Home Care in the United Arab EmiratesReport SummarySlower growth for home care as the effects of the recession persistThe fallout from the global financial crisis is still taking its toll on the home care industry in the UnitedArab Emirates although the economy is on the verge of recovery. The post-crisis impact has been asmaller population and weaker population growth, trading down to cheaper brands and lowerconsumer confidence. Nevertheless, 2010 marked an improvement in the economic climate and in thehome care industry compared to the previous two years, thanks partly to the efforts made bymanufacturers and retailers in terms of product innovation and discounting and marketing activity inan effort to improve consumer confidence.Manufacturers concentrating on product innovation to stimulate salesAs the United Arab Emirates home care market has not fully recovered from the fallout of theeconomic downturn, manufacturers have relied on product innovation to stimulate growth. Firstly,manufacturers have started focusing on the convenience factor as evidenced by the expansion ofconcentrated fabric softeners and growing demand for specialised products, thus moving away frommixing bleach and other economy-type products. Secondly, growing environmental awareness hasspurred the emergence of green products, which has been witnessed in laundry care for example.Thirdly, rising health awareness has come to benefit brands offering maximum protection from germsand viruses.Multinationals extend their offerings while private label products enter the mainstreamMultinational companies/brands continue to lead all home care categories, emphasising their well-established presence in the United Arab Emirates, high quality, product innovation and reasonablepricing for most products, while domestic products are finding it difficult to compete with thesebrands. On the other hand, post-crisis price-consciousness has led to trading down to cheaper brandsand more importantly the rise of private label products into the mainstream. This rising competitionfrom private label products has not posed a threat to domestic manufacturers as they havecollaborated with the leading grocery retailers to produce their respective private label lines.Supermarkets/hypermarkets lead distribution and influence home care salesIn the United Arab Emirates where traditional retailing has a minor presence,supermarkets/hypermarkets continued to be leading distribution channel for home care products overthe review period and in 2010. In addition, these outlets influence purchasing decisions and marketgrowth in many ways, for example through discounting. Rising costs of production and constructiontowards the end of the review period, along with product innovation and the launch of value-addedproducts, have all led to higher average unit prices. However, discounting activities, launched jointlybetween manufacturers and retailers, partly offset these rising prices.
Lower growth forecast, albeit alongside rising sophistication and premiumisationAs the effects of the economic slowdown fade over the forecast period, home care is expected towitness steady growth although this will be lower than that seen over the review period in light of thesmaller population and weaker population growth. Following a period of trading down to cheapereconomy brands and private label products, the market is expected to witness rising premiumisationand sophistication over the forecast period, manifested by buoyant demand for green products forexample. Against the historical trend among low and some mid-income earners of mixing bleach withother products for use around the house, rising awareness is likely to drive growing demand for task-specific home care products.TABLE OF CONTENTSHome Care in the United Arab Emirates - Industry OverviewEXECUTIVE SUMMARYSlower growth for home care as the effects of the recession persistManufacturers concentrating on product innovation to stimulate salesMultinationals extend their offerings while private label products enter the mainstreamSupermarkets/hypermarkets lead distribution and influence home care salesLower growth forecast, albeit alongside rising sophistication and premiumisationMARKET INDICATORSTable 1 Households 2005-2010MARKET DATATable 2 Sales of Home Care by Category: Value 2005-2010Table 3 Sales of Home Care by Category: % Value Growth 2005-2010Table 4 Home Care Company Shares 2006-2010Table 5 Home Care Brand Shares 2007-2010Table 6 Penetration of Private Label by Category 2005-2010Table 7 Sales of Home Care by Distribution Format: % Analysis 2005-2010Table 8 Sales of Home Care by Category and Distribution Format: % Analysis 2010Table 9 Forecast Sales of Home Care by Category: Value 2010-2015Table 10 Forecast Sales of Home Care by Category: % Value Growth 2010-2015DEFINITIONSSummary 1 Research SourcesHome Care in the United Arab Emirates - Company ProfilesDitra Sitra (Dubai) in Home Care (United Arab Emirates)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 3 Ditra Sitra (Dubai): Competitive Position 2010Gulf Centre for Soap & Chemical Industries LLC in Home Care (United Arab Emirates)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTION
