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Household and toiletry products remain a key category with high household penetration and named brands each striving to provide the next innovation.
DCS, a wholesaler that specialises in household and health and beauty products, thinks the overall market is growing with DCS turnover up 16% year to date despite the current economic climate.
Richard Jorden, commercial director of DCS, says: "Growth within the categories is generally slow, however, as our sector is traditionally 12-18 months behind the multiples. We are now starting to see good growth on emerging categories such as male toiletries and skincare on the health and beauty, with environmentally friendly products starting to show growth within household cleaning."
DCS has also been working to provide for the wholesale channel. "The roots of our business are in supplying health, beauty and household to the cash and carry sector - it represents 60% of our turnover and is a channel that we passionately believe in. We have done a lot of work with brand owners to develop cash and carry exclusive packs. With shrink-wrapped and sticker cases we have virtually eliminated the dreaded 'brown boxy syndrome' from our business."
Household
According to Mintel, with a backdrop of a 98% household penetration rate, it is clear that more sophisticated products are supporting market value in household cleaning. Manufacturers are likely to achieve value growth by promoting cleaning products not just for their function attributes, stain and dirt removal and odour masking, but also as a lifestyle product.
According to Unilever, the household category has seen extensive product innovation over recent years. This has created important sales opportunities but also, for many retailers, uncertainty about which products to stock and how to merchandise them, particularly where space is at a premium.
In February Unilever launched Persil with micro-capsules. Simon Fisher, senior laundry category manager for Unilever UK, says: "Consumers want tangible benefits that they can see, smell and feel such as long lasting freshness and soft clothes, as well as proof of performance.
"Unilever's extensive consumer research highlights that fresh-smelling, soft clothes are perceived as really clean clothes. We have seen the success of 'fresh release' technology in the fabric conditioner category and we're really excited about the new Persil products. They not only offer consumers the powerful cleaning performance of Persil but the active micro-capsules within the detergent deliver a 'just washed freshness' all day long."
The Persil micro-capsules work by locking fragrance micro-capsules into the fabric and fibres of clothes when they are washed. The micro-capsules within the formula burst on movement to offer just washed fragrance all day long. They can remain active for up to 28 days to help clothes stay fresh.
Unilever also launched Domestos Grotbuster, a 'grotbusting' super-thick multi-purpose cleaner, in April. It has been specifically designed to tackle unhygienic jobs that exist in and out the home. Cat Armitage, household cleaning category leader at Unilever, says: "Brilliant on the grime you can see and brutal on the germs you can't, it will appeal to consumers looking for a hard-working, effective bleach cleaning product, thus adding value and driving sales within the cleaning fixture."
Paul Lettice, trade communications manager of Procter & Gamble, says: "As one of the most familiar brands on the laundry fixture, Daz has a responsibility to keep offering its consumers a great value and cleaning combination. Research indicates that Daz shoppers are seeking great value and convenience, without compromising on cleaning effectiveness. Liquitabs overall have delivered genuine innovation within the laundry category over the past few years, and we are delighted to be able to bring this excellence to the Daz brand."
P&G introduced Daz liquitabs in January and in April it launched Fairy Clean & Care, the mildest ever Fairy liquid, and Fairy Pure Clean Antibac to the Fairy portfolio in a range of scents.
Lettice continues: "P&G is constantly working to develop the Fairy Liquid brand to provide the best cleaning power, while driving category sales for the retailer by understanding exactly what consumers are looking for and require in a dish wash product. Recent years have seen an increase in demand for premium products and this category is no different.
"Research indicates that premium products in this category can add up to 6% incremental growth - worth an anticipated £12m in retail sales value - to the category. It is clear therefore that these developments in the Fairy portfolio are set to be very significant and boost sales for retailers across the UK."
Phil Thomas, marketing director, Reckitt Benckiser Household and Personal Care, says: "Innovation and meeting consumer needs is what Reckitt Benckiser is all about. We have managed to take the best power cleaning product on the market - and improve it. Cillit Bang has always been effective, and the new products mirror that performance, giving great results - but in developing the new generation products we have listened to consumers and provided that same effective cleaning alongside a new versatility that we know consumers welcome."
This is demonstrated in Cillit Bang Multi Power which has been reformulated so that it can be used on a broader range of surfaces.
Thomas adds: "We have been very pleased with the reception the new range has received and feel that this reformulation will keep Cillit Bang ahead of the power cleaner sector."
Kilrock Products is looking at environmental issues and has developed a range of household cleaning products with a refillable trigger spray. Called Aquo, the range allows consumers to drop the concentrated soluble refill into the trigger spray bottle, fill it with water, leave for a few minutes, shake and start cleaning.
Richard Davis, managing director for Kilrock, says: "We are making the most of the clever technology that's out there to make an everyday product more 'eco'. It obviously makes a lot of sense to re-use packaging wherever possible. The traditional trigger spay bottle is a particularly unfriendly little item, as the trigger can't normally be recycled due to its metal spring. Our Aquo bottle and trigger are designed to be re-used at least 20 times - simply put that's 20 times less packaging production effort and 20 times less packaging waste."
