DISHWASHING IN INDIA

Euromonitor International

June 2015

D I S H W A S H I N G I N I N D I A 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 ................................................................................................................ 2 Prospects ..................................................................................................................................... 2 Category Indicators ...................................................................................................................... 3

Table 1 Household Possession of Dishwashers 2009-2014 ..................................... 3

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

Table 2 Sales of Dishwashing by Category: Value 2009-2014.................................. 3 Table 3 Sales of Dishwashing by Category: % Value Growth 2009-2014 ................. 4 Table 4 NBO Company Shares of Dishwashing: % Value 2010-2014 ...................... 4 Table 5 LBN Brand Shares of Dishwashing: % Value 2011-2014 ............................. 4 Table 6 Forecast Sales of Dishwashing by Category: Value 2014-2019 ................... 5 Table 7 Forecast Sales of Dishwashing by Category: % Value Growth 2014-

2019 ............................................................................................................. 5

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DISHWASHING IN INDIA

HEADLINES Dishwashing records 13% current value growth to reach Rs23.1 billion in 2014

Increasing penetration of dishwashing bars and liquid decreases the usage of dishwashing

powders in 2014

Average unit price of hand dishwashing increases by 6% in 2014

Hindustan Unilever continues to lead dishwashing with a value share of 61% in 2013

Value sales of dishwashing are set to grow at a CAGR of 3% at constant 2014 prices over the

forecast period

TRENDS Urban Indian consumers are slowly upgrading to dishwashing bars and liquids from traditional

dishwashing powders. The rural consumers were slowly shifting towards dishwashing

powders from traditional ash or cheap detergents in 2014.

Current value growth in 2014 was similar to that seen in 2013 at 13%. The increasing

awareness about the importance of keeping hygienic conditions in the kitchen helped boost

sales of dishwashing in 2014.

Dishwashing continued to be dominated by hand dishwashing, whilst automatic dishwashing

was growing from a small base. Hand dishwashing was the best performing category, mainly

due to urban consumers increasingly switching to liquid hand dishwashing products, which

offered increased convenience.

The average unit price increased by 6% in current value terms in 2014, an increase that can

be attributed to increasing marketing and advertising expenditure passed on by

manufacturers to consumers. Furthermore, consumers are also slowly upgrading from

traditional dishwashing products to liquids and bars.

Automatic dishwashing products were still in an early development stage during the review

period, but were becoming slowly popular year on year. Automatic dishwashing is basically

the only other category apart from hand dishwashing within dishwashing in 2014, and

accounted for a marginal value share. The majority of automatic dishwashing liquid and tablet

brands are marketed and offered via consumer appliance retailers, such as Croma, e-Zone,

Reliance Digital and other exclusive stores. Two of the fastest emerging online platforms that

distribute automatic dishwashing products in India are eBay India and shopping.rediff.com.

Automatic dishwashing tablets and powders were not available in India as of 2014.

Hand dishwashing is what the majority of consumers use in India and use of automatic

dishwashing is almost negligible. The bar is the most popular format in the India but liquid

dishwashing has registered an increase in growth rate in urban areas. Cream has negligible

presence whilst powder format is popular amongst the lower middle class. Aggressive

promotional activities of players has led to upgrading of products by consumers and thus

people who were previously using ashes and economy detergent have started using powder

dishwashing and powder dishwashing users are trying bars.

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COMPETITIVE LANDSCAPE Hindustan Unilever continued to dominate dishwashing in 2014, due to growing sales of its

brand Vim in both urban and rural regions. Vims offerings, including bar soap and liquid

drops, continued to enjoy huge popularity as the favoured brand with females and recorded

strong growth in 2014 to register a brand value share of 61%. Vim enjoyed tremendous brand

equity and continued to be the most notable brand in the category over the review period.

Jyothy Laboratories saw an increase of nearly one percentage point in value share in 2014,

mainly due to increase in distribution and marketing. Furthermore, it points of sale

advertisements in semiurban areas of India have also helped the company to gain value

shares over other manufacturers.