COMPETITIVE POSITIONINGSummary 5 Gulf Centre for Soap & Chemical Industries LLC: Competitive Position 2010Air Care in the United Arab Emirates - Category AnalysisHEADLINESTRENDSDespite the decelerating growth of spray/aerosol air fresheners, new product launches in electric airfresheners drove the category forward in 2010. Spray/aerosol air fresheners have started to lose shareto slow-release variants such as electric air fresheners and gel air fresheners, which offer greaterconvenience to increasingly busy consumers. This trend was quite common among high-incomeearners, with some trial purchases also coming from mid-income households.COMPETITIVE LANDSCAPEReckitt Benckiser led air care in 2010 with a 28% retail value share thanks to a strong portfolioincluding both Air Wick and Dettol, which enjoy considerable brand loyalty. Both brands benefitedfrom product innovation and growing demand for electric air fresheners and gel air fresheners. AirWick benefited from its regular in-store promotions and new product developments, the latest ofwhich included Freshmatic with Freshmatic i-motion and Freshmatic Compact i-motion. The company’sflagship brand benefited from its positioning across home care as one of the most efficient brands inkilling germs and viruses. Regular in-store promotions fuelled demand for both Dettol Neutra AirAerosols and Freshmatic.PROSPECTSAir care is expected to see stronger growth rates once the economy recovers. In line with this,manufacturers are likely to step up their efforts in terms of new product launches, coupled withintense marketing support in the form of advertising and promotions. Nevertheless, the category willfail to experience growth rates similar to those of the review period as many consumers are becomingmore conscious of hygiene standards and prefer to eliminate the causes of odours, and therefore willnot need air fresheners as much as they did previously.CATEGORY DATATable 11 Sales of Air Care by Category: Value 2005-2010Table 12 Sales of Air Care by Category: % Value Growth 2005-2010Table 13 Air Care Company Shares 2006-2010Table 14 Air Care Brand Shares 2007-2010Table 15 Forecast Sales of Air Care by Category: Value 2010-2015Table 16 Forecast Sales of Air Care by Category: % Value Growth 2010-2015Bleach in the United Arab Emirates - Category AnalysisHEADLINESTRENDSOn the one hand, bleach continues to be viewed negatively by many consumers on account of itsadverse effect on clothing. On the other hand, bleach remains a mainstay category in home care, wellsupported by its efficiency in killing germs and viruses and its low unit price. Firstly, bleach, andespecially a brand like Clorox, has been positioned as an efficient product in terms of killing germs andviruses, which proved a strong selling point amid the outbreak of the H1N1 pandemic in 2009.Secondly, tough economic conditions have sustained the usage of bleach along with other productsused in cleaning ‘cocktails’ which can compete directly with specialised products such as bathroomcleaners etc.COMPETITIVE LANDSCAPEAbu Dawood Industrial Co extended its lead in bleach in 2010 with a retail value share of 43%, up half apercentage point on 2009. The company’s Clorox brand elicits strong customer loyalty in the United
Arab Emirates to the extent that most consumers refer to bleach as Clorox. In addition, the brand’sshare increased particularly in 2009 as consumers focused on purchasing products that promised thegreatest protection against germs and viruses, and Clorox – along with Dettol – is widely perceived asone of the most efficient brands in this area. Oman’s National Detergent Co remained in second placewith a retail value share of 17% through its Javex brand, while Reckitt Benckiser ranked third with ashare of 10% via its Jik brand.PROSPECTSAlthough there is little awareness of the hazards associated with the use of bleach, it is widelyanticipated that the forecast period will witness strong company activity in terms of launching greenbleach products. The environmental credentials of home care products are still not as important in theUnited Arab Emirates as they are in Europe or the US, and green products will accordingly be launchedin the United Arab Emirates as niche products not yet designed to appeal to the mass population.Higher usage of green products is expected among high-income earners.CATEGORY DATATable 17 Sales of Bleach: Value 2005-2010Table 18 Sales of Bleach: % Value Growth 2005-2010Table 19 Bleach Company Shares 2006-2010Table 20 Bleach Brand Shares 2007-2010Table 21 Forecast Sales of Bleach: Value 2010-2015Table 22 Forecast Sales of Bleach: % Value Growth 2010-2015Dishwashing in the United Arab Emirates - Category AnalysisHEADLINESTRENDS2010 saw green products and private