Warc, 27 August 2013
NEW DELHI: Indian consumers are increasingly choosing to
make purchases of beauty and grooming products in pharmacies rather than local
stores, preferring the more hygienic environment and the expert advice
available.
The development is proving particularly important for
premium brands such as L'Oréal, which now sees 20% of its sales in the top
eight cities coming via this route.
Satyaki Ghosh, the director of consumer products at L'Oréal
India, described pharmacies as a "high growth" channel for its
premium brands, including L'Oréal and Garnier.
"Consumers rely on some sense of information about a
product while making purchase decisions for skin care products," he told
Livemint. "They tend to believe the pharmacy more than a regular
channel."
Nor is the trend restricted to traditional women's products,
as Ghosh reported that male grooming lines, such as fairness creams and
deodorants, "flying off the shelves" at pharmacy stores.
Kannan Sitaram, chief executive, consumer goods, at India
Equity Partners, pointed to the attractions of a "neat and clean
environment" for both consumers and premium brands.
"Some personal care brands also keep their sales people
at a chemist or set up shop-in-shops," he added.
Some chains push non-medicinal products in the average five
minutes waiting time consumers experience while waiting to buy medicines.
Apollo Pharmacy, estimates this tactic has increased its revenue from
non-medicine products in the past five years from 20% to some 35%.
Brand owners such as Dabur India, a maker of shampoos and
toothpastes, are also creating sales teams dedicated to serving pharmacy
chains. "Being available at chemists does add a lot of credibility to a
product, and at Dabur we place a lot of importance on chemists," noted
George Angelo, Dabur's executive director of sales.
This hybrid model is so far limited to pharmacy chains in
the larger cities, with small-town chemists still focused on selling
prescription drugs.
Data sourced from Livemint; additional content by Warc staff
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