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Tata 1mg plans rapid offline foray by end of year

Written by : Aishwarya Sarthe

July 3, 2023

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Tata 1mg, an online pharmacy startup backed by Tata, aims to expand its offline presence to compete with rivals like Reliance's Netmeds and PharmEasy

Tata 1mg, currently operating around 50 stores in cities like Gurugram, Jaipur, Delhi, Noida, and Kolkata, is preparing to expand its physical presence. The company plans to establish 200-300 additional stores by the end of 2023, targeting cities such as Bengaluru, Hyderabad, and Mumbai.

According to Tanmay Saksena, the Chief Operating Officer of Tata 1mg, the company aims to increase its store count by 4-6 times within six months. By the end of this calendar year, Tata 1mg plans to have approximately 200-300 stores in cities like Bengaluru, Hyderabad, and Mumbai. Over the past year, the company has tested its offline store strategy through pilot stores in cities including Gurugram, Jaipur, Delhi, Noida, and Kolkata. A significant number of these stores, around 35, were launched between December last year and January 2023. The shift towards an omnichannel approach has become crucial for online-only startups as consumers return to offline stores after the pandemic has eased.

Tata 1mg's stores typically measure 400-500 square feet, larger than mom-and-pop pharmacies that usually measure around 150-200 square feet. The company intends to operate all its offline stores and has no plans to offer franchises. These stores will extend beyond the traditional pharmacy model, offering a holistic experience by providing diagnostic services, digital consultations, care plans, disease management plans, and other integrated healthcare services under one roof. This approach aims to create a comprehensive healthcare ecosystem.

Saksena expressed optimism about the pilot phase, stating that the results are promising. In about a quarter's time, the company will make decisions regarding the exact number of stores to be opened. It will also make decisions regarding the cities where they will be located. Tata 1mg plans to invest all out with its omnichannel strategy based on these considerations.

By expanding its offline presence, Tata 1mg seeks to cater to a wider consumer base. It also seeks to provide a seamless healthcare experience that combines online convenience with the personalized touch of physical stores. This move aligns with customers' evolving preferences and reflects the company's commitment to delivering integrated healthcare solutions.

With Tata's backing and the expansion of its offline stores, Tata 1mg intends to strengthen its position in the competitive market. It also aims to tap into the growing demand for online and offline healthcare services. By offering a wide range of healthcare offerings through its holistic stores, the company aims to create a distinctive and customer-centric approach to healthcare delivery.


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