The OTC drug industry is featured by obvious brand consumption. Therefore, famous brand products occupy the mainstream market, while those less famous brands is difficult to sell. They can only make up market vacancy by virtue of uniqueness or occupy market by regional advantages.
With the standardizing development of domestic OTC drug market and the increase in residents’ healthcare consciousness, the competition focus will be inevitably conversed from quality and price competition to brand and service competition.
The increase in industry brand barrier makes it difficult for generic drug enterprises to build up brand images. There is an obvious trend on industry differentiation. Therefore, brand enterprises will become the biggest beneficiary in expanded OTC market.
The Top 4 categories of OTC drugs in Chinese market include cough and cold medications and anti-allergic agents, recuperated drugs, vitamins & minerals and tonic drugs as well as febrifuges and painkillers. The features of OTC drugs determine that this industry has low technical barriers and low entrant requirements.
Compared with that of countries with advanced medicine levels, China OTC drug industry is featured by late start, fast growth and huge potential.According to CRI’s research, with a CAGR of over 18% during the period from 2000 to 2013, the market scale of China OTC drug industry exceeded CNY 170 billion in 2013.