Dabur has said it will focus more on the chemist network to increase sales of its personal and healthcare products.
Mumbai: Mumbai based FMCG major Dabur has said it will focus more on the chemist network to increase sales of its personal and healthcare products.
"To capture the potential of the coming times, Dabur has embarked on an initiative to strengthen its presence amongst the chemists, which we feel will be a key driver of growth for our consumer healthcare and personal care business," chairman Anand Burman said in the annual report.
"We have re-organised our sales teams specifically to cater to the demands of chemist channel and also enhance distribution of healthcare and personal products portfolio through this network. As a result, our direct chemist coverage is planned to increase from 1.72 lakh to 2.06 lakh outlets and the footprint will continue to grow particularly in the top 150 towns where this initiative has a major focus," he added.
In the first phase, Dabur plans to significantly increase its direct coverage in the chemist channel in urban markets and increase the availability of its product range in this channel.
The project is already under implementation and the company expects to derive benefits from the increased coverage going ahead.
The company said the FCMG retail landscape in the urban markets is witnessing the emergence of chemist outlets as a key trade channel as they influence OTC sales.
"Today, the chemists play an active role in promoting OTC products with the flexibility to drive sales of particular brands and products and are fast emerging as retailers of a larger range of health and personal care products. Besides being critical retail points, chemists also act as advisors to consumers seeking solutions to treat moderate and non-critical health problems.
"As consumers are increasingly shifting to self-medication and tend to visit a doctor only for serious ailments, they value the advice of chemists in the context of OTC products. The chemists are better educated and informed as compared to grocers, and give practical suggestions to consumers regarding specific healthcare issues, hence influencing OTC purchase in a big way," the company said.
According to a Nielsen study, chemists have emerged as the fastest growing traditional trade channel for FMCG and the channel is expected to grow to a USD 12 billion opportunity by 2020.