Diswashing in Pakistan

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DISHWASHING IN PAKISTAN

Euromonitor International

June 2013



D I S H W A S H I N G I N P A K I S T A N P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1

Trends ......................................................... ................................................................. ................ 1 Competitive Landscape ..................................................... ........................................................... 1 Prospects ..................................................................................................................... ................ 2 Category Indicators ...................................................................................................... ................ 2

Table 1 Household Possession of Dishwashers 2006-2011 ..................................... 2

Category Data ........................................................ ................................................................. ..... 3

Table 2 Sales of Dishwashing by Category: Value 2007-2012.................................. 3 Table 3 Sales of Dishwashing by Category: % Value Growth 2007-2012 ................. 3 Table 4 Dishwashing Company Shares 2008-2012 .................................................. 3 Table 5 Dishwashing Brand Shares 2009-2012 ........................................................ 4 Table 6 Forecast Sales of Dishwashing by Category: Value 2012-2017 ................... 4 Table 7 Forecast Sales of Dishwashing by Category: % Value Growth 2012-

2017 ............................................................. ................................................ 5



D I S H W A S H I N G I N P A K I S T A N P a s s p o r t 1


DISHWASHING IN PAKISTAN

HEADLINES Dishwashing value sales grow by 22% in current terms in 2012 to approach PKR5 billion

Manufacturers focus on advertising the efficiency of their brands

Unit price rises significantly in 2012 due to rising costs

Unilever Pakistan Ltd the leading player with a 23% value share

Over the forecast period dishwashing anticipated an 8% CAGR in constant value terms to

reach

PKR7 billion in 2017

TRENDS

Dishwashing value sales in Pakistan grew by 22% in current terms in 2012 to approach PKR5billion. This was a stronger performance than the review period CAGR of 18% and can be

attributed to strong unit price growth. Volume growth was lower at 10%. Only the hand

dishwashing category is present in Pakistan.

Automatic dishwashing products are not available in Pakistan because dishwasher

penetration is negligible in the country and is not expected to grow at a rapid rate in the near

future. This is linked to a lack of awareness about dishwashers and the high cost of procuring

one. Dishwashing liquids are also a rarity in the market, only occasionally found at high-end

modern retailers.

Dishwashing is almost exclusively done with dishwashing products. Alternatives such as bar

soaps or washing powder are not considered acceptable for washing dishes.

Paid domestic help (maids) continues to be common in Pakistan among society’s upper -middle and high classes. Even maids mostly tend to wash the dishes by hand.

COMPETITIVE LANDSCAPE

Unilever Pakistan Ltd led the category in 2012 with a value share of 23%. The company

benefits from strong advertising campaigns and the long-established presence of its Vim

brand, thus enjoying widespread consumer awareness and loyalty. The company also

benefits from the widespread availability of Vim, which is prominently displayed in most

outlets which offer hand dishwashing products. The company’s premium brand Persil appeals

to mainly mid- and high-income consumers.

Vim’s advertising activities in 2012 emphasised its effectiveness in removing dried on food

from dishes and keeping them germ-free. The ease of removing stains from dishes was

another key message conveyed to consumers. In 2012, the ‘long -lasting value’ of the brand

was also communicated to consumers, with Unilever claiming that Vim offers better value for

money than rival products.

Both Colgate-Palmolive and Procter & Gamble lost share in dishwashing in 2012 but

maintained their second and third positions, respectively.

Unilever gained share at the expense of Colgate-Palmolive and Procter & Gamble. Colgate-

Palmolive saw its value share fall by nearly one percentage point to 16%. The company’s Max

brand failed to differentiate itself from the leading brand Vim on retail shelves, and also lost

out due to weaker distribution. Procter & Gamble’s Fairy brand also witnessed a decline.





International players dominated the category in 2012 as their brands continued to deliver

quality and value to consumers. Consumers remained reluctant to trust local products,

especially as international brands are available at competitive and reasonable prices.

There were no new product launches in dishwashing in 2012. This was mainly due to the

overall economic situation in the country, which forced manufacturers to adopt a conservativeapproach. This was also the reason for the absence of any packaging innovation in 2012.

Premium products do not exist in dishwashing. Standard products, which are affordably

priced, focused on their quality and effectiveness while economy products allowed consumers

to maintain or reduce their monthly expenditure on dishwashing products.

PROSPECTS

Over the forecast period dishwashing is expected to post an 8% CAGR in constant value

terms to reach

PKR7 billion by 2017.

Value growth is expected to derive from an increase in unit price as well as greater volumes

as the penetration of dishwashing products will increase due to ongoing urbanisation and a

likely economic recovery over the forecast period.

A worsening of the economic situation could lead to a fall in volumes, which would negatively

affect this forecast. Such a scenario would influence both the level of usage of dishwashing

products as well as the brands purchased, with consumers having to opt for economy over

standard brands.

Hand dishwashing will continue to comprise the entire category over the forecast period. The

majority of the Pakistani population will be unable to afford dishwashers – there is no

indication that a significant portion of households in Pakistan (including upper-class

households) will shift to dishwashing machines. This can be attributed to the widespread

availability of cheap paid domestic help.

Liquid dishwashing products are likely to emerge as the future of dishwashing in the coming

years as more consumers will likely prefer easier-to-use and -store liquid products.

Manufacturers are likely to shift their advertising focus towards liquid products over bar

detergents. This is in line with the trend in more developed markets where liquid products

account for the majority of sales.

