Writankar Mukherjee, Economic Times
3 December 2024

Flipkart is set to shortly start delivering medicines within 10 minutes, likely becoming the first quick commerce service to do so, intensifying competition in this red-hot market.

The Walmart-owned company’s Flipkart Minutes service has started enlisting local chemists in the metros from where the products will be sold using its last mile delivery partners, said a senior industry executive aware of the plans.

Flipkart is hurrying since it wants to be the first quick commerce service to sell prescription medicines. To be sure, the company’s partnerships with local chemists needs to be in sync with India’s drug norms for foreign-backed e-commerce operators which bars owning inventory. Also, Flipkart can forge tie-ups only with registered chemists.

“Flipkart wants to develop Flipkart Minutes into a full-fledged quick commerce platform. Medicines is a hitherto untapped opportunity since existing platforms deliver products in an hour to even 3-5 days,” said the executive cited above. “Flipkart will provide the platform for these orders and undertake the last mile fulfilment with its logistic partners, while the product will be sold by the local pharmacies who have all the valid licences,” the executive said.

Flipkart did not respond to ET’s email queries. Analysts said quick commerce for medicines is an untapped area so far but has high potential with healthier margins than food and groceries.

Devangshu Dutta, chief executive at consulting firm Third Eyesight, pointed out that undertaking quick commerce for pharmaceutical products would be a logistics-based issue and would need partnering with a broad network of stores.

“There are no real demand-side or supply problems for quick commerce in medicines in cities. Players like Flipkart have the edge of being a high traffic platform and a robust last mile delivery network. However, critically, the medicine business is also about discounts which can make a real difference for chronic patients or for long-duration and expensive treatments,” he said.

With the latest venture, Flipkart will deepen its presence in quick commerce and the online medicine segment, currently dominated by Reliance Retail-owned Netmeds, Tata 1mg and Apollo Pharmacy.

In 2021, Flipkart took a majority stake in Kolkata-based SastaSundar Marketplace, which owned and operated an online pharmacy marketplace and digital healthcare platform. Through this deal, Flipkart ventured into the health segment and integrated it into its main e-commerce platform selling medicines and other healthcare products.

Flipkart is a late entrant into India’s thriving quick commerce market that has the presence of Zomato’s Blinkit, Swiggy’s Instamart, Tata Group’s BigBasket and Zepto among others. Flipkart rival, Amazon, sells grocery and other products through its Amazon Fresh service but it has yet to foray into quick commerce.

Flipkart Minutes went live in Bengaluru this August and it is currently operational in Bengaluru, Delhi-NCR and Mumbai. The company is preparing to extend the service to launch it in a total of top 8-10 cities including Kolkata, Pune, Hyderabad and Chennai.

Flipkart has partnered with local grocers, kirana stores, besides adding its existing sellers in the marketplace for fulfilling grocery orders under Minutes. It is betting on free deliveries besides having a wider selection than existing quick commerce operators across most categories.

“Almost 60% of the orders are fulfilled by local grocers and some of the large sellers in the platform are also moving for quick commerce deliveries. Apart from opening new dark stores, Flipkart is also repurposing its existing city warehouses for grocery deliveries and as dark stores for Minutes,” the executive said.

According to a recent report by Grant Thornton Bharat, India’s quick commerce market is expected to surge nearly threefold to $9.94 billion by 2029 from $3.34 billion at present. The market expanded 76% year-on-year in 2023-24.

(Published in Economic Times)

In recent decades, the dependence on established medical disciplines has begun to be challenged. There is the oft-quoted dictum that healthcare sector tends to illness rather than health. Another saying goes that some of the food you eat keeps you in good health, but most of what you eat keeps your doctor in good health. With a gap emerging between wellness-seekers and the healthcare sector, so-called “alternative” options are stepping in.

Some of these alternatives actually existed as well-structured and well-documented traditional medical practices for thousands of years before the introduction of more recent Western medical disciplines. This includes India’s Siddha system and Ayurved (literally, “science of life”), which certainly don’t deserve being relegated to an “alternative” footnote. Ayurved is also said to have influenced medicine in China over a millennium ago, through the translation of Indian medical texts into Chinese.

