Q1 2017: Early analysis of the global OTC performance

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Nicholas Hall’s global OTC database, DB6, has just published its latest figures relating to the Q1 2017 performance of the OTC market, and below are some standout trends based on early analysis of the data. Over the coming weeks, our OTC INSIGHT research teams will be compiling the latest trend info at a regional and Top 20 country level, and we’ll alert you as soon as this analysis has been uploaded to the OTC DASHBOARD website.

1. Russia returns to higher growth (+18.2% MAT Q1 2017 vs +11.3% full-year 2016)

A key factor in the slightly improved performance of the global OTC market in the 12 months to end-March 2017 (+4.5%) vs full-year 2016 (+4.3%) was higher growth in Russia. While a modest upturn in the world’s No.1 OTC market, USA, was offset by decelerating growth for both No.2 market China and No.3 market Japan, it was the European countries – largely No.5 Russia, but also No.4 Germany – that accounted for the improved performance of the global OTC market in Q1 2017.

2. CCA growth at the heart of Europe’s revived fortunes in Q1 2017

Global CCA sales were up 4.7% in 2016, thanks to a strong end to the year, and this trend continued into the first quarter of 2017, with growth accelerating to 6.3% in the MAT Q1 2017 period. Europe was largely behind this upsurge, with CCA growth in Western Europe showing a marked improvement (+3.8%), while Central & Eastern Europe was the biggest source of dynamism (+17.8%), led by Russia and Poland. This trend extended to the rest of the northern hemisphere, with North America also reporting higher CCA growth (+4.4%) in the MAT Q1 2017 period, with Canada especially vibrant (+6.9%).

3. Global Top 5 stays the same, but J&J may overtake Sanofi by mid-year

While the Top 5 global OTC marketers – GSK, Bayer, Sanofi, J&J and Pfizer – remain fixed in position and adrift from the rest of the competition, the battle for the No.3 spot between Sanofi (+3.8%) and J&J (+4.1%) continues to intensify. On current trends, it looks as though J&J may overtake Sanofi by the end of Q2 2017, and we will confirm the outcome of this battle later in the year.

In the meantime, please check your weekly briefings and OTC DASHBOARD‘s Charts & Graphs archive for more early analysis of the Q1 2017 results over the coming weeks.

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J&J Focuses On Consumer Innovation In Africa

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As part of its ongoing commitment to Africa, J&J has announced the launch of the Africa Innovation Challenge. The project will support Africa’s growing ecosystem and help develop consumer health solutions for local towns.

Earlier this year, J&J announced its global public health strategy in Cape Town, South Africa. The operations expand upon the company’s presence in Africa, which began in 1936.

“Our goal is to improve the health and wellbeing of families and communities around the world,” said Josh Ghaim, J&J’s Chief Technology Officer, Consumer R&D. “With its focus on consumer healthcare, the Africa Innovation Challenge will help to surface important issues impacting local communities. We look forward to engaging with the continent’s top entrepreneurs and scientists, and through collaboration, helping advance their ideas and bringing meaningful solutions across three very important healthcare areas.”

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The Africa Innovation Challenge seeks ideas focused on three critical health areas, promoting early child development and maternal health; empowering young women; and improving family wellbeing.

Challenge participants with successful solutions will receive up to US$100,000 in funding and mentorship from scientists, engineers and researchers in the J&J Consumer Research & Development organisation.

The news of J&J’s latest innovative challenge comes alongside the recent decision to drop ‘McNeil’ from their OTC business name, opting for J&J Consumer instead.

To apply to the challenge and review the applicable terms and conditions, please visit the Africa Innovation Challenge website. The deadline to submit applications is 17th January 2017.

OTC DASHBOARD is your sole Nicholas Hall & Company source of regular updates on the OTC market in Africa and the Middle East. Explore our Rest of World section for the latest content.

US acne OTC market ready to pop

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It’s amazing that the OTC treatment of acne has been limited to benzoyl peroxide and salicylic acid treatments for more than three decades, but now US teens and adults suffering from the condition have new options in the form of a medical device and the pending launch of an Rx-to-OTC switch topical gel.

