Brazilian Exchange favorite brand of cleaning products for lower price

In 2016, eight out of ten consumers have traded the cleaning product used to use for lower priced brands, such as direct effect the fall of income caused by the economic crisis. Economic packaging represented on December 18% of consumer spending, up 2.2 percentage points over the past year.
The reduction in purchasing power due to unemployment and the containment of expenditure of households is the most important factor to determine the performance of the sector, says Antonio Cabrera, President of the Abipla (Brazilian Association of the Industry of cleaning products and the like). Despite the fall in volume of 4.6% in the 12 months until August, the good news is that the purchase of specific products, such as surface cleaners and cleaning toilets, items is growing. Are more sophisticated and higher average price, which raises the profitability of manufacturers.
The high price range marks lost importance in 19 of the 24 categories analyzed by Nielsen. Their representativeness in volume fell from 46.8% to 44.2% of the basket. Products of mid-tier price climbed 28.1% to 29.1% of the basket and the cheapest grew 1.6 percentage point, to 26.7%.
To tackle the economic crisis, the economic packages have gained relevance in the purchase of 46% of the segments. The laundry SOAP to 2 to 5 kg gained importance, as well as the softener in packs of 5 litres, in the case of diluted, and 1 litre to 1.5 litre in focused, says Domenico Son, an analyst at Nielsen.
The purchases were more planned in 2016. The supply represented 43.3% of purchase occasions in June this year, up from 40.7% in the same month of 2015. Emergency or impulse buying fell from 4.5% to 2.8%. The importance of value of the average marks of 28.1% for value rose 29.1% compared to the previous year. Low-value items have increased from 25.1% to 26.7%.
The Brazil is the fourth largest market in the world after cleaning USA, China and Japan. The country has gone up four positions since 2010. The cleaning products market in Brazil totaled $5.8 billion in 2015, according to Euromonitor International, and should reach $8.1 billion by 2020.
Over the next five years, the industry should grow less in volume and more in value, because consumers should invest in more specific products of higher value.
Cabrera, Director of Corporate Affairs Unilever, has three priorities ahead of the Abipla: reduce informality, simplify taxation and set standards for the products concentrated and compressed.
Anvisa (national health surveillance Agency) has 2300 companies registered in hygiene and cleaning products, but the real market is estimated at almost triple: 7000. The informality is one of the main problems in the industry, because the illegal products are sold at lower prices, taking companies market formalized.
Tax simplification is another flag of Association common rates of VAT applied (tax on circulation of goods and services) and reduction in the IPI (tax on industrialized products).
Responsible for savings of up to 78% water and reduction of up to 71% of carbon dioxide emissions, according to data of the companies in the sector, concentrated and compact products are considered a trend, but need standardization.