label enter the mainstream, with the category’s dynamism drivenby new product developments in both areas. Green dishwashing products had been introduced in2009 with the arrival of brands like Clorox Green Works and Ecover. However, the penetration of theseproducts was limited to the tune of 5% and to Western expatriates. Consumer awareness ofenvironmental issues still does not compare with Western standards, but growth prospects are thereand have reflected upon demand for green dishwashing products. On the other hand, the globalfinancial crisis resulted in rising cost-consciousness among many consumers, who started trading downto cheaper dishwashing products to tackle the economic downturn. Such demand has been met by agrowing supply of dishwashing products, mostly hand dishwashing, from leadingsupermarkets/hypermarkets.COMPETITIVE LANDSCAPEProcter & Gamble Gulf FZE led dishwashing products in 2010 with a retail value share of 49%,benefiting from strong consumer loyalty to the Fairy brand and the company’s longstanding presencein the market. During 2010, Fairy maintained its regular promotional offers to stave off competitionfrom archrivals Lux, Pril and Dac. Promotional offers either took the form of 15% additional volume orthree packs for the price of two. The Fairy brand also continued to offer a diversified portfolio ofstandard and premium variants. In addition to its flagship Fairy Original standard brand, premiumproducts include Fairy Antibacterial Action, Fairy Dishwasher Tablets and Fairy Clean & Care.PROSPECTSAutomatic dishwashing is expected to flourish over the forecast period thanks to the rising householdpenetration of dishwashers and increasingly busy lifestyles. The former reliance on domestic help willcontinue to decline over the forecast period as consumers look to cut costs, a factor that will drivedemand for automatic dishwashing products. Manufacturers will in turn realise the potential of thiscategory as dishwasher penetration grows, introducing a wider variety of products to the market.
CATEGORY INDICATORSTable 23 Household Penetration of Dishwashers 2005-2010CATEGORY DATATable 24 Sales of Dishwashing by Category: Value 2005-2010Table 25 Sales of Dishwashing by Category: % Value Growth 2005-2010Table 26 Dishwashing Company Shares 2006-2010Table 27 Dishwashing Brand Shares 2007-2010Table 28 Forecast Sales of Dishwashing by Category: Value 2010-2015Table 29 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015Insecticides in the United Arab Emirates - Category AnalysisHEADLINESTRENDSDespite rising health and environmental awareness, spray/aerosol insecticides continued to accountfor the majority of overall sales in 2010. However, this dominant category posted a weaker growth ratethan in 2009 as consumers either shifted to sophisticated and healthier alternatives or resorted toperiodic pest control. Other consumers not concerned about health issues remained fairly satisfiedwith existing products.COMPETITIVE LANDSCAPESC Johnson & Son Inc continued to lead insecticides in 2010 with a retail value share of 42% thanks toits Raid and Baygon brands which both enjoy strong consumer loyalty in the United Arab Emirates.Nevertheless, neither Raid nor Baygon were the best-selling brand, with this position held by Pif Paffrom Reckitt Benckiser. In addition to the presence of both Raid and Baygon in the mainstayspray/aerosol category, both have expanded into electric formats. In the spray/aerosol category, bothbrands benefited from odourless launches, which are very much in demand amidst rising healthawareness. Reckitt Benckiser ranked second with a retail value share of 31% thanks to its Pif Paf brand.PROSPECTSThe insecticides category is expected to be influenced by rising health consciousness over the forecastperiod. As people become more and more concerned about protecting themselves and their familiesfrom insects and insect-related health problems, demand for insecticides and pest control is expectedto increase. Manufacturers in turn are expected to tap into this health awareness with productinnovation revolving around natural ingredients and odourless functionality.CATEGORY DATATable 30 Sales of Insecticides by Category: Value 2005-2010Table 31 Sales of Insecticides by Category: % Value Growth 2005-2010Table 32 Insecticides Company Shares 2006-2010Table 33 Insecticides Brand Shares 2007-2010Table 34 Forecast Sales of Insecticides by Category: Value 2010-2015Table 35 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015Laundry Care in the United Arab Emirates - Category AnalysisHEADLINESTRENDSAs the United Arab Emirates’ economy had not fully recovered from the effects of the global financialcrisis in 2010, manufacturers relied on product innovation to stimulate sales. On the one hand, thepost-crisis impact of trading down to cheaper brands prevailed in 2010 for the second year in a rowand private label gained from the country’s economic climate, but only at the expense of secondaryand tertiary brands. On the other hand, primary brands maintained their grip over laundry care andrelied heavily on product innovation to retain their lead. There was a remarkable push by leading
