Global Outbreak of COVID-19 resulted in dealing with the unforeseen challenges in all the industries especially the Logistics, Hospitality and Automotive sector. Industries faced complete losses during this period due to the restrictive measures taken at country level such as lockdown, or stay at home orders, to control the pandemic at a local level. Number of cases across the globe reached 16.7 Mn as of 29 July 2020 and the pandemic is still considered to be a threat on the lives & businesses across the globe.
Government of Malaysia has taken significant precautions to prevent the transmission of the disease. Bank Negara of Malaysia predicts GDP to be lying between -2.0% to 0.5% wherein the industrial output is expected to reduce by 40% to 70% during MCO (Movement Control Order). Disruptions in Supply Chain, including interruptions from Production to Operations, delay of imports and distribution to users has caused major challenges in Healthcare sector, majorly the medical devices segment. Online Consultation and Online Medication Deliveries on the other hand amidst the crisis observed a significant boost in terms of Number of Users during the Lockdown. Unorganized Pharmacies on the other hand were among the highly affected groups with more than 50% drop in customer footfall.
Ministry of Health Partnership with Telemedicine Companies: Malaysian Medical Council (MMC) initiated guidelines with certain SOPs for Virtual Consultation in the country. DoctorOnCall in February 2020 partnered with Malaysia’s health ministry and developed a customised virtual health advisory platform to address public health concerns about Covid-19 situation in Malaysia. Some Telemedicine companies partnered with Qualitas group of clinics to roll out Covid-19 home-testing and drive-through testing services for people who did not fulfill the testing criteria at public healthcare institutions. With augmenting demand for E-Consultations, IHH Healthcare on the other hand planned to expand Virtual consultation services across all the key markets including Malaysia, Singapore & India, focusing on providing services from consultation to doorstep drug delivery.
Crisis in Malaysia affected Pharmacy Retail Market in three phases, one of them being Effect on Demand for Pharmacies on Lockdown Announcement. Movement Control Order announcement as a result of COVID-19 engaged customers in panic buying of groceries, medications and personal care items. Pharmacies on the other hand adopted a ONE-WAY MOVEMENT SYSTEM in and out of the pharmacy stores and prevented full entry of visitors into the stores wherein medications were dispensed at the door counter that too in the presence of a pharmacist. Some pharmacies like ‘Multicare’ started product delivery with the announcement of MCO orders. Pharmacies recorded sheer increase of 30%-40% in customer footfall and average basket size of the customers with respect to the announcement.
Effect on Pharmacy Demand under MCO Order: MCO (Movement Control Order), a preventive measure by the federal government of Malaysia reduced the number of operating hours of Pharmacy retail stores in the country. More than 50% to 60% slash in terms of customer footfall was observed during the Lockdown. Mall Based Pharmacies in Malaysia have seen major drop as entries in the malls were restricted and customers on the other hand shifted towards High Street Pharmacies located nearby. Preference of product categories in demand shifted from Prescribed to Over-The-Counter and Non Pharmaceutical Products like Self Cleaning, Dettol, Hand Sanitizers, Normal Routine Medicines and Health Supplements like Vitamin C for Immunity Boosting.
The industry is predicting steady recovery from mid-September 2020 onwards with customer footfall reaching back to normalcy. In the future, pharmacy chains will foresee intense competition in terms of their stores and value added services in the country to retain customers. Pandemic has resulted in strong presence of online platforms & delivery option among Malaysians. Over-The-Counter Medicines and Non Pharmaceutical Products with growing demand is gaining significant market share in terms of Revenue in the country. Pharmacy Chains will focus on marketing strategies, establishing long term partnerships with Telemedicine companies and acquisitions to enhance geographical presence.
With more number of Pharmacy Retail Stores and product bundling strategy to enhance more purchases will drive Pharmacy Retail Revenue in future. Basis all these factors, the Malaysia Pharmacy Retail market is anticipated to grow with a CAGR of 9.3% on the basis of revenue during the forecast period 2019-2025.
Key Segments Covered:-
By Market Structure (Number of Pharmacy Outlets & Revenue in USD Mn)
Organized
Organized Mall Based
Organized High Street Stores
Unorganized
Unorganized Mall Based
Unorganized High Street
By Location (Number of Pharmacy Outlets & Revenue in USD Mn
Mall Based
Prescribed Drugs
Over-The-Counter
Non Pharmaceutical Products
Medical Equipments
High Street
Prescribed Drugs
Over-The-Counter
Non Pharmaceutical Products
Medical Equipments
By Product Sales
Prescribed Drugs
Over-The-Counter
Non Pharmaceutical Products
Medical Equipments
By Sales
Patented Drugs
Generics
By Region
Selangor
Johor
Kuala Lumpur
Sarawak
Others
By Therapeutic Areas
Anti-Infective
Cardiovascular
Pain/Analgesics
Vitamins/Minerals/Nutrients
Antibiotic
Respiratory
Gastro Intestinal
Gynaecology
Neuro
Others
Companies Covered:-
Watsons Malaysia
Guardian Pharmacy
Caring Pharmacy
Alpro Pharmacy
Healthlane Pharmacy
Multicare Pharmacy
AM PM Pharmacy
Cosway Farmasi
Aeon Wellness
AA Pharmacy
Key Target Audience:-
Pharmaceutical Manufacturing Companies
Pharmacy Retail Companies
Independent Pharmacies
Industry Associations
Regulatory Bodies
Telemedicine Companies
Pharmaceutical Distributors & Wholesalers
Time Period Captured in the Report:-
Historical Period – 2013-2019
Forecast Period – 2020-2025
Key Topics Covered in the Report:-
Overview of Malaysia Pharmacy Retail Market
Trends and Growth Drivers in the Industry and Challenges Faced
Malaysia Pharmacy Retail Market Size and Segmentations, 2013 – 2019
Ecosystem and Value Chain of Pharmacy Retail Market in Malaysia
Distributors & Wholesalers Landscape in Malaysia Pharmacy Retail Market
Industry SWOT Analysis and BCG Matrix
Telemedicine & Online Consultations Snapshot
Contraceptive Demand among Customers in Malaysia
Cross Comparison between Major Players and Company Profiles
Future Market Size and Segmentations, 2020P-2025F
Covid-19 Impact on the Industry & the Way Forward
Analysts’ Recommendations
For More Information on the research report, refer to below link:-
Malaysia Pharmacy Retail Market
Related Reports:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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