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OCTOBER 2015 / VOLUME 22 / ISSUE 10
www.NicholasHall.com • www.INSIGHT.NicholasHall.com
OTC INSIGHTASIA-PACIFIC
329 Global OTC Update
330 Trends & Developments 331 Market Report: Derma 2 Menarini drives development of nail antifungals sub-category
347 Feature: Chinese Shoppers Why Chinese consumers are buying OTCs from other countries
351 News Review Biostime buys Swisse Wellness and DB6 reveals latest OTC trends
357 Products Round-up RB fined for Nuromol claims in Australia, S-Tac extended in Japan 359 Feature: Australian Allergies Competition intensifies in allergy category as pollen season kicks off
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Publisher: Nicholas Hall
Editor: Nicola Allan
Assistant Editor: Chris Walkerley
Researcher / Writers: Xiaowen Zhu and Alasdair McDermott
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Senior VP, Business Development: Filomena Pead
Medical Correspondent: Catherine Hall
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ASIA-PACIFIC
GLOBAL OTC UPDATE
OCTOBER 2015 329ASIA-PACIFIC
The Editor writes ... In this issue, we look at the regional
powerhouse that is China and how
consumers and marketers alike from that
country are seeking OTCs – particularly supplements –
from other Asian markets. Overseas products are
perceived to be much safer and more efficacious than
items produced locally, which are frequently the subject of
quality concerns. We also explore the Australian allergy
remedies category. As new entry Nasonex Allergy gains
share, A+P is being stepped up for established brands
ahead of what is forecast to be a strong pollen season.
Email Nicola at [email protected]
•TheUSFDAhasapprovedAllergan’sAbbreviated
NewDrugApplicationsforgenericversionsof
RB’sMucinexDMRegularStrength,Mucinex
DMMaximumStrengthandMucinex
MaximumStrength
•CanadianHealthMinisterSteveKenthas
announced that Newfoundland and Labrador will
allow pharmacists to prescribe drugs for minor
ailments, including acne, cold sore and rhinitis
•Poland’sURPLhasapprovedtheRx-to-OTC
switchofValeant’sDeflegmin(ambroxol
hydrochloride75mg)andMeloxicamAdamed
7.5mg tablets
•Perrigo’sOmegaPharmahassubmittedan
applicationforCEMarkdesignationforBL-5010,
developedbyitsclinical-stagepartner,BioLineRx,
fornon-surgicalremovalofseborrhoeickeratosis
and other skin lesions
•SeveralMNCs,includingPfizer,SanofiandTakeda,
haveexpressedinterestinbuyingprivateMexican
genericscompanyRIMSA,reportsBloomberg
•Brazil’spharmacyindustryassociationAbrafarma
ispetitioningANVISAtoincreasetherangeof
clinical services that pharmacies can perform
•BoironwillexpanditslocaloperationsinBrazil
andplanstolaunch10productsbyend-2015
ASIA-PACIFIC EUROPE
NORTH AMERICA
LATIN AMERICA
GLOBAL OTC
UPDATE
THE HO
TTES
T T
OPI
CS I
MPA
CTING THE GLOBAL OTC MARKET THIS M
ONTH
• InfantcarecompanyBiostimehasacquiredan
83%stakeinAustralianVMSspecialistSwisse
WellnessforA$1.39bn,whichwillbecomean
indirectly-heldsubsidiary
•RB’sCEORakeshKapoorhascalledforthe
removal of certain price controls in India, which
he believes can hinder consumer access to
healthcare products, damage profitability and limit
marketer investment
KEY TRENDS IN THIS ISSUE
330 OCTOBER 2015
COMPANIES
Abbott challenges cough syrup findings
(India) S15/354
Biostime buys Swisse (Australia / China) S15/351
Mega Lifesciences reveals expansion plans
(Thailand / Indonesia) S15/352
Manuka Health acquired by Pacific Equity Partners
(ANZ) S15/354
PharmaCare attracts bidders but company is not for
sale (Australia) S15/354
RB against price controls (India) S15/354
Sanofi and Zuellig partner with local players
(Vietnam) S15/354
Vitaco debuts on ASX (ANZ) S15/354
Zhejiang Jolly invests in VMS player (China) S15/354
BRANDS
Emtrix new to the market (Indonesia) S5/333
EyeSpa launched by Bal’s Lifezen (India) S13/357
Flo rebranded (Australia) S13/357
Gyakuria and Oilderu among several launches by
Kobayashi (Japan) S13/358
Nuromol A+P results in fine (Australia) S13/357
S-Tac Eve extended with two cold & flu remedies
(Japan) S13/358
COUNTRIES
Australia: Discount pharmacies to blame for
paracetamol OD? S15/355
Australia: HCPs support Quit4october S15/355
China: Consumers and marketers show increasing
interest in OTCs from other Asian markets S12/347
Global: OTC growth hits 5.7% MAT June 2015 S15/351
India: DCGI committee reviews vitamin claims S15/355
Japan: More brands recommended for
downscheduling S15/355
New Zealand: New therapeutic goods regulations
under discussion S15/355
S Korea: EHC switch to reignite S15/355
CATEGORIES
Allergy remedies: New A+P from key marketers
(Australia) S12/359
Antacids: Pharmacy-only status recommended for
esomeprazole (Australia) S15/353
Anti-obesity: Downscheduling of orlistat not
recommended (Australia) S15/353
Eczema & psoriasis: Children’s products launched by
various marketers (Australia) S15/344
Nail antifungals: Fulcare still driving growth
(S Korea) S15/336
Systemic analgesics / cold & flu: Reverse-switch of
all codeine OTCs recommended (Australia) S15/353
RETAIL & DISTRIBUTION
AICDF urges opposition to proposed wholesaler
changes (India) S15/356
Amway expands (Vietnam) S15/356
Indian pharmacists object to online medicine sales
(India) S15/356
Trends & developments S15/354 refers to Simplifyle section S15, page 354
MARKET REPORT
Simpliƒyle 5
OCTOBER 2015 331ASIA-PACIFIC
AT-A-GLANCE GUIDE: OTC DERMATOLOGICALS
Dermatologicals 2: A+P focuses on cosmetic benefits to drive growth
OTC dermatologicals market 2015
(US$mn) INDONESIA S KOREA AUSTRALIA TOTAL
Antifungals 16.9 56.6 43.7 117.2
Acne remedies 9.1 4.8 26.5 40.4
Antiseptics & disinfectants 7.2 4.3 41.8 53.3
Antipruritics 9.2 23.2 9.0 41.4
Feminine intimate care 14.5 4.2 5.5 24.2
Wound healers 11.8 19.0 7.6 38.4
Lip care n/a 16.9 14.4 31.3
Others 17.8 45.7 92.3 155.8
TOTAL (US$mn) 86.5 174.7 240.9 502.1
TOTAL (local currency) Rp1.3tn Won207.2bn A$343.4mn
Index (2015 / 14) 104 104 104 104
US$1.00 = Rp14,620 Won1,186 A$1.43
Population 251.5 50.4 23.5 325.4
Per capita spend (US$) 0.34 3.47 10.25 1.54
Data in this report 12 months to June 2015 (MSP): Nicholas Hall’s OTC INSIGHT based on industry estimates and data from Nicholas Hall’s DB6 Global OTC Database, in partnership with Nielsen in specific countries. Exchange rates from oanda.com on 1st October 2015.
South Korea• Sales up by 4% as an early-onset summer boosts seasonal brands such as insect bite creams
• Feminine intimate care is the fastest growing category as marketers foray into this space
• Fulcare Nail Lacquer has performed strongly since its launch but faces increased competition from generics
Indonesia• Growth of 4% driven by products claimed to boost appearance as well as health
• Sanofi regains local marketing rights to Lactacyd and Phisohex from Combiphar
• Menarini’s launch of Emtrix opens up nail antifungals category
Australia• Brands with cosmetic benefits drive growth of 4%
• S3 status for hydrocortisone + aciclovir could help cold sore treatments to expand
• Launch of Antistax opens up circulatory aids category
Simpliƒyle 5
DERMATOLOGICALS 2
332 OCTOBER 2015
Derma 2015: Key highlightsCategory focus: Antifungals
• Marketers increasingly highlight aesthetic
benefits of antifungals in Indonesia to drive sales
• In S Korea, sales peak in the warmer months and
the category was boosted by an early summer
• High growth of nail antifungals could not be
sustained in Australia as value was driven down
by the entry of generics
Loceryl (Galderma / Nestlé) is the No.1 nail
antifungal in Australia and was given new
packaging and a price rise to put it in line with
competitors in the reporting period
Category focus: High level of activity in feminine intimate care• Feminine intimate care is at different stages of development across these countries – in Indonesia it is one of
the largest OTC derma categories, while in Australia it is one of the smallest – but all have in common a trend
of strong marketer activity in the reporting period, which has included launches and increased levels of A+P
• In Indonesia, Sanofi regained local marketing rights to Lactacyd – the No.2 brand – from Combiphar and, to
address increasing competition from local players, introduced line extensions Lactacyd White Intimate and
Lactacyd All Day Fresh
• GynoBetadine (Mundi Group) was S Korea’s only significant brand but increasing consumer awareness of
intimate hygiene encouraged marketers to foray into the category with launches such as Canescare (Bayer)
and Clair-Gyn (Hanmi)
• In Australia, marketers have been increasing investment in A+P – which typically explains to women that the
pH level of the vagina requires specially-made cleansing products – and included a A$1.5mn (US$1.1mn)
campaign for Verona intimate washes (Omega / Perrigo) covering TV, print and social media
Marketer focus: Menarini consolidates its presence in A-P• In Indonesia, Menarini dominates wound healers, fielding the Top 2 brands Dermatix and GlyDerm, and looks
set to establish itself in nail antifungals with the August 2015 launch of Emtrix, after acquiring marketing
rights from Moberg Pharma in February 2014
• In S Korea, Fulcare Nail Lacquer has risen to the top of the nail antifungals category since its introduction in
2013 thanks to Menarini’s heavy ATL support
• In Australia, Menarini markets top tier nail antifungal Rejuvenail, which was supported with a TV ad that
showed that the product can be applied once daily without the need for filing the nail
INDONESIA S KOREA AUSTRALIA
US$mn
Antifungals: Sales by country 2015 (MSP)
0
10
20
30
40
50
60
16.9
56.6
43.7
MARKET REPORT
Simpliƒyle 5
OCTOBER 2015 333ASIA-PACIFIC
Antifungals: A+P highlights aesthetic effects
•Daktarinadvertisedwithaweddingtheme
• Emtrixnailfungaltreatmentlaunched
Antifungals grew faster (+7%) than Indonesia’s wider
OTC dermatologicals market in the 12 months to June
2015, owing mainly to good performances by category
leaders Daktarin (J&J) and Canesten (Bayer). The
weakening of the Rupiah against the dollar has affected
consumer spending power recently and marketers feel
that people view antifungals as non-essential and either
tolerate fungal infections or improve their hygiene
before they are affected. As such, companies have begun
highlighting aesthetic benefits of treatments, with A+P
claiming that they can improve the appearance of skin.
Sales of Daktarin grew by 8% to Rp49.6bn (US$3.4mn),
driven by increased distribution. TV ads for Daktarin
cream and powder ran from Q4 2014 until Q3 2015
and both had a marital theme, with each showing the
products helping the bride and groom respectively
to make a perfect appearance at their wedding. The
campaign aimed to highlight the brand as a complete
antifungal solution.
Canesten competes closely with Daktarin and sales of the
Bayer brand rose by an impressive 28%, thanks to organic
growth of Canesten Cream, which accounts for a large
majority of the brand’s total sales. The 5g cream SKU is
the most lucrative version and generates more sales than
the rest of the range combined. Local brands Kalpanax
(Kalbe) and B88 (Meccaya Pharma) follow in the rankings.
Fungiderm (Konimex) completes the Top 5 and was
supported with a TV ad in 2015, which showed the cream
killing mushroom characters (which represent the fungal
infection) for a young lady working out in a gym. Ads in
mid-2014 highlighted the brand’s cosmetic benefits by
telling consumers to use the product before going on a
date to impress a partner.
In terms of nail antifungals, Menarini
launched Emtrix (known elsewhere
as Kerasal Nail or Nalox) in August
2015, after gaining rights from
Moberg. A supporting TV ad has the
tagline “For healthy looking nails”
and showed Emtrix helping a girl get
rid of her toenail infection so that
she could enjoy the beach barefoot.
Canesten – the only significant VYI treatment – failed to
grow in reporting period.
Acne remedies: Adolescents key audience
•MarcksBedakdeclined
•Verile,AcnesandClean&Cleartarget schoolgirls
Sales of acne remedies fell by 1% to Rp134bn
(US$9.1mn), owing to the double-digit decline of No.1
brand Marcks Bedak (Kimia Farma), a salicylic acid powder
positioned mainly for cosmetic benefits. The downturn
was felt most strongly in H2 2014 but eased in H1 2015
as sales of the Marcks Bedak Rose colour improved. The
launch of two new shades of the Marcks Bedak compact
– Natural Beige and Invisible – in early 2015 also helped
sales to recover.
Young people are a key target and No.2 brand Verile
(Medikon Prima Lab) was promoted with a series of online
shows about high school life in H2 2014. In September
2015, the brand was extended into the wound healers
category with Verile Acne Blemish Cream (extracts of
centella asiatica, licorice and aloe vera + vitamins B3
and E), positioned to reduce acne scars. A supporting TV
ad showed a girl making a blemish-free appearance at a
garden party after just a few days’ use of the cream.
Rohto markets Acnes and launched a competition with Go
Girl magazine in May 2014 that offers winners the chance
to become the cover girl for a subsequent issue. A similar
IndonesiaEmtrix is new
Simpliƒyle 5
DERMATOLOGICALS 2
334 OCTOBER 2015
campaign was held in 2012. Meanwhile in July 2015,
Rohto ran “Acnes School to School” events that provided
skin care gift packs and education to school girls.
As in some other Asian countries, J&J launched the “See
the Real Me” campaign for Clean & Clear in Indonesia,
targeting adolescents. Online videos featuring ordinary
girls show that Clean & Clear products help to improve
the appearance of skin, so that they are confident to let
people “see the real me”.
Feminine intimate care: Driven by launches and A+P
•TwoLactacydproductsintroduced
•NewcampaignforPrivé
Feminine intimate care grew by 7% to Rp212bn
(US$14.5mn), driven by launches and frequent A+P. Local
brand Absolute (Kino Corporation) is No.1 with a 45%
share. A 2015 TV ad featuring brand ambassador Jessica
Mila showed that the product makes her feel comfortable
and free during various activities throughout the day.
Local marketing rights to No.2
entry Lactacyd reverted back to
Sanofi from Combiphar in the
reporting period. It is the only
significant multinational brand
in this category, and it is facing
increasing competition from local
players. To address this, new
products have been launched,
including Lactacyd White Intimate in December 2014.
Promoted as “the natural way to intimate fairness and
confidence”, a supporting TV ad claimed that the product
can bring noticeable whitening effects in four weeks.
Meanwhile, Lactacyd All Day Fresh was rolled out in
June 2015, positioned to provide all-day long intimate
freshness with a herbal fragrance.
A+P for Combiphar’s Privé wash (launched in December
2013) included a TV ad in November 2014 claiming that
it is Indonesia’s first feminine hygiene product with green
tea extracts and antioxidants. A+P also came in the form
of the “Our Second Honeymoon” campaign – presented
on microsite mypriveworld.com – in June 2015, where
couples were given a holiday in Bali to rediscover intimacy
with their partners.
Galenium’s V-Mina – launched in February 2014 – is
supported by myvmina.com, as well as branded Facebook
and Twitter pages. A+P states that it is clinically-proven
to increase good bacteria while reducing bad bacteria;
the pH level of the vaginal area can stay within a normal
range with a few days’ use; and everyday use does not
cause irritation.
Antiseptics & disinfectants: Dengue fever drives growth
•Dettolpersonalcareitemsadvertised • PhisohexrightsreturntoSanofi
Indonesia is the country most affected by dengue fever
in SE Asia, recording 71,000+ cases in 2014. In April
2015, southern cities such as Surakarta and Central Java
reported cases were on the rise, owing partly to several
weeks of flooding. In general, Indonesian consumers use
more antiseptics & disinfectants to improve hygiene as a
regular practice to prevent dengue fever, which helped the
category to grow by 5% to Rp105bn (US$7.2mn).
The No.1 brand Betadine (Mahakam Beta Farma for
Mundi Group) accounts for nearly 50% of category sales
and grew well in the period. Phisohex follows in the
rankings and local marketing rights have now reverted
from Combiphar, which was responsible for distribution
and marketing, back to Sanofi.
Dettol (RB) completes the Top 3 and has strong online
promotion including a brand website (dettol.co.id)
and pages on Facebook, Twitter and Instagram. A+P
in the reporting period has focused on personal care
presentations such as washes and soaps (not tracked in
our topline), which help to raise brand equity as a whole.
This included a TV ad for Dettol Body Wash with pH
Balance in mid-2014 with the tagline, “moisturised skin,
healthy skin”, which highlighted its improved formula
and claimed it can kill bacteria and maintain a balanced
Lactacyd All Day Fresh
MARKET REPORT
Simpliƒyle 5
OCTOBER 2015 335ASIA-PACIFIC
skin pH level. To highlight the effect, skin pH tests were
demonstrated on consumers in supermarkets in late 2014
to show that Dettol Body Wash can kill bacteria but is
also gentle and it helps to maintain healthy skin pH.
Meanwhile, a TV ad for Dettol Original Soap in Q3 2014
showed a mother using the product to keep her son free
from germs and bacteria.
RB continues to run the Dettol Healthy Living charitable
initiative, which aims to build hand-washing facilities in
places of need and help Indonesian children to be healthy.
As in previous years, an online video to promote the
initiative was released in September 2015, showing Dettol
products helping children living in poor hygiene conditions
to stay healthy and happy and pursue their dreams.
Wound healers: Menarini is largest marketer
•GlyDermCream60mlreleased
• Bio-OilavailableatGuardian
Wound healers grew by 6% to Rp173bn (US$13.6mn).
Menarini dominates this category with Dermatix Ultra
and GlyDerm occupying the Top 2 places. Dermatix Ultra
generates around 50% of category sales. As well as
focusing on stretch marks, A+P emphasises its effects on
various types of scars, such as those from small cuts and
burns, and explains that it can boost skin appearance and
confidence. GlyDerm grew by 15% in reporting period
and, in August 2015, Menarini rolled out a 60ml SKU of
GlyDerm Cream to join the original 125ml version.
No.3 brand Mederma grew by double digits, thanks
partly to the introduction of a 10g version in April 2015.
The original 20g presentation and the new pack have
been promoted to consumers who require daily scar
treatment. The expanding consumer base and wider
availability of the brand in retail channels also contributed
to the growth.
A new entry in the reporting period was Bio-Oil (Radiant
Sentral Nutrindo for Union Swiss). Health & beauty retail
chain Guardian has the exclusive retail rights and a launch
event was held in October 2014 with dermatologists
introducing the benefits of the product.
Others: Local brands dominate antipruritics
• Rohtopromoteslipcaretostudents
•Khalisatargetslow-incomeconsumers
In antipruritics (Rp135bn / US$9.2mn) local brands
Caladine (Galenium) and Herocyn (Coronet Crown) make
up over 70% of sales. Category growth (+8%) is mainly
driven by the former, promotion for which focuses on the
Caladine Baby series. In addition to two brand websites
(caladine.com and caladinebaby.com), there is also a
caladinephotocontest.com site which invites consumers
to post photos of their babies posing with the products
for the chance to win cash prizes. There were also
product displays and educational seminars for parents in
hospitals in August 2015. On Caladine’s Facebook and
Twitter pages, prize draws are offered to consumers who
purchase a certain amount of the brand.
In terms of lip care, Rohto is the leading marketer with
two brands – Lip Ice and new brand Khalisa. The former
targets school students and in May 2015, Rohto launched
the School Roadshow campaign for Lip Ice. The event
travelled to seven cities to educate teenagers on the
importance of lip care and also included entertaining
activities such as a photo-booth, fashion games and a
blister card competition.
For Khalisa – launched in 2014 in four flavours – a
campaign in April 2015 targeted lower-income women,
inviting them to try the products in display booths and
also offering special prices. The tagline is “Khalisa paints
a sincere smile”.
Indonesia: Top 3 wound healer brands 2015 (MSP)Rank Brand Marketer
1 Dermatix Ultra Menarini
2 GlyDerm Menarini
3 Mederma Combiphar for Merz
Simpliƒyle 5
DERMATOLOGICALS 2
336 OCTOBER 2015
Antifungals: Nail antifungals most dynamic
•GenericscreatecompetitionforFulcare
• SinSinlaunchesathlete’sfootspray
Antifungals grew by 12% to Won67.1bn (US$56.6mn)
in the 12 months to June 2015. The majority of sales are
generated by nail antifungals and general antifungals
– 62% and 34% respectively – with the small VYI
treatments sub-category making up the remainder.
As well as being the most lucrative, nail antifungals was
also the most dynamic sub-category with sales up by 20%
to Won41.5bn (US$35.0mn). There is a strong perception
by consumers that nail antifungals should be used in the
summer, with sales peaking during these months.
As such, the category was boosted towards the end
of the reporting period by the early onset of the season.
However, arguably the biggest growth driver was the
launch of Fulcare Nail Lacquer in April 2013. The brand
entered the market with heavy ATL support that
helped accelerate overall growth by reaching out to more
consumers and increasing awareness of fungal nail
infections. Moreover, the brand rose straight to the No.1
spot thanks to its novel application – consumers are not
required to trim or wash the affected areas before use –
and strong safety profile compared to systemic remedies
that have the potential to cause liver toxicity. Growth
has inevitably started to slow as the brand begins to
plateau, but sales were still up by 32% to Won20.8bn
(US$17.5mn) in the 12 months to June 2015. One reason
for this is that Menarini invests a lot of effort promoting
the brand via various initiatives such as a product booth
at the KyoungKi Pharmacist Academic Symposium in May
2015 and TV ads that highlight its fast penetration.
Fulcare faces increased competition after the Ministry of
Food & Drug Safety gave marketing approval to several
generic versions of the brand in February 2015. Kolmar
South Koreais the manufacturer of all the generic products including
Cyclo Once Nail Lacquer (Cho-A), One Care (SinSin),
Yuhan Easy Care (Yuhan), TopCure (Sinil) and PM Nail
Lacquer (KyungNam). However, consumer confidence
may have been affected in July 2015 after complaints
were made against the generic products claiming that
they change the colour of toenails. As a result, the Korean
Pharmacists Association notified pharmacies to replace
the affected batches with unaffected products.
Loceryl and Loprox Nail Lacquer complete the Top 3.
The former declined by 7% to Won6.3bn (US$5.3mn),
which was partly caused by an advertising ban between
January and April 2015 after Handok posted product
ads on its homepage without the review and approval
of the Korean Pharmaceutical Manufacturers Association’s
medicine advertisement review committee.
General antifungals recorded a 1% upturn to Won22.8bn
(US$19.3mn) in the reporting period. Lamisil (GSK-
Novartis j-v) leads with sales of Won8.7bn (US$7.3mn)
and was supported by an A+P campaign focusing on TV
and digital media. In terms of launches, SinSin Pharma
rolled out Musomu Alpha Aerosol for athlete’s foot in
May 2015. The spray contains terbinafine hydrochloride as
its antifungal ingredient, as well as enoxolone to prevent
inflammation, diphenhydramine and lidocaine.
S Korea: OTC nail antifungals brand shares 2015 (MSP)
Fulcare 50%Menarini
Loceryl 15%Galderma / Nestlé
Loprox Nail Lacquer 8%Handok for Sanofi
Others 27%
••
•
•
MARKET REPORT
Simpliƒyle 5
OCTOBER 2015 337ASIA-PACIFIC
Acne remedies: First ibuprofen acne remedy released
• Productsadditionallypositionedtooffer protectionfromsunlight
• Brevoxyldiscontinued
Acne remedies in the pharmacy channel had a poor year
with sales falling by 9% to Won5.7bn (US$4.8mn), as
many teens switched from OTCs to more cosmetic rivals,
such as 3M’s Nexcare. However, towards the end of the
reporting period the category witnessed a paradigm shift
with more products for middle and high school students
becoming available and increased A+P during spring.
As concerns rise over the harmful effects UV light
can have on skin, marketers are more frequently
communicating the protective effects of acne remedies.
Launches targeting students include Kwang Dong’s
Tok n Tok Topical Solution in January 2015 and Cho-A
Acne Gel (Cho-A) in February. The former contains salicylic
acid, isopropyl methylphenol and allantoin to help kill
acne bacteria and dissolve dead skin, while the latter is
formulated with benzoyl peroxide.
Handok’s ClearTeen is the No.1 brand and was extended
in September 2015 with ClearTeen Ibu-Spot Tok
(ibuprofen piconol 30mg / g), the first ibuprofen ointment
for acne in S Korea. The Top 3 is completed by TokClear
(Kwang Dong) and Patima (Tai Guk) after former No.2
entry Brevoxyl (GSK) was discontinued in 2014.
Antipruritics: Weather benefits insect bites segment
• Lackofawarenessholdsbackgeneral anti-itchbrands
•HyundairelaunchesBumoolyKidsCream
Sales of antipruritics fell by 2% to Won27.5bn
(US$23.2mn) in the 12 months to June 2015 following
declines for the majority of the Top 5. The category is
split into general anti-itch treatments, as well as brands
positioned for insect bites, and both face challenges –
sales of the former are held back by a lack of consumer
awareness, while the latter are seasonal and generate
the majority of revenue during the summer months.