multinational manufacturers in the areas of concentrated liquid fabric softeners and fine fabricdetergents. Firstly, 2010 marked the strong arrival of concentrated liquid fabric softeners fromarchrivals Comfort and Downy in a move to gradually drive consumers away from standard softenerstowards concentrated formats. Secondly, manufacturers capitalised on the earlier launch of fine fabricdetergents like Persil Abaya Shampoo, which was replicated by other manufacturers, and alsolaunched products specifically for other garments.COMPETITIVE LANDSCAPEProcter & Gamble Gulf FZE retained its lead in laundry care in 2010 with a retail value share of 57%,down slightly from the previous year. The company’s dominance can be attributed to its wide productportfolio which enjoys strong customer loyalty. This portfolio mainly includes Ariel and Tide in laundrydetergents and Downy in fabric softeners. In addition to the good positioning of these brands, Procter& Gamble Gulf FZE continued its advertising and promotional activities in 2010, notably runningseveral promotional offers on Ariel and Downy to meet the demands of cost-conscious consumers.Although there was some trading down in 2010, this trend mostly took its toll on secondary andtertiary brands rather than established brands like those from Procter &Gamble. Henkel Dac andBinzagr Lever Ltd followed in second and third place with retail value shares of around 8% each thanksto the popularity of their Persil and Omo brands, respectively.PROSPECTSThe underlying forecast trend is that laundry care will experience some degree of premiumisation andsophistication. In addition to the rise of green products, the category can expect some trial purchasesof detergent tablets and liquid detergents as economic conditions improve. All of these greenproducts, detergent tablets and liquid detergents were launched towards the end of the review period;however, low consumer spending has deterred their penetration beyond Western expatriates. It isanticipated that the general appreciation of green products and rising environmental awareness willsupport their performance over the forecast period. Product innovation and continuous marketingactivities are likely to be key factors triggering demand for these premium and sophisticated products.CATEGORY INDICATORSTable 36 Household Penetration of Washing Machines 2005-2010CATEGORY DATATable 37 Sales of Laundry Care by Category: Value 2005-2010Table 38 Sales of Laundry Care by Category: % Value Growth 2005-2010Table 39 Sales of Laundry Aids by Category: Value 2005-2010Table 40 Sales of Laundry Aids by Category: % Value Growth 2005-2010Table 41 Sales of Laundry Detergents by Category: Value 2005-2010Table 42 Sales of Laundry Detergents by Category: % Value Growth 2005-2010Table 43 Laundry Care Company Shares 2006-2010Table 44 Laundry Care Brand Shares 2007-2010Table 45 Laundry Aids Company Shares 2006-2010Table 46 Laundry Aids Brand Shares 2007-2010Table 47 Laundry Detergents Company Shares 2006-2010Table 48 Laundry Detergents Brand Shares 2007-2010Table 49 Forecast Sales of Laundry Care by Category: Value 2010-2015Table 50 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015Polishes in the United Arab Emirates - Category AnalysisHEADLINESTRENDSThe economic recession and lower consumer spending following the financial crisis have led to lower
expenditure on polishes. Consumers have re-categorised their shopping needs following the crisis, withmany products like polishes regarded as unnecessary by certain consumers.COMPETITIVE LANDSCAPESC Johnson & Son Inc led polishes in 2010 with a 21% retail value share as its furniture polish enjoysstrong brand loyalty. In addition to the mainstay aerosol can, its Pledge brand has benefited from itsavailability in other formats such as Pledge Multi Surface Cleaner and Wipes. Zetra BV ranked secondin 2010 with a retail value share of 19% thanks to the popularity of its Kiwi brand, the best-selling inshoe polish.PROSPECTSDemand for polishes is expected to continue to rise over the forecast period. As the economy recovers,consumer confidence will improve and consumers will be encouraged to start spending again onpolishes, a category they regarded as unnecessary towards the end of the review period. Theperception of polishes as unnecessary and premium products is not anticipated to change over theforecast period. In addition to the current lack of advertising and product innovation, demand will behit by the currently low consumer confidence that is expected to be maintained into early 2011.CATEGORY DATATable 51 Sales of Polishes by Category: Value 2005-2010Table 52 Sales of Polishes by Category: % Value Growth 2005-2010Table 53 Polishes Company Shares 2006-2010Table 54 Polishes Brand Shares 2007-2010Table 55 Forecast