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Russian pharmaceutical market: working with distributors, pharmacy chains and e-commerce partners in a dynamic landscape
In October 2024, B1 Group surveyed pharmaceutical producers to determine how they engage with distributors, pharmacy chains and e-commerce partners in a changing environment. The survey covered 27 major international and Russian market players.
KEY FINDINGS
WORKING WITH DISTRIBUTORS
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In 2024, most manufacturers engaged with less than 10 distributors in the public and private sectors.
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91% of respondents do not plan any significant changes in their bonus/premium scales for 2025.
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Russian public companies generally make settlements within 61-90 days, while private companies have extended the payment period to 91-120 days. Advance payments are becoming more common.
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According to respondents, volume bonuses and near-expiration discounts are the most frequently used incentives for distributors.
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Most companies continue to calculate volume bonuses on a quarterly basis.
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Average days’ supply of inventory stored at warehouses of pharmaceutical distributors is 31-60 days.
WORKING WITH PHARMACY CHAINS
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Direct supply contracts with pharmacy chains are gaining traction, with 78% of respondents concluding such contracts with pharmacy chains in 2024 (57% in 2023).[1]
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Volume bonuses for over-the-counter medicines are the most popular incentive tool for pharmacy chains, which is used by 91% of surveyed companies. The highest bonus percentage (more than 10% of turnover) is also attributable to over-the-counter drugs.
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Companies continue to use PTT[2] reports to support the review of pharmacy chains’ reports. More and more respondents plan to entirely switch to PTT reports.
WORKING WITH E-COMMERCE PARTNERS
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Over 70% of surveyed companies use up to 10 online platforms in their e-commerce operations.
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Promotional discounts and the Search Competitors functionality are the key e-commerce promotion tools used by survey participants.
76% of respondents are positive about their business prospects in the Russian pharmaceutical market.
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Show references
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[1] The number and composition of survey participants in 2023 and 2024 may differ
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[2] PTT – pharmaceuticals tracking and tracing
CONTACTS
Ilya Ananyev
B1 Partner
Assurance, Retail & Consumer Products, Agribusiness, Life Sciences and Pharma Leader
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Alina Lavrentieva
B1 Partner
Life Sciences and Pharma Leader
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Anna Ruvinskaya
B1 Partner
Life Sciences and Pharma
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Margarita Tolstaya
B1 Senior Manager
Life Sciences and Pharma
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