April 5, 2009 – Filipinos are not only reducing their spending on laundry detergents, they are also shifting to lower-priced brands.
Market leader Procter&Gamble (P&G) Philippines, however, does not just attribute this trend to the global economic crisis that started last year. P&G president and general manager James Lafferty said the Philippine laundry detergent market has been declining in volume since April 2006.
Lafferty noted that Filipino households’ have been cutting costs to make the most out of their limited resources. He said consumers are now increasing their laundry loads while using the same amount of detergent, resulting in the 5 percent decline in the detergent market compared with levels three years back.
P&G is the maker of laundry brands Tide, Ariel and Mr. Clean, and continues to hold a 37-percent share of the shrinking local market.
Of the various fast-moving consumer goods that contribute to P&G’s estimated P30 billion revenues a year, laundry care products account for some 50 percent. Products sold in sachets and other small packages account for 70 percent of its total laundry brands sold.
Yesterday, P&G announced that it will be spending over P1 billion on a new packaging initiative that is seen as an effort to defend the company’s leadership in the laundry care category, where target consumers are also shifting to affordable brands.
The company said its new packaging, called ‘Taba’ (fat), will help consumers cope with the economic downturn by giving as much as 35 percent more of its laundry powder products at the same price. Taba will be available for Tide, Ariel, and Mr. Clean.
“When consumers reduce their consumption of detergent, it stresses the technology in (their wash load). We want to give consumers more at the same price,” Lafferty said.
Aside from the new initiative, Lafferty said P&G is cutting down on petroleum dependency and reducing operational expenses in its plant in Cabuyao, Laguna. This move, he said, will pass company savings to consumers.
The Mr. Clean brand is currently sold at P5.50 per sachet, Tide at P8.50 and Ariel at P10 and P12.