Sales of Polishes by Category: Value 2010-2015Table 56 Forecast Sales of Polishes by Category: % Value Growth 2010-2015Surface Care in the United Arab Emirates - Category AnalysisHEADLINESTRENDSAlthough the H1N1 virus outbreak reached its peak in 2009, household hygiene concerns continued toincrease in 2010. This accordingly drove up sales of surface care products and created a naturalmarketing opportunity, although the category’s major players have not capitalised on such epidemics.Since 2009, consumers have become more diligent about cleaning their homes. They have startedfocusing on products offering the maximum protection from germs and viruses. The category’s positivegrowth was also aided by the entrance of green and private label products into the mainstream. Thelaunch of Clorox Green Works in 2009 has been instrumental in the emergence of green products, andother players followed suit in 2010. On the other hand, the fallout from the economic slowdownhelped private label to advance as consumers increasingly appreciated their balanced price/qualityratio.COMPETITIVE LANDSCAPEReckitt Benckiser extended its lead in surface care in 2010 with a retail value share of 34%, chieflyowing to its Dettol brand which enjoys strong consumer loyalty. Dettol is well positioned as theundisputed leader in household antiseptics/disinfectants to the extent that some consumers use theterm Dettol to refer to households antiseptics/disinfectants. A perception has built up over the yearsthat brands like Dettol and Clorox are the most efficient at killing germs and viruses, and the outbreakof the H1N1 virus in 2009 has solidified Dettol’s position. The latter has been aided by consumersseeking maximum protection against germs and viruses rather than by consumer informationcampaigns. Henkel Dac remained in second place in 2010 with a stagnant retail value share of 13%,followed by Abu Dawood Industrial Co in third with a 10% share.PROSPECTSThe rise of green and private label surface care products will progress over the forecast period. On the
one hand, the success of Clorox Green Works has set the pace for the entrance of green products intothe mainstream. As long as environmental awareness is growing, demand will remain buoyant forthese products. On the other hand, consumers have already gained confidence in private labelproducts, and the private label movement is set to expand over the forecast period to cater for lowand mid-income earners.CATEGORY DATATable 57 Sales of Surface Care by Category: Value 2005-2010Table 58 Sales of Surface Care by Category: % Value Growth 2005-2010Table 59 Surface Care Company Shares 2006-2010Table 60 Surface Care Brand Shares 2007-2010Table 61 Forecast Sales of Surface Care by Category: Value 2010-2015Table 62 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015Toilet Care in the United Arab Emirates - Category AnalysisHEADLINESTRENDSIn light of rising health awareness and earlier pandemics, consumers – mostly middle and upper-income households – have moved away from using bleach, which is the most economical cleaningproduct, towards using specific toilet care products. In fact, toilet care products would have achievedstronger penetration if the economy had already recovered. Although many middle-income earnersstill categorise toilet care products as non-essentials, the penetration of these products graduallyimproved in 2010 as opposed to earlier in the review period.COMPETITIVE LANDSCAPEReckitt Benckiser led toilet care products in 2010 with a 19% retail value share despite strongcompetition from archrivals SC Johnson & Son Inc and Brill Manitoba SpA, which trailed with retailvalue shares of 17% and 15%, respectively. Reckitt Benckiser’s leading position in toilet care productscan be attributed to the strength of its Harpic brand, particularly in the dynamic rim liquids category.Harpic, along with SC Johnson & Son Inc’s Toilet Duck and Brill Manitoba SpA’s WC Net, are the best-selling brands in toilet care products. They have somehow managed to gain share despite the growingcompetition from private label.PROSPECTSIt is expected that a number of factors will drive demand for toilet care products and collectivelyposition these products as home care essentials rather than niche products. These factors includerising hygiene awareness, lower reliance on domestic help, better economic conditions over theforecast period and increasingly busy lifestyles. These factors will collectively spur a shift away fromusing bleach and other economy products towards specific toilet care products.CATEGORY DATATable 63 Sales of Toilet Care by Category: Value 2005-2010Table 64 Sales of Toilet Care by Category: % Value Growth 2005-2010Table 65 Toilet Care Company Shares 2006-2010Table 66 Toilet Care Brand Shares 2007-2010Table 67 Forecast Sales of Toilet Care by Category: Value 2010-2015Table 68 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015
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