FODA Ferreyros

Peer’s affluent and middle-income consumers are becoming more demanding when it comes to bath and shower products. While in the past, these consumers were generally more than satisfied with the use of bar soap to take care of various different hygiene needs, they are gradually opting to purchase different type of bath and shower products to meet their personal hygiene requirements. For instance, although many consumers continue to rely on bar soap for showering, some Peruvians are now opting for body wash/shower gel, attracted by the practicality of these products and the wider range of aromas on offer in the category.

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In addition, maintaining clean hands and intimate areas is very important to the majority of Peruvian women and strong advertising in categories such as liquid soap and intimate washes is boosting demand in these categories as the products within these categories are widely perceived as offering superior care for these areas of the body. The development of these incipient bath and shower categories is opening up new opportunities for many players in bath and shower in Peru. Body wash/shower gel was the bath and shower category to record the highest value growth during 2012, rising in value by 18%.

Although the products in body wash/shower gel carry reasonably high unit prices, many Peruvian consumers are benefiting from higher purchasing power and this is boosting demand in the category as consumers are increasingly attracted by the practicality of body wash/shower gel. In addition, the general perception of the category is that it is more hygienic to use these products than bar soap, not to mention the increasingly wide variety of fragrances available in the category.

Moreover, direct selling companies continue to offer attractive promotions for their body wash/shower gel brands in order to appeal to a much eider consumer base. Bath and shower increased in value by 7% in 2012, a lower rate of growth than the 12% current value growth recorded in the category during 2011. In 2011, key bath and shower categories such as intimate washes and body wash/shower gel recorded remarkable value growth rates, which helped to boost the performance of the entire bath and shower category.

Although these categories continued to record strong growth during 2012, this growth was at a slower pace than during 2011, which had an overall negative impact on the development of the category overall. The average unit price of bath and shower in Peru increased by 3% In 2012 as aggressive competition Ana relatively null Intonation lea ten companies present in the category to be very cautious about raising their unit prices. Bar soap remained the largest category in bath and shower during 2012, accounting for 78% of overall bath and shower value sales during the year.

In addition, bar soap increased in value by 6% during 2012, with growth bolstered by the rising availability of value- added products in the category such as those with antibacterial properties or those manufactured using natural ingredients such as honey, aloe Vera, oatmeal and almond oil, which can provide extra moisture, firming features, anti-ageing and exfoliating characteristics. Tight competition determined that the players present in bath and shower engaged in frequent price promotions in retail channels, especially for bulk packaging presentations, in an effort to boost demand.

Products with organic ingredients are not yet available in bath and shower in Peru. Bar soaps with exfoliating properties maintain a reasonably strong presence in bath and shower in Peru and multinational companies such as Milliner, Colgate-Palmolive and Johnson & Johnson carry a variety of products with exfoliating properties. Although they appeal to some women, exfoliating properties are by non meaner the key focus of the leading manufacturers in bath and shower as bar soaps with moisturizing properties are subject to much higher consumer interest in Peru.

Baby powder is by far the most popular variety of talc available in Peru. Consumers purchase baby powder to use on their baby’s buttocks to prevent the appearance of nappy (diaper) rash, as it is a more affordable product than the various creams which are also designed for this purpose. In addition, some Peruvian adults use baby powder as it constitutes an economical ay to combat perspiration, especially during Peer’s stiflingly hot summers.

The leading brands in baby powder are all available through store-based retailing channels, although some of the leading direct selling companies in beauty and personal care in Peru are now offering perfumed talc. Premium brands accounted only for 2% of overall value sales within bath and shower in Peru during 2012 as their high unit prices place significant limits on their appeal to high-income consumers. Furthermore, these types of products can only be found in beauty specialist retailers outlets and some chained pharmaceutics/drugstores.

Mass bath and shower rand, meanwhile, are widely available within traditional and modern grocery retailers outlets at very affordable prices and new products with new scents are periodically offered. Intimate hygiene products entered the Peruvian market in 2006, and continue to capture the interest of high and middle income women who look for specialized products to take care of specific needs. At the end of the review period, intimate washes accounted for the highest proportion of value sales in intimate hygiene and continued to record strong growth.

Intimate washes continues to benefit from aggressive advertising at points of sale and on television. In addition, the companies offering intimate washes in Peru are strengthening their distribution networks and developing a high level of segmentation, offering different products aimed at teenagers and adult women and products for sensitive or normal skin. As a result, intimate washes increased in value by 18% during 2012. COMPETITIVE LANDSCAPE Multinational company Milliner remained the leader in bath and shower in Peru during 2012 with a 30% value share.