Consumers can also choose cleaning products based on a need for safety. According to Bitrex, consumers are prepared to spend more on products that protect their children with more than 64% of parents prepared to pay up to 15p more to help avoid accidental poisoning.
Bitrex is inert and odourless so it doesn't affect the product performance other than making it exceptionally bitter.
Cameron Smith, Bitrex business manager at Macfarlan Smith, says: "Research shows that parents will actively search shelves for brands containing our product. We know that parents take accidental swallowing very seriously. Every parent recognises the horrible moment of inattention when a cap is inadvertently left off for a second or two and the phone rings. Bitrex is made for that moment."
Toiletries
In January of 2007 Mintel valued the deodorants and bodysprays market at £459m at the current prices. Penetration of deodorants is higher in Britain than in other European countries with 94% of women and 89% of men using a deodorant.
Mintel reports that Unilever takes more than half the market and has the four top brands. Between them, Lynx, Sure, Dove and Impulse dominate the market.
Nick Widdowson, merchandising manager at Unilever, says: "Although every household in the UK buys into the health and beauty market, 18% of UK shoppers do not know that toiletries are sold in their local convenience store. This category could therefore prove to be very valuable to independent retailers, so it is very important that shoppers can firstly see the category, and then identify the different areas within the category."
Early this year Unilever relaunched its leading brands with a new roll-on format. Sure, Dove and Lynx are available in an upside down format which is designed to deliver consistent dosing when applied. A Sure range for teen girls was also launched in a smaller, handbag-sized, format.
Unilever also introduced Vaseline Men as a mass market male skin cleansing and care range. Frances Deans, senior category manager for skin at Unilever UK, says: "The men's market is one of the fastest growing categories within health and beauty and has seen £24.2m category growth. Vaseline Men will introduce new users to the male skin care segment and drive incremental category growth as more men take an interest in grooming and look for products specifically targeted to them."
According to Wilkinson Sword, Verdict Research forecasts that health and beauty will be the fastest growing retail sector in the UK in 2008, delivering nearly 3% more growth than the forecast 2.8% for total UK retail.
Elizabeth McGregor, marketing director of Energizer-Wilkinson Sword UK, says: "The total razors and blades market is in strong value growth at +7.0% and this is mainly driven by male systems and blades. Male system handles in particular have boosted overall market performance in the past year. In the female market, shaving is the most popular hair removal method and is used in 72% of occasions. Recent innovation in wet shaving focusing on products designed specifically for women has driven impressive category growth."
This year has seen the launch of Quattro Titanium Precision, Quattro Disposables and Intuition Plus Natural Care with Milk & Honey.
McGregor adds: "Premiumisation and repertoire are key trends we're seeing in the shaving market. Women are now seeking increased performance and quality from their razors and have the same high expectations as their male counterparts.
"In the disposable category, consumers are hungry for improved technology and the latest data shows that three-blade razors are performing well ahead of one and two-blade products, with growth of +14.7%. Wilkinson Sword is looking to capitalise on the consumer trend to trade up with the introduction of the 'worlds first' performance four-blade Quattro Disposable razor."
Procter and Gamble has also been looking at the female razor market with its Gillette Venus Breeze. According to P&G it became the number one selling razor in the UK with a 55% razor volume share after only 11 weeks.
Paul Lettice, trade communications manager for P&G, says: "Gillette is the UK's leading shaving brand, with a 75% value share of the category. Gillette Venus Breeze has already been well received by consumers since its trial launch in March and we expect additional activity around the new range to encourage women to trade up to a more premium razor."
According to P&G, the kids wipe category is worth nearly £13.5m in the UK, with Pampers Kandoo worth £6.6m alone, and there can be a more significant sales opportunity for retailers than most would think.
Lettice says: "The textured Pampers Kandoo Toilet Wipes provide a better clean than toilet paper and so are expected to be popular with parents. The brightly coloured Kandoo Handsoap should drive trial in-store and will encourage kids to clean their hands more thoroughly."
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=== Top Ten Biggest Selling Household SKUs ===
1. Domestos Bleach Liquid Thick 750ml
2. Mr Muscle Sink & Plug Liquid Gel 500ml
3. Dettol Antibacterial Spray 500ml
4. Dettol Disinfectant Liquid Brown 500ml
5. Flash Guard All Purpose Cleaner Lemon 500ml
6. Flash Guard All Purpose Spray with Bleach 500ml
7. Harpic Duraguard Toilet Cleaner Liquid Gel 750ml
8. Toilet Duck Active Liquid Gel Fresh 750ml
9. Cif All Purpose Cleaner Cream Lemfresh 500ml
10. Cillit Bang Grime & Lime Bathroom Spray 750ml
(Source: IRI 52 w/e Feb 23rd 2008)
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=== fast facts from unilever ===
1) The average shopper spends more than £100 a year on toiletries
2) Toiletries shoppers visit their local store more times per week and spend more than 30% per trip than the average convenience store customer
3) More men than ever are buying toiletries
4) Deodorant is the fastest growing area by value within the men's toiletries market, adding more than £20m of incremental sales in the past year and overtaking Razors & Blades as the largest part of the male toiletries market.
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