If you have done research on how to enter the healthcare industry, it is possible that you may have heard about “PCD.” After all, it is one of the most widespread and popular business models in the Indian pharma industry. Keep reading to understand about this in detail.
What Is the PCD Model?
It is a business model that is mutually beneficial to the franchise owner, as well as the parent company that provides them the selling rights. Are you familiar with the franchise model? Let’s take a very common example to help you understand better.
Any fast food chain outlet you see is most likely a franchise. For instance, you can take a Starbucks franchise to begin selling their items officially. This is also the case in the pharma industry.
Such as, Vivaceutical – The Best PCD Company in India offers franchise ownership with many benefits, which we will learn more about later on. If you are a newbie in the pharma industry, this is one of the easiest ways you can enter the market.
When you avail a pharma franchise, the company sells you the marketing and distribution rights of its whole or partial product range. The product choice will also be your own, so you can study the market and invest in the products that sell the most in your area.
Taking a franchise basically means entering a contract franchise agreement with the parent company. The agreement is signed when both parties have talked and agreed upon the terms and conditions of the partnership.
Now that you have an understanding of the PCD model, let’s take a look at how it works and why it is the most beneficial to newcomers.
How Does the PCD Model Work?
PCD pharma companies allow their partners or franchise owners to perform commercialisation using their products and brand name. So what do PCD companies offer to franchise owners? Let’s find out!
Monopoly rights are one of the most unique and advantageous aspects of the PCD pharma business. It is also the reason why many entrepreneurs are attracted to this business model. So what exactly do they do? To put it simply, monopoly rights allow you to be the sole seller of the whole or partial product range in the area where your retail store is located.
So, if you are the only seller of the parent company’s products, no one could take your business. Say, you are on an off but a customer needs to buy something from your store. Now they do not have the option to go to the nearby shop to get the same thing.
Furthermore, you get to pick the products which would be sold in your area. This is also why it is important to understand the market demand before investing.
Besides monopoly rights, you also get a lot of other benefits by investing in the PCD pharma business. However, as with any business, there may also be some risks associated with this model. Click here to know more.
What Are the Benefits of Availing a PCD Pharma Franchise?
As aforementioned, there are many reasons to invest in a PCD pharma franchise, as one gets access to a number of benefits.
This is one of the biggest concerns people have when starting a business. If you are wondering how you will save up lakhs to start a PCD business, let us stop you right there. It won’t be necessary, as when you source the products from us, you only have to spend downwards of 15,000 INR as an initial investment.
Other than that, you would have to pay rent and get the drug licence to sell medicines. Most franchise partners start small, so you may not even have to hire help right away.
Help With Marketing
You must be wondering why we didn’t mention any advertising or marketing costs in the investment part? Well, that is because you don’t necessarily have to spend on marketing. The parent company will help you advertise and gain customers.
You get promotional gear such as pens, notebooks, etc. Better yet, you do not have to worry about having prior connections in this rapidly growing industry! Since you are selling their products, the PCD pharma company will help you get familiar with their connections and form good relations with them. As a result, you will see a significant boost in sales.
Low Risk High Reward
Low investment means lower risk but it doesn’t mean that there is no risk at all. However, in the case of a PCD franchise, you also have other things protecting you from failure, such as:
- India has a large and constantly growing demand for medicines.
- The Indian pharma industry is the third-largest in the world by volume. So, you do not have to import any products and pay heavy fees on them.
Keeping these points in mind, we can say that the pharma sector’s profit potential is at an all time high.
How to Pick the Right PCD Pharma Company to Work With?
This is an important decision and will directly impact how your business performs. If you do not conduct thorough research, it is highly likely that you will end up working with a company that does not follow through with the promises they made.
Sometimes working with large corporations is also not the right decision as they won’t be available to help you whenever you require. It is best to work with a company that has a dedicated customer support helpline, so that you can reach out to them whenever you need help.
You should also make sure that they make timely deliveries so you do not have to deal with a set back. Plus, it is of the utmost importance that the company is ISO, GMP, and WHO certified.