy bricks and mortar sales. Many categories experiencing over 100% growth in online sales year on year. Consumer Health companies will have to build this shift to online pharmacy into future plans and strategies, remaining agile to meet consumer need and demand in an ever-changing environment.
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1 Inside Australian Online Shopping 2020 eCommerce Industry Report, Australia Post.
2 National Australia Bank Retail Sales Index January 2019.
3 Inside Australian Online Shopping 2020 eCommerce Industry Report, Australia Post.
4IQVIA e-pharmacy sell out data, MAT June 2020.
5Source: eMarketer, SAP.
6Source: eMarketer, SAP.
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