Pharma market needs innovations to cope with fragmented supply chain

Buymed was launched during the Covid-19 pandemic. How has the firm fared so far in this unique situation?

Similar to other businesses, Buymed’s operations were severely disrupted by the pandemic. Our staff had to work, isolate and live in one place and we organized multiple shifts to move products between warehouses.

Eventually, the Ho Chi Minh City warehouse was shut down due to the pandemic. Operations were shifted to Hanoi and deliveries were dispatched from the capital. Overcoming challenges, including suspended operation of third-party couriers like GHN and GHTK, Buymed established its own delivery team with trucks and motorbike shippers to deliver medicines to areas not subject to lockdowns.

During the pandemic, thuocsi.vn was almost the only business capable of transporting medicines across the country. With such efforts, we established trust among pharmacies, clinics, and hospitals in Vietnam, creating strong growth in the post-pandemic period.

Buymed is developing a B2B e-commerce service via thuocsi.vn. Which factors make your platform different in a market with stable growth but fierce competition?

Although thuocsi.vn is an e-commerce marketplace, the platform strictly controls quality for suppliers with two 1.2-hectare fulfillment centers in Binh Duong province in the south and Hanoi in the north. That ensures all medicines meet the required standards.

Buymed’s giant network of 35,000 stores across Vietnam can help suppliers extend their market and sales revenue, especially minor ones with new products. Since we launched our sales center in 2021, thuocsi.vn has been considered one of the best solutions for suppliers to optimize their operations while reducing costs for warehouses and deliveries.

What are the investment challenges and opportunities for B2B pharmaceutical e-commerce in Vietnam?

The pharmaceutical supply chain is gigantic but also fragmented. The market is in need of major innovations and investments in the system, infrastructure, and human resources. The ultimate goal is to digitalize the supply chain to ensure the efficient and fast flow of information and products to serve patients.

Buymed currently focuses on outer areas and minor localities instead of big cities. What are the reasons behind this strategy?

The majority of businesses target Hanoi and HCMC as their key Vietnamese markets. However, Buymed has a different approach to serve niche markets, as drugstores there are less capable of accessing diversified medical supplies with transparency. The thuocsi.vn platform provides the solution to help these stores. Besides, the market potential in these remote areas outweighs that of urban areas, amid lesser infrastructure. Meanwhile, connecting customers with stores in urban areas is not a challenging task with positive reviews and backing from customers. Buymed now serves over 50% of pharmacies in Ho Chi Minh City, including major chains.

Has Buymed encountered any difficulty regarding policies and regulations, since pharmaceuticals is a conditional business?

Buymed has received enthusiastic support and guidance from the government and state agencies. The firm is among the few names successfully registered as an e-commerce platform with the Ministry of Industry and Trade.

The key factor of becoming an e-commerce platform is to make suppliers and buyers trust you in delivering products and placing orders. Buymed’s solution is to work only with credible drug suppliers with certified documents and profiles publicized on thuocsi.vn. Another solution is to upgrade and expand warehouse operations. For pharmacies, our customers, they have to present their business licenses and Good Pharmacy Practices (GPP) certificates.

What cooperation opportunities is Buymed offering foreign and domestic pharmaceutical businesses?

For pharmaceutical producers and suppliers, Buymed is promoting and selling goods, managing distribution and warehousing, and running internal processes. We have developed tools to help suppliers reach more chemists and doctors at a low cost and deliver more products further across Vietnam. As a result, firms can allocate more resources from their budgets for research and development.

The Covid-19 pandemic has changed consumer mindsets and consumption behavior. What new opportunities and challenges stem from these changes?

The pandemic has made people pay more attention to their health, such as exercising or washing their hands more often. While they used to purchase medicine recommended by chemists, they are now more willing to learn about pharmaceuticals themselves to focus on not only curing but also preventing diseases. This has opened up the market for supplementary products.

Now that people have raised their awareness of healthcare, doctors and chemists must adapt their thinking. These are challenges for chemists but opportunities for Buymed, motivating it to hold more workshops and training sessions to serve customers and tighten links between customers and businesses.