The top of the category comprises general anti-itch
treatments and is led by Lidomex (Sam-A). The brand
declined by 2% to Won4.8bn (US$4.1mn) in the
reporting period, owing partly to a two-month advertising
suspension for Lidomex Lotion (prednisolone valero
acetate) between March and May 2015 for violating
medicine ad regulations. The Ministry of Food & Drug
Safety found that the marketer said the product was a
specialised treatment for children and females when it
had not been approved for specific groups.
Lacticare HC (GSK Novartis j-v) is No.2, followed by
Bumooly (Hyundai). Bumooly is the highest placed entry
for insect bites and sales grew by 4% to Won2.5bn
(US$2.1mn) when combining original Bumooly and D.M.
Bumooly. Owing to its positioning, the brand is seasonal
and benefited from a warm summer that arrived early.
Meanwhile, Hyundai relaunched Bumooly Kids Cream
15g in 2015, two years after the product was recalled in
July 2013 when a sample failed a micro-organism limit
test. During the hiatus, Hyundai improved the product
through R&D initiatives and signed a contract with a new
manufacturer SungKwang Pharma. In the lead up to the
summer months TV ads starring actor Jung Woong-in and
his daughter were re-aired to emphasise that the product
is essential when outdoor activities are at their peak.
Feminine intimate care: GynoBetadine leads
• Salesboostedbyrisingconsumerawareness
• BayerenterscategorywithCanescareDaily
Feminine intimate care (Won5.0bn / US$4.2mn) was the
most dynamic OTC derma category with sales growing by
28%, as consumers are becoming increasingly aware of
the importance of intimate hygiene. Category performance
is heavily influenced by that of GynoBetadine (Mundi
Group), the category’s only significant entry. The brand
had a good year with sales up by 38% to Won3.2bn
(US$2.7mn). It was extended with a larger 360ml SKU
in March 2015, while a humorous A+P campaign began
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DERMATOLOGICALS 2
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in July that parodies the 50 Shades of Grey books and
movie. In the ad, a young female worker is given five
rules to abide by to help prevent yeast infections, such
as avoiding tight fitting jeans and reducing stress levels.
However, GynoBetadine could face competition in future
reporting periods as other marketers look to tap into the
lucrative opportunity.
In April 2015, Bayer introduced Canescare Daily, a
feminine hygiene wash designed with a similar pH to
vaginal areas to reduce skin irritation. The product, which
was tested by dermatologists and OB/GYN clinics, contains
lotus root extract, panthenol and glycine and is formulated
without parabens and artificial colours. Classified as a
cosmetic, Canescare Daily comes in a 200ml SKU and
was additionally released in 300 OliveYoung stores – the
only chain store to sell the product – in August 2015. To
support the launch, Bayer held a Canescare Supporters
event aimed at eliminating misunderstanding and
prejudice against intimate care and to promote proper use
of the product.
Also in April, Hanmi launched Clair-Gyn feminine hygiene
wash, the second product in its Clair Thérapie pharmacy
cosmetic range after Clair Thérapie Lip Essence (not
tracked here). The hypoallergenic wash contains lactic
acid and hyaluronic acid to prevent the growth of harmful
bacteria and maintain the pH of the inner vaginal wall,
while aloe vera and rose flower extracts moisturise and
remove odour respectively. Clair-Gyn is distributed by
Hanmi’s sister company, Online Pharm.
Wound healers: Launches boost nappy rash segment
• Toplinedrivenbyearly-onsetsummer
•MadecassolNo.1
Wound healers performed well in the 12 months to June
2015, with sales up by 8% to Won22.5bn (US$19.0mn)
thanks to an early-onset hot summer, which benefited the
majority of leading entries.
Dong Kook’s Madecassol (comprising original Madecassol
and Madecassol Care) is the clear No.1 brand and
sales were up by 7% to Won10.4bn (US$8.8mn) in
the reporting period. The latter is the most lucrative
presentation accounting for around three-quarters of
brand sales, but the former was the most dynamic and
recorded double-digit growth. Sales were also boosted
by the introduction of a larger 30g SKU of Madecassol
Powder in February 2015. The presentation was released
to satisfy consumers who use the product frequently and
require a larger volume.
In terms of A+P, Dong Kook continued its “Safe Children
with Madecassol” campaign in April 2015 in preparation
for increased outdoor activity in the spring months.
Childcare centres were able to apply for medical kits
containing Madecassol and other emergency medicines
via the brand website (madecassol.co.kr). Meanwhile, the
brand turned 45 years old in July 2015 and Dong Kook
marked the occasion by donating a proportion of proceeds
during the month to help low-income children.
Dong Kook strengthened its wound healer portfolio in
June 2015 with the introduction of Dexnol ointment.
The product contains dexpanthenol to help accelerate
tissue regeneration and is primarily positioned for nappy
rash, as well as relieving sunburn and cracked nipples
from breastfeeding. The ointment is formulated without
steroids, fragrances and pigments, making it suitable for
skin of all ages, including newborn babies.
Bepanthen (Bayer) is the distant No.2 entry. In June
2015, Bayer forayed into the nappy rash segment via
the introduction of Bepanthol Extra Protection cream.
Designed to retain moisture in the skin and reduce
irritation, the product contains dexpanthenol and vitamins
B3 and E, as well as natural oils. A brand website
(bepantholextra.co.kr) supports the new product and
features information on how to protect babies’ sensitive
skin and where to purchase. Contractubex (Merz)
completes the Top 3.
Scar treatments is a developing segment and has been
categorised by frequent launch activity over the past few
years. This continued in the latest reporting period with
the rollout of Scarzium Gel (Dong Kook) in January 2015.
The product is claimed to be effective at improving the
MARKET REPORT
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Hair loss & scalp treatmentsSales of scalp treatments were flat in the 12 months to June 2015, although this is an improvement over previous
years, during which the category declined. This poor performance is the result of multiple factors, including
dereimbursement of antifungal shampoos in 2012 and the rise of cosmetic scalp shampoos that benefit from mass
advertising. During the reporting period, category size was only maintained by loyal users of these brands.
J&J’s Nizoral dominates the category and will soon become the only brand able to drive growth once GSK ceases
the supply of distant No.2 entry Sebiprox in December 2015. As such, J&J recognises that efforts need to be made
to recruit new consumers by converting users of cosmetic shampoo brands. To this end, J&J began a new “dandruff
disease” communication campaign in October 2015 designed to educate consumers on the fact that antifungal
shampoos can kill dandruff bacteria. Marketers of these types of product are also expanding their horizons and
believe that there is a growing opportunity in anti-hair loss shampoos as hair loss is becoming an increasingly
prevalent problem for women and the younger generation owing to higher levels of stress.
Despite hair loss affecting a larger proportion of the population, sales of topical OTC hair loss treatments declined
by 2% to Won12.5bn (US$10.6mn) in the 12 months to June 2015. This is partly thanks to the success of hair loss
supplements (not tracked in this report), which have been promoted extensively in recent years via mass consumer
advertising that utilises famous celebrity brand ambassadors. For example, Hyundai’s Minoxyl S – a supplement
presentation of category No.1 Minoxyl – was supported by a high-profile ad starring pop star Namekawa Yasuo
(aka Gangnam), while only featuring a quick pack shot of the topical version at the end.
Galderma / Nestlé’s No.2 entry Ell Cranell Alpha bucked the category trend and advanced by double digits to
Won2.0bn (US$1.7mn) thanks to A+P initiatives that targeted female consumers. One such event was Galderma’s
365 Days Healthy Skin campaign that promoted a series of derma products including the hair loss treatment. Held
over two days in October 2014, the event reached out to 4,500 consumers and included an area dedicated to Ell
Cranell Alpha where entertainer JiYoon Park educated attendees on how to check the health of the hair and scalp.
However, the marketer was suspended from advertising the brand between August and September 2015 after
ads were found to be violating regulations. The ads in question claimed that the product was specifically
beneficial to female consumers, but under pharmaceutical advertising rules this is only permitted if it is authorised
under the product’s registration.
appearance old and new scars and is formulated with
(per gram) allantoin 10mg to remove dead skin and
relieve itchiness; onion extract 100mg to alter the colour
of damaged cells and ease inflammation; and heparin
sodium 50IU to restore wounded cells. The product
was developed thanks to Dong Kook’s technology and
experience gained from marketing Madecassol.
Menarini’s Dermatix Ultra is one of the most established
brands in this segment and sales have been rising steadily
since A+P was increased in early 2014. In this reporting
period, TV ads targeted women and aimed to convey the
message that scars are nothing to feel ashamed about,
as they are often the result of important events such as
delivering a baby by caesarean-section or during physical
activities in the pursuit of ambitions.
Others: Series of line extensions boost Betadine
•BIsignssalesagreementwithCinfa
•Stronglaunchactivityinlipcare
Growth of antiseptics & disinfectants (+16% to Won5.2bn
/ US$4.3mn) was largely owing to a strong double-digit
upturn for category leader Betadine (Mundi Group).
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The brand benefited from positive media reports in H1
2015 after laboratory tests determined that the product
has a 99.99% reduction efficacy against the Ebola virus (a
major concern during the reporting period following the
outbreak in Africa).
A further sales boost was generated
via the rollout of Betadine Washing
Solution 100ml in April 2015. The line
extension contains povidone iodine
75mg / ml (compared to 100mg / ml
for Betadine Topical Solution) and is
positioned primarily for use during
hand washing. Going forward, the
brand is also likely to be driven by
Betadine Dry Powder Spray (also
povidone iodine), introduced in June
2015. Positioned as a disinfectant for cuts and abrasions,
the product is more convenient than liquids as it does
not drip, can quickly be applied to large areas and
does not require touching of the wound. Mundi Group
also expanded into wound dressings with the introduction
of Betafoam in November 2014. The wet dressings
are coated in povidone iodine to provide antiseptic
protection when applied over wounds. The product
is a collaboration between Mundi Group and local
company Genewel, which has the manufacturing capacity.
Fucidin (Dong Wha) is the No.1 topical antibiotic, although
sales declined by 5% to Won13.6bn (US$11.5mn),
owing partly to consumer concerns over antibiotic
resistance and competition from brands in categories
such as wound healers and scar treatments, which have
similar positioning without the antibiotic action. An A+P
campaign launched in July 2015 aimed to make the
product seem more family-friendly by using children as
the models, who discuss their experiences with wounds
in a light-hearted way. TV ads also emphasise that the
product is effective in preventing infections by creating a
protective covering over the wound and that it is safe
to use by children as it does not contain steroids.
Dong Wha is reportedly planning to introduce smaller
disposable presentations of Fucidin in 5g and 10g SKUs
during H2 2015. According to the marketer, it is common
consumer behaviour for the ointment to be used once
or twice after opening and then again after several
months, which creates the potential for contamination and
hygiene issues.
Boehringer Ingelheim dominates circulatory aids with
Antistax. During the reporting period BI signed an
agreement with Cinfa to sell the latter’s compression
stockings (not tracked in our topline) through its sales and
distribution channels. The partnership aims to create a
synergic effect by selling Antistax to pharmacies together
with the stockings.
In haemorrhoid preparations, Cho-A extended its
Hemophran range with Hemophran Suppository in
September 2015. The line extension, which contains
pramoxine hydrochloride – a topical anaesthetic to
reduce nerve stimulation – and zinc sulphate hydrate
to help restore the wounded area, is recommended
for temporary relief of pain and itching. It is also more
convenient than Hemophran ointment as the suppository
is used twice a day vs the ointment’s required applications
of 5x per day.
Lip care declined to Won20.1bn (US$16.9mn) in the 12
months to June 2015, but it could rebound in the next
reporting period following increased launch activity:
•Madecobalm (Dong Kook). An extension of leading
wound healer Madecassol, the product contains the
same active (centella asiatica) to help repair wounded
skin and is available in two versions: Moisture (no
fragrance) and Pink in cherry flavour (October 2014)
•Clair-Thérapie Lip Essence (Hanmi). Recommended
for consumers with sensitive skin as it contains no
artificial ingredients and colourants, the product is
formulated with hyaluronic acid, vitamin E, centella
asiatica, panthenol and allantoin (November 2014)
•BepantholDayCareLipstick(Bayer). Contains
panthenol to help restore skin, as well as additional
vitamins and natural oils to promote moisture
(September 2015)
Betadine Dry Powder Spray
MARKET REPORT
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OCTOBER 2015 341ASIA-PACIFIC
Antifungals: Growth of nail treatments slows
•Generalantifungalsdominate
•VYItreatmentsflat
Sales grew by just 1% to A$62.3mn (US$43.7mn) in
the 12 months to June 2015 as the high growth of nail
antifungals experienced in previous years could not be
sustained owing to generics entering the category and
driving down value.
The majority of category sales come from general
antifungals, where top brands Canesten (Bayer) and
Hydrozole (GSK) had a quiet year. In terms of regulatory
developments, the Advisory Committee on Medicines
Scheduling recommended at its July 2015 meeting that
hydrocortisone 1% + antifungal substances for dermal
use (tinea and other fungal skin infections) in packs
containing 15g or less should be downscheduled from
Schedule 3 (Pharmacist-only) to S2 (Pharmacy-only) for
people aged 12+ years.
