Since 2006, when parapharmacies were only allowed to sell products such as dietary supplements, weight-loss products, athletes’ foods, baby food, cosmetics, and personal hygiene products, things have changed significantly. Today, parapharmacies increasingly resemble traditional pharmacies.
The most important difference is this: a parapharmacy cannot sell drugs that require a medical prescription .
Furthermore, you’ll find a wide range of personal care products, as well as all those medications that don’t require a prescription and all so-called over-the-counter medications. If well-planned with a solid business plan , opening a store can prove to be an excellent financial investment that can guarantee financial success. However, there are many aspects to consider: let’s discover the most important issues to carefully evaluate in this guide.
What is a parapharmacy?
Parapharmacies , also known as farmashops , are a new type of store that has become increasingly popular in Italy in recent years. These stores sell wellness, health, and personal care products: herbal medicine, supplements, weight-loss products, dermocosmetics, medical supplies, and orthopedic products.
Their success was also made possible by the liberalization of certain drugs, which no longer require a prescription. They have also recently become widespread in Europe , unlike in America , where this type of store, called a “drugstore,” has existed for a long time.
Products and services in the Parapharmacy
A parapharmacy offers a wide range of products and services . Typically, the easiest products to find in these stores are:
- herbal products
- food supplements
- organic products
- electromedical products
- drugs that do not require a prescription.
The drugs found in a parapharmacy are those that belong to the so-called “band C,” which includes drugs that do not require a medical prescription ( band SOP ) and all those so-called over-the-counter products ( band OTC ). Prescription drugs, however, cannot be sold in a parapharmacy; they are available only in traditional pharmacies.
Parapharmacies, like pharmacies, have agreements with INAIL and Local Health Authorities .
Initial investment
The initial investment to open a new parapharmacy could be around 40-50 thousand euros, which is needed to renovate and furnish the premises and cover the costs of various bureaucratic procedures.
Of course, if you don’t have a space, you need to consider renting or buying one, but it’s important to keep in mind that the space needed to run this business is quite small, with a medium-sized space being sufficient.
Bureaucratic requests
To open a parapharmacy, you need to submit applications and obtain permits, including:
- submit an application to the competent Municipality to start a business;
- forward the notification of commencement of business to the Ministry of Health, the Region where the parapharmacy is located, the Order of Pharmacists and the Italian Medicines Agency;
- register with the Chamber of Commerce;
- obtain health and hygiene clearance for the possible sale of food and beverage products;
- open a VAT number.
For the necessary forms and permits, it’s also a good idea to contact the relevant Region and Municipality for up-to-date information.
To open a parapharmacy it is also necessary to have a degree in pharmacy . If you do not have this requirement, it is essential to hire a person with this professional qualification.
Location
For a parapharmacy to be a sound financial investment, it’s important to carefully select its location. Ideally, it should be easily visible and accessible from major roads, with dedicated customer parking to facilitate quick purchases, even for passing customers. This may lead to customers choosing a parapharmacy over, say, a pharmacy or other retail outlet, precisely because of its convenient parking.
Proximity to shopping centers , or even opening within them, also allows you to leverage the mall’s visibility to attract customers. One aspect not to be overlooked: try to avoid opening right next to a pharmacy, which would create very direct competition.
I earn
Opening a pharmacy can be a good investment and a great earnings opportunity. There are several factors to consider, including:
- The specific market is constantly and rapidly expanding: just consider that 3 out of 10 Italians purchase over-the-counter and health products that do not require a medical prescription, for a total turnover of over 7 billion euros;
- Possibility of building a regular clientele: if you run this business with passion and skill, you can build a loyal clientele who regularly visit the pharmacy to purchase products, guaranteeing a steady and secure income throughout the year.
Competition
The sector is constantly growing. Since the liberalization of the sale of various types of drugs, there has been a significant increase in these new entrepreneurial activities. According to data from Federfarma, approximately 20-25% of traditional pharmacies’ revenues come from the sale of non-prescription products, and 10% from the sale of so-called over-the-counter products.
It is therefore immediately clear that if these products can also be sold by a parapharmacy, their positioning on the market is undoubtedly one of competition with traditional pharmacies.
The outlets that can compete with a parapharmacy are:
- traditional pharmacies
- medical supply stores
- paramedical product corners inside supermarkets
- other parapharmacies present in the area considered.
Promotion
Promoting your business is undoubtedly a worthwhile financial investment to maintain visibility over time and expand your customer base. One of the first steps to promoting your products and services is to have a well-curated and continually updated showcase .
Also useful are illuminated signs , flyers , advertising in local periodicals and newspapers, posting posters , promotions in gyms, medical centres and sports clubs and associations .
In recent years, a marketing strategy has also become increasingly popular: customers are given a sort of loyalty card . This card, which accumulates points based on their spending or points awarded by the store, allows the customer to receive discounts or free products or gadgets. This gives customers an additional reason to return to the same store.
Professional update
If you work in a pharmacy , or even own one, it’s very important to take professional development courses . This way, you can serve your customers with greater attention and expertise, and advise them on the most appropriate products for their specific needs. In turn, if the customer feels they’re dealing with qualified and professionally trained staff, this will motivate them to return to the same store.
This creates a sort of bond of trust between customer and seller, and this is certainly another useful aspect for promoting the parapharmacy and increasing its profits.
Risks of failure
The risks of failure when starting a parapharmacy can be similar to those of any other business venture. Therefore, before making this decision, it’s important to plan the launch of your new business and consider all related aspects.
Among the most common risks of failure are:
- incorrect choice of location:
it was opened in a less visible and busy location, far from service centers and in sparsely populated areas, or too close to other competing stores; - Prices for products that are too high
to be competitive are also important. Offering good products at competitive prices is also important. Periodically, promotions can be run on certain services or products to attract more customers. However, if prices remain too high, customers will not return to the store unless they are truly needed, and it will be impossible to build a loyal customer base. - Character not suitable for managing a point of sale.
To manage a parapharmacy (like any other shop) a propensity for contact with the public is necessary, demonstrating qualities such as listening skills, ease of relating, patience, resourcefulness, availability, professionalism and discretion.