This advantageous position can be explained by ten company’s strong learners In oar soap tanks to ten enrolling popularity AT Its brands Reason, Lug and Dove. The company relies on its excellent distribution network, which guarantees that its brands have a strong presence within both traditional and modern grocery retailers outlets as well as pharmaceutics/ drugstores and chemists/pharmacies. In addition, Milliner supports all of its bath and shower brands through regular advertising campaigns.

There were no significant changes in the value shares in bath and shower in Peru during 2012 as the majority of companies present in the category continue to focus on conducting strong advertising campaigns with the aim of boosting consumer awareness of their brands. The five leading manufacturers in bath and shower are all multinational companies and these five companies combined accounted for 63% of total bath and shower retail value sales in 2012. These companies each offer a wide range of products in the category and they all have strong distribution networks.

In addition, they are all perceived as offering high-quality products and they all conduct aggressive marketing campaigns to support their bath and shower brands. There were no important new product launches in bath and shower in Peru during 2012. Advertising campaigns in the category focus either on highlighting protection against infection, long lifespan of the product or natural ingredients which help to pamper the skin. There was no significant packaging innovation in bath and shower in Peru during 2012. The most popular packaging format in the category is flexible packaging, which is due to the practicality of this packaging material.

Folding carton is commonly used by higher-priced bar soap brands such as Dove or the bar soaps offered by direct selling company Natural CosmosГ©tacos. With regards to the rest of the bath and shower products available in Peru, plastic bottles remains the most common kayaking format due to its functionality for the storage of liquids and powders. Premium bath and shower brands such as Euchring and Allocation en Provence maintain a limited presence in bath and shower and they are sold mainly through pharmaceutics/drugstores and beauty specialist retailers, being advertised mainly within retail outlets.

By way of contrast, mass bath and shower brands are available in a wide range of retail distribution channels at affordable prices. Mass brands are also widely supported by intensive advertising campaigns and generally offer a wide range of value-added features to appeal to more demanding middle-income nonusers. Private label products are not available in bath and shower as mass brands offer high levels of quality at reasonable prices and regularly conduct attractive promotions, offering product at low prices in order to cope with the fierce competition in the category.

PROSPECTS Bath and shower is set to increase in constant value at a CARR of 4% over the forecast period, a rate of growth which is set to be one percentage point slower than the 5% constant value CARR recorded in the category over the review period. This slowdown in growth can be explained by the fact that bar soap—the largest category on bath and shower in Peru—is set to post a much more moderate rate of growth over the forecast period, with sales in bar soap driven mainly by the introduction of value-added products and further segmentation in an attempt to respond to specific consumer needs.

In contrast, smaller bath and shower categories such as liquid soap and intimate washes are set to post much higher rates of growth during the forecast per AAA as many consumers Walt enlarger Lassoed Income levels are Kelly to rely on these products more often during the forecast period due to their high levels of practicality and their outstanding hygiene properties. Although intimate washes continued to benefit from strong advertising campaigns during the forecast period, some doctors have stated that there is no need at all to use these products as the use of water and soap is enough for women to maintain intimate hygiene.

This has led to a rather negative perception of intimate washes in Peru and this has the potential to limit growth in the category during the forecast period. Liquid soap is set to increase in constant value at a CARR of 11% over the forecast period. Relatively high levels of competition in this category are set to lead the leading companies to increase the range of value-added products they offer in liquid soap, which in turn is set to attract more demanding Peruvian consumers.

In addition, the perception that liquid soap is a more suitable product for cleaning one’s hands than bar soap is set to lead some consumers to switch from traditional bar soap to liquid soap during the forecast period. Unit prices are set to increase only moderately in bath and shower in Peru over the forecast period. On the one hand, the unit price increases expected within bar soap are set to be quite limited due to the frequent discounts applied to bulk sales of bar soap. On the other hand, smaller bath and shower categories are set to limit their price increases in order to appeal to a much wider base of consumers.

Given the fact that Peruvian men are becoming increasingly interested in purchasing beauty and personal care products specifically designed to appeal to men, it is likely that some companies will launch bar soap and body wash/shower gel specifically designed for men during the forecast period. Further market segmentation and the launch of new products containing various different natural ingredients are set to be the key element in the efforts of companies to boost sales in tat and shower in Peru over the forecast period.

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