Consumer education is fix for impatient herbal buyers

Drug Store News,  Nov 13, 2000  by Annette Scalise

• E-mail
• Print
• Link

It is no secret that top segments of the herbal category such as ginkgo biloba, ginseng and St. John's wort have tumbled in sales in the past few years. While core customers have remained, many consumers are no longer buying those products simply on impulse.

There is no discounting the role product quality and the consumer media's perceptions have played in the recent down-trending of the mental energy/cognitive function segments, not to mention the overall herbal supplement business. The effects are well documented in the most recent numbers on the category (see sales chart, right). However, one way the trade can reverse that trend is by dissolving the consumer's illusion of an overnight cure, many argue.

"Manufacturers need to do more studies and more homework and be willing to indicate on the packaging that consumers will not feel the benefits until they take the product for a specific amount of time," one retailer said. "There are probably 10 percent of manufacturers who make that statement ... But unless they make that statement, it will still be witchcraft [to the consumer].

"This society is fast-paced and we have all become accustomed to quick results," this retailer continued. "[But] within the herbal category, everything is a six- to eight-week program before you feel results and unfortunately, people are not accustomed to staying on that type of a regimen."

"The American consumer doesn't want to wait," agreed Barbara Kuhn, assistant vice president of merchandising for Happy Harry's. "They expect instant results--instant gratification. Herbal companies need [to create] more consumer awareness. Let them know that it is a good product, but that it takes time to see results. The consumers want the results and when they don't get them, they go on to the next brand."

Certainly, the call to vendor action does not fall upon deaf ears. According to Ives Health president M. Keith Ives, not only is education the key to the future of the category, but that "education will happen because the consumer will demand it," he said. "For the last three years, [consumers] impulse-bought herbal supplements, but they did not see the results," he said.

"There is a level of confusion among consumers and it is incumbent upon companies to clarify the benefits of the products, [through] in-store materials, advertising, etc.," agreed David Belaga, Amerifit Nutrition vice president of marketing.

"[Consumers] are confused about what the ingredients can do for [them] and how they interact with what [they are] taking," said Marcia Wiener, associate director of sales strategy for Novartis Consumer Health. "Supplement use has become more mainstream and accepted, but we have a way to go before people endorse this as a day-to-day routine," she said. "The way the gap will close is through education--by people learning more about these products."

Still, despite the fact that rising customer confusion and declining consumer confidence levels have brought growth numbers in the category back down to earth, many believe that mental energy/cognitive function remains one of the better opportunities for the natural health business to mount a comeback.

For one thing, with stress levels climbing, more consumers will continue to look for products to increase their energy. "Energy is a hot topic because people always say they don't have enough of it," said Jon Fiume, vice president of retail operations and natural products, Ritzman Pharmacies. "Anytime the word energy is mentioned, it will receive consumer attention."

Rome built in a week?

While a major growth impediment across all segments of the herbal business has been the fact that consumers often lose interest in new supplements before they see results, Pharmavite is hoping to hit home with consumers looking for fast results. In fact, company executives insist its new Nature Made Vinpocetine product--aimed at improved memory and concentration--shows results in one week. Vinpocetine is derived from the seed of the periwinkle plant.

Retailing for a suggested $8.99 for 60 tablets, vinpocetine produces many of the same cerebral-enhancing effects as ginkgo biloba, but has shown to be more effective in much shorter time, according to the company. In addition, vinpocetine offers the added benefits of improved energy metabolism and a neuroprotective effect.

"According to clinical data, [consumers] will see improvement in short-term memory functions as well as enhancement of learning and recall," said Greg Andrews, director of marketing for Nature Made. "[Because consumers] can see results in a week, they are more likely to stay on the supplement. When [a product] takes six weeks to three months, they are more likely to stop using it."

COPYRIGHT 2000 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning