There's no place like drug stores for home health care

Drug Store News, Feb 12, 1996 by Marie Griffin

Suppliers of a host of different products are targeting the in-home healthcare market, following what they see as obvious opportunities--to attract baby boomers who are taking on greater management of their own health, to meet the needs of the growing senior population, and to fill the void being created as managed cost providers force shorter hospital stays and more outpatient procedures.

As opposed to the institutional, durable-medical-equipment approach to home care, the in-home healthcare trend is about friendly products that make life healthier, easier or more comfortable. This isn't a new concept, but it applies to a wider spectrum of products than ever before, and those products have migrated from the realm of medical supply and specialty stores to become major mass market businesses.

This was plainly obvious at the recent International Housewares Show in Chicago, where manufacturers were touting the home healthcare revolution as they showcased new products in diverse categories that included digital thermometers, power dental devices, air cleaning machines, elastic bandages and supports (Rubbermaid now has an extensive line under its own name), and even nebulizers--a traditional unit was added to the Sunbeam line and a high-end, battery-powered unit with a whole new design was introduced by Omron.

As editor of Drug Store News, I was thrilled to see that many suppliers are more interested in drug chain distribution than ever before. But at the same time I was disappointed by the number of manufacturers of appropriate products who weren't so keen on drug chains. Even worse was hearing how drug chains had earned some of these lukewarm impressions by being less than willing to pioneer new categories, explore new price points or devote resources (and patience) to innovative concepts.

What manufacturers and drug chain people themselves often forget, however, is that consumers do think of drug stores first when they go to buy healthcare products. That consumers still think highly of the drug store's main draw--the pharmacist--was proven once again in a Gallup Poll ranking 26 professions. Americans rated pharmacists as being the most honest and having the highest ethical standards for the seventh year in a row.

And, as manufacturers and drug chains work together to reach the consumer with in-home health products, they'll find a lot of their preconceptions are not valid.

It was consumer research, in fact, that prompted Holmes Air to take a totally new view of drug chain distribution. Acting on a study indicating that 60 percent of purchasing prospects for air cleaners are looking to relieve the symptoms of allergies and asthma--making them natural drug store shoppers--holmes Air launched a series of programs to reach allergic/asthmatic consumers, eventually leading to the development of a special line of air cleaners and humidifiers specifically for drug stores.

Holmes has hooked up with the Asthma & Allergy Foundation of America to distribute educational materials in the packages of its high-end air cleaners. The company is also packaging coupons for Benadryl in all its air purifiers. A third program addresses the price sensitivity issue with $10 rebates on units selling for more than $100.

Of course, I found it ironic that while Holmes Air was launching those programs at the housewares show, another company (which I won't name) was unveiling an innovative cigarette smoke remover/air cleaner--and wasn't even showing it to drug chains. Because of the unit's $149 retail price, it wasn't even offered to the Walgreens contingent when they were in the booth.

But, no matter what manufacturers think, it's critical for drug chains themselves to step up to the plate and become what maybe people inside and outside the channel believe they can be--the premier retail channel for in-home healthcare products.

Although I know there is a lot of planning and testing going on, drug chains still are not acting quickly enough or with enough magnitude. You must let your customers and your vendors, as well as potential new suppliers, know you're in this business in a major way.

You might also rethink the pricepoint barriers you're setting up. People with health problems will buy $400 air cleaners and $300 massagers, and I bet they're willing to buy them in a chain drug store.

This is an unparalleled time of opportunity, but drug chains must seize the moment. It's time to stop experimenting and expand your home healthcare departments as much as you can, wherever you can, as soon as you can.