Unseen Challenges in Drugstore Sales: Data & Channel Limits

“Invisible Data” and the Constraints of Sales Channels The Black Box of POS Data When manufacturers distribute products to drugstores, they only receive the end result—whether the item sold or not. The vital process—who bought it, why, and how—remains locked inside the store’s POS (point-of-sale) system.

For instance:

Are the products popular among women in their 20s?
Do they attract repeat customers?
Did sales spike due to discounts?

Without visibility into these factors, manufacturers must rely on gut feeling for their next move. Data that should inform product development or marketing strategy becomes a black box.

The Unspoken Rule: “Don’t Sell Elsewhere”

Another major hurdle is channel restrictions. Some drugstores are reluctant when manufacturers sell directly via e-commerce or collaborate with other retailers. There’s often an unspoken pressure: “If you want to sell here, don’t sell elsewhere.” Especially when a store wants to treat a top-selling item as its “exclusive” product, the manufacturer’s hands are tied. Exploring diversified sales channels becomes difficult, and strategies can stagnate.

Price Pressure and Shrinking Margins

A further challenge is the ongoing demand for price reductions. Retailers often push for lower prices or higher promotional support, citing reasons like, “It won’t sell without discounts,” or “Competitors are cutting prices.” This leads to:

Less budget for marketing
Fewer resources for R&D and product innovation
Erosion of brand value over time

These side effects slowly but steadily take a toll.

From “Partner” to “Constraint”?

Ideally, drugstores and manufacturers should work together to grow sales. But in reality, information asymmetry and limited sales channels often force manufacturers into a reactive, unsustainable position. They fight to secure shelf space, Without knowing why products sell, While constantly trying to make them sell better. Such conditions make it difficult to build a long-term brand strategy. In the next post, we’ll explore how some manufacturers are overcoming these constraints—by gaining access to data and developing smarter, more flexible channel strategies. (To be continued)