Medical distribution channel booming, says Kline

Although the medical distribution channel is currently extremely small in terms of sales, the market research company notes growth of 16.5 per cent in sales of cosmetics and skin care products in 2007. In addition, it is no longer just dermatologists who offer such products in their clinics. Physicians in other disciplines are now getting in on the act. 'Booming' distribution channel ​ Cosmetics companies are beginning to turn to the medical distribution channel because of the retail opportunities it represents. Earlier this week Estée Lauder's Clinique announced the release of a new skin care line in collaboration with pharmaceutical company Allergan to be distributed exclusively through physicians' clinics. Although Allergan has a number of products in the medical channel, this is a first for prestige skin care brand Clinique. Kline has described the move as a shrewd diversification strategy by Clinique helping to balance the lacklustre performance the brand has suffered in the prestige beauty market. In addition to fast growth within the channel, the number of clinics offering such products is expanding and now encompasses a wide range of medical specialties. "We've seen a 36 per cent jump in the number of 'other' specialties now dispensing skin care products to their patients,"​ said Karen Doskow from Kline's Consumer Products practice. ​​By 'other' specialties Doskow is referring to general practitioners, gynaecologists, obstetricians and even dentists who are increasingly offering skin care products for sale in their clinics in an attempt to cash in on the economic potential they provide. "This all adds up to a potentially greater market share for the Clinique brand and underscores the value of diversification across multiple channels in order to achieve optimum market reach,"​ Doskow added. Brand extension ​ Doskow notes that as sales still remain slow within the retail channel decisions to enter this market are as much long term brand extension strategies as they are attempts to increase short terms sales. "It's also about brand extension - a marketing play to extend the Clinique brand… It builds credibility, and it's an opportunity to grow outreach efforts across all channels",​ she said.