Toothpaste manufacturers adapt to changes in the consumption

Sao Paulo-the reflections of economic crisis impact the production of toothpaste in the country. In addition to a smaller demand, the hygiene industry comes greater interest in more packaging noting, say industry experts.
A survey of the consultancy Kantar Worldpanel: consumer shows that in the last 12 months, until March, the frequency of purchases of Brazilian had 11 times a year drop to 10.5 times. In addition, consumers seek more and more economic versions of toothpaste, says an analyst with Kantar, Marina Albuquerque.
"No one can stop using toothpaste, but in addition to buy less, consumers are also seeking cheaper items. The packaging of 70 grams, for example, sold more during the last few months, "he says.
In her view, the trend is that the Brazilian opt for more basic products, such as those that offer only anticáries protection. "The whitening category only improves in relation to packaging with more than 180 grams, because the consumer says the cost-benefit of taking a product that is considered better in a larger quantity. But, in General, is a segment that suffers a lot during the crisis, "says the analyst. Consulting data indicate a fall of 17.5% in sales of packages of 70 grams of bleaching creams until March 2016.
The marketing manager of Suavetex, Jonas Lima, reveals that to realize this shift in consumer behavior, the manufacturer of the toothpastes Happy decided to invest more in economic packages. "In an economy that''s wrong, consumers want choices, and that''s why we are offering cheaper packages, such as those of 180 grams," he said.
According to the analyst, the second half of 2016 will be a little better. But it is too early to define when this sector may resume the sales level of before the economic crisis in the country. "We have already noticed some improvement, but it''s small. Will still take time to get back to levels of consumption seen about four years ago, "says Marina.
In this sense Jonas Lima believes the Suavetex can stand out for position in an intermediate category. "Our opportunity is in crisis, when the public migrates from one brand to another. We offer prices up to 20% smaller than the leading brands, which ensures a good performance given the current economic circumstances, "says.
The Suavetex also produces items for companies such as Oral-B and the Dentil.
Niche
The Executive also that, on the current economic framework, the Suavetex managed to score the presence with the launch of an organic toothpaste, with reduced amount of chemical agents and free of animal components. "Not even our tests are performed on animals."
According to him, the focus is vegan and people concerned about health. "This is a very specific niche and little explored in Brazil. We are filling a gap in the market, "says Lima.
Despite this, he says that the challenges of producing organic toothpaste is the high value of the raw materials. "Even if they are natural products of brazilian origin, most of them are processed in laboratories outside of the country and launch something requires planning," says Lima.
The Executive avoided talking about numbers, but ensured that the Suavetex will continue investing in that niche during the second half of this year. "It''s a straight investment for our company," sets.
Another that warrants have escaped the fall in sales by investing in natural toothpastes is Boni Brazil, which produces folders, brushes and rinse.
"We escaped the crisis by releasing something that didn''t exist yet, because the novelty is always a good output in health and beauty market," added the marketing coordinator of the Boni, Gabriela Augusto.
She estimates that the past year has been difficult for all sectors of the economy, but that the focus on a niche again resulted in positive performance.
Childish
Gabriela also stresses the demand in the child thread. "Despite the tendency of purchase of one item for all the family, the children is specific because of the burning and unpleasant taste of some toothbrushes for children''s taste," says Gabriela.
Powerdent, which already manufactures creams only to children, can ensure a better result with the licensing of trademarks, according to the Director of the company, Angelo Lloret.
Last year, the R$ made just 421,000 Powerdent with sales of toothpaste of characters such as wonder woman and Penelope PitStop. "The target for 2016 is reaching out to 520,000 R$ investing in expansion of that line," the Director of Powerdent, clarifying that the segment represents only 5% of sales, but the goal is to reach 9% by the end of this year. Currently, the company produces about 100000 units in child folder line, but wants to reach 120,000 by the end of this year.
Angelo Lloret plans to also join the toothpaste segment to adults in 2017. "But at the moment the focus is to launch other items for children" strengthens the Executive.
"I''m not going to say that the economic crisis has passed unnoticed, but focus on a single public assured us good results and competitiveness in relation to other products available in the market".
The industry giants are also strengthening their presence in the children''s sector. Procter Gamble, owner of the brand & Oral-B, recently launched Disney characters, with emphasis on the Star Wars franchise.
Through its press office, the P&G claims to have retrieved from "stable results in your first semester", offering higher value-added products to increase the average ticket category, the "great opportunity" segment.
According to the report global results of the second fiscal quarter (ending March), the company was found "challenging macroeconomic conditions and a lower availability of income" in the markets of Brazil and Argentina.
However, since last year the industry giant comes registering low performance in the Brazil operations, Japan and Russia. During the dissemination of results of 2015, the P&G Administration pointed out that the slowdown of the economy of these countries and the political instability in Latin America could erode the company''s operating margin and reduce the number of sales.
Ever the competitor Colgate reported in late April, in financial balance, which kept the market leadership of toothpastes in Latin America beginning in 2016, supported by gains in Brazil and in Argentina. According to the company, the emphasis is on higher value-added products.