How Is Business Changing Now That Complementary Medicine Has Gone Mainstream?

Natural products annual sales figures increased from $14 billion to $25 billion between 1997 and 1998. Advertisements for herbal products are running on network television. Pharmacies and mass marketers are figuring more prominently in the mix of retailers. Complementary medicine is getting press in major medical journals as well as in national media. The consumer push for complementary medicine is affecting nearly every aspect of health care, including HMOs, government agencies and doctors' offices. This month we asked how the growing acceptance of complementary medicine is affecting the retail business.

"We are seeing more people in our retail stores and wellness centers who are coming to us for answers and options for their health care. As people become frustrated with allopathic medicine they look for a more integrated approach. They want the best of both worlds—of allopathic and holistic medicine.

"The Wellness Center is a different model for providing information and education than a retail store. I see it as an evolution of the retail environment. Through the Wild Oats Wellness Centers we have helped a lot of people who wouldn't normally be exposed to this kind of information. More people who are new to complementary medicine are coming to the Wellness Centers looking for answers. For example, in two days at the Boulder Wellness Center we've seen 22 new people from the community. It is a testament to the growing popularity of complementary medicine. These centers are popping up all around the country and they are successful."

Lisa Shapiro
Project Director,
Wild Oats Wellness Centers
Boulder, Colo.

"The awareness of complementary medicine is expanding to beyond typical health food store shoppers and that is very exciting. But with that, there are a lot more companies jumping in on the growth and we as buyers have to be extremely careful of the lines we pick and the products we put on our shelves.

"Businesswise, our margins are getting squeezed much more. We're having to compete with large-volume buyers like Wal-Mart. When we're dealing with volume buyers like that it is hard to compete on price. But because of those challenges we have to be much more aggressive about marketing and merchandising. We'll bring in a broader selection of products, we're more cutting edge. The mass market will test products, so to speak, in natural products stores before carrying them.

"Customers can buy anywhere and many are going to mass marketers, drug store chains and the Internet to buy a lot of their basic supplements. So customer service, naturally, is where natural products retailers have an edge."

Marilyn Dale
North East Region Nutrition Buyer,
Whole Foods Market
Needham, Mass.

"The new popularity of complementary medicine has increased business and given us an upper hand because of our knowledge. The increased legitimacy of complementary medicine means we're not viewed as quacks anymore. The popularity also means more products are being brought to the market. Also, it has brought unscrupulous characters into the industry who are just out to make a buck.

"Because of this we look carefully at companies who are bringing us products. We're trying to verify that what they are selling us is good quality. We ask suppliers for quality standards. We want to know if they practice GMPs. We want independent testing from labs to verify potency and purity. We want to know if they are NNFA members, which means they are in the TruLabel Program. We're under the impression that there are good manufacturers and bad manufacturers. Maintaining product quality is very important."

Bruce Cohen
Owner,
Nutrition World Natural Life Market
Palm Beach Gardens, Fla.

"My natural pharmacy has been open for more than two years. In that time I've seen much more general acceptance of complementary medicine. Physicians and osteopaths are more interested in how it can be incorporated with conventional medicine. Even hospitals are starting to recognize the value of complementary treatments and programs such as the Dean Ornish program. They are recognizing that there is relevance to complementary medicine. Of course, there are still a lot of physicians who are skeptical, but overall there is more acceptance today than two years ago.

"Today customers are more geared toward how they can integrate complementary medicine with the drugs prescribed by their doctor. My main role is to educate the patient, which empowers them to improve their health and well-being."

Dan Wagner, R.Ph., M.B.A.
Herbalist and Owner,
Nutri-farmacy
Wildwood, Pa.