china – sore throat remedies & medicated confec onery · fisherman’s friend and halls grew...

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China – Sore throat remedies & medicated confec�onery Yangtze River Lanqin Koufuye posted double-digit growth, jumping to No.3 spot (from No.8); it is a popular choice for drugstore chains to promote, as its premium price generates a high profit margin Man Yan Shu Ning Qing Hou Li Yan is already a popular online purchase, reports sta�ng it was a big seller during the Singles’ Day (11th November) online shopping fes�val; a dedicated flagship store opened on JD.com in 2017 2017 saw RB partner with a Chinese mobile app (see box) which will deliver the product to its users within half an hour, offering rapid relief for sore throats caused by smog 2016 saw brand packaging revamped, using different colours to be�er dis�nguish between op�ons, while 2017 TV ads featured animated firefighter mascots designated to protect throat health Bri�sh medicated confec�onery brands Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa�on as established foreign brands, popular with Chinese consumers RB takes steps to strengthen e-commerce presence and enhance innova�on • November 2017 saw RB sign a strategic co-opera�on agreement with Alibaba’s e-commerce pla�orm Tmall Global • The agreement will see the companies collaborate on branding and marke�ng, with RB to use Alibaba’s data to be�er understand trends in the country, leading to the development of new and innova�ve products • 2017 also saw RB collaborate with mobile app Dingdang Kuaiyao, through which users could receive Man Yan Shu Ning Qing Hou Li Yan within half an hour • RB also entered a non-binding memorandum of understanding with China Resources Sanjiu in 2016 to explore “a strategic co-opera�on between the respec�ve groups in rela�on to certain designated OTCs, medical devices and healthcare products” Man Yan Shu Ning Qing Hou Li Yan: new design (right)

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Page 1: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

China–Sorethroatremedies&medicatedconfec�onery

  YangtzeRiverLanqinKoufuyeposteddouble-digitgrowth,jumpingtoNo.3spot(fromNo.8);itisapopularchoicefordrugstorechainstopromote,asitspremiumpricegeneratesahighprofitmargin

  ManYanShuNingQingHouLiYanisalreadyapopularonlinepurchase,reportssta�ngitwasabigsellerduringtheSingles’Day(11thNovember)onlineshoppingfes�val;adedicatedflagshipstoreopenedonJD.comin2017

  2017sawRBpartnerwithaChinesemobileapp(seebox)whichwilldelivertheproducttoitsuserswithinhalfanhour,offeringrapidreliefforsorethroatscausedbysmog

  2016sawbrandpackagingrevamped,usingdifferentcolourstobe�erdis�nguishbetweenop�ons,while2017TVadsfeaturedanimatedfirefightermascotsdesignatedtoprotectthroathealth

  Bri�shmedicatedconfec�onerybrandsFisherman’sFriendandHallsgrewwell,althougharelargelyboughtandsoldassweets

  Productsbenefitfromtheirreputa�onasestablishedforeignbrands,popularwithChineseconsumers

RBtakesstepstostrengthene-commercepresenceandenhanceinnova�on

•  November2017sawRBsignastrategicco-opera�onagreementwithAlibaba’se-commercepla�ormTmallGlobal

•  Theagreementwillseethecompaniescollaborateonbrandingandmarke�ng,withRBtouseAlibaba’sdatatobe�erunderstandtrendsinthecountry,leadingtothedevelopmentofnewandinnova�veproducts

•  2017alsosawRBcollaboratewithmobileappDingdangKuaiyao,throughwhichuserscouldreceiveManYanShuNingQingHouLiYanwithinhalfanhour

•  RBalsoenteredanon-bindingmemorandumofunderstandingwithChinaResourcesSanjiuin2016toexplore“astrategicco-opera�onbetweentherespec�vegroupsinrela�ontocertaindesignatedOTCs,medicaldevicesandhealthcareproducts”ManYanShuNingQingHouLiYan:

newdesign(right)

Page 2: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

France–Coughremedies

  Phytoxilisamedicaldeviceformulatedwithplantain,thymeandhoneyandposi�onedtorelievewetanddrycoughinthoseaged2+years;TVadsin2017-18(seeright)claimed91%ofusersweresa�sfiedwiththeproduct

