Alliance Unichem Plc has established a new subsidiary to develop the company's e-commerce business. A three-fold strategy is planned with the development of a business-to-business internet capability, a health care knowledge resource for consumers linked to existing community pharmacies, and an on-line network of health care professionals and manufacturers.
The strategy was announced as part of the company's annual results statement on March 22. Mr Jeff Harris (chief executive, Alliance Unichem) writes in the statement that "the promotion and advancement of the role of pharmacists and our pharmacy customers is necessarily at the core of our e-business strategies". He adds that the winning combination for on-line health care is the "so-called ‘clicks and mortar' business model" which links internet sales with existing pharmacies and their customers.
Mr Harris notes that the company has been approached by many e-commerce start-ups seeking partners. He believes that because of the small market for internet sales of over-the-counter products "it is unlikely that a pure e-commerce operation could survive by relying only on that category of merchandise". Alliance Unichem does not intend to develop e-commerce structures for prescription medicines until European rules prohibiting this are changed.
Overall, Alliance Unichem's turnover rose by 14 per cent in 1999 to E9.25bn (£6.1bn). Pre-tax profits rose by 10 per cent to E184m (£121m).
In the United Kingdom, turnover at Unichem Ltd rose by 11 per cent to £1.65bn, aided by gaining a second-line supply contract to Boots the Chemists Ltd. Sales at Moss Pharmacy increased by 22 per cent to £432m, with operating profits of £30m, up 25 per cent. Moss had 634 pharmacies in the UK at the year end and has subsequently bought 42 more.