The rise of e-commerce, especially in key markets like the USA and China, as well as certain European countries such as Germany and the UK, continues to alter the dynamics of the consumer healthcare market and this is a trend we plan to monitor ever more closely here at OTC DASHBOARD over the coming years.
In addition, regulators across the world are still getting to grips with the issue. The China Food & Drug Administration has said that it is welcoming comments until 12th March 2018 on a draft regulation entitled Provisions for Supervision & Administration of Online Drug Sales. This stipulates that online sellers of medicines must be licensed pharmaceutical manufacturers, wholesalers or retailers. Manufacturers and wholesalers must not sell medicines to individual consumers and retailers must not sell Rx or controlled medicines online (legalising the online sale of Rx drugs has previously been considered in China).
The platforms through which online medicines are sold must also adhere to and assist with product recalls where there are safety or quality issues. The regulation also stipulates that the CFDA will develop a national online medicine surveillance system and supply details of violations to provincial authorities, which will investigate and enforce any follow-up action.
Given the popularity of smartphones in China, and the rise of mobile payments and online shopping sites like Tmall (Alibaba) and Taobao and social media platforms like WeChat, it has become ever more difficult for regulators to monitor the online sale of medicines. This also presents a challenge for those trying to gauge the true size of the OTC e-commerce sector in China, but all indications point to this being a fast-growing channel that can no longer be ignored.
Embark on The Evolving Consumer Journey at our 5th Asia-Pacific OTC Conference & OTC Academy Training Workshop! Held in Singapore on 17-18 October 2018, this meeting aims to help guide you through this complex and ever-changing landscape. The half-day workshop will take a look at Inspiring Self-Care. Book before 15 August to take advantage of our early bird rates! Please contact maricar.montero@NicholasHall.com to book your place today or for more information.