  Brandwasini�allymarketedasToplexilPhyto,althoughnamewaschangedtoPhytoxilinearly2017,perhapstodifferen�ateitfrommedicatedline-upinwiderbrand

  Aboca’sGrinTusshadastrongyearin2017,withsalesmorethandoublingto$1.8mn;thenaturalproductisposi�onedforwetanddrycough,andisavailableastabletsandsyrupssuitablefrom12+yearsandapaediatricsyrupsuitablefrom1+year

  LaboratoiresGilbertlaunchedarangeofninehomeopathicsolublegranulesin2016,withcough&coldop�onsincludingHoméoRub(forcough)andHoméoQuintyl(fordry/irritablecough)

  Alsoin2016,Laboratoires3ChêneslaunchedSédatuxilSirop(plantextracts),claimedtorelievealltypesofcough,andcanbeusedfromage3+years

  InSeptember2017Recorda�launchedHexatouxSpray,amedicaldeviceformulatedwithcalendula,propolis,eucalyptus,honeyandlinseedoil

  Brandclaimstohavequick-ac�onformulathatsoothesthroatandreducesinflamma�onandirrita�on  Concernsoverefficacyhavehamperedthecoughremediesmarket,withaNovember2015studyof37OTCcoughremediesby60MillionsdeConsommateursmagazineconcludingthatmorethanhalfofthosestudiedwereineffec�ve,whilecertainop�onsposedmorerisksthanbenefits

Page 3: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

India–Coughremedies

  Concernsoversafetyofallopathicformula�ons,coupledwithuncertaintycreatedbyFDCissue,providedaboosttoherbal&naturalcoughremedies,withmoreayurvedicsmarketerslookingtoentercategorytoleveragetheopportunity

  OneayurvedicbrandalreadywellestablishedisHonitus,whichbenefitsfromhigh-profileconsumerA+P

  Promo�onalstrategychangedin2016,withadifferentcompanybeingappointedforcrea�vedu�es

  TVadsarenowmorehumorous,withonein2017showingchildrenfallingasleepinvarioussitua�ons–e.g.atafunfair,inschool,onthebackofamoped,atballetclasses–andhighligh�ngthatHonitusdoesnotcausedrowsiness(seebelow)

  In2016CentralIns�tuteofMedicinal&Aroma�cPlantsreleasedaherbalcoughsyrupposi�onedforallergiccough

  Developedoverfouryearsofresearch,itisformulatedwiththreeherbs:tulsi(holybasil),kantakari(Thaieggplant)anddalchini(cinammon)

  KevaIndustriesintroducedKevaCoughSyrup,whichboastsanon-drowsyformula�onofnaturalingredientssuchashoney,gingerandliquoricetorelievecoughandothercold&flusymptoms

  InApril2018century-oldmarketerBaidyanathannounceditwasplanningtolaunchayurvediccoughsyrupsasameanstoachievesustainablegrowth

Page 4: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

Japan–Sorethroatremedies&medicatedconfec�onery

  Isodine(marketedinterna�onallyasBetadine)iss�llrecoveringfromeffectsof2016changeofownership;ShionogiacquiredtherightstoMundipharma’sbrandfromMeijiSeikaPharma,andresul�ngdisrup�onhasbeenreflectedinadownturninsales

  Atthe�meofownershiptransfer,Meijifiledape��onintheTokyoDistrictCourttostopShionogiandMundipharmacon�nuingtousebrand’shippopotamuslogosoMeijicoulduseitonitsownsimilarly-formulatedproduct;inresponsetothis,MundipharmachangedIsodine’slogotofeaturedogmascots

  Povidoneiodinerangeiswell-diversifiedacrossgargles,spraysandmedicatedmouthwash,andbenefitsfromvisibilityofwiderIsodinerange(whichincludesan�sep�cwipesandpersonalcareop�ons)

  NewA+Pstrategy,includingTVadsfeaturingbrandambassadorAyaUetoandpartnershipwithfootballteamtheYokohamaFMarinos,hashelpedsalesrevive

  Pelack-T,partofthePelackcold&flurange,combinestranexamicacid,liquoriceandvitaminsBandCtotreatsorethroatandstoma��s

