Prices for medicines: Ukraine vs Europe
According to the study, 84% of over -the -counter and 78% of prescription drugs in Ukraine are cheaper than in European countries. On average, consumers pay 30% less for medicines than Europeans. And what is interesting: Ukrainians often receive requests from relatives from abroad to purchase and send them medicines, because even taking into account delivery, this is more profitable.
Why many pharmacies are an advantage for consumers
A high concentration of pharmacies creates a competitive environment that forces pharmaceutical establishments to fight for each client. Key advantages of such competition:
- Cost optimization: Large pharmacy retailers save on logistics and operating expenses, which allows you to reduce prices.
- The best conditions from suppliers: Pharmacy networks use their scale to obtain more favorable conditions and discounts from manufacturers and distributors.
- Accessibility in different regions: A large number of pharmacies provide the presence of drugs even in remote and front -line settlements.
Marketing tools in the interests of the consumer
In conditions of hard competition, pharmacies actively use various marketing tools:
- Promotions and discounts: Proposals of the type “2+1”, seasonal discounts and special offers have become familiar practice;
- Bonus programs: Loyal customers get additional advantages through bonus cards and loyalty programs.
But until March 1, marketing agreements with manufacturers worked: when pharmacies conclude contracts with manufacturers for advertising, special placement and holding of shares – and this was precisely what made it possible to significantly reduce prices for socially significant drugs.
Marketing agreements are a legal market mechanism that worked in the interests of the consumer. Manufacturers pay for specific services – advertising, placement, staff training, holding shares – and pharmacies, in turn, can offer customers lower prices.
After the ban on “marketing agreements” the total number of discounts with discounts decreased. However, despite this, all pharmacy networks have retained their loyalty programs for buyers.
The social role of pharmacies
Unlike European countries, where a significant part of the cost of drugs is covered with insurance or the state through the reimburization system (compensation for the cost of drugs), in Ukraine, patients buy 85% of medicines at their own expense. Therefore, the extensive network of pharmacies performs an important social function, providing Ukrainians with access to high-quality and affordable medicines, especially in conditions of state funding limited due to the war.
European experience shows the effectiveness of large pharmacy retailers – for example, in the UK, a significant share of the market is occupied by Boots and Lloydspharmacy chains, and in Norway, after a deregulation, more than 90% of pharmacies are controlled by three large network companies.
Thus, a large number of pharmacy establishments and the active use of marketing tools create a unique situation when even in war conditions, Ukrainians have access to drugs at prices lower than in more economically stable European countries.