Over the forecast period the main strategies of the leading players will be to increase

awareness of the quality of their brands and improve distribution, possibly expanding into rural

areas. Manufacturers will use commercials and marketing campaigns to generate awareness

of the benefits of using branded products. Additionally, many campaigns will focus on rural

areas.

Innovative packaging and multipack offers will be crucial in maintaining consumer interest in

branded products.

CATEGORY INDICATORS

Table 1 Household Possession of Dishwashers 2006-2011

% possession of dishwasher 2006 2007 2008 2009 2010 2011

Urban 0.3 0.4 0.4 0.4 0.5 0.5





Rural 0.0 0.0 0.0 0.0 0.0 0.0Total 0.1 0.1 0.2 0.2 0.2 0.2

Source: Euromonitor International from official statistics, trade associations, trade interviews

CATEGORY DATA

Table 2 Sales of Dishwashing by Category: Value 2007-2012

PKR mn2007 2008 2009 2010 2011 2012

Automatic Dishwashing - - - - - -- Automatic Dishwashing - - - - - -

Liquids- Automatic Dishwashing - - - - - -

Powders

- Automatic Dishwashing - - - - - -Tablets

- Dishwashing Additives - - - - - -Hand Dishwashing 2,113.4 2,497.8 2,775.1 3,191.3 3,896.6 4,738.5Dishwashing 2,113.4 2,497.8 2,775.1 3,191.3 3,896.6 4,738.5

Source: Euromonitor International from official statistics, trade associations, trade press, company research,store checks, trade interviews, trade sources

Table 3 Sales of Dishwashing by Category: % Value Growth 2007-2012

% current value growth2011/12 2007-12 CAGR 2007/12 Total

Automatic Dishwashing - - -- Automatic Dishwashing Liquids - - -- Automatic Dishwashing Powders - - -- Automatic Dishwashing Tablets - - -- Dishwashing Additives - - -Hand Dishwashing 21.6 17.5 124.2Dishwashing 21.6 17.5 124.2


Table 4 Dishwashing Company Shares 2008-2012

% retail value rspCompany 2008 2009 2010 2011 2012

Unilever Pakistan Ltd 19.8 19.7 20.2 20.6 23.0Colgate-Palmolive 14.8 16.5 18.7 16.8 16.3

(Pakistan) LtdProcter & Gamble 13.2 13.7 14.7 16.2 15.5

Pakistan (Pvt) LtdDada Enterprises 8.5 8.3 8.0 7.2 6.5Cymar International Inc 9.5 9.6 8.5 7.1 6.0Mazhar International 6.0 5.5 5.0 4.9 5.5

(Pvt) Ltd





Henkel AG & Co KGaA 5.0 5.1 4.8 4.3 4.5Megasurya Mass PT 4.0 3.7 2.5 2.3 3.0 AS Soap Industries 2.6 2.6 2.0 2.1 2.0TK Products Ltd 2.1 2.0 2.0 2.0 2.0Middle East Chemical Co 2.2 2.3 2.0 1.8 2.0

Others 12.4 10.9 11.6 14.6 13.7Total 100.0 100.0 100.0 100.0 100.0


Table 5 Dishwashing Brand Shares 2009-2012

% retail value rspBrand Company 2009 2010 2011 2012

Fairy Procter & Gamble 13.7 14.7 16.2 15.5Pakistan (Pvt) Ltd

Persil Unilever Pakistan Ltd 12.7 13.7 13.9 14.5 Ajax Colgate-Palmolive 13.7 14.7 13.2 12.5

(Pakistan) LtdVim Unilever Pakistan Ltd 7.0 6.5 6.8 8.5Super Aan Dada Enterprises 8.3 8.0 7.2 6.5Zim Cymar International Inc 9.6 8.5 7.1 6.0Shan Mazhar International 5.5 5.0 4.9 5.5

(Pvt) LtdPril Henkel AG & Co KGaA 5.1 4.8 4.3 4.5Max Colgate-Palmolive 2.8 4.0 3.6 3.8

(Pakistan) LtdTara Multipurpose AS Soap Industries 2.6 2.0 2.1 2.0

Lemon Power Sufi Safon TK Products Ltd 2.0 2.0 2.0 2.0Bioclean Middle East Chemical Co 2.3 2.0 1.8 2.0

Laurel Megasurya Mass PT 2.5 1.5 1.5 2.0Silk Megasurya Mass PT 1.1 1.0 0.8 1.0Others 10.9 11.6 14.6 13.7Total 100.0 100.0 100.0 100.0


Table 6 Forecast Sales of Dishwashing by Category: Value 2012-2017

PKR mn2012 2013 2014 2015 2016 2017

Automatic Dishwashing - - - - - -- Automatic Dishwashing - - - - - -

Liquids- Automatic Dishwashing - - - - - -

Powders- Automatic Dishwashing - - - - - -

Tablets- Dishwashing Additives - - - - - -Hand Dishwashing 4,738.5 5,165.0 5,656.4 6,108.9 6,475.4 6,861.5Dishwashing 4,738.5 5,165.0 5,656.4 6,108.9 6,475.4 6,861.5

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,trade sources





Table 7 Forecast Sales of Dishwashing by Category: % Value Growth 2012-2017

% constant value growth2012-17 CAGR 2012/17 TOTAL

Automatic Dishwashing - -- Automatic Dishwashing Liquids - -- Automatic Dishwashing Powders - -- Automatic Dishwashing Tablets - -- Dishwashing Additives - -Hand Dishwashing 7.7 44.8Dishwashing 7.7 44.8

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,trade sources

Diswashing in Pakistan

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