  Promo�onalsiteexplainsthebenefitsoftranexamicacidovernon-medicatedlozengesandexplainsthevariouscausesofsorethroat

  Longlinecough&coldrangeColgenKowaalsoincludeslozenges(cetylpyridiniumchloride,glycyrrhizinate,senega)andasorethroatgargle(cetylpyridiniumchloride,glycyrrhizinate,menthol,cloveandpeppermint)

  CurrentA+Pfocusesonteachingoralhygieneandproperuseofgargleproductstochildrenviapartnershipwithparen�ngwebsiteConobie(seele�)

Page 5: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

Spain–Coughremedies

  Rangeisalsopromotedviainterna�onally-usedTVadcampaign“Winteroutside,springinside”;asnowsceneonawoman’sjumperchangestospringtodepictthebrand’seffects

  Aswellascoreacetylcysteinerange,lineextensionFluimucilComplexaddsparacetamoltorelievepainandfever

  StablemateFlutox(cloperas�ne)isposi�onedfordrycough,withadsusingthetagline“Specialistindrycough”

  Despiteextensivelineextension,Bisolvonremainsindeclineinpartasaresultofitscompara�velyhighprice;unlikeFluimucilandFlutox,rangeincludesproductsforwetanddrycoughunderthesamebanneraswellassystemiccold&fluproducts(nottrackedhere),la�ergrowingsteadily

Brand &$mn 2017/16CAGR&17/13

1 Fluimucil&(Zambon) 21.8 +2% +9%

2 Flutox&(Zambon) 17.2 +2% +11%

3 Bisolvon&(Fher3/3Sanofi) 11.8 85% 81%

4 Cinfatos&(Cinfa) 10.1 +5% +7%

5 Grintuss&(Aboca) 10.0 +14% +41%

6 Mucosan&(Fher3/3Sanofi) 7.7 +2% +3%

7 Iniston&(J&J) 6.4 81% +0%

8Prospantus&&&&&&&&&&&&&&&&&&&&&&&&&&&(Ferrer3for3Engelhard)

5.4 +21% +24%

9 Romilar&(Bayer) 4.6 85% +4%

10 Actithiol&(Almirall) 4.0 +3% +5%

Others 10.6 83% 81%

Spain&leading&cough&remedies&2017&(MSP,%$mn)

Page 6: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

UK–Coughremedies

  Accompanyingsocialmediacampaignusedhashtag#FeelThePowerandincludedcompe��onstowinCovoniaproductsandmerchandise

  Mediareportssuggest£4mn($5.4mn)wasinvestedinna�onaladver�singintherun-upto2016/17cold&fluseason

  Late2017sawlaunchofpoten�alcompe��on,NaturesAidHerbalCatarrhReliefFormula(Thornton&Ross/Stada),essen�allyarebranded,lower-costversionofCovoniaCatarrhReliefFormula

  Ini�allyenjoyingdynamicgrowthsince2014launch,non-medicatedBronchostopstruggledforsalesin2017a�ertheASAdeclaredaTVadmustnotappearagaininitscurrentform

  Promo�onalsupportforthebrandincludedoutdoorandTVadsemphasisingitsefficacyagainstalltypesofcough,offeringcomprehensivereliefinasingleproductvscompe�torsthattargetonlyspecificsymptoms

  ASAupheldcomplaintsthaton-screentextfortheTVadwasnotclearlylegibleandconsumerswerethereforemorelikelytomissmaterialinforma�onwithinit;add-onforTVads(priortoASAruling)featuredlineextensionBronchostopCoughPas�lles,stressingtheywerevotedProductoftheYear2016

UKcoughremediessalesbyingredient2017(MSP,$mn)

BanneradfeaturedonCovonia’swebsitehomepage,reinforcingtheimageofapowerfultreatment

Herbals38%(-6%;CAGR+8%)

Diphenhydramine+levomenthol24%(-6%;CAGR+1%)

Guaifenesin+levomenthol20%(-2%;CAGR+3%)

DXM+levomenthol9%(-2%;CAGR+2%)

Others10%%(-23%;CAGR-12%)

Piereflectsiden�fiedbrands,worth$66.4mn