Are you launching or developing a parapharmacy brand, and wondering what your distribution options are?
You've come to the right place: Here, Sidely explores the different channels available to you for distributing your products, and helps you assess the advantages and disadvantages of each.
We'll start by exploring traditional physical sales channels, before turning our attention to e-commerce. We'll compare the potential of different distribution channels, and look at the winning techniques of an optimized multi-channel strategy.
The distribution circuit represents all the stages a product goes through to reach the end consumer.
In the parapharmacy sector, this channel is crucial, as it influences not only product visibility, but also the perception of its quality and legitimacy.
Unlike medicines, parapharmacy products do not require a doctor's prescription and can be sold in a wide variety of outlets, including pharmacies, parapharmacies, specialist stores and online sales platforms.
For a parapharmacy brand, the choice of distribution channel is therefore eminently strategic. A well-adapted channel ensures that products are accessible to the intended target, while respecting quality standards and market expectations. It can also play a decisive role in managing brand image, competitiveness and customer loyalty.
Understanding the specific features of the various existing channels is therefore essential to developing an effective and coherent distribution strategy.
Pharmacies and parapharmacies are the most common physical outlets for parapharmacy products.
These establishments enjoy a high level of credibility in the eyes of consumers. Consumers appreciate being advised by qualified healthcare professionals who can offer personalized recommendations, an asset for brands that build trust and loyalty.
On the other hand, manufacturers who opt for these distribution channels generally have to reduce their margins, as the sales outlets themselves have to earn a return on the retail price.
However, distributing your products in pharmacies and parapharmacies involves a number of significant differences, which you need to master in order to define your distribution strategy.
Although pharmacies are healthcare establishments, they also sell cosmetics, skincare products and dietary supplements. They account for nearly 80% of parapharmacy sales, and are therefore essential for any brand seeking global market coverage.
But the market's growth is attracting new types of players, pushing pharmacies in particular to extend their offer to online sales, where players such as Pharma GDD are establishing themselves as benchmark e-tailers. In addition, to counter mass retailing, more and more independent pharmacies are creating their own brands and offering their own parapharmacy products at reduced prices.
Parapharmacies also represent a lucrative market segment for brands of care, hygiene, beauty and well-being products, attracting a health-conscious clientele.
Superstores have integrated parapharmacy networks into their shopping malls, as well as parapharmacy departments in their stores, offering brands two additional, even complementary, distribution outlets. In addition, E.Leclerc, Monoprix, Carrefour and Auchan are capturing a growing share of the online parapharmacy market with their e-commerce platforms.
It's important to remember, however, that when a parapharmaceutical product sells well, retailers don't hesitate to launch substitute products under their own private label.
Although mass retailers are constantly trying to increase their market share, a number of independent parapharmacy chains have established themselves as key players in this sector. Parashop is a good example, which continues to offer laboratories significant development prospects, with specialized outlets and a loyal customer base.
Finally, if you're targeting pharmacies and parapharmacies, you need to be aware of the different types of structure that exist, in order to deploy appropriate prospecting strategies.
While canvassing integrated and franchised outlets can facilitate the setting up and pooling of commercial agreements, each sales outlet needs to be worked on and monitored over time. As for independents, a personalized approach is required from the very first commercial contact. There are, of course, outsourced sales force agencies, but that doesn't solve the question of expenses!
There are, however, centralized purchasing structures that can help you achieve volume sales more quickly.
To facilitate procurement, i.e. the supply of medicines and parapharmaceutical products, pharmacies generally work through wholesaler-distributors.
These intermediaries organize pharmaceutical distribution between laboratories and pharmacies. They buy in bulk and take care of delivery to sales outlets.
These mega-structures are generally formed by groups of pharmacists, with the historic mission of avoiding stock-outs, and deliver to pharmacies in less than 24 hours. The best-known are CERP, Giphar and OCP.
Wholesaler-distributors are undoubtedly the best way to place large orders (sellin) without spreading yourself too thin commercially. In fact, they account for around 80% of all pharmacy purchases! This figure needs to be put into perspective, of course, as it relates primarily to medicines, not parapharmacy.
However, the requirements needed to be listed by these distribution giants dissuade many smaller brands, as wholesaler-distributors are generally interested in manufacturers with an existing reputation or proven commercial potential.
Retailers also sometimes join forces to pool their purchasing power and benefit from better prices. Various models exist: buying groups, central referencing bodies, associations or cooperatives. Identifying and canvassing these structures can help you sell your products in larger volumes, provided you agree to appropriate discounts.
⚠️ Agents are not distributors. You can commission them to store and deliver your products, but their mission is not to expand your distribution circuit or find new outlets. They are commissioned intermediaries, not wholesalers who buy your products.
⚠️ Pharmacie à Usage Intérieur: unlike pharmacies, healthcare and medical-social establishments with a PUI (Pharmacie à Usage Intérieur) purchase most of their medicines directly from manufacturers, their agents (see above) or operators (see below). In the case of public establishments, these purchases follow a public tender procedure.
Last but not least, there are other types of physical outlet with significant sales potential, whether independent or national networks.
Organic and natural stores: brands such as Naturalia and La Vie Claire offer wellness and parapharmacy products, often with a focus on natural, organic or eco-responsible formulas, attracting customers who are concerned about the quality of ingredients.
Cosmetics boutiques: chains such as Sephora and Marionnaud, although mainly focused on cosmetics, also offer parapharmacy products, particularly in dermocosmetics (care for sensitive skin, anti-aging, etc.).
Despite the overwhelming dominance of pharmacies - and therefore of physical sales - it is digital sales that are experiencing the strongest growth in the parapharmacy sector. In fact, the term "e-parapharmacy" is used to describe this already thriving industry. These digital channels enable you to reach a wider audience, especially young consumers, who appreciate the convenience of online shopping.
By selling your products directly to end-consumers from your own website, you give yourself total control over your pricing policy and brand image. And above all, you recover 100% of the profit margin, since there are no intermediaries in this direct sales channel. We can therefore speak of a short (or even ultra-short) circuit.
Of course, this approach is not without its drawbacks: in particular, it requires you to assume all marketing and distribution costs.
Large e-commerce platforms such as Amazon and Cdiscount are also interesting distribution channels for parapharmacy products. These sites offer significant traffic and a massive audience.
However, competition is fierce! To succeed on these platforms, you'll need to be trained in e-commerce best practices, such as creating detailed product descriptions, setting up targeted advertising campaigns, and managing customer reviews.
Finally, there are platforms specializing in online sales of parapharmaceuticals, such as DocMorris. Working with these sites can be an effective way of promoting your products and reaching a target clientele already interested in self-medication or wellness products.
As always in indirect sales, you'll have to accept that the intermediary will make a profit in the process.
As we've seen, there are many different sales channels for parapharmacy. Setting up your distribution channel therefore requires you to study each of them in the light of your sales and marketing strategy.
The table below summarizes the advantages and disadvantages of the main distribution channels.
The pluses and minuses of each of these channels are linked to your brand strategy. At this stage, it may be useful to review the fundamentals of your positioning and marketing vision.
Here are some typical points to bear in mind when comparing strategy and channels:
Consumers are increasingly looking for flexibility and convenience. That's why adopting a multi-channel distribution strategy can not only maximize your visibility, but also meet the varied expectations of your different customer segments.
Sidely offers 5 points to bear in mind when consolidating brand experience.
A well-coordinated multi-channel approach enriches the customer experience and strengthens your success. Applying these guidelines is called retail execution. It's the discipline that transforms vision into operational excellence!
Throughout this article, we've looked at the distribution channels most commonly used by traditional laboratories and brands.
But perhaps your company is looking for a differentiated approach, a particular target, or simply a more specific entry point.
So let's conclude with a few more ideas on how to find growth off the beaten track!
Finally...
The variety of distribution channels in the parapharmacy sector opens up many possibilities for brands. But each option needs to be studied in terms of its advantages and disadvantages.
Between direct and indirect sales, short and long channels, physical sales and e-commerce, the pharmacist's medical expertise and the globalized traffic of marketplaces, the field of possibilities is vast, and impacts on the company's strategy, positioning and resources.
Rather than targeting a specific or niche market, it's common for brands to opt for a multi-channel approach, and the challenge is to harmonize the customer experience to forge - or consolidate - the brand image.
And if you manage to distribute to pharmacies and parapharmacies, the adventure is only just beginning, as you'll need to optimize the listing and merchandising of your products at the point of sale.
But for that, there's Sidely!