A new humorous campaign was launched for SolvEasy
(Ego Pharmaceuticals) in January 2015. Starring character
Warren Diamond as Australia’s Top Foot Model, the main
message supporting the once-daily treatment is that when
athlete’s foot strikes, a fast solution is needed. Diamond
says: “SolvEasy helps me get back on my money makers in
seven days … Easy”
Ego also markets Resolve Plus 1.0, a Pharmacist-only
cream that contains hydrocortisone to relieve itch and
inflammation and miconazole to treat the infection. The
tagline in A+P is, “Resolve the itch. Resolve the infection”.
Bayer’s Canesten dominates VYI treatments, accounting
for around 50% of segment sales. Little activity among
VYI products led to flat sales in the reporting period.
Leading nail antifungal Loceryl lacquer (Galderma / Nestlé)
received new packaging in mid-2015 plus a price rise to
put it in line with competitors at end-2014.
AustraliaHowever, volume sales were flat owing to generic
competition. The brand is advertised to consumers
via in-store promotions and TV ads and is also promoted
to HCPs, pharmacy assistants and podiatrists through
trade promotions. Its key claims are that it is No.1
worldwide; requires just one application per week;
one purchase covers the full treatment and that it can
kill a broad spectrum of nail fungus. In September 2014,
the brand was extended with Loceryl Nail Gel, which is
not an antifungal product but is instead positioned to
promote healthy nail growth, improve appearance of nails
with yellow discolouration and restore the natural water
content of damaged nails.
A TV ad for Rejuvenail (Menarini) – another top tier nail
antifungal – features a woman looking stylish except for
a fungal infection on her toenail. The ad explains that
some treatments require the nail to be filed – humorously
demonstrated by the woman doing so with a saw in her
shed – but Rejuvenail can simply be painted on once daily
with no filing required.
Acne remedies: Growing well
•MicrobeadstoberemovedfromClearasil
•GoodyearforBenzac
Growth of 7% to A$37.8mn (US$26.5mn) of the
teen-oriented acne remedies category in the 12 months
to June 2015 was driven by Benzac (Galderma / Nestlé),
which stormed up the rankings in the reporting period to
claim the category’s No.2 spot behind Clearasil (RB).
RB is among several companies that have pledged to
stop using polyethylene microbeads in their products
by 2016 owing to concerns that they are polluting
Australian waterways. The company is reportedly
exploring alternative substances for Clearasil. A+P is
teen-oriented and Clearasil photographers attended
the 2014 Good Life Music Festival – consumers were
then given the chance to share their branded photos
on social media.
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Many acne remedies have cosmetic-like packaging with
added skincare benefits but Galderma’s more “medical”
approach for Benzac – it has fairly plain packaging and
is sold only in pharmacies – sets it apart from other
acne products. This factor, along with line extensions, the
brand’s first ever TV campaign in 2014 and new claims
on packaging in mid-2014 (No.1 in pharmacy; gets rid of
pimples; and Benzac AC kills up to 94% of acne bacteria,
unblocks pores, blackheads and whiteheads) have driven
double-digit growth of the brand.
Recent line extensions are:
•Benzac Daily Facial Foam Cleanser and Benzac
Daily Facial Liquid Cleanser both contain natural
extracts of calendula and aloe vera to help hydrate
and soften skin (January 2014)
•Benzac Daily Facial Moisturiser SPF15 hydrates
skin while protecting it from the sun’s harmful rays
(January 2014)
•Benzac Blackheads Scrub is claimed to deeply
cleanse and soften skin with shea butter and exfoliate
with natural extracts of rice (August 2015)
As well as a TV campaign in 2014, Benzac is supported
by in-store promotions and online activities for consumers
plus detailing and trade promotions to pharmacists and
pharmacy assistants and sampling to GPs.
pHisohex (Aspen Pharmacare) is advertised with the
tagline “pHeel good”. A new TV ad in 2015 followed
a woman called Kate whose mornings are always
the same with the “same routine, same clear skin”
because she uses pHisohex to cleanse her face and
fight bacteria.
Oxy (Mentholatum / Rohto) differs from most products
as it is “engineered for male skin”. The line is split into a
daily care line, Spot Defence shaving range, Emergency zit
care and Pharmacy-only benzoyl peroxide products.
Meanwhile, Guthy Renker’s Proactiv – previously a mail
order brand – has been launched in Terry White and
Myer pharmacies in H2 2015. The brand is advertised by
Maroon 5 lead singer Adam Levine.
Lip care: New flavours boost sales
•NumerouslineextensionsforChapstick
•PerrigobolstersHerronlipcareportfolio
Lip care continues to be one of the categories that is most
active in terms of product development owing to the fact
that brands can be updated easily with new flavours.
As such, numerous line extensions in the reporting period
and the cosmetic appeal of the category have resulted in
above-average growth of 9% to A$20.5mn (US$14.4mn)
in the 12 months to June 2015.
Chapstick is the No.1 brand and Pfizer’s strategy in recent
years has been to launch limited edition flavours exclusive
to certain retailers, as well as permanent new products.
Launches in the reporting period are:
August 2014: Chapstick All Things Sweet lip kits
available from Priceline Pharmacy include three
flavours: Pomegranate Gumdrop, Cake Batter
and Strawberry
September 2014: Limited edition Cake Batter flavour
from Woolworths
November 2014: Christmas Tins that could be hung
on Christmas trees as decorations in Velvet Cupcake and
Candy Cane flavours from Coles
January 2015: Natural
Papaw flavour is a
permanent addition claimed to
be Australia’s first papaw lip balm
and to moisturise lips for eight
hours. It also contains natural oils
and shea butter
January 2015: Chapstick Hydration Lock dual action
stick has a different balm at each end – one to moisturise
lips (containing sunflower seed oil, jojoba esters, coconut
oil, mango seed butter, avocado oil and shea butter) and
the other to lock in moisture (aloe vera)
March 2015: Retro tin collection at Coles
May 2015: Limited edition Cherry flavour released in
Woolworths stores
Chapstick Natural Papaw
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OCTOBER 2015 343ASIA-PACIFIC
June 2015: Limited edition Jetsetter tin collection
featuring destinations such as Hawaii, Paris and Rome
and each containing new flavours: Aloha Coconut, Mango
Sunrise and Watermelon Splash
Blistex is the No.2 brand and also grew well thanks to line
extensions. Launched in H2 2014, Blistex Click lip balm
contains two 5.7g pots: one is cool spearmint flavour to
invigorate lips and make them smoothe and the other is
peach gelato flavour to moisturise and replenish lips. The
two pots click together so that they can be transported as
a pair for convenience. The tagline in a supporting TV ad is
“Blistex. Click it your way”.
In the lower tier, Carmex (Carma) was expanded with
Jasmine Green Tea flavour in February 2015.
Meanwhile, Lip-eze has been merged into Herron since
Perrigo acquired the latter brand from Aspen in 2014.
In January 2015, the balm – available in Strawberry and
Regular versions – was reintroduced as Herron Lip-eze
and was given a new logo and updated packaging. The
product has SPF30 and is claimed to protect against
the sun, wind and cold. Furthermore, in June 2015,
chlorhexidine balm Oralife underwent a similar transition
and was rebranded as Herron Lip-eze Oralife Peppermint
Lip Ointment. It is positioned to relieve dry, cracked and
chapped lips and now has a glide on applicator.
Cold sore treatments: S3 OK for aciclovir + hydrocortisone
•ViraproXlaunchesaspreventive
•Lackofdevelopmentforleadingbrands
There continued to be little brand development regarding
the treatment of cold sores although Ego did enter the
prevention segment with ViraproX Lip Balm in H1 2015.
It is designed to prevent the development of cold sores
by targeting their triggers such as dryness, sunburn, stress
and fatigue through its SPF30 UVA and UVB protection.
It is formulated with menthol to relieve the discomfort of
cold sores if they do occur, as well as lysine. Supporting
ads say that ViraproX provides “Kisses insurance”,
accompanied by a photo of parents kissing a baby and
another ad shows a group of people pouting under the
caption “Selfie insurance”.
Effective October 2015, the S3 OTC entry for
hydrocortisone was amended to include hydrocortisone
1% or less + aciclovir 5% w/w or less in packs of up to
2g for dermal use in people aged 12+ years. In relation
to this point, it is not necessary to create a new Appendix
H entry for aciclovir because hydrocortisone is included
in Appendix H without qualification and any S3 product
that contains it may be advertised to consumers. This
regulation could pave the way for the OTC launch of
Xerclear – in 2010, GSK and Medivir announced an
agreement for the non-Rx commercialisation of the
aciclovir + hydrocortisone formulation in Australia,
among other markets. Xerclear is claimed to be the only
topical herpes labialis treatment clinically proven to help
prevent cold sore lesions and it also showed a faster
healing time than placebo. GSK has already launched
the product OTC in Europe under the names Zoviduo or
Zovirax Duo. In Australia, original Zovirax is the No.1 OTC
cold sore treatment.
Headlice treatments: Growth continues
•Moovcampaignturnsheadlicetodeadlice
•HedrinTreat&Golaunched
Australia: Top 3 lip care brands 2015 (MSP)Rank Brand Marketer
1 Chapstick Pfizer
2 Blistex Key Pharm for Blistex
3 Nivea Beiersdorf
ViraproX is new from Ego
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Headlice treatments is typically among the most buoyant
Australian dermatologicals categories and the 12 months
to June 2015 was no exception, with several brands
supported by new A+P helping the category to grow
(+2% to A$21.1mn / US$14.8mn).
Category leader Moov (Ego) has been advertised with
the tagline, “Turn headlice into dead lice” in a TV ad
launched in January 2015 and on brand website
moov.com.au. It is also claimed to be “twice as effective
as the next leading product” when used according to the
manufacturer’s directions and without combing.
Moov is supported by the Treatment Buddy app
through which users can start a treatment timer,
receive notifications for each step of the 14-day
process and take a myth-busting quiz about headlice.
As the brand is mainly used on children, consumers are
given a free monster activity book when they purchase
Moov products.
PharmaCare’s KP24 and Key Pharmaceuticals’ NeutraLice
complete the Top 3. There has been more activity lower
down the rankings. In 2014, Sue Ismeil & Daughters
introduced the concept of No Nits November for the
NitWits brand in an effort to help children and parents
understand headlice and give them the opportunity to win
A$1,000 (US$700) for their school library. Not only does
the November connection give the campaign a catchy
name but it is also the time of year when children may
catch lice as the weather warms up and they play closely
with other children outdoors. The company believes that
pharmacies should be the frontline for treatment advice
owing to the channel’s accessibility.
Meanwhile, in early 2015, Nice Pak Products (for Stada)
launched Hedrin Treat & Go in spray and mousse format to
kill headlice and their eggs. The water-based formulation
dries easily on hair and contains “revolutionary”
Activdiol technology, claimed to be clinically-proven,
with a physical mode of action so it is more likely to
kill insecticide-resistant headlice. The Hedrin brand is
supported by a print campaign for pharmacies, trade
and consumers; a new website; digital marketing; and
point-of-sale materials.
Circulatory aids: Boehringer Ingelheim launches Antistax
•CrampEzeextended
•An“emergingcategory”
There are few well-known brands in this category but
this is set to change following increased activity in the
reporting period. In H2 2015, Boehringer Ingelheim
launched Antistax – the world’s No.2 OTC circulatory
aid, according to DB6. The one-a-day film-coated
tablets contain natural vine leaf extract (Vitis vinifera
360mg) and are positioned to promote healthy leg
circulation; relieve tired, heavy, aching legs; reduce
swelling of lower legs; and manage the symptoms of
varicose veins. A trade ad claims that: “Antistax is set to
drive growth in this emerging category for pharmacy”
while consumer A+P will include a TV campaign and
point-of-sale materials.
Other circulatory aids include magnesium-based
CrampEze, which LaCorium Health extended in the
reporting period with Magnesium Max for men and
women aged 50+ who prefer a powder format to relieve
cramps; Pregnancy Leg Cramps chewable tablets for
women during pregnancy / breastfeeding; and Sports
Magnesium + powder, to relieve sport-related cramps and
support energy production through vitamin B.
Eczema & psoriasis: Baby treatments launched
•CategoryleaderCetaphilcontinuestogrow
•DermaVeenandBrauerextended
Category sales grew by 7% to A$22.8mn (US$16mn)
thanks mainly to the upturn of leading brand Cetaphil
(Galderma / Nestlé), which accounts for over 50% of
category sales. The upturn for Cetaphil has been driven
by increased brand awareness as a result of TV ads
and consumer promotions that help to drive trials and
purchases. From June to August 2015, consumers who
purchased Cetaphil products were given the opportunity
to win a luxury break. The brand has also been supported
by detailing for healthcare professionals and trade
MARKET REPORT
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promotions to pharmacies, where 75% of the brand’s
sales are generated. The key messages in A+P are
that Cetaphil has the ultimate tolerability, even for the
most sensitive skin and is suitable for the whole family
including babies.
Sales beyond the 12 months to June 2015 period are
being boosted by a range of new products. In June,
the brand was extended with products designed
especially for newborns and infants to provide healthy
skin development.
