Abstract
This expanded 2007 edition of OTC Distribution in Europe is the largest and
most up-to-date strategic analysis of the channel networks influencing
consumer access to non-prescription medicines and OTC self-medication and
self-care in Europe’s main markets.
OTC Distribution in Europe is an in-depth 18 country strategic analysis
that defines and explores the main themes of change running through the
European region and shows how they will influence non-prescription and OTC
medicine manufacturers’ channel strategies to 2012 and beyond.
This is the sixth edition of the OTC Distribution in Europe study is probably
the most important edition since the study began 15 years ago in that it
exposes imminent large scale changes to the structure of the supply network,
new sources of access for consumers seeking self-medication and self-care and
the gradual concentration of buyer power across the European continent.
The 2007 edition of OTC Distribution in Europe not only provides essential
market statistics and exposes key trends it offers a wealth of knowledge
covering 18 European markets together with insights into an increasingly
complex business environment from one of Europe’s most highly respected
marketing strategy advisors, James Dudley.
Markets covered are: Austria, Belgium, Czech Republic, Denmark, Finland,
France, Germany, Great Britain, Hungary, Italy, Netherlands, Norway, Poland,
Slovak Republic, Slovenia, Spain, Sweden and Switzerland.
Executive Summary
The European non-prescription medicines and consumer OTC self-medication
market is today worth some $40 billion at consumer prices and represents 36%
of world sales.
Yet, it is a market on the frontiers of change. Change that will reshape the
structure of the supply chain, focus buyer power and consequently present
suppliers with new strategic challenges. The aim of this sixth study into OTC
Distribution in Europe is to explore these frontiers of change and to provide
thoughts on how to anticipate unfolding threats and opportunities.
OTC Medicine Manufacturers will have to find strategic responses at both
national and international levels to a number of critical issues some of which
include: -
- Progressive deregulation of the pharmacy supply chain driven by the
European Commission and European Court of Justice especially in Germany,
France, Spain, Austria and Sweden
- Continuing concentration of pharmaceutical wholesaler’s buying power
and vertical integration into retailing and logistics across European borders
- The expansion of a Europe-wide retail pharmacy footprint of
‘virtual’ and wholly owned chains connected to a handful of key
wholesalers
- Underperformance of much of the non-prescription sector because of
healthcare reforms and the maturity of some core categories leading to changes
to industry structures with an increasing shift to brand driven consumer
marketing cultures
- The ambitions of mass market grocery and chain discount drugstore
operators to tap the lucrative consumer health market through GSL brands and
pharmacy and OTC unit in-plants
- The expansion of international retailers from the US and Far East into the
European consumer health and beauty markets
- The legacy of reforms in Europe’s largest market, Germany,
especially the loss of reimbursement for medicines not requiring a doctors
prescription, the abolition of resale price maintenance on OTC medicines,
legalization of mail order and Internet marketing of pharmaceuticals and
anticipation of further deregulation of pharmacy ownership.
This 18 country study has identified many of the unfolding strategic issues
within the supply chain that will impact on individual OTC Self-medication
companies as both threats and opportunities and provokes thoughts and ideas
for the strategic agenda
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