James Dudley Management

James Dudley Management

Game Changing Forces Driving the Future of Pharmacy in Europe

“There are three game changing forces driving healthcare distribution in Europe - Walgreens Alliance Boots globalization of the drugstore channel, new multi-channel retail strategies and spreading multi-format regional pharmacy brands. These will greatly intensify the competitive landscape in Europe”

— James Dudley author of OTC Distribution in Europe.

Speaking at the Zukunft Apotheke conference held at the Radison Blu in Frankfurt last week James Dudley painted a picture of unfolding change to pharmaceutical distribution channels in Europe.

The well known healthcare marketing strategist and author of the pharmaceutical industry’s respected bi-annual market report “OTC Distribution in Europe” explained how new influences would contribute to a reshaping of healthcare distribution channels over the next few years. Among the most significant challenges to European pharmacy channel are - imported retail innovations from the USA using Internet and mobile technology, the enlargement of cross border multi-format pharmacy chains and competitive challenges arising from the merger of Walgreens and Alliance Boots.

Furthermore, the attraction of the pharmacy channel to mass market operators including Auchan, Leclerc and Carrefour, Tesco, DM and Jerónimo Martins will continue to contribute to a reshaping of the retail pharmacy channel especially for non-prescription medicines, personal care products and up-market toiletries and cosmetics.

Multi-format pharmacy regional groupings made up of wholly owned drugstores, affiliated pharmacies and franchise concepts will in future create brands with meanings to consumers

Retail pharmacies in Europe will need to reduce their reliance on price regulated prescription business and compete for a share of the more profitable personal care opportunities as well OTC self-medication.

Retail pharmacy chains are investing in multi-channel shopping experiences through E-commerce, home delivery and E value loyalty schemes linked to store cards as well developments in mobile technology applications –M Commerce

Drugstore chains will exert buyer power on a global/regional basis to maximize market share forcing further consolidation in the supply chain to meet the demands of pharmacy groups in terms of prices, cost of goods, promotional spend and services

Competitive forces may well drive pharmacy groups to imitate segmentation strategies found in other retail sectors with a distinction between those which will become big discounters and those targeting premium opportunities

The development of ‘own’ or ‘private label ’ will evolve into an intrinsic part of each retailers’ brand building strategies rather than as cheaper substitutes for more expensive propriety brands

Manufacturers of health and personal care brands will need to rethink strategies to enable them to compete in an increasingly competitive retail environment

For a copy of James Dudley’s presentation, please click here


For further information Contact James Dudley ++44 (0) 1562 747705 email james_dudley@james-dudley.co.uk

About James W Dudley http://www.james-dudley.co.uk

James W Dudley is one of Europe's leading strategic marketing thinkers and an influential contributor to a number of ground breaking marketing initiatives in Europe’s consumer health markets. He is a well known speaker and is the author of a number of highly important, strategic marketing studies including his best-selling work “OTC Distribution in Europe the 2012 edition - now in its eighth edition this highly respected study has been in continuous publication since 1992”.

James Dudley is also a marketing strategy consultant to a number of the leading international consumer healthcare companies in Europe.

James Dudley began his brand marketing career with Nabisco in FMCG marketing, before entering the consumer healthcare industry with Boots where he served as Director for Northern Europe.

James Dudley founded his consumer healthcare marketing strategy consultancy James Dudley Management in 1988

James Dudley Management market report on: healthcare, distribution channels, Internet and Mail order pharmacy, Europe, pharmaceutical distributors, Walgreens Alliance Boots, drugstore chains, multi-channel pharmacy experience, drug wholesalers, pharmacist, non-prescription medicines and personal care.

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