Fake or counterfeit medicines are not just harmful for the consumers but also for the pharma manufacturers. Every year, spurious or counterfeit drugs lead to huge amount of losses for the manufacturers, evade large scale taxes, tarnishes the reputation of brands. In this blog we discuss how pharma companies affect the pharma industry.
Affects the sales of pharma companies
Pharma companies have to face loss of millions of dollars every year due to the sale of fake pharma drugs. They face a drop down in sales which impacts their annual profits. Moreover, the money incurred on research and development is also wasted. According to the World Health Organisation (WHO), 35 percent of the fake drugs sold all over the world comes from India and this is real challenge for the manufacturers and the government.
Impacts the brand image of companies
The sale of counterfeit drugs in the market affect the brand image of companies. Fake drugs are harmful for the consumer and impact their health. In such a scenario, consumers can easily switch to a different brand or product. Companies invest huge amount of money for years to build brands, however counterfeits pose a risk to the same.
Impacts the loyalty of the consumers
Consumers tend to connect emotionally with a brand or product. They trust the products and brands which have delivered excellence and best customer support for them. However, due to incidents of counterfeiting consumers switch over to a new company and product. Moreover, they loose confidence in the product and brand affected by counterfeiting.