Pharmacy and parapharmacy: the differences to know for your brand

Any pharmaceutical sales representative or brand in the launch phase must master the differences between pharmacies and parapharmacies, in order to adapt their marketing and sales strategies to such specific profiles.

‍To keep it simple: 

• Pharmacies dispense medications for treatment, whereas parapharmacies distribute products for self-care;

• Community pharmacies are allowed to sell parapharmaceutical products, but parapharmacies are not allowed to sell medications.

That is the most obvious part. But, as we will see, it goes far beyond that!

‍Sidely has identified no less than 5 key concepts to explore to build the profiles of your future prospects and refine your sales strategy.‍

On the agenda: 

1. Pharmacy monopoly;

2. Numerus clausus;

3. Pricing;

4. Medical advice;

5. Communication and advertising.

And if you are really not in the mood to read, here is a table that summarizes everything in a glance!

👨‍⚕️ Sale of medications: the pharmacy monopoly

In France, the pharmacy monopoly grants pharmacies the exclusive right to sell medications subject to medical prescription, as well as those available over-the-counter but requiring pharmacist supervision (called OTC). This monopoly aims to guarantee patient safety and ensure appropriate medical follow-up in the distribution of medications.

‍The classification of prescription medications is controlled by the Public Health Code. This framework ensures responsible use, particularly regarding dosage and contraindications. Other products are also affected, such as medical devices (syringes, specialized bandages, etc.).

‍The exclusivity of selling medications granted to pharmacists extends to the e-commerce sector. Authorization is limited to medications not subject to a compulsory medical prescription, and is subject to a prior declaration to the Regional Health Agency (ARS).

‍Finally, only community pharmacies are authorized to display the green cross in front of their entrance.‍

‍🧴 Sale of beauty and wellness products

The parapharmacy emerged in the 80s at the initiative of large retailers who saw significant growth potential in self-medication and over-the-counter health products. Since then, the parapharmacy has become an industry in its own right.

‍Natural care, cosmetics, and wellness products can thus be found in a wide variety of retail outlets, such as community pharmacies, neighborhood or online parapharmacies, supermarkets, perfume stores, specialized shops, and even marketplaces like Amazon (although still underdeveloped in France, it is already successful across the Atlantic).

‍The term "parapharmacy" can therefore refer to the industry of these products, a dedicated space for them within a pharmacy, an aisle in a supermarket, or a standalone store, which is… a parapharmacy.

‍❌ Parapharmacies are excluded from the pharmacy monopoly. As such, they are prohibited from selling: 

• Medications;

• Products requiring the advice of a Doctor of Pharmacy. 

✅ The types of products that parapharmacies are authorized to sell include: 

• Cosmetics;

• Hygiene products;

• Dietary supplements;

• Baby care products;

• Veterinary products;

• Dietetic products;

• Natural health products;

• Beauty accessories;

• Self-tests and other self-diagnostic devices.

‍

📌 Numerus clausus

A specific regulation called numerus clausus regulates the establishment of pharmacies to guarantee access to medications across the entire French territory, while avoiding excessive concentration in certain areas. The Regional Health Agency (ARS) monitors and authorizes the issuing of licenses to pharmacists, aiming to ensure alignment between supply and demand. 

The parapharmacy sector is not subject to the numerus clausus.

💳 Pricing and reimbursement

The pricing of medications is regulated by law, particularly for reimbursable medicines, in order to guarantee accessibility for all patients and to control health expenditures.

3 scenarios present themselves.

‍Since pharmacists cannot set the retail prices of non-reimbursable medications, over-the-counter products — and therefore parapharmacy — represent opportunities to increase the profitability of their store.

‍For their part, parapharmacies have complete freedom in setting retail prices, at least for independent stores, because, like in the pharmacy world, there are many types of organizations or concentrations, such as franchises, buying groups, and other purchasing cooperatives.

‍Understanding these mechanisms can help guide commercial discussions toward a better search for profit margins for both the pharmacist and your cosmetics or wellness brand.

‍

🥼 Medical advice versus product recommendations

Opening a parapharmacy does not require a scientific degree, and the staff present in parapharmacies are generally graduates in cosmetics or perfumery. Legislation does not require the presence of a Doctor of Pharmacy, with the exception of parapharmacies located in supermarkets.

‍Although the law does not impose a medical curriculum, it is therefore highly recommended to demonstrate knowledge related to health, cosmetics, and dietetics, and some manufacturers of parapharmaceutical products make this a central element of their marketing strategy, to the point of imposing it in distribution contracts.

‍As for pharmacies, they must have a Doctor of Pharmacy on their staff, usually assisted by pharmacy technicians, as dispensing medical advice is at the heart of the pharmacist's profession.

→ In short, the pharmacist provides medical advice and is the only one authorized to dispense prescription medications, whereas a parapharmacy sales assistant guides customers toward products.

However, while highlighting parapharmaceutical products does not fall under medical advice, pharmacists are highly aware of the growing interest of French people in self-medication and wellness, often heightened by the rise of social media influencers. The sale of non-medicinal products is therefore a revolution for the pharmacist profession and an opportunity in terms of profits.

📣 Advertising VS information

Finally, and this is a major difference, pharmacies and parapharmacies are not subject to the same rules regarding advertising and communication.

‍Commercial advertising for a community pharmacy to attract or retain customers by promoting its prices or services (promotions, special offers) is prohibited. Only informative communication regarding the creation and relocation of pharmacies, or changes in ownership, is authorized. In these circumstances, advertising takes the form of a press release, for example.

‍However, advertising inside the pharmacy is allowed. Pharmacists have the right to promote products, highlight discounts, and even offer samples. Bags, business cards, or price tags can be styled. Storefronts and windows can also be used to communicate offers and pharmacy news.

The Public Health Code, however, imposes strict rules regarding ethics, aiming both to inform patients and preserve the dignity of the profession.

Furthermore, product advertising is subject to a very strict regulatory framework.

Advertising for prescription medications is prohibited.

Advertising to the public is allowed under the following conditions: 

• Medications not subject to compulsory medical prescription;

• And non-reimbursable by compulsory health insurance schemes;

• And provided that its marketing authorization does not include a ban or restriction on advertising due to a potential risk to public health.

→ More info on sante.gouv.

All advertising must comply with the ethical rules set by the Public Health Code.

On their side, parapharmacies can run commercial advertising (promotions, special offers), just like any other retail business. 

There are no restrictions regarding advertising channels (internet, billboards, flyers) to attract customers, promote their products, or highlight services.

Advertisements must, however, comply with current standards, notably by providing accurate information about the product, its indications, and any potential side effects. Mandatory disclosures must be clearly indicated. Advertising must not be misleading or exaggerate the product's effects.