“The increasing awareness about the advantages of using liquid detergents and steadily rising disposable incomes are leading to high penetration of liquid detergents in households globally. Vendors are experimenting with fragrances, natural ingredients and other ways to improve the effectiveness of their products,” said Arushi Thakur, an industry expert from Technavio who specializes in research on cosmetics and toiletry sector.
According to Technavio, the top three emerging market trends driving the global liquid detergent market are:
• Marketing initiatives;
• Introduction of liquid laundry detergent pods; and
• Growth in online retail for personal care products.
While vendors in the market continue to invest in regular marketing activities, they are also focusing on strategies to attract regional customers, according to Technavio. In APAC, vendors are using push marketing strategy by making consumers aware about their products to increase their penetration rates in households. One of the ways they do this is through the distribution of free samples of products to make consumers try their products. For example, Unilever distributes free samples of its Surf liquid detergent sachets to encourage consumers to try their products. The boom in organized retail in key countries in the APAC region has helped vendors use point-of-sale promotions by having a specific counter and dedicated sales staff to promote products.
“In developed countries like the US, vendors are using the product-bundling strategy, offering price discounts on the purchase of a bundle of a brand’s different product lines of laundry care products, which includes detergent, fabric conditioner, and stain removers,” said Thakur.
The introduction of liquid pods by the leading players has had a great impact in the global market, and the trend is not likely to decline soon, despite some concerns regarding children’s exposure to pods in the US. Manufacturers have already taken protective measures such as changing the product packaging to protect children.
E-retailing is the fastest-growing distribution channel in the global liquid detergent market, according to Technavio. The growing number of online websites that offer a wide range of liquid detergent products has increased the demand for these products, especially among working parents who seek easy accessibility and convenience.
More info: www.technavio.com