We recently interviewed Mike Allan of AltX-listed Bioscience Brands (Bioharmony, Muscle Science, Phyto-Nova and Herbology) and one of the points that he emphasised was the importance of distinguishing between your "serious" brands and your "lifestyle" brands and he warned that if manufacturers and distributors cannot decide where their brands sit, they will find themselves losing share.

From the little bit of research we have been able to to, it would appear that the South African "natural medicines" consumer is relatively small with around 60% of them sitting in the 30 - 50 age group and primarily female.

However we believe that the Department of Health may - on the back of government interest in the healthcare sector - be a willing buyer into the natural medicines space, provided that they feel that they are buying into "serious" brands backed by solid medical evidence to support their use.

This is an important distinction for manufacturers and distributors in this space to make because it impacts a lot about how they get their product in front of the consumer.

If you want to sell a serious healthcare offering you need to look at:

A) Packaging - you are not selling gimmicky, herbal remedies - you are selling a serious product and this needs to be taken into consideration when bringing it to market. If necessary, have a quality outside brand development team help you to develop something that communicates the right message.

B) Develop consistent supply and delivery of the product - Whether you like it or not, you are competing against products which can be developed in bulk out of an industrial factory. If you want to be taken seriously and retain your customer base then you need to prove you can consistently deliver your product.

C) Take your own product seriously - If the South African natural medicines industry expects to be taken seriously by consumers and medical professionals then it needs to take itself seriously. That means manufacturing product to the highest pharmaceutical standards, marketing it appropriately and doing a lot of the hard work around education around use of the product. You are going to need to be able to show that the product works consistently.

In conclusion we retain our view that the natural medicines market in South Africa is a niche market but a good growth sector in the pharmaceutical space. The trick will be identifying quality brands and ensuring that they are brought to market responsibly.

Comment on the South African natural medicines market here.

**Disclosure - author holds shares in Bioscience Brands
 

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