OTC Analgesics and Cough, Cold and Flu Remedies - China - November 2020

OVERVIEW
What you need to know
Key Issues covered in this Report
Report scope
EXECUTIVE SUMMARY
The market
Market sales drop due to the COVID-19 outbreak but consumers’ attitude change will drive future growth
Figure 1: Short-, medium- and long-term impact of COVID-19 on OTC analgesics and cough, cold and flu remedies market, Sept 2020
OTC analgesic and cold and flu remedies sales are expected to pick up
Figure 2: Retail sales and forecast of OTC analgesics and antipyretics, cough, cold and flu, China 2015-25
Figure 3: Retail sales and forecast of OTC cold, cough and flu, China 2015-25
Figure 4: Retail sales and forecast of OTC analgesics and antipyretics, China 2015-25
Legislative reform, online-to-offline integration and knowledge increase are main drivers
Companies and brands
999 maintains leading position while Yiling grows fast
Figure 5: Retail value share of OTC cold and flu companies, 2018-2022 (est)
The consumer
Nasal issues and feeling tired are most recalled cold and flu symptoms
Figure 6: Cold and flu symptoms, July 2020
COVID-19 impact arouses consumers’ attention towards health protection and treatment
Figure 7: COVID-19 impact, July 2020
Taking medicine for cold and flu is a common form of treatment
Figure 8: Treatment used, July 2020
999 Ganmaoling enjoys highest usage penetration
Figure 9: Medicine taken, medicine type, July 2020
Figure 10: Medicine taken, brand/product name name, July 2020
On-demand delivery service platforms are emerging popular sales channels
Figure 11: Purchase channel, July 2020
Functionality and convenience are most important choice factors
Figure 12: Choice factor, July 2020
What we think
ISSUES AND INSIGHTS
Format innovations that meet consumers’ needs will drive future growth
The facts
The implications
Figure 13: Example of NPD in OTC cough, cold and flu medicines – mini-gel and spray formats, UK, 2020
Enriching and reinforcing functionality claims
The facts
The implications
Figure 14: Example of NPD in OTC cough, cold and flu medicines – products with immunity support, Canada and USA, Nov 2019
Figure 15: Example of Lianhua anti-virus products, October 2020
Continue marketing communication to reinforce branding and resonate with consumers
The facts
The implications
Figure 16: Example of 999 Ganmaoling marketing communication – high-waisted thermal underwear and noodles with chicken soup, Feb 2019 and Feb 2020
THE MARKET – WHAT YOU NEED TO KNOW
OTC cold and flu will see recovery from COVID-19 impact
Legislative reform and development of new purchasing channels will drive growth
MARKET SIZE AND FORECAST
Cold and flu OTC sales see negative impact from COVID-19 outbreak in 2020
Figure 17: Retail sales and forecast of OTC cold and flu, China 2015-25
Increasing consumers’ awareness, legislative reform and emerging purchase channel drives future growth
Figure 18: Short-, medium- and long-term impact of COVID-19 on OTC analgesics and cough, cold and flu remedies market, Sept 2020
MARKET FACTORS
COVID-19 has negative impact on sales, but has changed consumers’ attitudes towards OTC cold and flu
Registration policy speeds up new products launch
Consumers are not yet used to purchasing medicine online, but on-demand delivery grows fast
Consumers getting more familiar with online medical information channels
MARKET SEGMENTATION
OTC cold, cough and flu maintains solid growth
Figure 19: Retail sales and forecast of OTC cold, cough and flu, China 2015-25
OTC analgesics and antipyretics expected to achieve considerable growth
Figure 20: Retail sales and forecast of OTC analgesics and antipyretics, China 2015-25
KEY PLAYERS – WHAT YOU NEED TO KNOW
China Resource Sanjiu maintains leading position, while Yiling grows fast
Leading companies focus on expanding portfolio, building awareness, and entering overseas market
More innovation, especially on format, leaves white space for future growth
MARKET SHARE
999 maintains leading position while Yiling grows fast
Figure 21: Retail value share of OTC cold and flu companies, 2018-2020 (est)
COMPETITIVE STRATEGIES
Expanding product portfolio with major ingredients
Figure 22: Pudilan toothpaste introduction on ingredient, October 2020
Figure 23: Lianhua Qingfei plant-based drink, October 2020
Continue investment in cross-over marketing to reinforce brand image
Figure 24: 999 TV Series collaboration with Qingyunian (a Chinese TV series), October 2020
