Amazon OTCs Likely A Worry For Retailers, A Remedy For Perrigo
This article was originally published in The Pink Sheet
Amazon introduced Basic Care line of cough, cold, allergy and digestive treatment OTCs developed in a partnership with Perrigo. The range could be a major threat to store brand and private label OTCs, though success may depend on whether consumers wait for Amazon deliveries or shop at stores.
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Procter & Gamble says retailer pressure for the firm to lower product pricing to compete with e-commerce and private label is a “real but manageable” problem, while an industry consultant says four megatrends are dictating product prices and changing the way consumers think about consumer health products.
Perrigo's third-quarter launch of private label Nexium24HR was primary contributor of $13m in new product sales in North America.
CEO John Hendrickson says Perrigo would work with Amazon to develop its own private label OTC line and would not expect to lose existing customers. At a recent investor conference, he said Amazon’s commitment to the OTC category would help grow the market, not take market share from other firms.