Korean pharmas shift to online sales to reach broader market and build data

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Online distribution channels have become key platform for both traditional pharmaceutical and rising bio companies in Korea through the momentum of pandemic to reach a broader market and build up big data.

Major companies active in business to business (B2B) online malls targeting local pharmacists include Hanmi Pharmaceutical, Daewoong Pharmaceutical, Ildong Pharmaceutical, JW Pharmaceutical, and Kwangdong Pharmaceutical.

These companies are increasing sales by optimizing product assortment with various medicines, including their own products. Daewoong Pharmaceutical`s online mall posted a 41 percent increase in operating profit last year compared to 2020, and Ildong Pharmaceutical’s virtual shop has recorded an average growth rate of 20 percent over the past three years.

[Source: JW Pharmaceutical]

Companies active in direct to consumer (D2C) online mall business targeting over-the-counter customers include Kwangdong Household & Health Care, Dong-A Pharmaceutical, JW Household & Health Care, and Huons. Their main products for online sales are vitamins, probiotics, functional products for beauty or hair loss prevention, and feminine hygiene medicines items.

Behind the growing D2C sales in the local healthcare industry is a wave of digital transformation across the sectors, which is being accelerated by the pandemic.

Another reason is to collect big data for personalized marketing in the future.

“Operating their own D2C malls does not simply mean expanding their business front, but also optimal marketing strategy, efficiency of production and inventory, and improvement of price competitiveness by analyzing customer information and behavioral data, said Lee Sang-hoon, CEO of Platier, a Korean e-commerce platform company, adding the data will be used in a variety of ways eventually.

By Lee Byung-moon and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]