UK-based consumer goods major Reckitt Benckiser (RB) is focusing on innovation to drive premiumisation with an aim to strengthen position in the laundry segment. The maker of Vanish has re-launched its product in “All-New avatar” that appears to compete directly with the detergent products from the house of Procter & Gamble (P&G) as well as Hindustan Unilever (HUL).
“We see a huge scope for premiumisation with more consumers looking for products with higher benefits driven by rising income,” said Sukhleen Aneja, marketing director, South Asia RB Hygiene Home. This encourages the company to bring premium solutions for its other global power brands such as Dettol, Harpic, Lizol, Mortein, in Indian markets as well, she added.
Data from Bain & Company suggests that there will be nearly USD 2 trillion of incremental spend on affordable, mid-priced offerings by 2030, in parallel with USD 2 trillion incremental spends, led by consumer upgrading to premium offerings or adding new categories of consumption.
With more working couples with hectic schedules than ever before here, the laundry service market in India is expected to be a big bet for consumer goods companies. Within home and personal care space, laundry is the biggest segment and HUL and P&G together control more than half the market with brands such as Surf, Rin, Ariel and Tide. “HUL has reshaped the market significantly to premium in all segments. In the laundry segment, the premium portfolio has been increased to 22 per cent in 2018 from 17 per cent in 2011,” Priya Nair, executive director, home care pointed out in a presentation. Meanwhile, upgradation of its product portfolio in the mid-segment has been deliberately kept low at 21 per cent in 2018 from 25 per cent in 2011.
Meanwhile, a relatively new entrant Kishore Biyani's Future Consumer has declared a war against rivals following its foray in the detergents space. According to the company, its just-launched detergent brand Voom would be priced around 30 per cent cheaper than products of HUL and P&G. It, however, remains to be seen how the new entrants place themselves over the next few years in this highly penetrated category worth about Rs 24,000 crore.