Store Brands

APR 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Category Intelligence: Household Cleaning and Laundry Care Products 7 6 Store Brands / April 2016 / www.storebrands.info Make it effective, convenient Retailers could spur growth within the store brand household cleaning and laundry care segment by appealing to consumers' changing needs. By Bryan Salvage lthough washing the laundry and cleaning the house will never top the lists of things most consumers enjoy doing, products that make both chores easier and more effective are appreciated. And new product development efforts, including those on the store brand side, could help satisfy Americans' growing and evolving range of cleaning needs — and reinvigorate sales. Sales within the home laundry care segment have been falling. Between 2010 and 2015, the category experienced declining sales almost every year, dropping 3 percent in current dollars and 12 percent on an inflation-adjusted basis to $12.4 billion, states "Home Laundry Products U.S.," an August 2015 report from global marketing research firm Mintel. Household surface cleaner sales, on the other hand, increased 4 percent to $4.7 billion between 2009 and 2014, relays Mintel's November 2014 "Household Surface Cleaners U.S." report. Segments offering quick cleanup and disinfection, including all-purpose cleaners and disposable wipes, achieved modest gains that were partially offset by declines in more labor-intensive segments, Mintel says, such as tub/tile cleaners and furniture polish. Changing preferences Laundry detergent represents nearly two-thirds of total home laundry product sales. But declines for detergent — driven by continuing retail price competition, the growth of single-dose detergents and an increasing number of high- efficiency washers — have eaten into the small gains in all other (non-detergent) home laundry segments combined, Mintel relays. Liquid detergent remains the most popular form, used regularly by almost three-quarters of adults who at least sometimes do their own laundry. And consumers under the age of 44 are adopting single-dose detergents far more often than their elders, which indicates that pods could continue to gain. About one-sixth of Mintel's study respondents indicate they regularly use in-wash scent boosters, which are closely aligned with regular fabric softeners. The hike in in-wash scent booster use, however, may be linked to decreasing liquid fabric softener sales, which some consumers use primarily to boost fragrance. Consumer migration to liquid unit-dose products is the most significant trend impacting the laundry care segment, says Eddie Greenstein, director of sales, Detergent 2.0 LLC, New Brunswick, N.J. "It's the fastest-growing segment in the category, and it enables enormous savings and efficiencies for the brands, retailers and consumers," he adds. "Powder unit dose in laundry is a cheater-type product. It looks like the real thing, but does not come close in efficacy despite its vastly lower cost to produce." Drew Harrison, president, Value Smart Products Inc., Suwanee, Ga., cites scent boosters as the hottest laundry-care segment trend. Detergent tablets and in-wash scent boosters have driven growth in laundry care in recent years, agrees Ryan Tuttle, research analyst for London-based market research firm Euromonitor International. "In-wash scent boosters have been a particularly big hit as consumers look to infuse their laundry with fresh scents, while detergent tablets have become particularly popular due to their Do consider consumers' concern for child safety in new product development. Don't forget to emphasize fragrance variety and duration for store brand in-wash scent boosters. i n a p d r o a e i s m b w

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