CNBC reports that “Amazon has quietly launched an exclusive line of over-the-counter health products in a possible challenge to pharmacy retail chains that could spark a price war and put pressure on store-brand profit margins.”
The products are being made by private-label manufacturer Perrigo, and sold under the Basic Care label, with “60 products ranging from ibuprofen to hair regrowth treatment.” The story notes that “Amazon already sells branded OTC medications such as Advil, Mucinex and Nicorette, as well as options from Perrigo's generic GoodSense brand. These products are all subject to the fluctuating prices from competitors. But its exclusive brand would not be.”
The move is seen as yet another indicator of Amazon’s increasing fascination with the health care business as an industry ripe for disruption.
The products are being made by private-label manufacturer Perrigo, and sold under the Basic Care label, with “60 products ranging from ibuprofen to hair regrowth treatment.” The story notes that “Amazon already sells branded OTC medications such as Advil, Mucinex and Nicorette, as well as options from Perrigo's generic GoodSense brand. These products are all subject to the fluctuating prices from competitors. But its exclusive brand would not be.”
The move is seen as yet another indicator of Amazon’s increasing fascination with the health care business as an industry ripe for disruption.
- KC's View:
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Which explains, from another angle, the story above, in which a major CPG company faces issues because of as retailer looking for something other than a me-too option.
