Generics Pharmacy to diversify product offering ahead of slowing growth

By: Krista Angela M. Montealegre, InterAkson.com January 23, 2013 12:08 PM

InterAksyon.com The online news portal of TV5

MANILA - The Generics Pharmacy wants to diversify its product offerings, as it aims to expand its store network amid the growing acceptance for cheaper generic medicines.

Benjamin I. Liuson, president of The Generics Pharmacy Franchising Corp, said the company is in talks with manufacturers so it can offer personal care and cosmetic products under its own brand.

Any product can come in. We are now concentrating on [pharmaceutical]. Gradually, we will go to personal care, maybe give it another two years. We will also go to cosmetics line, Liuson said.

The Generics Pharmacy - which sells food supplements, cough and cold remedies, diuretics, antibiotic, appetite stimulant, among others - is leveraging on its expansive store chain to support its diversification strategy.

With a network of 1,500 stores, The Generics Pharmacy is not only the country's largest drugstore chain, but the largest retailer in the Philippines as well, beating rival Mercury Drug, convenience store operators 7-Eleven and Mini-Stop, as well as fast-food giant Jollibee, Liuson said.

By 2015, The Generics Pharmacy expects its store count to hit 2,000. It will slow down on its expansion program this year, opening 150 outlets compared to the 200 in 2012, mostly concentrated on second- to fifth-class municipalities.

"Kung bukas kami ng bukas, nasaan ang profitability? We maintain at least a one-kilometer distance between stores. We dont put them near each other so we can protect the franchisee and the business," Liuson said.

Franchising played a key role in the expansion of The Generics Pharmacy with the company only owning two out of the 1,500 stores.

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Generics Pharmacy to diversify product offering ahead of slowing growth