In 2012 value growth was only marginally above that of 2011. This increase was due to the introduction of more value-added product which led to an increase in unit prices. Nonetheless, strong promotional pricing activity created a dampening effect on home care value sales.
Convenience a key factor for consumers with busy lifestyles
The convenience factor remained paramount as super concentrates and portion controlled products (utilising single-serve pack sizes) were introduced to take the guesswork out of home care cleaning chores. Products which are easy to dispense, simple to use and that are disposable and efficient have made inroads into traditional home care product categories.
Domestic companies perform well
Despite multinationals continuing to dominate in home care, domestic companies have performed well and remain innovative. The top three home care companies were Reckitt Benckiser New Zealand Ltd, Colgate-Palmolive Ltd and SC Johnson & Son (New Zealand) Ltd. Together they contributed to over half the home care value sales in New Zealand in 2012. However, local companies such as Quantum Pacific Ltd and Ecostore Ltd have performed well and continued to gain value share in a number of categories.
Supermarkets continue to dominate
Supermarkets was the main distribution channel for home care products and accounted for nearly all of the home care sales in New Zealand in 2012. All other channels remained insignificant; however internet retailing did experience a growth in sales as leading retailers such as Countdown and The Warehouse offer online purchasing. In addition, smaller home care companies also offer internet retailing, particularly local domestic manufacturers.
Innovative products to drive growth
Home care is expected to see a moderate performance in value terms over the forecast period, with constant value sales set to see positive growth compared to the decline seen over the review period. The main driver of growth expected over the forecast period is innovative products that make home care cleaning more convenient and efficient, with value-added products commanding higher retail prices.
Republished with permission from Euromonitor Market Research Blog, originally posted on July 2013