Pharma Franchise Business Concept
The concept of PCD Pharma business is a new and unknown word for many common people but for the person who is associated with Pharma or healthcare sector is familiar with this word very well. In the era of 2000 when India was developing rapidly in that period, there was one sector which is changing its path of progress and it was Indian Pharma sector. Pharma franchise and distribution concept has changed the direction of this field and provided the opportunity of growing to small PCD Pharma Companies and healthcare professionals to start their own business and grow with their own work.
The term franchise which is used in Pharma franchise comes from French vocabulary. Its meaning is liberty and it was used before the 18th century. Again its use started in the new modern era of the 20th century and then it became very popular in various business sectors such as food, cloth, auto, medicine, etc. Between the eras of 1950-60 less than 100 companies in the US were working on the basis of the franchise business concept. In the current scenario, this business concept is working everywhere in the world even it is difficult to count.
The franchise as a business concept in Pharma
For understanding Pharma franchise in business terms, first, we need to understand the term “franchise”. It is defined as the business agreement between the company or supplier and seller. In Pharma, sector supplier refer as PCD Pharma Company, Pharma marketing company, Pharma manufacturing company, wholesaler, etc. Sales professionals, retailers, distributors, franchisees may refer as a seller. Product and services are produced by suppliers where the duty of the seller is to sell that product. Both supplier and seller decide expenses and a profit margin between them. In pharmaceutical segment supplier is responsible for product development, stock and promotional inputs and expense of sales and marketing with other advertisement investment is taken by the seller.
If we think about future aspects of Pharma franchise business then we find that this sector is growing. New Pharma franchise companies are launching everyday but it is not looking easy for existing PCD Pharma companies to maintain the same growth with growing competition in this sector. Similarly some policies, new laws and strictness have made the life of PCD companies tougher than earlier time. Some other factors such as high competition, low margin, awareness of generic products, known manufacturing cost among professionals and poor services are some of the issues that PCD companies are facing. Every business has its own pros and cons. Pharma sector is also upgrading with time and latest strategies because it is the best option for small and mid-size PCD Pharma companies to compete with big MNCs and corporate giants.