fbpx
Digital - Business - Media

Lifesupply.ca Building First Mover Advantage In The Online North American Medical Supplies Market

In a world where the COVID news cycle ruminates 24/7 and barriers to live shopping are increasing, e-commerce is becoming increasingly popular. Especially in the domain of retail health supplies, which contains a focused percentage of customers seeking wellness solutions, such as supplements and vitamins and basic medical supplies. Lifesupply Health Supplies is addressing this market directly by constructing a business model that emulates that of other successful online retailers.

Lifesupply Health is a fast-growing online retailer of various health supplies to the retail market. Their product catalog contains everyday items such as bandaids, nitron gloves and facemasks, all the way up to sophisticated mobility scooters.

The company carries tens of thousands of products in stock across fifty different categories, ensuring ample selectability across its network. The operation is supported by a fulfillment center in Surrey and bricks & mortar retail outlet which includes a pharmacy and medical clinic. And plans to develop a comprehensive omnichannel to support ambitious expansion plans don’t stop there. 

Lifesupply intends on making strategic capital expenditures through the purchase of infrastructure to support its growth model. This model could very well extend to the enterprise side of the marketplace, where hospitals, clinics and family offices spend big dollars purchasing medical supplies in bulk. These growth strategies should become evident as the company matures and builds out capacity.

For now, the company is seeking to acquire profitable operations and existing medical supply stores, pharmacies, clinics and distributors into its retail operations. This should broaden the scope of inventory products available to it over time and increase selectability and price competitiveness for its online customers.

Aside from the advantages of convenience, Lifesupply is purportedly competitive on price because it cuts out the middlemen and overhead costs associated with physician locations. Discounts of 20-30% are typical versus its brick & mortar competitors, according to company officials. These cost discounts will appeal to cash-conscious consumers who have been hit hard by rising inflation over the past few quarters. 

The mainstream media in Canada recently reported that nearly 4 out of 5 Canadians are either worried or very worried about rising inflation, according to a new Ipsos poll conducted for Global News. Canada’s annual inflation rate hit 4.7 per cent in October—the fastest pace in nearly 19 years—and soaring living costs have become a top concern among Canadians

Despite economic uncertainties, Lifesuppy Health Supplies faces the typical startup headwinds of under-developed end user demand. But for reasons of convenience, price and over-reaching COVID restrictions, private investors are betting that Lifesupply’s first-mover Canadian model will thrive in these changing times. 

With online engagement growing and younger demographics flexing their purchase power, the e-commerce way of shopping is rising steadily. In recent times, the COVID pandemic has accelerated adoption rates, even if giveback between Q3 2020-Q3 2021 was a function of easing COVID-based restrictions and greater brick & mortar access. Regardless, the long term trend is incontrovertibly higher.

E-commerce as share of total U.S. retail sales from 1st quarter 2010 to 3rd quarter 2021

In the third quarter of 2021, the share of e-commerce in total U.S. retail sales was 13%, down from 13.8% in the same quarter in the previous year. However, from April to June 2021, retail e-commerce sales in the United States still surpassed 220 billion U.S. dollars—the highest quarterly revenue in history. Since the first quarter of 2010, ecommerce market share increased 209.52% and has risen or held steady in every reporting period between 2010-2020.

Similar-type growth has been seen in other countries throughout the world, validating U.S. trends. McKinsey & Company reported that, “in 2020, consumers went all in; in the United Kingdom, for example, e-commerce growth leapt nearly fivefold.” Various European Union countries also saw outsized expansion, with Spain and Germany growing 4.7-times and 2.3-times faster than traditional retail, respectively. Simply put, online retailing is engulfing and encroaching upon an antiquated way of doing business.

Overall, analysts are expecting that online scale will only continue to grow. By 2030, Global e-commerce market will reach $66.93 billion by 2030—growing13.5% annually—driven by the rising online shopping and digital transactions amid the COVID-19 pandemic.

The challenge for Lifesupply will be overcoming headwinds inherent to early-stage growth companies, such as under-developed customer bases and capital constraints. But in a macro sense, a decentralized distribution retail model it has chosen to employ makes sense in a post-pandemic world. Sprinkle-in a healthy heaping on inflation—which may or may not be transitory according to the most powerful Central Banker in the world—and the company’s price competitiveness could receive added notice.

A company to watch as it draws closer to a public listing on a Canadian Securities exchange.

The Dales Report Inc. disclosure policy applies to this post    
You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More