Other than these, there are also more recent inventions riding the “wellness” buzzword. These may draw from the traditional systems and texts, or be built upon new pharmaceutical or nutraceutical formulations. Broader wellness regimens – much like Ayurved and Siddha – blend two or more elements from the following basket: food choices and restrictions, minerals, extracts and supplements, physical exercise and perhaps some form of meditative practices. Wellness, thus, is often characterised by a mix-and-match based on individual choices and conveniences, spiked with celebrity influences.

A key premise driving the wellness sector is that modern medicine depends too heavily on attacking specific issues with single chemicals (drugs) or combinations of single chemicals that are either isolated or synthesised in laboratories, and that it ignores the diversity and complexity of factors contributing to health and well-being. The second major premise for many wellness practitioners (though not all!) is that, provided the right conditions, the body can heal itself. For the consumer the reasons for the surge in demand for traditional wellness solutions include escalating costs of conventional health care, the adverse effects of allopathic drugs, and increasing lifestyle disorders.

After food, wellness has turned into possibly one of the largest consumer industries on the planet. Global pharmaceutical sales are estimated at over US$ 1.1 trillion. In contrast, according to the Global Wellness Institute, the wellness market dwarfs this, estimated at US$ 3.7 trillion (2015). This figure includes a vast range of services such as beauty and anti-ageing, nutrition and weight loss, wellness tourism, fitness and mind-body, preventative and personalized medicine, wellness lifestyle real estate, spa industry, thermal/mineral springs, and workplace wellness. Within this, the so-called “Complementary and Alternative Medicine” is estimated to be about US$200 billion.

There are several reasons why “complementary and alternative medicine” sales are not yet larger. Rooted in economically backward countries such as India, these have been seen as outdated, less effective and even unscientific. In India, the home of Siddha and Ayurved, apart from individual practitioners, several companies such as Baidyanath, Dabur, Himalaya and others were active in the market for decades, but were usually seen as stodgy and products of need, and usually limited to people of the older generations and rural populations. In the West they typically attracted a fringe customer base, or were a last resort for patients who did not find a solution for their specific problem in modern allopathy and hospitals.

However, through the 1970s Ayurved gained in prominence in the West, riding on the New Age movement. Gradually, in recent decades proponents turned to modern production techniques, slick packaging and up-to-date marketing, and even local cultivation in the West of medicinal plants taken from India.

As wellness demonstrated an increasingly profitable vector in the West, Indian entrepreneurs, too, have taken note of this opportunity. Perhaps Shahnaz Husain was one of the earliest movers in the beauty segment, followed by Biotique in the early-1990s that developed a brand driven not just by a specific need but by desire and an approach that was distinctly anti-commodity, the characteristics of any successful brand. Others followed, including FMCG companies such as the multinational giant Unilever. The last decade-and-a-half has also brought the phenomenon called Patanjali, a brand that began with Ayurvedic products and grew into an FMCG and packaged food-empire faster than any other brand before! While a few giants have emerged, the market is still evolving, allowing other brands to develop, whether as standalone names or as extensions of spiritual and holistic healing foundations, such as Sri Sri Tattva, Isha Arogya and others.

An absolutely critical driver of this growth in the Indian market now is the generation that has grown up during the last 25-30 years. It is a class that is driven by choice and modern consumerism, but that also wishes to reconnect with its spiritual and cultural roots. This group is aware of global trends but takes pride in home-grown successes. It is comfortable blending global branded sportswear with yoga or using an Indian ayurvedic treatment alongside an international beauty product.

Of course, there is a faddish dimension to the wellness phenomenon, and it is open to exploitation by poor or ineffective products, non-standard and unscientific treatments, entirely outrageous efficacy claims, and price-gouging.

To remain on course and strengthen, the wellness movement will need structured scientific assessment and development at a larger scale, a move that will need both industry and government to work closely together. Traditional texts would need to be recast in modern scientific frameworks, supported by robust testing and validation. Education needs to be strengthened, as does the use of technology.

However the industry and the government move, from the consumer’s point-of-view the juggernaut is now rolling.

(An edited version of this piece was published in Brand Wagon, Financial Express.)