The German drugstore chain DM is poised to disrupt the German online pharmaceutical market with the launch of its own online pharmacy, “DM-Med” next Tuesday. The move, detailed in an interview with “Handelsblatt”, signals a strategic shift for the retailer, designed to capture a rapidly digitalizing consumer base and address a growing competitive pressure.
DM-Med will initially focus on over-the-counter medications and skincare products, offering approximately 2,500 non-prescription drugs and 1,000 cosmetic items. This entry into the sector represents a significant challenge to established players, including international giants like Shop Apotheke and Doc Morris, within a market valued at over €14 billion annually.
Critically, DM’s approach appears to be less about directly competing with traditional pharmacies and more about retaining younger, digitally engaged consumers. Werner emphasized that DM-Med will “not” currently fulfill prescriptions, a deliberate decision to avoid direct conflict with regulated pharmacy services. The company’s concern, as expressed by Werner, stems from a fear of losing valuable demographic segments that are increasingly seeking health and wellness products online.
To streamline operations and maintain competitiveness, DM intends to ship medications from the Czech Republic. This logistical strategy also sets the groundwork for potential expansion into other European countries, with the Austrian branch already expressing significant interest. The decisions regarding such international rollouts, according to Werner, will rest with the individual DM national subsidiaries, suggesting a decentralized approach to future growth.
The launch of DM-Med raises questions about the implications for independent pharmacies. While initially focusing on OTC medications, the expansion of DM’s online presence could exert downward pressure on pricing and market share within the broader pharmaceutical sector, potentially prompting a reevaluation of business strategies amongst smaller, independent retailers. Furthermore, the deliberate exclusion of prescription fulfillment, while strategically advantageous for DM, also reinforces the ongoing debate surrounding the digitalization of healthcare and the evolving roles of traditional pharmacies within a changing landscape.