Products in the Retail segment are sold via various so-called substitution systems, usually controlled by price and supply. An example of such a system is the Periodens Vara (PV) system in Sweden, which covers almost 80% of all medicines that are dispensed at Swedish pharmacies every day. The PV system is a way for the State, as a subsidizing “payer” via medicine reimbursement, to ensure that you get as much treatment as possible per tax SEK. Only the cheapest product in a certain exchange group is dispensed. In other countries, insurance companies can take on the role of payer, but the purpose is always the same.
Advantages of the Retail segment are fast market penetration and non-existent requirements for sales or marketing resources. With the right price and stock, the products are sold automatically and without delay.
The disadvantage of the Retail segment is, of course, that easily won is just as easily lost if a competitor can offer a lower price. This makes inventory planning and market knowledge central assets within EQL in order to be able to balance correctly between opportunities and risks when prices change on an annual, quarterly, monthly or weekly basis.