Retail Pharmacy in Brazil Final Customers Identification

Customers Categorization

The value chain analysis of the retail pharmacy industry in Brazil identifies distinct categories of final customers based on their position and relationship within the value chain. These customers can be broadly categorized into Business-to-Consumer (B2C) and Business-to-Business (B2B) segments.

The primary final customer segment in the retail pharmacy value chain is the Business-to-Consumer (B2C) segment, comprising individual End Consumers. These are the over 212 million people in Brazil who directly purchase pharmaceutical products, health and wellness items, and increasingly, health services from retail pharmacies and drugstores. [Investe SP] This interaction occurs at the final stage of the value chain.

Alongside the B2C segment, there are also significant Business-to-Business (B2B) customers within the broader pharmaceutical supply chain, although they primarily interact with the distribution and manufacturing stages rather than retail as the final point of sale for individual consumption. These include: * Institutional Clients: Hospitals, clinics, and other healthcare institutions that purchase pharmaceutical products for use in patient care within their facilities. * Public Sector: Government entities at federal, state, and municipal levels (such as the Ministry of Health and related secretariats) that procure large volumes of pharmaceuticals for public health programs like the Unified Health System (SUS) and Farmácia Popular.

While the core of the retail pharmacy value chain culminates in the B2C transaction with individual consumers, it's important to acknowledge the B2B relationships that facilitate the flow of goods and services to institutional and public health channels, serving as indirect final customers for manufacturers and distributors within the overall pharmaceutical ecosystem.

Detailed report on final customers categorized into B2B and B2C segments.

B2C Final Customers: End Consumers

• Identification: The end consumers are individuals across Brazil purchasing products and services directly from retail pharmacies and drugstores.
• Characteristics & Demographics: This segment is highly diverse, reflecting the entire Brazilian population of over 212 million. [Investe SP] Consumers visit pharmacies to fulfill a range of needs, from acquiring essential prescription medications and over-the-counter drugs to purchasing non-pharmaceutical items like hygiene products, cosmetics, and convenience goods. They are increasingly seeking convenience and accessibility, driving the growth of e-commerce and delivery services offered by retailers. Consumer purchasing decisions are influenced by factors such as price (including government-regulated price ceilings and retailer discounts), brand reputation, pharmacist recommendations, and loyalty programs offered by pharmacies. The evolving role of pharmacies means consumers are also becoming users of in-store health services like vaccinations, basic health checks, and medication management support. This segment's demand is influenced by public health needs, access to healthcare, and economic factors affecting purchasing power.

B2B Final Customers (primarily served by Distribution and Manufacturing, but representing final consumption in different settings):

• Identification: Institutional clients (hospitals, clinics) and the Public Sector (government health programs).
• Characteristics & Demographics:
  • Institutional Clients: These are professional healthcare organizations responsible for patient treatment and care within a controlled environment. Their demand is driven by the specific medical needs of their patient populations. They typically purchase pharmaceuticals in bulk, often requiring specialized products (like high-cost or complex therapies) and adherence to strict handling and storage protocols, including cold chain management. Their procurement processes involve professional buyers and adherence to internal formularies and treatment guidelines.
  • Public Sector: This segment represents large-scale, centralized procurement aimed at supplying the public health system and specific government-sponsored programs. The customers here are governmental bodies whose purchasing is governed by public tenders, regulations, and budget allocations. Their focus is on ensuring widespread access to essential medicines and vaccines for the population served by the public health system. Volume and cost-effectiveness are critical factors in these transactions, often involving mandatory discounts from suppliers.

References:

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