DISHWASHING IN PAKISTAN

Euromonitor International June 2013

DISHW ASHING IN PAKISTAN

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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 1 Prospects ..................................................................................................................................... 2 Category Indicators ...................................................................................................................... 2 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Household Possession of Dishwashers 2006-2011 ..................................... 2 Sales of Dishwashing by Category: Value 2007-2012.................................. 3 Sales of Dishwashing by Category: % Value Growth 2007-2012 ................. 3 Dishwashing Company Shares 2008-2012 .................................................. 3 Dishwashing Brand Shares 2009-2012 ........................................................ 4 Forecast Sales of Dishwashing by Category: Value 2012-2017................... 4 Forecast Sales of Dishwashing by Category: % Value Growth 20122017 ............................................................................................................. 5 Category Data .............................................................................................................................. 3

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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 PKR5 billion. 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 societys 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 companys premium brand Persil appeals to mainly mid- and high-income consumers. Vims advertising activities in 2012 emphasised its effectiveness i n 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. ColgatePalmolive saw its value share fall by nearly one percentage point to 16%. The companys Max brand failed to differentiate itself from the leading brand Vim on retail shelves, and also lost out due to weaker distribution. Procter & Gambles Fairy brand also witnessed a decline.

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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 conservative approach. 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 Urban 0.3 2007 0.4 2008 0.4 2009 0.4 2010 0.5 2011 0.5

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Rural Total
Source:

0.0 0.1

0.0 0.1

0.0 0.2

0.0 0.2

0.0 0.2

0.0 0.2

Euromonitor International from official statistics, trade associations, trade interviews

CATEGORY DATA
Table 2 PKR mn 2007 Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets - Dishwashing Additives Hand Dishwashing Dishwashing
Source:

Sales of Dishwashing by Category: Value 2007-2012

2008 2,497.8 2,497.8

2009 2,775.1 2,775.1

2010 3,191.3 3,191.3

2011 3,896.6 3,896.6

2012 4,738.5 4,738.5

2,113.4 2,113.4

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 growth 2011/12 Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets - Dishwashing Additives Hand Dishwashing Dishwashing
Source:

2007-12 CAGR 17.5 17.5

2007/12 Total 124.2 124.2

21.6 21.6

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

Table 4 % retail value rsp Company

Dishwashing Company Shares 2008-2012

2008 19.8 14.8 13.2 8.5 9.5 6.0

2009 19.7 16.5 13.7 8.3 9.6 5.5

2010 20.2 18.7 14.7 8.0 8.5 5.0

2011 20.6 16.8 16.2 7.2 7.1 4.9

2012 23.0 16.3 15.5 6.5 6.0 5.5

Unilever Pakistan Ltd Colgate-Palmolive (Pakistan) Ltd Procter & Gamble Pakistan (Pvt) Ltd Dada Enterprises Cymar International Inc Mazhar International (Pvt) Ltd

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Henkel AG & Co KGaA Megasurya Mass PT AS Soap Industries TK Products Ltd Middle East Chemical Co Others Total
Source:

5.0 4.0 2.6 2.1 2.2 12.4 100.0

5.1 3.7 2.6 2.0 2.3 10.9 100.0

4.8 2.5 2.0 2.0 2.0 11.6 100.0

4.3 2.3 2.1 2.0 1.8 14.6 100.0

4.5 3.0 2.0 2.0 2.0 13.7 100.0

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Table 5 % retail value rsp Brand Fairy Persil Ajax Vim Super Aan Zim Shan Pril Max

Dishwashing Brand Shares 2009-2012

Company Procter & Gamble Pakistan (Pvt) Ltd Unilever Pakistan Ltd Colgate-Palmolive (Pakistan) Ltd Unilever Pakistan Ltd Dada Enterprises Cymar International Inc Mazhar International (Pvt) Ltd Henkel AG & Co KGaA Colgate-Palmolive (Pakistan) Ltd AS Soap Industries TK Products Ltd Middle East Chemical Co Megasurya Mass PT Megasurya Mass PT

2009 13.7 12.7 13.7 7.0 8.3 9.6 5.5 5.1 2.8 2.6 2.0 2.3 2.5 1.1 10.9 100.0

2010 14.7 13.7 14.7 6.5 8.0 8.5 5.0 4.8 4.0 2.0 2.0 2.0 1.5 1.0 11.6 100.0

2011 16.2 13.9 13.2 6.8 7.2 7.1 4.9 4.3 3.6 2.1 2.0 1.8 1.5 0.8 14.6 100.0

2012 15.5 14.5 12.5 8.5 6.5 6.0 5.5 4.5 3.8 2.0 2.0 2.0 2.0 1.0 13.7 100.0

Tara Multipurpose Lemon Power Sufi Safon Bioclean Laurel Silk Others Total
Source:

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Table 6 PKR mn

Forecast Sales of Dishwashing by Category: Value 2012-2017

2012 Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets - Dishwashing Additives Hand Dishwashing Dishwashing
Source:

2013 5,165.0 5,165.0

2014 5,656.4 5,656.4

2015 6,108.9 6,108.9

2016 6,475.4 6,475.4

2017 6,861.5 6,861.5

4,738.5 4,738.5

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Table 7

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

% constant value growth 2012-17 CAGR Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets - Dishwashing Additives Hand Dishwashing Dishwashing
Source:

2012/17 TOTAL 44.8 44.8

7.7 7.7

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