• Cetaphil Baby Gentle Wash & Shampoo contains
glycerin and panthenol to keep skin hydrated
•Cetaphil Baby Daily Lotion is formulated with shea
butter and glycerin to hydrate and soothe skin
•Cetaphil Baby Shampoo contains camomile and aloe
vera to stop the scalp from drying out
•Cetaphil Baby Massage Oil combines shea butter
and vitamin E to lock in moisture and keep skin soft
and nourished
•Cetaphil Baby Ultra Moisturising Bath & Wash
contains 1/3 lotion and soothing aloe vera to hydrate
the skin during cleansing
Also, Cetaphil Suntivity sun protection tinted lotion and
foaming spray were launched in August 2015, along with
Cetaphil Shower & Bath Oil (not tracked in this report).
DermaVeen (iNova / Valeant) is a skincare line based on
colloidal oatmeal that generally focuses on moisturising
the skin. In 2015, the brand was extended with
DermaVeen Baby Eczema Cream specifically formulated to
relieve itching and irritation associated with mild eczema.
The wider brand – which is a supporter of the Eczema
Association of Australasia – was backed by a A$2mn
(US$1.4mn) advertising campaign in 2015 (peaking in
April to August) encompassing digital A+P, sampling,
association sponsorship, a healthcare professional
education programme and national consumer initiative.
Meanwhile, in late 2014, Brauer launched Brauer
Baby & Child Eczema in oral liquid and cream formats.
The liquid – for children aged 6+ months – includes
homeopathic ingredients such as wild pansy, which are
used traditionally to relieve intense itching. The cream
combines herbal and homeopathic ingredients to relieve
the symptoms of red, sore and itchy skin and it can be
applied to babies from three months of age.
Others: Feminine intimate care category developed
•DermaVeenNappyRashCreamlaunched
•RectogesicA+Packnowledges embarrassmentofdiscussinghaemorrhoids
Bepanthen (Bayer) is the leading wound healer and the
scar treatment version – launched in April 2014 – won
Nielsen’s Product of the Year award based on a survey
of 15,050 people. Meanwhile, Swiss brand Stratamark
(AL Kerr Medical for Stratpharma) is soon to be launched
in Australia. The gel is designed to prevent and treat
stretchmarks during pregnancy, growth spurts, weight
gain and body-building.
Sudocrem (Nice Pak Products for Allergan) is another key
wound healer and is traditionally thought of as a nappy
rash treatment. However, A+P is aiming to extend its
usage by explaining that the product is “for the family”
and can also be used to relieve skin irritation caused
by factors such as eczema, minor burns, chafing and
abrasions. A convenient 30g tube is placed in the first aid
aisle of stores while the tub format – available in four
sizes – is housed in the baby section.
Meanwhile, DermaVeen
(iNova / Valeant) was extended
with Nappy Rash Cream in 2015.
Its formulation with zinc oxide and
colloidal oatmeal is designed to
heal and protect delicate baby skin.
It is free from lanolin, parabens,
artificial dyes and fragrances.
There have also been some brand developments in
the feminine intimate care category, where marketers
DermaVeen Nappy Rash Cream
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DERMATOLOGICALS 2
346 OCTOBER 2015
Clarity is the Promise.Consumer and retail based market insight is key for manufacturers in building understanding of the OTC sales environment. Nielsen is unrivalled in our understanding of OTC sales, consumer trends and retail market dynamics. Gain clarity in OTC with Nielsen.
for more information please contact Robert Buckeldee on
+44 1865 732551 or robert [email protected]
typically use A+P to explain to women that the pH level
of the vagina requires specially-made cleansing products
rather than regular personal care items. The Verona line
of four intimate washes (Omega / Perrigo) – launched in
2014 – has been supported by a A$1.5mn (US$1.1mn)
adspend covering TV, print and social media. The tagline is
“Because confidence shows”.
Meanwhile, Vagisil (Combe) has been
supported by new TV ads explaining
that the wash is designed with intimate
pH in mind. The tagline is: “Get more
from your wash. Get Vagisil”. The brand
was extended in 2015 with Vagisil
ProHydrate Plus wash (containing
ProHydrate complex), claimed to be the
only wash to moisturise intimate skin as
well as cleanse it.
Proctosedyl (Sanofi) and Rectogesic (Care Pharmaceuticals
/ Prestige Brands for Cellegy) are key entries in the
haemorrhoid treatments category. The ointment format of
Rectogesic has been advertised in trade publication Retail
Pharmacy with an ad showing a roll of barbed wire on a
toilet roll holder and claiming that the product is the only
non-prescription medication that is clinically proven to
relieve the pain associated with anal fissures. The line also
includes cleaning wipes, powder and finger protectors.
Website rectogesic.com.au has the tagline: “Hard to
talk about, harder to endure” and advises haemorrhoid
sufferers to contact their doctor or pharmacist for
information on Rectogesic.
Stingose (J&J) and Pinetarsol (Ego) are key entries
in the anti-itch remedies category. Ego also markets
DermAid 1% Cream, which contains a dissolved form of
hydrocortisone and is advertised with the message
that this formulation results in rapid penetration and
quicker absorption into the skin. As well as being
positioned to relieve itchy rashes, DermAid can be used for
sunburn and dermatitis eczema. In 2014, Ego revamped
its training modules on the Ego Expert website to educate
pharmacy assistants on appropriate treatments for
skin conditions.
Betadine (Sanofi for Mundi Group) is the leading
antiseptic & disinfectant although A+P for the wider
brand in the reporting period has focused on the new
sore throat lozenges, which are not tracked in this report.
Similarly, advertising for No.2 brand Dettol has focused
on products beyond the scope of this category such as
handwash and household cleaners. RB has also launched
the Healthy Habits School Program, a free initiative
created with the Department of Education & Training
in New South Wales to help teach healthy habits to
primary school children.
Vagisil ProHydrate Plus
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Feature: Chinese tourists set sights on OTCs in other Asian marketsConcerns about the quality of locally-produced OTC medicines are causing many Chinese consumers to
look elsewhere in Asia-Pacific – particularly Japan, Australia and Hong Kong – for healthcare products.
We take a closer look at this trend and examine how other countries are attracting people from China.
China: Changing attitudes and safety concerns make consumers look elsewhereThe older generation of Chinese consumers still shows a preference for TCM but young professionals in affluent
areas are willing to try Western brands owing to their perceived safety and rapid onset of action – allopathic
brands are often claimed to get to work in minutes with effects lasting several hours while TCM tends to be
designed for consumption over a period of time for gradual improvement. As such, medicated brands from other
countries are increasingly being welcomed, although the lengthy and complex registration process in the country
means that the range of Western OTC medicines available in China is somewhat limited compared to well-
developed overseas markets such as Japan and Australia. Therefore, Chinese consumers are incorporating OTC
shopping trips into their visits to these countries.
Meanwhile, frequent high-profile safety scares – resulting partly from the prevalence of spurious medicines and
the poor quality raw materials that some marketers are thought to have used to save money in light of
government price controls – are reducing consumers’ confidence in local brands. Examples of quality concerns are:
Cao Qinghua Yixin Chu Shi Zhi Tong: This brand from Guangzhou Kangchao has grown rapidly to become
China’s No.2 systemic analgesic since its launch in 2011. However, the tide is turning in 2015 owing to a ruling
by the local FDA in Heilongjiang Province that the brand’s benefits are exaggerated, and subsequent media
reports that the medical institution that inventor Cao Qinghua claims to work for does not exist.
Bawang: According to DB6, sales of the hair loss treatment from the marketer of the same name are almost
4x smaller than they were in 2010, when traces of cancer-causing agent dioxane were found in the product.
Infant milk formulas: Some brands produced by New Zealand’s Fonterra and sold in China were recalled in
2013 owing to the presence of clostridium botulinum, which can cause botulism. Consumer confidence in infant
formulas was further reduced when several marketers were fined for price fixing around the same time.
China: Key facts 2014Population: 1,364mn
OTC per capita spend: US$15.79
OTC sales: US$21,534mn
OTC growth rate: 6.9%
Global OTC rank: 2 (18% of global sales)
Regional OTC rank: 1 (53% of regional sales)
Source: Nicholas Hall’s DB6 Global OTC Database (MSP)
China: OTC sales by category 2014
•
•
•
•
• •
VMS 29%
CCA 22%
GIs 16%
Derma 12%
Analgesics 11%
Lifestyle OTCs 10%
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Japan: Drugstores become China-friendly
Japan’s National Tourism Organisaton reported that the
number of Chinese visitors to the country rose by 134%
in the year to May 2015, owing to factors such as relaxed
regulations for people travelling from mainland China,
depreciation of the Japanese yen and tourists who usually
go to S Korea being deterred by the outbreak of MERS.
Perceived product safety and reasonable prices are other
draws for Chinese consumers. This provides an opportunity
for growth of OTC sales to Chinese visitors in Japan.
On 1st October 2014, a consumption tax exemption
rule came into force for foreign visitors buying OTC
medicines. This has led several drugstore chains to adapt
their stores in tourist hotspot areas to attract overseas
consumers, especially those from China. Leading chain
Matsumotokiyoshi announced in late 2014 that it was
planning to open 20 duty-free drugstores aimed at foreign
shoppers, with all expected to be operational by March
2016. It is also incorporating extra services to entice
Chinese consumers, such as offering in-store WiFi to
allow them to look up what they want to buy and contact
people back home to discuss their purchases. According
to Nikkei, transactions through China UnionPay cards at
Matsumotokiyoshi stores have risen from 2-3% of sales
to 8% in its latest fiscal year. Other drugstore operators
such as Cocokara Fine, Sundrug and AIN Pharmaciez are
also expanding the number of tax-free stores they operate
and some retailers are employing Chinese staff to improve
communications with tourists.
Japan’s OTC eye care category is a big attraction for
Chinese consumers owing to the extensive range of
condition-specific and demographic-specific products
available, as well as their perceived high quality. This is
of particular interest to city-dwelling Chinese consumers
for whom high levels of pollution and long hours
spent looking at computer screens can cause ocular
irritation. Supplements, multi-ingredient cold remedies
and dermatological preparations are also popular with
consumers aged 20-49 years living in Shanghai, Beijing
and Guangzhou who have visited Japan, according to a
2015 survey by market research agency Anterio (part of
Intage). China’s one-child policy also means that Chinese
people place special importance on their offspring and are
keen to buy high-quality medicines for them from Japan.
Meanwhile, a list of the 12 “must-buy” OTCs in Japan
has been widely publicised online in China and includes
several analgesics, as well as cosmeceuticals. Stylish
product packaging appeals to Chinese consumers, who
tend to buy products such as cosmeceuticals as gifts.
Some Japanese companies are also going to China rather
than waiting for tourists to come to them. Earlier in 2015,
it was announced that Welcia is aiming to become the
first Japanese retailer to sell OTCs directly to consumers
in China. The Aeon subsidiary has opened five stores in
China via Lianhua Meiriling (Shanghai), formed as a joint-
venture with Lianhua Supermarket and Shanghai Meiribuy
Commercial. The stores currently sell products such as
cosmetics and daily necessities, mainly imported from
Japan. However, Welcia plans to apply for a licence to sell
Chinese-made OTCs in Shanghai and other areas by 2016.
The retailer also aims to increase its stake in the China j-v
from 39% to 96.4% and quadruple store numbers to 20
and sales to ¥2bn (US$16.6mn) in three years.
Marketers are also getting in on the act – Hisamitsu
launched Salonpas topical analgesic patches in China in
April 2012 and, in July 2014, Eisai introduced the Chocola
brand via the rollout through internet retailers of female-
oriented Chocola BB Royal Drink. The product is designed
to specifically address the needs of consumers in China,
where Eisai reports health & beauty products are very
popular. Meanwhile, in June 2013, Kobayashi set up
Hefei Kobayashi Pharmaceutical, a 90:10 joint-venture
with China’s JPS Pharmaceutical in China with a focus
on procuring crude drugs and production and the sale of
Chinese herbal extracts. Kobayashi’s Chinese medicines
include Bisrat and Nicitol OTC supplements for weight
loss. However, the company reports that its core products
in China – where 10% of company revenue is generated –
are body warmers to provide heat and soothe aches &
pains. Although other marketers are reportedly keen to
enter China, difficultly in gaining marketing authorisation
deters and delays many.
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Australia: ChAFTA signed
The implementation of the
China-Australia Free Trade
Agreement (ChAFTA)
– signed in June 2015
to eliminate tariffs on
pharmaceuticals and
many other product
types – will help Australian
healthcare players to be
more competitive in China. For example, Christine Holgate,
CEO of Blackmores – Australia’s No.3 OTC marketer –
reports that tariffs on the VMS specialist’s products, which
can reach 35% for fish oil supplements, will be reduced
to nothing in four years, enabling the Australian marketer
to be more competitive in terms of pricing and fending
off inferior products. Speaking about the company’s sales
for the 12 months to June 2015, Holgate added: “It is
apparent that there are a growing number of Chinese
shoppers and entrepreneurs purchasing our products
through Australian retailers. By combining the contribution
from these consumers with our Asia-based revenues, the
value of the region to our Group sales is approximately
A$150mn (US$105mn) for the year.”
