With flu season, comes the need for flu medicine. Nielsen’s latest Retail Measurement Services research has shown that in January of 2016, Taiwanese customers have consumed NT$205 million of cold medicine. It has gone up 9.4% compared to the last month and 3.45% compared to January, 2015. The total consumption of cold medicine for 2015 is close to NT$2 billion.
Unsurprisingly, cold medicine sales have indicated a negative correlation with the weather conditions. In the first quarter of 2015, the average temperature was 19.2 degree Celsius and cold medicine sales reached NT$586 million; however it was down to NT$490 million when the average temperature increased to 28.7 degree Celsius.
From a quantity perspective, Nielsen Retail Measurement Services data reveals that overall, 683 million tablets, 46 tons of powder and 300 million mini-liter liquid (300 thousand one-liter sized bottles) of cold medicine was consumed by Taiwanese customers.
On the other hand, according to the Nielsen Life Index survey, nearly 1.7 million people aged from 12 to 65 would buy cold medicine in 2015. With a total market value of NT$1.99 billion, it is possible to estimate that on average, every consumer would spend NT$1180 on cold medicine annually.
Nielsen Retail Measurement Services also tell us that the top three brands occupying the majority of the market share are Panadol, Daiyu and Kuoan. But what concerns customers the most when it comes to cold medicine? Nielsen research found that two thirds of Taiwanese consumers have already made their purchase decisions before entering the pharmacy, and the main sources of information are TV programs/advertisements (47%), recommendations from the friends and relatives (33%) and previous experiences (27%).
“For pharmaceutical manufacturers of over-the-counter medicines, increasing brand awareness via advertising promotions is essential. Effective in-store communication also plays a critical role to win over customers, since one third of Taiwanese consumers have not made their decisions until they are in the retail store,” said Spencer Hung, senior director of industry resources, Nielsen Taiwan. “Seven-in-ten consumers still rely on pharmacists to buy medicine, which are great opportunities for marketers to promote their pills. Eye-catching displays in stores accompanied by pharmacists’ recommendations can encourage customers to change their mind on their initial choices and switch to other brands.”
ABOUT NIELSEN RETAIL MEASUREMENT SERVICES
Since Nielsen’s Retail Measurement Services launched in 1987, it has become the only database collected from related retailing distribution channels of people’s daily life, including the convenient stores, supermarkets, personal care stores, pharmaceuticals, as well as the E-commerce channel exchanging the POS sales data. Said services are used for tracking FMCG sales, assisting clients to sustainably measure its sales performances, knowing well the distribution trends of the industries, so that clients could make development strategies. Currently, more than 160 categories including foods, daily necessities and pharmacies are monitored with Nielsen Retail Measurement Services.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world's population. For more information, visit www.nielsen.com.