1mg Overtakes Pharmeasy In Market Share In Top Order Change
Dt.24/11/2023
1mg overtakes PharmEasy in market share in top order change
A change in the top order of the epharmacy sector has been underway for some time now. We have the data. So, let's dive in: Top-order changes: Tata Digital-owned 1mg has pipped PharmEasy to the top of the country’s e-pharmacy market in terms of gross merchandise value (GMV) after a year of consolidation and tighter cost controls at top firms in the sector. Number game: Tata 1mg had a 31% market share in September 2023 against 19% in October 2022 while PharmEasy slipped to 15% from about 33% during the same period, according to a data analysis by third-party internet market research firm Redseer, which ET has seen.
In the making: At least three senior industry executives confirmed a directional shift in market share dynamics this year, and that it has been underway since early 2023, at least. For example, PharmEasy had about 29% share in January which slipped to 20% in May. During the same period, 1mg’s market share improved from around 21% to 27%, they said. Reasons behind numbers: This has happened as PharmEasy has been cutting its marketing spends continuously to prioritise profitability plans as part of a restructuring exercise over the past year. Also, it had a mounting debt to clear from Goldman Sachs and finally closed a Rs 3,500 crore rights issue. What about others? Major platforms such as Flipkart Health Plus, Reliance-Netmeds, and Apollo have largely maintained their GMV market share at 15-18% during the same period, as per Redseer data, which is not public and has been circulated among industry executives.