International manufacturers continued to dominate dishwashing in 2014. Hindustan Unilever

and the new entrant Reckitt Benckiser (India) together with Amway India Enterprises and (to a

lesser extent) Colgate-Palmolive (India) held a combined value share of 64%. Multinationals

continued to benefit from their long-established presence and also their products reaching

each corner of India. Domestic manufacturers gained value shares in 2014 with Jyothy

holding a16% value share by the end of 2014.

In May 2014, SGS India entered the hand dishwashing gel segment with launch of its flagship

brand A-One in three variants: Lemon Blast, Lime and Neem Gold. The brand is targeted

towards lower-middle-class households and priced 7-10% lower than market leader

Hindustan Unilevers brands.

Advertising for Reckitt Benckisers Dettol dishwashing product claims that the product is 100

times better at killing germs than rival products and is trying to cash in on its well-established

position of being a germ killer in the market. Desire for cleanliness along with germ killing has

helped the brand to gain ground within the emerging liquid dishwashing category in India.

There were no new packaging innovations that impacted dishwashing in 2014.

Dishwashing brands such as Vim and Pril continued to be considered as standard and

enjoyed huge popularity amongst the mass of consumers in 2014. Liquid dishwashing

products, such as Vim liquid drops and Pril, are considered to be marginally premium and

sales began to pick up from 2011 onwards; however, dishwashing bars continued to account

for most sales and as a result economy brands such as Sabena, Nima and Pitambri continued

to rank high in this segment in terms of value share.

Modern retail stores, including Food Bazaar and Reliance Fresh, have introduced private

label products over the review period, hoping to gain a larger share of dishwashing sales;

however, the competitive pricing of existing retail brands make it difficult for private label

products to appeal to consumers. These private label lines include 110% (More

supermarkets), Great Value (Easy Day), Clean Mate (Big Bazaar) and Scrubz (Reliance

Fresh).

The concept of green positioning developed no further in 2014 and continued to have a

negligible presence. In addition to looking for value-for-money products, consumers started to

search for more-effective dishwashing products in 2014.

PROSPECTS The increasing disposable income and rural consumers shifting from traditional products to

dishwashing powders over the forecast period will lead to higher value growth for dishwashing

at constant 2014 prices over the forecast period than the constant value CAGR seen over the

review period. Furthermore, the increasing urbanisation will also support the forecast growth.

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Forecast growth may be little bit slower than expected, mainly because of regional and

domestic manufacturers entering the competition with lower-priced dishwashing bars and

dishwashing liquids.

The majority of manufacturers are focusing on concentrated ingredients in dishwashing to

improve cleaning claims made in marketing efforts and volume sales. Non-regulated

concentrated and corrosive ingredients (ie alkaline and corrosive agents) will, however,

hamper female skin textures and long-term consumer confidence in such products could be

undermined, constituting a potential threat for the manufacturers.

Hand dishwashing will remain the major category in dishwashing as hiring maids is cheaper

than purchasing dishwashers in India. Value sales of hand dishwashing are expected to

increase at a CAGR of 3% at constant 2014 prices over the forecast period and we can see

more fragrance-based and concentrated products in hand dishwashing appearing during that

time.

More regional and domestic players entering the dishwashing arena will reduce the average

unit price over the forecast period and we can see competition increasing amongst

established players and new players.

With more new manufacturers entering dishwashing established players are expected to

invest more on advertisements and brand promotions to sustain their value shares.

CATEGORY INDICATORS

Table 1 Household Possession of Dishwashers 2009-2014

% possession of dishwasher 2009 2010 2011 2012 2013 2014 Dishwasher 0.2 0.2 0.3 0.3 0.3 0.3

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

CATEGORY DATA

Table 2 Sales of Dishwashing by Category: Value 2009-2014

INR million 2009 2010 2011 2012 2013 2014 Automatic Dishwashing - - - 65.0 69.5 73.3 - Automatic Dishwashing - - - 50.0 53.6 56.7 Liquids - Automatic Dishwashing - - - - - - Powders - Automatic Dishwashing - - - - - - Tablets - Dishwashing Additives - - - 15.0 15.9 16.6 Hand Dishwashing 13,097.6 14,293.5 16,169.8 18,129.1 20,485.9 23,075.5 Dishwashing 13,097.6 14,293.5 16,169.8 18,194.1 20,555.3 23,148.8