J&J has launched Neutrogena Light Therapy Acne Mask, said to harness the power of clinically proven technology to clear acne and allow skin to heal itself. The mask emits blue light to kill acne-causing bacteria, while its red light goes deeper to reduce inflammation. Use is simple, with people putting the mask on after cleansing their faces and pushing the button and letting it work for 10 minutes.

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The US$40 mask includes 30 treatments, and subsequent purchases of the Light Mask Activator for US$17 means the mask can be charged for another 30 treatments. Although there are many light devices for acne treatment available on e-commerce sites like Amazon, the cachet of the trusted leading OTC acne brand, Neutrogena, on the label, and the far lower price point compared to other devices makes this product a game-changer.

Meanwhile, Galderma (Nestlé) is getting ready to launch Differin Gel (adapalene), the first retinoid acne treatment to be available as an OTC when the FDA approved its switch from Rx-only status last summer. The topical drug will dramatically change the complexion of retail shelves with a new ingredient for a skin condition that can have a major quality of life impact on millions of consumers. The Differin website promises that the new OTC will be on retail shelves soon.

This month, OTC INSIGHT North America will cover the acne remedies market in more detail as part 2 of its skin care report. To learn more about INA, click below:

Nicholas Hall’s OTC INSIGHT regional periodicals

OTCs in Action Episode 60: Battle for Brazilian Baby Bottoms

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OTCs are in Action this month in Brazil, where J&J has purchased P&G’s Hipoglos nappy rash remedy, which enjoys sales of about $40mn. The purchase was a bit surprising given that, in 2014, J&J launched the leading US nappy rash brand, Desitin Creamy, in Brazil with a rash prevention positioning and a strong A+P campaign.

However, instead of steadily growing share organically with Desitin, the acquisition of a very well-known Latin American brand immediately elevates the baby care powerhouse to second place in the category in Brazil, behind Bayer’s fast-growing Bepanthen range. The two J&J brands will complement the company’s Johnson’s Baby creams, lotions, powders and cleansers.

Just as interesting is P&G’s divestiture of the well-known Hipoglos – owned by Andromaco and Grunenthal in other Latin American markets – which is a logical move given that it does not conform to P&G’s Megabrand strategy, owing to the fact it only competes in one market. That said, the major OTC company’s Brazilian portfolio is now limited to the Vicks Cough & Cold range and a small Metamucil laxative business.

To find out more about OTC in Brazil and other Latin American markets, please join us at our 2nd Latin American OTC Conference in Miami from 9-10 June 2016. Book by contacting jennifer.odonnell@NicholasHall.com or online

http://www.nicholashall.com/events/detail/latin_american_conference_2016/

 

 

 

 

OTCs in Action Episode 40: Experience smiling

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OTCs are in Action in the UK to make people smile. J&J’s new Listerine Smile Detector mobile app uses a smartphone camera to detect a smile up to several metres away and then notifies blind users with noises and vibrations. The Feel Every Smile short film about the app supports the launch of Listerine Advanced White mouthwash, but gives viewers so much more, when they hear vision impaired people express their own experience and understanding of what a smile means to them.

To see the film, click on the video below:

Film director, Lucy Walker, observed: “It is fascinating to ask blind people how they experience smiling, if not by sight. Smiling is a universal human expression employed by people who were born blind. Even if they can’t see a face, blind people are very aware of the ‘feeling’ that smiling gives them, and they are often able to pick up when someone is smiling by listening to the quality of their voice.”

But there are some situations in which vocal quality is not enough and in which blind people would love to be able to detect when someone is smiling at them. I believe we don’t hear enough from blind people about their experiences, and this was a fantastic opportunity to meet some brilliant blind people through the power of filmmaking.”

The Listerine Smile Detector mobile app was developed in partnership with the Royal National Institute of Blind People (RNIB) and is available now for Apple iOS and Android phones.