Adelaide-based Ivy Yap, Associate Director, International
at Nicholas Hall, explains that not all Australians approve
of the ChAFTA: “Some groups protest that it undermines
local jobs and could increase unemployment (currently 6%
nationally). They argue that although it gives Australian
companies greater access to China, it also allows more
Chinese workers, including tradespeople, to enter and
work in Australia on temporary skilled migration visas.”
As well as attracting tourists in its domestic market, the
Blackmores line was launched in China – where it is
known locally as Ao Jia Bao – in 2012. The range of
supplements available includes Royal Jelly, Vision Plus
and Omega Daily. The company attributes recent strong
growth in the country to multi-channel coverage and
geographic expansion. Around 40% of the company’s
sales are generated online in China with the remainder
coming from offline channels. Its top brands – Evening
Primrose Oil and Fish Oil – are driven by word-of-mouth
referrals and consumer trust.
In August 2015, JD.com – China’s largest online direct
sales company – announced that it is extending its
partnership with Blackmores, which began in 2013. The
brand will be available through JD.com’s direct sales
channel and will use its same-day delivery capabilities.
Carol Fung, JD.com’s Vice President, and President of
its FMCG Business Unit, said: “We are very excited to
be expanding the range of [Blackmores] outstanding
healthcare products available to our rapidly growing user
base.” Blackmores Asia Managing Director Peter Osborne
added: “Working with JD.com not only ensures we get
our products to consumers quickly, but will also enable us
to initiate targeted and specialised marketing campaigns
leveraging JD’s data analytics capabilities. We are also
very pleased to be expanding our co-operative education
programmes with JD.com to help consumers increase
health & wellbeing awareness.”
The deal followed the June 2015 launch of a dedicated
Australian Mall for authentic imported Australian products
on JD.com’s cross-border platform, JD Worldwide.
Healthcare is so far among the most popular product
categories on the site.
Biostime’s September 2015 acquisition of an 83% stake
in Swisse Wellness for A$1.39bn (US$975mn) is another
huge indication of the Chinese appetite for Australian
supplements (see this month’s News Special for detailed
coverage of this deal). Speaking to The Australian in
March 2015, around the time the brand was launched
in Singapore, Swisse CEO Radek Sali said: “In China
there are 60-odd million people that live the same kind
of lifestyles” as those in Australia, and it is one of many
Asian destinations on the company’s radar.
Blackmores Royal Jelly is available in China
A selection of supplements from Swisse Wellness, which has been acquired by Biostime
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Hong Kong: Relaxed visitor rules attract mainland tourists
Industry sources estimate that purchases by consumers
from China account for 50%-70% of OTC sales in Hong
Kong owing to the perception by mainland residents that
HK medicines are safer and of better quality. Meanwhile,
rules regarding mainland visitors to HK were relaxed in
2012 to enable citizens from the bordering Shenzhen area
to travel to HK multiple times per year (although this was
limited to once per week in April 2015).
Furthermore, planograms in chain drugstores have been
altered to target mainland consumers. For example, infant
milk powder and some products that few HK citizens
would buy but are popular in the mainland are placed in
prime spots. In addition, retailers favour large SKUs as
mainland tourists tend to bulk buy.
It remains to be seen how the trend for mainland
consumers boosting HK sales will play out. On one
hand, local residents and pressure groups are calling
for restrictions on the number of mainland visitors
permitted. On the other hand, a proposal to build a
shopping zone on the border has been submitted to the
Legislative Council in an attempt to minimise the impact
that mainland tourists cause to the supply of daily goods
for locals, without restricting visitor entry. However, it is
looking unlikely at present that this will be approved.
China: An OTC opportunity
With nearly 1.4bn residents, China is the world’s most
populous country. Coupled with the growth of the middle
classes and the increasing interest in high quality products
from overseas, this makes Chinese consumers a key target
audience in Asia and beyond.
NICHOLAS HALL’S OTC ACTION WORKSHOP
Expand your Brand, the Sky’s the Limit
Event details:Date: 23rd November 2015Venue: Intercontinental Shanghai Pudong, ChinaTicket price: US$1,250Contact: [email protected]
Presenters:Nicholas Hall
Chairman & CEONicholas Hall Group
of Companies
Xiaodan (Starain) ZhuAssociate Director
Consumer Health of Nielsen
Jeff CrowtherExecutive Director
US China Health Products Association
NEWS REVIEW
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OCTOBER 2015 351ASIA-PACIFIC
AUSTRALIA: Infant care company Biostime has acquired
an 83% stake in Australian VMS specialist Swisse Wellness
for A$1.39bn (US$975mn), implying an enterprise value
of A$1.67bn (US$1.2bn). Upon completion, Swisse will
become an indirectly-held Biostime subsidiary. Biostime
will bring China-wide distribution, e-commerce capability
and an established customer loyalty programme to the
partnership. Swisse CEO Radek Sali will continue to lead
the Melbourne-based company and, alongside the executive
team and existing shareholders, will remain invested in
the business. Sali will also join the Biostime Board.
According to Nicholas Hall’s DB6, Swisse generated
sales in Australia of US$218mn in 2014, all from VMS.
In 2014, Biostime’s OTC sales (tracked under China’s
probiotics category) reached US$67.6mn and the
company’s total sales were RMB4.7bn (US$738mn).
Comment from Luo Fei, Biostime CEO & Chairman:
Swisse has strong appeal to Chinese consumers and is
considered a leading VMS brand. The acquisition is closely aligned with our strategy of expanding our portfolio and
entering new markets as we seek to become an all-round nutrition and care expert for the entire family.
Comment from Radek Sali, Swisse Wellness CEO: Under Biostime’s ownership Swisse will have access to new capital
and capability, so that we can take advantage of multiple growth opportunities, both in Australia and internationally …
The VMS sector in Australia and New Zealand is growing at around 7% annually and we see enormous opportunity in
markets such as China where the demand fundamentals are very strong and where we have been the number one selling
VMS brand across multiple online platforms for 11 months now.
News Special: Biostime buys Swisse
Nicholas Hall Writes: What an interesting journey! Swisse was founded in the 1960s by Kevin Ring, a natural
health enthusiast who created his own brand following a trip to Switzerland to investigate natural medicine. Ring
opened an organic bakery, which sold many items including the first Swisse product: pollen tablets for good health.
As interest in the brand grew, Ring developed Swisse Ultivite. The women’s version was launched in 1991, followed
four years later by the men’s option, and today Ultivite is Australia’s No.1 multivitamin. But it is only in recent years
that Swisse has really made its mark, recording 29% CAGR since 2010 to become Australia’s No.4 OTC player, a
result of saturation advertising that destroyed profitability, high-profile celebrity endorsement and a much-evolved
product line. After a failed US launch in 2013, the brand was introduced in Singapore earlier this year as the first
fruit of a partnership with PGT Healthcare, and launches in other Asian markets and Europe are expected soon.
Where the Biostime takeover leaves PGT’s ambitions, especially in China, is another matter. Swisse has yet to
launch in China, although some Chinese consumers in Australia buy large quantities of the brand for relatives at
home, and importers have begun selling it on Tmall.com. The generally-held view was that Swisse would be a lead
brand in PGT’s penetration of one of its few white spaces, but that is unlikely to happen now.
Swisse Wellness: Australia OTC sales 2010-2014 (MSP)
Source: Nicholas Hall’s DB6 Global OTC Database
0
50
100
150
200
250
Sales US$mn
2010 2011 2012 2013 2014
78.9 113.7 165.6 194.4 218.3
+44.2%
+45.7%
+17.4%
+12.3%
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352 OCTOBER 2015
News Review: Global OTC growth hits 5.7% MAT June 2015
Top 10 OTC markets MAT Q2 2015
Rank Country Sales US$bn Growth %1. US 30.5 4.92. China 22.2 6.63. Japan 7.1 -0.74. Germany 5.3 4.75. France 4.2 1.56. Russia 4.1 16.87. Brazil 4.0 12.48. Italy 3.5 4.49. UK 3.0 4.610. India 2.5 9.8
Mega Lifesciences: To expand in IndonesiaTHAILAND / INDONESIA: Mega Lifesciences – Thailand’s No.1 OTC marketer according to DB6 – will expand into
ASEAN’s largest market, Indonesia, under a partnership with local pharmaceutical player Sydna Farma. Mega Lifesciences
will introduce drug delivery systems through Sydna Farma and launch pharmaceutical and nutraceutical products in
Indonesia. The companies also plan to establish a factory in the country and invest in product development, registration and
sales, reports The Nation newspaper. Established in 1982 and listed on the Thai stock exchange in 2013, Mega Lifesciences
is engaged in manufacturing, marketing, selling and distributing medicines in developing countries. Its offerings include Rx
and OTC medicines and the Mega VMS line.
Nicholas Hall writes: Mega Lifesciences is not a client, but I admire the company greatly, as its innovative
marketing and NPD has propelled it to market leadership in 30 years, with a 6% market share and 5% CAGR vs
4.3% market growth rate. I’m also a big fan of Indonesia, one of the best prospects in Asia-Pacific, and I’m sure
Mega Lifesciences will bring interesting new thinking to a CHC market whose 4.7% CAGR and US$1.5bn of sales
in 2014 are slightly disappointing.
GLOBAL: New figures from Nicholas Hall’s OTC sales
database DB6 reveal that global OTC growth hit 5.7%
in MAT June 2015, mainly because of a strong cough &
cold season earlier this year. Rx-to-OTC switch drove US
growth, with allergy remedies up by 17.7% and antacids
rising by 9.2%, thanks to the switch of GSK’s Flonase
and Pfizer’s Nexium 24HR. Growth in Europe continued
to accelerate with Germany, Italy, UK, Poland (+4.5%)
and Spain (+6.9%) all bettering their MAT Q1 2015
performance. In Asia-Pacific, there was a slight slowdown
in China, and Japan continued to recede. However,
strong growth in India enabled it to leapfrog Canada
and enter the global Top 10, while booming VMS sales
took Australia’s growth to 7.2%. In spite of economic
frailties, Russia and Brazil continued to rise by double-
digits. In Russia, this is primarily price-driven and
volumes sales fell; in comparison with mid-2014 dollar
values, the Russian OTC market is down 28.1% vs same
period a year ago.
Nicholas Hall writes: The latest sales data from DB6 is very encouraging, but there are clouds on the horizon,
particularly in China, Brazil and Russia. The latter are seeing strong growth, but in real terms will be much
smaller in DB6 2016, especially Brazil where the Real is at an all-time low against the dollar; if economic trends
continue, Brazil is likely to drop out of the global Top 10. As a result, we are adjusting our 2015 growth forecast
by just 0.1% to 4.8%.
NEWS REVIEW
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Australia: Scheduling recommendationsCodeine: Reverse-switch on the cardsAUSTRALIA: A delegate of the Secretary to the Department of Health has issued an interim recommendation to request
that all OTCs containing codeine are reverse-switched to Rx. The decision is based on issues including risk of dependence
and adverse events compared to safer products also available OTC. Comments on the recommendation were sought until
mid October and a final decision will be issued in November, with 1st June 2016 slated as a possible implementation
date to allow time for industry, consumers, pharmacists and doctors to manage any change. OTC brands in Australia that
contain codeine include RB’s Nurofen Plus, a Schedule 3 (Pharmacist-only) systemic analgesic, and J&J’s Codral Cold & Flu,
a Schedule 2 (Pharmacy-only) systemic cold & flu remedy.
PPIs: Good news for various ingredientsAUSTRALIA: A delegate of the Secretary to the Department of Health has issued an interim recommendation to request
that a Schedule 2 (Pharmacy-only) entry is created for PPI esomeprazole 20mg or less per dosage unit in packs of up to
seven days supply, effective 1st February 2016. Esomeprazole 20mg was switched from Rx to S3 OTC (Pharmacist-only)
in 2014 and Pfizer’s Nexium 24HR Once Daily Dosing was added to the Australian Register of Therapeutic Goods (ARTG)
last December, although it has yet to launch in Australia. Meanwhile, effective 1st October 2015, S3 esomeprazole was
included in Appendix H, which permits consumer advertising. Furthermore, an interim decision from the July 2015 Advisory
Committee on Medicines Scheduling meeting was announced this month to also include S3 PPIs lansoprazole, omeprazole,
rabeprazole and pantoprazole in Appendix H.