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

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Table 3 Sales of Dishwashing by Category: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total Automatic Dishwashing 5.5 - - - Automatic Dishwashing Liquids 5.8 - - - Automatic Dishwashing Powders - - - - Automatic Dishwashing Tablets - - - - Dishwashing Additives 4.7 - - Hand Dishwashing 12.6 12.0 76.2 Dishwashing 12.6 12.1 76.7

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

Table 4 NBO Company Shares of Dishwashing: % Value 2010-2014

% retail value rsp Company 2010 2011 2012 2013 2014 Hindustan Unilever Ltd 52.0 59.5 60.1 61.0 60.7 Jyothy Laboratories Ltd 8.1 15.5 15.8 15.2 16.0 Rohit Surfactants Pvt Ltd 4.8 5.2 6.0 6.0 6.1 Ecof Industries Pvt Ltd 7.7 6.1 4.4 4.0 3.7 Pitambari Products Pvt 3.3 3.2 3.0 3.0 3.0 Ltd Fena Ltd 3.2 3.1 3.1 2.9 2.8 Nirma Ltd 3.5 3.0 2.7 2.4 2.2 Amway India Enterprises 2.1 2.5 2.2 2.1 2.0 Pvt Ltd Reckitt Benckiser - - 0.1 0.7 0.8 (India) Ltd Dabur India Ltd 0.9 0.8 0.7 0.6 0.6 Colgate-Palmolive India 0.4 0.2 0.1 0.1 0.1 Ltd Henkel India Ltd 6.0 - - - - Hindustan Lever Ltd - - - - - Others 8.0 1.0 1.9 2.1 2.1 Total 100.0 100.0 100.0 100.0 100.0

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

Table 5 LBN Brand Shares of Dishwashing: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Vim Hindustan Unilever Ltd 59.5 60.1 61.0 60.7 Exo Jyothy Laboratories Ltd 8.6 8.4 8.0 8.4 Pril Jyothy Laboratories Ltd 6.8 7.2 7.2 7.5 Xpert Rohit Surfactants Pvt Ltd 5.2 6.0 6.0 6.1 Sabena Ecof Industries Pvt Ltd 6.1 4.4 4.0 3.7 Pitambari Pitambari Products Pvt Ltd 3.2 3.0 3.0 3.0 Nip Fena Ltd 3.1 3.1 2.9 2.8 Nima Nirma Ltd 3.0 2.7 2.4 2.2

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Dish Drops Amway India Enterprises 2.5 2.2 2.1 2.0 Pvt Ltd Dettol Reckitt Benckiser - - 0.6 0.7 (India) Ltd Odopic Dabur India Ltd 0.8 0.7 0.6 0.6 Finish Reckitt Benckiser - 0.1 0.1 0.1 (India) Ltd Limeshot Jyothy Laboratories Ltd 0.1 0.1 0.1 0.1 Axion Colgate-Palmolive India 0.2 0.1 0.1 0.1 Ltd Limeshot Henkel India Ltd - - - - Pril Henkel India Ltd - - - - Vim Hindustan Lever Ltd - - - - Others 1.0 1.9 2.1 2.1 Total 100.0 100.0 100.0 100.0

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

Table 6 Forecast Sales of Dishwashing by Category: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 Automatic Dishwashing 73.3 71.7 70.4 69.2 68.0 66.5 - Automatic Dishwashing 56.7 55.6 54.7 54.0 53.1 52.1 Liquids - Automatic Dishwashing - - - - - - Powders - Automatic Dishwashing - - - - - - Tablets - Dishwashing Additives 16.6 16.1 15.7 15.3 14.8 14.4 Hand Dishwashing 23,075.5 23,909.4 24,698.7 25,475.7 26,133.2 26,672.0 Dishwashing 23,148.8 23,981.1 24,769.1 25,544.9 26,201.2 26,738.5

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

Table 7 Forecast Sales of Dishwashing by Category: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL Automatic Dishwashing -2.1 -1.9 -9.2 - Automatic Dishwashing Liquids -1.9 -1.7 -8.1 - Automatic Dishwashing Powders - - - - Automatic Dishwashing Tablets - - - - Dishwashing Additives -2.9 -2.8 -13.2 Hand Dishwashing 2.1 2.9 15.6 Dishwashing 2.1 2.9 15.5

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