Under the Government’s wing
According to RNC Pharma, the share of municipal and state pharmacies at the end of 2014 is 7% of commercial retail market. In some Russian regions government chains are absolute market leaders, for example, in Chechen Republic, their share is about 43%, in the Republic of North Ossetia-Alania - 42%, and in Kurgan region - at least 40%. At the same time, in some regions, State chains are completely absent (Moscow Area), or show rather slow performance, for example in Moscow the share of "Capital pharmacies" chain is 1,1% of the market.
The possibility of organizing a Unified State pharmacy chain on the basis of small separate chains and and individual pharmacies is a quite tempting task. Russia's largest chain now control the share, which is almost 2,5 times less ("Rigla» - 3,11%, A.V.E - 3,10%) (for details, please refer to:" Retail gets a panic attack" article). The player so powerful is capable to fundamentally change the relationship with suppliers, and hence, to increase the level of price competition in the market. However, the process of consolidating by the most conservative estimations would require at least 2-3 years, and, to work effectively, the development of wholesale component within this company will also be essential.
TOP-10 state and municipal pharmacy chains in Russia, by the results of 2014: