Year in Review: GoodHealth Shops
A year ago, we announced the launch of the GoodHealth Shops, an exciting new pilot funded by the Bill and Melinda Gates Foundation to expand mPharma’s QualityRx model to 20 Patent and Proprietary Medicine Vendors (PPMVs) in Lagos, Nigeria. QualityRx is mPharma’s technology enabled conversion franchising solution that unites community pharmacies under the Mutti brand to leverage scale, marketing expertise and insights to drive better business decisions, increase growth and profitability and enhance patient care in local communities.
We pursued this pilot with the aim of improving healthcare accessibility and affordability in Nigeria, as PPMVs represent a key channel for the provision of primary care in low-income and rural populations. As of 2005, an estimated 200,000 PPMVs provided medical treatment to one third of Nigerians. In family planning, 50% of oral contraceptive users obtain products and counseling services from PPMVs.
By ensuring these providers have access to working capital and high-quality, affordable drugs, we will enhance both economic and health outcomes. The unprecedented events of the past few months have only confirmed the importance of the work mPharma has been doing with the GoodHealth Shops and their communities.
Overview
Over the course of the year, we have seen the GoodHealth Shops flourish. After completing the launch of our final cohort in February, we scaled our supply chain operations to deliver medications on a monthly basis using our vendor managed inventory (VMI) model. Under this model, which mPharma pioneered in Africa, the GoodHealth Shops only have to pay for the products they sell to customers. Their unsold inventory is owned and managed by mPharma.
With newly renovated stores, fully-stocked shelves, and free quarterly health screenings, PPMVs in our portfolio saw major improvements in foot traffic and revenues. We were able to track these improvements on Bloom, the proprietary point-of-sales (POS) system that was first introduced in November 2019.
Patients have benefited not only from free health screenings, but also from competitive prices and discounts through Mutti, our health membership program. The significant revenue growth at the GoodHealth Shops have been driven by Mutti members who account for 65% of total sales.
- Total # of Mutti members: 4,120
- % of purchases made by Mutti members: 65%
- Total loyalty discounts: $550 (vs. <$1 average basket value)
PPMVs and patients alike have testified that mPharma has transformed their lives.
“I have opened my shop for over 30 years, but only a few people in my area patronize me. My business wasn’t growing and there were days when I didn’t make any sales at all. Partnering with mPharma changed everything for me, I became more popular, and a lot of people now patronize me’’ — Bolanle PPMV
- “Since I partnered with mPharma, I no longer have to use my personal money to buy drugs to stock my store. I decided to use the money to start another line of business”- Das-Dem PPMV
- “My customers that receive Mutti discounts on their drug purchases are usually very happy because they can use the money they saved on their drugs to buy other things for their families.”- Joke Ola PPMV
- ‘People in my area recognize me as someone who sells safe drugs at cheaper prices. My customers are happy with the way my shop looks and they help me to bring more customers’’ — Damilat PPMV
‘’As a pregnant woman who wants the best for her baby, I buy all my antenatal drugs from Damilat PPMV because she sells only original drugs’’. — PPMV Customer
During the pandemic and subsequent economic downturn, mPharma has remained committed to serving communities by strengthening PPMVs’ ability to provide consistent and affordable access to medications. Since the start of COVID-19, we have been able to leverage two innovations to maximize the benefits of our partnership.
Real-time Demand Data
After launching the GoodHealth Shops, our priority was to train owners to use Bloom, mPharma’s proprietary POS system. Prior to the partnership, none of the PPMVs had a formal data capture system — they had no way of measuring sales performance or tracking expired stock. As part of the renovation, each PPMV was provided a tablet device and trained to use the Bloom application for all sales transactions.
With Bloom, owners are now able to monitor daily revenues and keep track of inventory. Not only does this allow PPMVs to access important information about their businesses, but it also establishes trust and transparency in our partnership when it comes to monthly bills and stock audits. Bloom also enables the owners to register their customers into Mutti and turn them into loyal customers through our dynamic rewards program.
For mPharma, this real-time data enables efficient stock management through predictive forecasting and proactive redistribution of slow-moving drugs. In the past few months, we have combined online and offline approaches to optimize inventory distribution. This two-pronged approach to gathering demand data has been a driver for growing facility revenues.
- High Demand for Multivitamins and Immune Boosters in the Midst of COVID-19:
In March, a subset of PPMVs indicated heightened customer demand for health supplements and immune-boosters like Vitamin C, likely as a precaution against the Coronavirus. After reviewing dispensation data from Bloom, we realized this trend was true across all facilities. We collaborated with the PPMVs to confirm the most popular brands at each store in order to purchase products and distribute as needed. This demand trend persisted through August, with an average 5% increase in monthly share of sales for supplements compared to before the pandemic.
- Seasonal Demand for Sugar and Milk during the Muslim Holiday:
In the month of May, our team noticed a spike in sales for FMCGs like sugar and dried milk in several facilities. Through conversations with PPMVs, we realized the increased demand for these products was due to customers breaking daily fast for Ramadan. Due to the lock-down, many people were at home and chose to purchase these items nearby. In addition, mPharma’s prices on consumables were highly attractive at this period of price inflation. We were able to quickly supply these consumables from the warehouse to the facilities that needed them.
Safe and Compliant Health Screenings
During the pandemic, it became difficult for patients to gain access to non-COVID-related primary care. Not only were hospitals and clinics focused on preparing for the new disease, but patients were also hesitant to seek the care they needed out of fear of contracting the Coronavirus. With the state-wide restrictions on gatherings, outdoor health screenings were difficult to stage safely.
In August, mPharma’s clinical services team piloted virtual health screenings to allow GoodHealth Mutti patients to access healthcare services. During these screenings, patients and mPharma volunteers were kept physically distanced and protected with PPEs. Mutti members called in advance to schedule a diagnostic screening with on-site nurses, after which they had the option to video chat with a doctor regarding their condition. The number of patients in the waiting area was strictly enforced to twenty people at a time, with temperature checks at the entrance.
In addition to receiving wellness screenings, in August over 800 Mutti members were also tested for Hepatitis and blood sugar levels. At the screenings, we rolled out a partnership with Eyes on Africa, a non-profit organization committed to distributing eyeglasses for free in underserved communities. As part of the first phase of this partnership, 100 patients will receive free eyeglasses. We look forward to continuing to expand offerings to Mutti members through partnerships with other organizations.
Next steps
As we approach the one-year mark of the GoodHealth Shop, we are taking the time to reflect on our learnings from the pilot. We have shown that a franchise operating model with strong central controls can address the compliance issues most PPMVs face. We hope that the franchising framework we have developed will inform future growth as we continue our effort to support PPMVs and their patients throughout Nigeria. A well managed PPMV ecosystem is essential in building communities in #goodhealth.
