Reckitt adapting consumer mix more retracted in Brazil

The British consumer goods company Reckitt Benckiser (RB) set the portfolio in Brazil with economic version of your non-chlorine bleach for clothing Vanish. The category, inaugurated by the multinational in the early 2000, had years of strong growth in the country, favoured by increased purchasing power of the population and by high sales of washing machines, driven by reductions in the tax on industrialized products (IPI). With the change in the economic scenario, the segment's growth slowed.
Czech Jiri Kulek, who chairs the multinational in Brazil, comments that the macroeconomic moment is delicate. "The consumer has been struggling to reduce the costs and the volume of purchases to soften the impact of inflation on income," he says. Add to that the increased competition. "The market is very competitive, with great diversity of brands and a more critical consumer."
The sales volume of a stain stick rose 2.4 percent from January to July, compared with the same period in 2014. The growth is lower than the first half of last year, when the high was 7%. "The challenge for industry is to keep the category of a stain stick attractive and accessible to the consumer. The item is not a priority, as the disinfectant or SOAP, but with a good promotion or an economic package, the consumer tends to keep buying, "says Domenico Son, an analyst at research firm Nielsen. He claims that, after years of very positive for the cleaning sector, the entire industry grows less in 2015.
Worried about the new profile, Reckitt has strengthened the provision of larger containers in liquid version and options on the toolbar Vanish. The bar is designed to slice of the population without washer-near 50%. Is the cheapest item in the portfolio of Vanish, with price of $ 3.19, and can be used for washing and spot removal.
The SOAP stone is still bought by 80% of Brazilian families of class C at least once a year. So, with the stain stick in barra, which recently won a White version, the marks Vanish reached 3 million homes. According to the company, this format already represents 4.5% of the market of non-chlorine bleaches. Another novelty was the Vanish Pink and White in a refill Vanish 900 ml, which allows most competitive price, $ 10.99. The most expensive item of the entire brand portfolio costs close to $ 34.
"The main strategy is to remain essential to the consumer, which resists the decrease its basket of products, but does not hesitate to change, try brand new, even more in this scenario," says Jiri Kulek, who is also Vice President of Reckitt for Latin America.
The Home Products Division accounts for 19% of Reckitt's revenues in the world-the company also manufactures the cleaner Look and the environment Air Wick air freshener. The hygiene unit, which has lines such as Dettol (antibacterial soap), contributes 42% of sales. The health business represents 32% slice, with items like Durex condoms and KY jelly. Overall net revenue totaled $ 8,84 billion in 2014.
Anglo-Dutch Unilever entered the segment of non-chlorine bleaches in Brazil in April 2014, with the Omo Get stains. Fernando Fernandez, President of the Brazilian subsidiary, said at an event last week that performance is encouraging and the market has potential to grow in the coming years, but did not mention numbers.
After Reckitt, the biggest competitors in the category of a stain stick, by revenue, are Brazilian Orval, owner of the Semorin brand, and the American Amway, according to data from Euromonitor.
Experts believe that the category will increase its presence in Brazilian homes, but will lose speed in the short term, due to the macroeconomic scenario. According to Nielsen, the sales slowdown may intensify until December, but without a retraction. In 2014, the thread progressed 4.9% in volume. Annual net revenue of $ 680 million.
The Brazil is the sixth-largest market for stain stick in the world. Climbed three places compared to 2009. The ranking is led by United States, China and United Kingdom. The Euromonitor projects annual growth of 7.7% of revenue in the segment to get spots on Brazil for 2014 to 2019 to $ 168,5 million.