Orlistat: To stay Pharmacist-onlyAUSTRALIA: Other interim recommendations made at the July 2015 meeting of the Advisory Committee on
Medicines Scheduling were:
• Do not downschedule anti-obesity treatment orlistat 120mg or less per dosage unit from S3 to S2. Reasons for
the decision include that S2 OTCs are meant to be for short-term treatment
• Create an S3 entry for naloxone single use pre-filled syringe preparations for injection containing 400 mg / ml
of naloxone or less for the treatment of opioid overdose. The decision states: “Naloxone is a well-tolerated
life-saving medicine with minimal side-effects. The benefits outweigh the risks”
• Downchedule from S3 to S2 hydrocortisone 1% + antifungal substances for dermal use (tinea and other fungal
skin infections) in packs containing 15g or less for people aged 12+ years
• Separate schedule entries should be included in the Poisons Standard for levocetirizine in S2 and S4 (Rx), and
levocetirizine should be scheduled as for cetirizine
Comment from ASMI CEO Deon Schoombie: This interim decision is an example of unnecessary over-
regulation ... We are concerned that restricting access to these medicines will have unintended consequences
for consumers, who will now be required to visit a GP or emergency department to access medicines for minor
self-limiting conditions instead of being able to get them from a pharmacy. It will also increase the workload of
doctors and create greater inefficiencies in an already over-strained primary health system ... a Schedule 4 entry
is no guarantee against misuse or abuse of a medicine. OTC analgesics containing codeine make up 22% of the
volume of analgesics sold in pharmacies and the decision to upschedule will increase healthcare costs by at least
A$675mn (US$473mn) annually.
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354 OCTOBER 2015
Company news
ANZ : In the spotlightANZ: In addition to Biostime’s purchase of Swisse
Wellness, other ANZ VMS players are also in the news:
•NewZealand’sNo.4OTCplayerVitaco–marketerof
the Nutra-Life and Healtheries VMS brands – has
debuted on the Australian Securities Exchange where its
share price climbed 13% on the first day of trading
•Australia’sPacificEquityPartnerspurchasedManuka
Health for an undisclosed sum. Products from the
NZ-based marketer contain locally-derived natural
ingredients and include MGO Manuka Honey
supplements and the Manuka Honey Wound Care line
•PharmaCare–marketerofBioglanandNature’sWay–
has been courted with buyout offers but CEO Vincent
Tan says the company is not for sale
Comment from our Adelaide-based Associate
Director, International, Ivy Yap: With continued
strong dynamism of the VMS category in ANZ, it is not
surprising that there are also high levels of interest and
activity that are in line with M&A trends seen globally in
the pharma industry. VMS was the leading OTC category
in 2014 in terms of sales and growth in Australia
(US$992.6mn, CAGR +7.9%) and NZ (US$155.8mn,
CAGR +5.1%), according to DB6.
RB: Against price controlsin IndiaINDIA: In an interview
with the UK Financial
Times, RB CEO
Rakesh Kapoor called
for the removal
of certain price
controls in India,
which he says can hinder consumer access to healthcare
products and damage profitability. For example, Kapoor
said RB makes no money on Disprin (aspirin) owing
to price controls so there is little incentive to invest in
marketing to raise awareness of its benefits.
Abbott: Challenges cough syrup findingINDIA: Abbott has disputed the West Bengal Drug
Controller’s finding that a tested sample of cough
syrup Phensedyl contained codeine beyond the
permissible level. An Abbott India spokesperson told
PTI: “Abbott has requested the State Drug Controller
to provide more information about the source of the
suspect sample and the manner in which it was collected,
to establish whether the sample was collected from
genuine trade channels through proper process under
the Drugs & Cosmetics Act.”
After receiving a show-cause notice in April 2015, Abbott
tested a retained sample in-house, as well as at an
accredited independent lab. The results of both tests found
the sample complied with the required specifications and
standards, including the codeine content.
Vietnam: Sanofi and Zuellig partner with local playersVIETNAM: Sanofi and Zuellig Pharma have signed a
strategic partnership in Vietnam in co-operation with local
players Phytopharma and Sapharco. Owing to the large
rural-urban gap and uneven development of Vietnam’s
healthcare industry, the country’s healthcare distribution
landscape is fragmented and inconsistent and many MNCs
aim to establish smoother and more unified distribution
networks, which this partnership could help to achieve.
Zuellig commented: “Together, Sanofi, Zuellig Pharma,
Phytopharma and Sapharco are now perfectly positioned
to ensure continuous access to safe, high-quality
medicines for Vietnamese patients across every one of the
63 provinces in Vietnam.”
Zhejiang Jolly: Invests in VMS specialistCHINA: Zhejiang Jolly – marketer of Jolly Wu Ling
Capsule, China’s No.1 OTC sleep aid, according to DB6 –
has invested RMB130mn (US$20.4mn) to acquire a 51%
stake in TCM specialist Zhejiang Baicao Zhongyao with the
aim of developing its “mega health” business.
Price controls adversely impact Disprin’s profitability in India
NEWS REVIEW
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OCTOBER 2015 355ASIA-PACIFIC
Country news
Japan: More downschedulingJAPAN: Based on interim post-marketing surveillance
reports, a Pharmaceutical Affairs & Food Sanitation
Council sub-committee recommends downscheduling the
following ingredients from Instruction-Required Drugs to
Class I OTCs when their PMS periods end:
• Ibuprofen200mgperdose–Taisho’sNaronMedical
(100mg per tablet, two tablets per dose) and Ringl
IB Alfa 200 (single tablet dose of 200mg) systemic
analgesics (October 2015)
•Acitazanolasthydrate–Kowa’sEyeFreeKowaALeye
drops (November 2015)
•Fexofenadine–Sanofi-Hisamitsu’sAllegraFXallergy
remedy (November 2015)
•Cetirizine–Sato’sStonaRhiniZandGSK’sContac
Bien Z allergy remedies (February 2016)
EHC switch: Dispute reignitesS KOREA: A dispute over whether emergency hormonal
contraceptives should be switched from Rx to OTC is
expected to be reignited as a government-funded review
into the issue nears completion. In 2012, the Ministry of
Food & Drug Safety (then known as the KFDA) proposed
switching EHC from Rx to OTC and reverse-switching daily
oral contraceptives, but the plans faced opposition from
consumer advocacy groups and healthcare professionals.
As such, the MFDS suspended any changes for three years
and announced that it would conduct a review into the
matter. This grace period runs out at the end of the year
and many stakeholders, including religious groups, are
concerned that the Government will once again try to
switch EHC to OTC. However, the MFDS has stated that
nothing has been decided as the study is still ongoing.
Discount pharmacies: To blame for paracetamol OD?AUSTRALIA: New guidelines on managing paracetamol
poisoning have been released in the Medical Journal
of Australia. Co-author Professor Nicholas Buckley told
sister publication MJA Insight that the lack of controls
in pharmacy sales is a key component of paracetamol
overdosing, with 100-count packs sold cheaply in
discount pharmacies often used in very large overdoses.
The guidelines explain that paracetamol “is the leading
pharmaceutical agent responsible for calls to Poisons
Information Centres in Australia and New Zealand.
Management of paracetamol poisoning has altered since
the previous guidelines were published in 2008, so that
they do not reflect current practice by clinical toxicologists.
The key changes from the previous guidelines concern
the indications for administration of activated charcoal;
the management of patients taking large or massive
overdoses; modified-release and supratherapeutic
ingestions; and paediatric liquid paracetamol ingestion.”
HCPs: Support QUIT4octoberAUSTRALIA: A new community-based smoking cessation
campaign, QUIT4october, is being piloted this month in
Ballarat (Victoria), Toowoomba (Queensland), Dubbo and
Ryde (both NSW). However, smokers anywhere in Australia
can take part and use the free resources. The campaign
aims to encourage people to discuss a personalised
smoking cessation programme with their healthcare
professional. It supports best practice, evidence-based
smoking cessation with behavioural counselling,
professional support and the use of stop smoking
medication. QUIT4october is championed by Lung
Foundation Australia and supported by the local councils
of the pilot sites, with sponsorship from Pfizer and J&J.
NZ: New regs on the cardsNEW ZEALAND: The New Zealand Government is
working on a new and comprehensive regulatory regime
to regulate therapeutic products, which will replace the
Medicines Act 1981 and its Regulations. This follows
the cessation of the Australia New Zealand Therapeutic
Products Agency (ANZTPA) project. The intention is for a
Bill to be introduced to Parliament in 2016.
DCGI committee: Examines vitamin label claimsINDIA: The Drug Controller General of India has set up an
expert committee to examine the validity of claims made
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NEWS REVIEW
356 OCTOBER 2015
on the labels of high-profile vitamin supplements,
reports Pharmabiz. The committee will evaluate 10
products, including multivitamins Revital (Sun Pharma)
and A-to-Z (Alkem), which are marketed as food
products and exempt from marketing and pricing rules.
The move comes after the sub-committee constituted
by the Drug Technical Advisory Board to examine the
ingredients and classification of a range of nutraceuticals
recommended that they should be marketed as drugs.
Comment from Nicholas Hall’s Network Partner
in India, Susan Josi of CubeX / Sorento: The Food
Safety & Standards Authority of India’s noose on Nestle’s
Maggi Noodles (which are banned in the country owing
to claims that they do not comply with food safety laws)
is now getting further tightened on more products in the
food and pharma sector in India. The pharma industry
had very conveniently used FSSAI to get clearance as
a food supplement for most of their vitamin, mineral
& supplement formulations by incorporating natural
ingredients. This was often done to circumvent the
stringent price control and also ensure reach beyond
pharmacy stores. Unfortunately these same formulations
have now been caught in the FSSAI net wherein it is clear
that the dosages used are appropriate in the context
of the Drug Laws. This recommendation from DTAB
would have definite implications on the pricing of these
supplements, and would be a major constraint to battle
with, especially for brands like Revital.
Retail & distribution
AICDF: Urges opposition to proposed wholesaler changesINDIA: The All India Chemists & Druggists Federation
has urged pharmaceutical wholesalers to join together
and oppose the Ministry of Health & Family Welfare’s
move to amend rules on wholesaler eligibility. The
Government is reportedly considering changing Rule 64 of
the Drugs & Cosmetic Rules 1945 to make only registered
pharmacists eligible for wholesale pharma trading.
However, the AICDF believes that there are not enough
registered pharmacists to continue the wholesale pharma
trade in all corners of the country and plans to stage
rallies and demonstrations pan-India until the Government
withdraws the proposals.
Indian pharmacists: Object to online medicine salesINDIA: The Joint Co-ordination Committee of the Retail &
Dispensing Chemists Association and the Pharmaceutical
Wholesalers Association has objected to the practice of
online pharmacy, claiming it is illegal in the context of the
Drugs & Cosmetics Act and Rules, and the Information
Technology Act. The associations have written to the chief
minister of Maharashtra to argue that the potential risk to
consumers purchasing drugs online outweighs the added
convenience and they should not be compared with other
commodities. Meanwhile, to protest against the online
medicine plan, the All India Organisation of Chemists &
Druggists – which has 750,000 members – is planning a
nationwide chemist store closure on 14th October 2015.
Comment from RDCA General Secretary, Nitin
Maniar: We examined the practices followed by online
pharmacies and found that [they] are clearly in violation of
the existing provisions of the Drugs & Cosmetics Act, 1940
and Rules 1945. The sale is effected in total disregard to
the conditions of licences under Rule 65. The marketplaces
are offering drugs for sale and therefore required to hold
licences as provided under Section 18(c) of the Act. The
places are operating without any responsibility under
the Act and are passing on the orders without verifying
the authenticity of the prescription and many times even
without prescription. Thus, these practices can certainly
lead to self-medication, irrational use of medicines and
development of resistant strains due to indiscriminate use
of antibiotic and anti-tubercular drugs.
Amway: Expands in VietnamVIETNAM: Amway has opened a US$25mn
manufacturing plant in Binh Duong, which will mainly
produce its Nutrilite VMS brand. The development is part
of Amway’s US$332mn global manufacturing expansion,
which consists of six new facilities in the US, India and
China. Amway entered Vietnam in 2008 and has another
manufacturing plant in Dong Nai.
PRODUCTS ROUND-UP
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OCTOBER 2015 357ASIA-PACIFIC
Products Round-up: ASMI fines RB for Nuromol claimsAUSTRALIA: The Australian Self-Medication Industry’s Complaints Panel has
ordered RB to pay a A$20,000 (US$14,027) fine regarding ad claims for
Nuromol (paracetamol + ibuprofen) and cease publication of these claims until
they can be supported by clinical evidence. This follows complaints from AFT
Pharmaceuticals, marketer of Maxigesic, which contains the same ingredients
but in different ratios. ASMI upheld AFT’s concern that the claim “Nuromol with
Synchro-Tech is the only paracetamol / ibuprofen analgesic to provide more
powerful pain relief than two tablets of a paracetamol / codeine combination”
implied that Maxigesic would not be more powerful than paracetamol + codeine,
even though there is no evidence to support this. ASMI also found in favour of AFT’s
complaint about an implied claim that Nuromol’s efficacy (at its approved Australian
dose) is greater than ibuprofen 400mg taken alone and that ibuprofen in Nuromol
with Synchro-Tech is absorbed faster into the blood stream than if taken alone.