Entering overseas market
WHO’S INNOVATING
China market overview
Global trends
Figure 25: Example of NPD in OTC cough, cold and flu medicines – spray and plug-in formats, UK, 2020
Figure 26: Example of NPD in OTC cough, cold and flu medicines – sleeping aid and immunity support, UK & New Zealand, 2020 & 2019
Figure 27: TikTok “Too Sick to be Sick” challenge campaign page, (captured) October 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Increased health consciousness since COVID-19
63% have used OTC for cold and flu treatment
Drug stores used the most while on-demand delivery grows fast
Functional claim is the most important choice factor
COLD AND FLU SYMPTOMS
Nasal issues and tiredness are most recalled issues
Figure 28: Cold and flu symptoms, July 2020
Females and parents recognise more symptoms
Figure 29: Cold and flu symptoms, by gender, July 2020
IMPACT OF COVID-19
COVID-19 outbreak increases attention towards health and treatment among consumers
Figure 30: COVID-19 impact, July 2020
Parents and consumers aged 30-39 are willing to take more health supplements
Figure 31: COVID-19 impact, by age group, July 2020
Figure 32: COVID-19 impact, by household income level, July 2020
Figure 33: COVID-19 impact, by marital status, July 2020
TREATMENT USED
Nearly two thirds of consumers take medicine for cold and flu
Figure 34: Treatment used, July 2020
Females used more treatments for natural recovery
Figure 35: Treatment used, by gender, July 2020
Figure 36: Treatment used, by age group, July 2020
Respondents with cough issues are more likely to take medicines
Figure 37: Treatment used (netted), by symptom, July 2020
Figure 38: Treatment used – Took OTC Medicine, by symptom, July 2020
Those who don’t take OTCs skewed to younger generations and prefer to exercise
Figure 39: Treatment used, by whether took medicine last time caught cold and flu, July 2020
MEDICINE BRANDS USAGE
Chinese medicine over Western medicine, and Ganmaoling the most favourable cold & flu medicine
Figure 40: Medicine taken, medicine type, July 2020
Figure 41: Medicine taken, brand/product name, July 2020
999 Ganmaoling and Gankang used by more 25-29s
Figure 42: Medicine taken, brand/product name, by age group, July 2020
TCM for stocking at home while Western medicines for instant treatments
Figure 43: Medicine taken, medicine type, by stocking preference after COVID-19 impact, July 2020
PURCHASE CHANNEL
Drug store and counter are most frequently used channels
Figure 44: Purchase channel, July 2020
Younger generations and consumers with middle to high household incomes embrace on-demand delivery services
Figure 45: Purchase channel, by age group, July 2020
Figure 46: Purchase channel, by household income level, July 2020
Consumers rely on drug stores and on-demand services for immediate needs
Figure 47: Purchase channel, by whether took medicine last time caught a cold or flu, July 2020
CHOICE FACTOR
Functionality and convenience are most important
Figure 48: Choice factor, July 2020
Brand awareness is important to 30-39s and those with middle to high household incomes
Figure 49: Choice factor, very important, by age group, July 2020
Figure 50: Choice factor, very important, by household income level, July 2020
Medicine users pay more attention to offline convenience
Figure 51: Choice factor, somewhat important, by whether took medicine last time caught a cold or flu, July 2020
MEET THE MINTROPOLITANS
More MinTs sensed their symptoms last time they caught a cold or flu
Figure 52: Cold and flu symptoms, by consumer classification, July 2020
Significantly more MinTs will take health supplements to avoid getting cold and flu
Figure 53: COVID-19 impact, by consumer classification, July 2020
MinTs take multiple treatments when catching a cold
Figure 54: Treatment used, by consumer classification, July 2020
More MinTs purchased online
Figure 55: Purchase channel, by consumer classification, July 2020
MinTs pay greater attention to format
Figure 56: Choice factor, by consumer classification, July 2020
APPENDIX – MARKET SIZE AND FORECAST
Figure 57: Retail value sales and forecast of OTC cold and flu, China, 2015-25
APPENDIX – MARKET SEGMENTATION
Figure 58: Retail value sales and forecast of OTC analgesics/antipyretics, China, 2015-25
Figure 59: Retail value sales and forecast of OTC cold/cough/flu, China, 2015-25
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations