Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Adult mouthcare; Allergy care; Analgesics; Calming and sleeping products;
Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies;
Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated
skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; OTC triptans;
Vitamins and dietary supplements; Wound treatments
Executive summary
Economic and political situation
Thailand' s new government was installed by the military following a coup
d' etat in September 2006. A rise in household debt, coupled with a sharp drop
in consumer confidence, contributed to a slowdown in economic growth.
Relations between Muslims and non-Muslims in Thailand are still tense,
particularly in the south of the country, although the conflict involves more
than just religious issues. The continuing violence has harmed the country' s
image as a safe destination for tourists. Simultaneously, performance within
the agricultural industry has also been disrupted by another outbreak of bird
flu.
Election confusion and the delays created by political uncertainty are
damaging the economy. Negotiations on several bilateral trade agreements have
temporarily been halted, while political uncertainties and security concerns
have had a negative effect on the pace of economic growth.
Tight restrictions on foreign business ownership
The government of Thailand has introduced changes to the Foreign Business Act.
The changes tighten restrictions on foreign ownership in a range of business
areas, including the pharmaceutical industry. Although this signals a move
away from an open economy towards a closed, self-sufficient economy, in fact,
the main purpose of changes was to close the legal loopholes on the use of
nominees by foreign investors engaging in restricted businesses. The
legislation impacts thousands of foreign investors who are already operating
in Thailand, as well as potential investors in the future. It is also likely
to hinder economic growth.
The government expands healthcare service to public
Services the Thai government already provides include Social Security and
Universal Coverage, under which people pay Bt30 for a consultation. Social
Security covers up to Bt12,000 worth of treatment (e.g. antenatal
care/delivery procedure and treatment) or lesser amounts such as dental care
at Bt500 per year. However, the government abolished the Bt30 consultation fee
in an effort to reduce administration costs and to give more time to hospital
staff.
Furthermore, the government has introduced primary care units (PCU) to serve
communities directly. These clinics were established to provide medical and
disease-prevention services free of charge. Each clinic is responsible for
10,000 people. The project was initiated in big cities including Bangkok and
its surrounding area, as well as Chiang Mai and Cholburi, etc. The success and
likely expansion of this project is expected to result in reduced custom for
chemists/pharmacies and drugstores/parapharmacies.
Vitamins and dietary supplements rule OTC healthcare
The availability of vitamins and dietary supplements (VDS) in Thailand is
increasing as innovative products are consistently introduced by
multinationals to a population which believes prevention is better than cure.
Accordingly, value sales of VDS remain the highest when compared to other
sectors within OTC healthcare. VDS growth in 2006 was bolstered by the strong
performances of tonics and bottled nutritive drinks and other dietary
supplements.
Amway the leader in OTC healthcare
In 2006, Amway (Thailand) Ltd leads in OTC healthcare, followed by Cerebos
(Thailand) Ltd and Scotch Industrial Thailand Co Ltd. It is notable that all
three companies operate within VDS. Amway (Thailand) Ltd was established on 4
May 1987 and registered according to the Direct Selling Act by the Consumer
Protection Office in 2002. The major Amway products in VDS are sold under the
Nutrilite brand. With a long established, strong network in direct sales, and
constant innovation, Amway remains firm as the leader in OTC healthcare.
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