Flo family: New brandingAUSTRALIA: ENT Technologies has launched new branding for its Flo nasal decongestants line to celebrate over
a decade in the Australian marketplace. The company explains: “Flo has still kept some original brand heritage
within its new look, but introduced more distinct, impactful packaging and labelling to aid pharmacy staff and
customers in finding a simple answer to a wide range of nasal or sinus problems from allergies, blocked, runny
or dry noses to sinusitis.” There are 14 products in the family-friendly range, including Flo Baby Saline+ and Flo
Rapid Relief decongestant spray.
Eye Spa: First launch from Bal’s LifezenINDIA: Indian pharmaceutical company, Bal Pharma, has entered the local OTC
market with the launch of Eye Spa (sodium carboxymethyl cellulose, 0.5% w/v
solution). Available at leading chemist shops in Bangalore, Eye Spa is described
as a “revolutionary new two drop two-minute eye spa that cools, hydrates and
refreshes your eyes. It is a lubricant that acts as a replacement to naturally
produced tears and provides long-lasting relief from eye strain.” Eye Spa will
be launched soon in Mysore and Mangalore. Bal Pharma said: “This is first among a series of OTC products that
the company has lined up for launching in the market through its subsidiary, Lifezen Healthcare.”
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PRODUCTS ROUND-UP
358 OCTOBER 2015
Kobayashi: Introduces several new productsJAPAN: Kobayashi launched a number of OTCs in September 2015:
•ClassIIOTCkamporemedyGyakuriaispositionedtorelieveacidreflux,stomachpainandvomiting
•Female-orientedlaxativeOilderucontainsdioctylsodiumsulfosuccinate200mgtoaddmoistureandsoften
stools, plus hemp seed powder 1,000mg which forms an oil to lubricate the intestine to relieve discomfort
associated with hard stools
•DietarysupplementLiverExtractOrnithinecontainspigliverextract,ornithinehydrochlorideandvitaminB2
to improve liver function
•FermentedSoyIsoflavoneEquolisasupplementforageingwomenthatcontainsfermentedsoyisoflavone
(containingequol),blackcohoshextractandenzyme-treatedhesperidin.Equolslowstheageingprocessbut
50% of Japanese consumers cannot produce it naturally
•HananoaShowerTypenasalwashcleansbacteriaandallergensfromthenose.Thelineextensionallows
water to escape from the nose rather than the mouth like original Hananoa, which was seen by some
consumers as a barrier to use
SSP / BI: Extends S-Tac EveJAPAN:SSP/BIhasextendedS-TacEve–Japan’sNo.4OTCsystemiccold&fluremedy,accordingtoDB6 – with
twonewproducts.BothitemsareDesignatedClassIIOTCs(requirescarefuluse,permittedforsaleinmass
market when sold by a trained salesperson) and their daily dose combines ibuprofen 450mg, dihydrocodeine
phosphate 24mg and anhydrous caffeine 75mg for pain relief with methylephedrine hydrochloride 60mg,
chlorphenamine maleate 7.5mg and isopropamide iodide 6mg for nasal symptoms.
S-Tac Eve Fine EX film-coated tablets are also formulated with magnesium oxide 300mg
to protect the stomach from ibuprofen, plus ambroxol hydrochloride 45mg for cough.
The price of 12 and 24-count packs (two and four-day supplies) is ¥1,490 (US$12.42)
and ¥2,138 (US$17.82) respectively.
S-Tac Eve NT – positioned for severe nasal symptoms such as runny nose and
sneezing – also contains vitamin B1 24mg and vitamin C 300mg to boost immunity.
An 18-count pack (a two-day supply) retails for ¥1,274 (US$10.61), while 36 tablets
cost ¥2,030 (US$16.92). S-Tac Eve NT is the second presentation in the range to
target specific cold symptoms following the 2014 launch of S-Tac Eve FT for fever.
L-R: Gyakuria, Oilderu, Fermented Soy Isoflavone Equol, Liver Extract Ornithine and Hananoa Shower Type
FEATURE
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OCTOBER 2015 359ASIA-PACIFIC
Feature: Competition intensifies in Australian allergy remedies categoryAs hayfever season gets underway in Australia and some areas are forecast to have higher-than-usual
levels of pollen, OTC marketers are stepping up brand development and A+P for allergy remedies. Nicholas
Hall’s OTC INSIGHT Asia-Pacific looks at the main activities as the battle for category share intensifies.
2015: The pollen season
Australia’s pollen season typically starts in August and
ends in March and its severity varies by state. The National
Asthma Council Australia summarises predictions for the
2015 / 16 season as follows: “According to the Bureau of
Meteorology, this past autumn was wetter than normal
and this winter has seen drier-than-average conditions.
That makes the coming pollen season a mixed bag across
Australia. An El Niño forecast for 2015-2016 could shorten
the pollen season in some areas [e.g. Melbourne]
but elsewhere allergy sufferers may be in for a tough
few months ahead [e.g. Canberra and Sydney].”
OTC allergy remedies: Key developments
The OTC allergy remedies category has expanded in recent
years thanks to mass market distribution and launches.
The category was predominantly Pharmacy-only until 2011
when fexofenadine with a maximum daily dose of 120mg
(Sanofi’s Telfast) was permitted for mass market sale,
followed by loratadine 10mg (Bayer’s Claratyne) a year
later and cetirizine 10mg (J&J’s Zyrtec) in January 2013.
There have also been some changes in terms of ownership.
Bayer acquired Merck Consumer Care in 2014, which
included Claratyne and Nasonex Allergy. In 2012, GSK
renamed allergy & hayfever spray Beconase 24 Hour as
Flixonase. The name change may have helped allay any
confusion regarding the fact that the 24 Hour version
(fluticasone) contained a different active ingredient to
Beconase 12 Hour (beclometasone). Since then, Beconase
12 Hour has changed hands as it was one of the brands
that GSK sold to Aspen Pharmacare in international
markets in 2012 as part of its divestment of non-core OTCs.
In terms of launches, Dr Reddy’s introduced Hayfexo, a
once-daily fexofenadine tablet brand available in doses of
120mg and 180mg, in H2 2014. A TV ad claims that the
product can offer 24-hour relief from hayfever, allergies
and hives, which can be triggered by pollen, dust mites
and mould. The tagline for the Schedule 2 (Pharmacy-only)
brand is, “Say goodbye to allergies with Hayfexo”.
Arguably the most significant launch in recent years is
Nasonex Allergy, which debuted in the category’s No.4
spot following its OTC launch in July 2014 thanks partly
to its strong Rx heritage. The nasal spray is positioned for
the prevention and relief of seasonal allergic rhinitis and
relief of perennial rhinitis. It is registered as an S2 OTC and
has the same formulation as Rx Nasonex (mometasone
furoate 50mcg per actuation), which continues to be
available via prescription. The formulation of Nasonex
Allergy has been permitted as S2 for some time but,
until 2014, Merck Consumer Care (now owned by Bayer)
chose to market it Rx. The OTC launch was designed to
offer consumers easier access to the brand. Initial A+P
support included website nasonexallergy.com.au and a
TV ad. The latter emphasised the OTC availability
of Nasonex Allergy and claimed the product can
relieve a blocked, runny, itchy nose and sneezing via a
single daily dose. It also claimed that the spray targets
more of the body’s responders to allergens than other
allergy products. Its tagline is: “Tough on your nasal
allergy symptoms because these symptoms are tough
on you”.
Nasonex Allergy now has a new rival in the mometasone
furoate segment. Since September 2015, EBOS’ Endeavour
Consumer Health division has been distributing Azonaire
Hayfever for Sandoz in Australia. The once-daily treatment
is available in two pack sizes: 65 and 140 sprays.
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AUSTRALIA ALLERGY SEASON 2015 / 16
360 OCTOBER 2015
New ad campaign (August 2015) – Live Claratyne
Clear. Every Day: Bayer’s humorous TV ad for Claratyne
opens with the line “Hayfever can distract you” and shows
a woman falling into a fountain, a man walking into a
glass door and a student falling off his seat owing to
drowsiness. It then goes on to make a direct comparison
to a leading rival, claiming that “Claratyne gives you fast,
non-drowsy relief from hayfever, unlike Zyrtec tablets,
which may cause drowsiness.”
Developments for 2015 / 16 pollen seasonSales of OTC allergy remedies grew by 8% to US$132mn in the 12 months to June 2015. The Top 3 brands – Claratyne,
Zyrtec and Telfast – account for around 57% of category sales and all grew. These positive performances, coupled with a
strong start for Nasonex Allergy, meant that sales of most smaller brands were squeezed. Marketers are ready for battle
in the potentially severe 2015 / 16 pollen season with key brands being supported by new ad campaigns, new products
added to the Zyrtec portfolio, cashback offers and a comparative advertising war between the Top 2.
Claratyne (Bayer)Category rank: 1Sales: US$29.0mn
Growth: 8%
Zyrtec (J&J)Category rank: 2Sales: US$25.5mn
Growth: 8%
Line extensions (July 2015):
•Zyrtec Liquid Capsules (cetirizine hydrochloride
10mg) are claimed to be rapid-acting and work for up
to 24 hours to relieve symptoms of allergy and hayfever.
A five-count pack is available in the mass market while
larger pack sizes are S2
•Zyrtec Nasal Spray (levocabastine 0.54mg / ml)
is designed to get to work in minutes to provide
on-the-go relief from sneezing, runny and itchy
nose. It is available in a10ml bottle, registered as S2
•Zyrtec Eye Drops (levocabastine 0.54mg / ml) are also
S2 and aim to provide on-the-go relief in minutes from
watery, red and itchy eyes. The bottle size is 4ml
Clockwise from top: Zyrtec Liquid
Capsules, eye drops and nasal spray
Comparative advertising in Claratyne TV campaign
This follows Bayer’s partially unsuccessful complaint to the
Australian Self-Medication Industry’s Complaints Panel
regarding Zyrtec ads. ASMI concluded in April 2015 that
ads from J&J stating that “Zyrtec starts to work faster
than Claratyne for hayfever relief” were not misleading
in print ads at bus stops and in pharmacies because they
included the disclaimer “based on first dose of cetirizine
vs loratadine tablets”. However, the panel found a TV ad
with this claim to be misleading as the disclaimer would
not have been seen by consumers and it could therefore
be unclear that the claim applied to conventional tablet
form. Bayer subsequently appealed the decision regarding
the print ad without success.
Meanwhile, brand website claratyne.com.au offers A$5
(US$3.51) cashback on 75-count packs.
FEATURE
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OCTOBER 2015 361ASIA-PACIFIC
Data source: Nicholas Hall’s DB6 Global OTC Database (MSP), MAT June 2015
Telfast (Sanofi)Category rank: 3Sales: US$20.7mn
Growth: 3%
New ad campaign (August 2015) – Breakthrough
Allergies with Telfast: Sanofi’s new campaign focuses
on Telfast’s 5-in-1 multi-symptom relief: fast-acting
(one hour), non-drowsy, 24-hour relief, multi-symptom
relief and effective every day. Telfast.com.au also
offers consumers a A$5 (US$3.51) cashback offer when
consumers purchase 180mg 50, 60 or 70-count packs
in participating pharmacies. A TV ad explains, “Telfast
knows hayfever allergies can seem inescapable” and
uses the image of a man breaking his way through
five hedges, each labelled with one of the product’s
benefits, to show how Telfast can help consumers to
“breakthrough allergies”.
New ad campaign (August 2015) – Enjoy Earth
with Nasonex Allergy: Bayer is encouraging hayfever
sufferers to “Enjoy Earth” by using Nasonex Allergy.
A dramatic voiceover in a TV ad asks: “What would drive
humans to leave Earth on a one-way ticket to Mars?”
People dressed in space suits reply with allergy-related
reasons such as Earth housing 2bn cats. The nasal spray
– claimed to provide more effective hayfever relief than
antihistamine tablets – is presented as the solution.
New ad campaign (August 2015) – Got the Spring
Look? An amusing TV ad shows a young woman trying
on the season’s latest fashions but allergies ruin her look.
In one ad she has an itchy nose, which she scrapes along
a mirror to relieve and, in another, she sneezes so hard
that her hat falls off. The tagline is: “Get Beconase. Make
nasal allergies so last season”.
A supporting competition on beconase12hr.com.au
invites consumers to write in 25 words or less where
Beconase would make them look their best and why,
for a chance to win A$500 (US$351) Visa cards.Nasonex Allergy (Bayer)Category rank: 4Sales: US$7.7mn
Growth: N/a – launched in July 2014
Beconase (Aspen Pharmacare)Category rank: 12
Sales: US$1.6mn
Growth: -11%
A man is about to “breakthrough” an allergy barrier in the Telfast TV ad
The new products have been advertised in pharmacy
catalogues and J&J is running a, “Try it, love it or your
money back” offer on the line extensions. There is also a
A$7 (US$4.91) cashback offer on purchases of 70-count
packs of original tablets from August to December 2015.
This concept is also featured on enjoyearth.com.au where
a space blast-off countdown gives 10 reasons to use
Nasonex Allergy such as its small nozzle, relief from itchy
nose and its non-drowsy formula.
“Enjoy Earth” with Nasonex Allergy
A screen shot from the 2015 Beconase TV ad
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Expanding Brands across asia-pacific
29-30th October 2015
