Sales of Gaviscon and Strepsil continue to be sluggish

Strepsil's sales in Q1 are ₩600 million, 74% more than ₩2.2 billion before the boycott

Gaviscon’s sales is also ↓46% in 5 years,

Gaviscon & Strepsils

Sales of Gaviscon and Strepsils have been sluggish for five years since Reckitt's boycott.

 

It is shown that sales of two products decreased by 46% and 74% respectively in first quarter compared to before boycotting.

 

Competitive items are found to benefit from the long-term sluggishness of the two products.

 

According to IQVIA, a pharmaceutical market research company, Strepsil's sales in first quarter of last year were ₩600 million.

 

The figure is down 74% from ₩2.2 billion in the first quarter of 2016, just before the boycott of the entire Reckitt product began in earnest.

 

The boycott of Reckitt products began in earnest after the second quarter of 2016.

 

At that time, the humidifier disinfectant incident caused a lot of controversy, and as public opinion deteriorated sharply, it spread to a boycott of the entire product.

 

The company changed its name from Oxy Reckitt to Reckitt, but it was not enough.

 

Strepsils was ranked first in the sore throat treatment market with quarterly sales of about ₩2 billion before the boycott.

 

However, since the boycott began in earnest, it has only generated ₩600 million to ₩1.2 billion in sales so far.

 

Competing products are enjoying reflective benefits due to Strepsil's sluggishness.

 

The representative product is Boryung's Younggaksan.

 

Immediately after the boycott, it beat Strepsils and became the No.

 

1 item in the market.

 

Its quarterly sales are about ₩2 billion.

 

Since the fourth quarter of last year, sales have risen significantly on the basis of COVID-19 prevention issues.

 

Its sales in fourth quarter of last year are ₩3.5 billion and its sales in first quarter of this year are ₩4 billion.

 

In the case of Gaviscon, the company generated ₩2.3 billion in sales in the first quarter of 2016, just before the boycott began, but has since maintained sales of around ₩1 billion.

 

Its sales in first quarter of this year are ₩1.2 billion.

 

In five years, it has fallen by 46%.

 

Gaviscon's rival, Yuhan's Almagel, has seen a modest rise in sales since the boycott.

 

Its first quarter sales were ₩3.2 billion and it was the highest ever.

 

Another competitor, Boryung's Gelfos, had sales similar overall to those before the start of the Gaviscon boycott.

 

Its first quarter of this year's sales were about ₩2.4 billion.

 

Analysts say that the sluggish sales of Gaviscon & Strepsils are due to the company's passive advertising and marketing activities.

 

In fact, Reckitt Benckiser had been actively advertising and marketing both products before the boycott began.

 

According to the KFAA's Advertising Information Center statistics, Reckitt Benckiser was included in the top 100 advertisers, spending ₩2.2 billion as of January 2016, but has disappeared since 2017.