Mini-Interview: Through the Lens of the Manufacturer

In an interview for In-Store magazine, Mirjana Radnić, Senior Product Manager at Galenika, spoke about trends and challenges in the OTC product category in Serbia.
How would you describe today’s production and sales of OTC products in our retail scene?
Galenika is a pharmaceutical company engaged in the production of medicines, OTC (over-the-counter) products, and dietary supplements, with 40 brands holding leading positions in their respective categories in terms of market share in Serbia. As a senior product manager at the company, I can say from daily business experience that production and sales of these categories on the retail market today are characterized by several key trends and challenges.
The first trend is that consumers are increasingly focused on self-medication, preventive care, and health maintenance, which has led to a rise in the sale of OTC products. They seek solutions for everyday health issues like colds, pain, digestive problems, as well as products for supporting the immune system, skin care, and general health. Dietary supplements and cosmetic products play a key role, and people are investing more in prevention and care, focusing on products for different skin types, anti-aging treatments, hyperpigmentation, as well as supplementation with vitamins, minerals, and other products to support immune health, energy, and mental well-being.
The second trend is the growing competition and market fragmentation. The OTC product and supplement market is highly competitive, with an increasing number of smaller manufacturers and private labels. Drugstore chains and retail giants are investing in developing their own brands, which leads to price pressure and, consequently, lower margins for manufacturers. To remain competitive, it is essential to invest in product differentiation, develop innovative formulas, and focus on high-quality ingredients that provide added value for the end consumer.
Lastly, I would highlight the increased awareness of health and natural products. Consumers are becoming more aware of product ingredients and are seeking natural options. This is especially evident in the dietary supplement sector. Accordingly, Galenika is also focusing on developing high-quality and effective products with natural ingredients and formulations that meet the needs and preferences of today’s consumers.
What good examples from practice would you highlight?
I would emphasize, above all, digitalization and changes in retail. E-commerce is becoming an increasingly dominant sales channel in the dietary supplements and cosmetics categories. Consumers are increasingly relying on online stores and platforms such as specialized websites of pharmaceutical institutions, which requires a stronger digital strategy from all players in the pharmaceutical industry.
What do you think are the problems/shortcomings in your industry in our market?
The main challenges relate to regulation and compliance with regulations, which is an extremely complex issue. The regulatory framework for OTC products and supplements is complex and can vary between countries. Manufacturers must continuously monitor the latest regulations, particularly regarding product labeling, health claims, and safety standards. We continuously invest in regulatory compliance to ensure that our products meet all legal requirements in the markets where we operate.
Is there any product/category from your industry that hasn’t yet reached our market, but you would like to see on the shelves of Serbian stores soon?
In the dermatology segment, there are significant innovations both in therapies for skin conditions and in medical cosmetics. Innovative therapies exist, but we must not forget the progress in medical cosmetics. For example, products with new generations of retinoids and formulations combining niacinamide with antioxidants for acne treatment, hyperpigmentation, and anti-aging are becoming standards in global practices. We would like to see these innovations available on our market because they offer a more personalized and effective approach to treating various skin conditions.
Finally, what would be your message to colleagues in the industry – how can the sector be improved?
Improving our sector requires a balance between clinically proven treatments and advanced, innovative products. We need to work together to educate the market and provide accurate information to doctors, pharmacists, and end-users about the benefits of new treatments and products. Transparency and strict regulation in the production and promotion of products must be priorities to ensure the highest quality and safety standards. Additionally, increased support for local research and collaboration with experts will help us better understand the specific needs of our population and react more quickly to changes and innovations in the world of OTC drugs, dietary supplements, and cosmetic products.
The interview was published on the InStore.rs Portal on October 18, 2024.