Money-back guarantee impacts consumer health
A money-back guarantee for user dissatisfaction has been more common in durable than in non-durable goods. However, some companies, such as Amway, have offered this for many years to engender a sense of confidence in the quality of its products among consumers. It has been actually more common in direct selling rather than the retail environment. Furthermore, it is even less common in the consumer health industry, where greater regulation means companies are more careful in terms of marketing strategies. However, even with all these hurdles Genomma Lab, renowned for its aggressive marketing strategies, introduced the money-back option for brands such as Asepxia and Cicatricure. The strategy was conceived for a limited time but proved effective, having a powerful psychological effect on consumers and thus boosting sales of the brands involved.
VDS and phytotherapeutics under review
INVIMA (Instituto Nacional de Vigilancia de Medicamentos y Alimentos), the food and drugs regulation agency in Colombia, posted a list of more than 50 medicinal plants on its website, the extracts of which were sold as ingredients of OTC products (phytotherapeutics) and vitamins and dietary supplements, that were about to be included on the Rx list. INVIMA allegedly did this to protect consumers from indiscriminate consumption of natural products, given that even plants and natural extracts can have negative effects on health when used to excess. Facing this regulation two major trade associations in Colombia, Asonatura and Fenat, questioned the support INVIMA was using for the polemic regulation and demanded stronger evidence and fair treatment referring to the traditional pharmaceutical industry. Ultimately the industry allegations succeeded and even the president intervened, favouring the natural industry, and suggesting that INVIMA withdraw.
Active acquisitions environment in Colombia
The local market has demonstrated a dynamic environment of merger and acquisition activity over the past three years which has helped to reshape the local market landscape. In 2012 Sanofi-Aventis acquired Genfar SA, one of the largest companies in Colombia specialised in generic products. Genfar SA has helped Sanofi-Aventis to consolidate its position in a very dynamic generic market in terms of volume growth, both in the consumer and institutional markets. CFR Pharmaceuticals from Chile acquired Lafrancol SAS in 2013 and eventually became part of Abbott Laboratories, which acquired CFR in 2014. In many ways the expansion strategy of multinationals appears to be a good move to reduce threats and uncertainty, becoming stronger players in many more categories, including OTC.
Healthfood shops migrating to pharmacies
Since some years ago, many healthfood shops in Colombia were converting into pharmacies to expand the range of products they could sell, including some homeopathic and natural-based products such as glucosamine, that are Rx, along with floral and mineral essences. It is clear that many local pharmacies in Colombia sell Rx products to consumers without an actual medical prescription, so in this environment healthfood shops were at a disadvantage, as there are key Rx natural products that consumers could not find there. Along with this trend, Colombia has seen a boom in healthfood shops specialised in sports nutrition, which is actually being sold in different formats.
Ageing population, sports fans and urbanisation offer opportunities
Colombia still has a significant group of people of working age. However, declining birth rates and longer life expectancy will gradually increase the elder population over the next decade. Currently the health and wellness trend is encouraging consumers to adopt the necessary habits to improve their quality of life and combat the ageing process, so the consumer health industry has dynamic growth in categories with a preventive rather than curative approach, such as vitamins and dietary supplements. The consumer health industry will continue to see a positive performance as consumers are currently seeking products to achieve a better lifestyle at any age, and they will look for more palliatives for common conditions related to ageing.
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Discover the latest market trends and uncover sources of future market growth for the Consumer Health industry in Colombia with research from Euromonitor's team of in-country analysts.
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The Consumer Health in Colombia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Consumer Health in Colombia?
- What are the major brands in Colombia?
- What are the main trends in OTC Healthcare?
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This industry report originates from Passport, our Consumer Health market research database.