OTC layout growth slows Multinational pharmaceutical companies are waiting for the rebound

In the U.S., the consumer segment faces the same market as generics, with intense competition slowing growth. And with the second quarter of multinational pharmaceutical companies issued one after another, some multinational pharmaceutical companies in the consumer health care business have appeared in varying degrees of decline.
, the OTC and health food markets in retail terminals also face stiff competition, but growth is accelerating. According to IMS data analysis, the retail pharmacy over-the-counter drugs and health food market reached RMB78.4 billion in the second quarter of 2017, an increase of 1.4%, with an accelerated growth rate, mainly due to higher average prices. From the point of view of key monitoring cities, the market growth rate of domestic enterprises is accelerating, and the market growth rate of multinational pharmaceutical companies has declined.
does the multinational pharmaceutical company show weakness and discomfort in the domestic distribution of OTC and health care products business? In the eyes of some multinational drug companies, the current slowdown is normal, they are bullish on the market, and waiting for the opportunity to rebound.
in order to better save strength, recently, multinational pharmaceutical companies and retail terminals for further exchanges.the layout of drug companies has increased
past few years, the layout of major multinational pharmaceutical companies in OTC and consumer health care business is of particular concern. In 2014, Bayer acquired the OTC business in Mercedon, and in the same year, GSK and Novarma companies d'OTC increased their focus on the consumer health business. However, at the end of last year, Shanghai Shiguibao disbanded its domestic OTC division and its team, and this year multinational pharmaceutical companies in OTC and consumer health business growth decline and other phenomena, to multinational pharmaceutical companies in China layout OTC and consumer health business strategy cast a veil.
data show that in the over-the-counter and health food markets, the top 20 manufacturers by concentration have a market share of 25.7 per cent, with five of them multinationals accounting for 6.3 per cent. The 41 core cities contribute more to multinationals than domestic ones, and Townsend's market sales remain the number one but growth continues to decline.
In the face of questions from the outside world, Huang Xinfeng, Vice President of Sales for Bayer Health Consumer Products China, explained at the "Win-Win China OTC Market" conference organized by Bayer's Health Consumer Products Department that Bayer is generally optimistic about the development of OTC in China, and that as the most important part of the 13th Five-Year Plan, Health China emphasizes self-care, which is consistent with the development of OTC and health care products. "As can be seen from the recent development of new drugs, product segmentation is very clear and more detailed, and the input and self-education of enterprises will bring product segmentation services to meet the needs of consumers more," he said. At present, the training and promotion of pharmacies throughout China is showing a very rapid development trend, we are very confident in the development of retail terminal OTC. Wang Qin, general manager of the purchasing center of
People's Pharmacy Chain Co., Ltd., said that OTC is more reflective of the era of consumer sovereignty than prescription drugs, and to win the consumer-led OTC market, drug retailers need to explore and build innovative business models. In the new business model, pay more attention to the efficacy of drugs, enhance professional services and optimize the consumer experience. Through the line, offline linkage, word-of-mouth drain.
", the slowdown in growth now mentioned by the outside world is actually normal and should be a quality growth. He Yong, Vice President of Marketing and Innovation, Bayer Consumer Products China, added.Sniffing the Opportunity for Chinese Medicine
it was reported that as early as June, Bayer was ready for a decline in the performance of its consumer health care business, in addition to its previous partnership with Mercedon, which also purchased two brands, Dr. Shosadon's Dr. Shwardal air insoles and water baby sunscreen. GSK, on the other hand, said it would invest more in the business.
, chinese medicine accounts for 66 per cent of the over-the-counter market in China and is the main driver of growth, according to the data. From the product ranking, China's over-the-counter products in the top 20 products, there are 13 Chinese medicine products. Of these, only 4 products come from multinational enterprises, the others are domestic products, and the overall growth rate of domestic enterprise products is much larger than that of multinational enterprises. Chinese medicine shines in the OTC market, and foreign companies are sniffing the trend. He Yong mentioned that in 2014 to buy the hong medicine industry as an opportunity, Bayer officially entered the field of traditional Chinese medicine, to the Danyu Women's Kang fried paste OTC listing as a starting point, through high-tech, innovative development of Traditional Chinese medicine, so that traditional prescriptions in the modern technology under the bearer to benefit more consumers. To this end, they invested in Kunming Ma Jin shop to build the second largest factory in the Asia-Pacific region, dedicated to the production of Chinese medicine, the use of German technology advantages, the production of products and the quality of Chinese herbal medicine control, so that the West for Chinese use.
it is understood that from June this year, the Chinese medicine Dandenecron fried paste as an over-the-counter drug new market, has also become an important product of Bayer. And with the increase of consumers' trust in cross-border e-commerce "foreign brands" and the strengthening of purchasing power, foreign enterprises have also stepped up their efforts in the layout of e-commerce channels. (Medical Economics)