|
Fabric Care - Germany Abstract The German market for fabric care products totalled nearly €2 billion in 2002, registering a decline of 0.9% on the previous year and 1% on 1998. While specialist laundry detergents found new impetus over the review period through new niches (eg products for dark clothes or jeans), the all-purpose detergents sub-sector (taking 60% of overall value) is more mature. Suppliers of branded lines in laundry detergents therefore need to spend significant sums on research and development, mainly on format innovations, to maintain and gain further market share. Two financially strong multinationals thus lead the market: the local Henkel, the clear number one, and the US giant Procter & Gamble. However, distributors' own-labels are steadily gaining ground and the leading discount store Aldi increasing its share of sales, placing more pressure on prices. Table of Contents Introduction Definitions Abbreviations Executive Summary Convenience products in demand Strong focus on price Suppliers turn to niche products for higher margins Environmental issues remain important Discounters gain ground, while self-service drugstores stabilise Henkel and Procter & Gamble lead, but own-labels growing New product development concentrates on specialist detergents Light use of fabric care products in a European setting A bleak overall outlook, but brighter for liquid and convenience products Market Drivers More women in employment creates demand for convenience products... Figure 1: Trends in German employment, 1998-2002 ...as does the greying population Figure 2: Trends in German population, 1998-2002 Economic insecurity slows down spending Figure 3: Trends in German PDI and consumer expenditure, at constant prices, 1995-2003 Trend towards small households can dent shift towards larger packs Figure 4: Trends in German household size, 1998-2002 High penetration of washing machines A regulated market Environmental issues important Market Size and Trends General maturity Figure 5: German retail value sales of fabric care products, at current and constant prices, 1998-2003 Figure 6: German retail value sales of fabric care products, by sector, 1998-2003 Figure 7: German retail value sales of fabric care products, % share by sector, 1998 and 2002 Increasing price competition Suppliers are exploring niche products for higher margins Market Segmentation Laundry detergents Figure 8: German retail value sales of laundry detergents, by type, 1998-2003 Figure 9: Usage of laundry detergents, by format, 2001-02 All-purpose laundry detergents Figure 10: German retail value sales of all-purpose laundry detergents, by format, 1998-2003 Specialist laundry detergents Fabric conditioners Figure 11: German retail value sales of fabric conditioners, by type, 2000-03 Ancillary products Figure 12: German retail value sales of ancillary products, by type, 2001-03 Distribution Figure 13: German retail value sales of fabric care products, by outlet, 2001-02 Trading base Figure 14: Number of retail outlets, by type, 1995-2000 Figure 15: Major drugstores, 2000-01 The Supply Structure Manufacturers' shares Figure 16: Brands' value shares of fabric care products, 1998-2002 Figure 17: Own-label vs branded products, sales of laundry detergents and fabric conditioners, 2002 Laundry detergents All-purpose laundry detergents Figure 18: Manufacturers' value shares of all-purpose laundry detergents, 1998-2002 Figure 19: Popularity of all-purpose laundry detergents, 2000-02 Specialist laundry detergents Figure 20: Brands' value shares of specialist laundry detergents, 2000-02 Fabric conditioners Figure 21: Brands' value shares of fabric conditioners, 2000-02 Ancillary products Companies and brands Colgate-Palmolive GmbH Dalli-Werke Wäsche und Körperpflege GmbH & Co. KG Henkel KG Lever Fabergé GmbH Procter & Gamble GmbH Werner & Mertz GmbH New Product Development New product launches 2003 Aug-03 Jul-03 Jun-03 May-03 Apr-03 Mar-03 Feb-03 The Consumer Pan-European use of fabric care products Figure 22: Penetration of fabric care products, by country, 2002 Figure 23: Types of fabric care products used, by country, 2002 Use of specialist fabric conditioners above European average in Germany Potential to encourage more frequent use Figure 24: Frequency of using fabric care products, by country, 2002 Figure 25: Heavy use of fabric care products, by type and country, 2002 Use of fabric care products in Germany Figure 26: Use of washing liquid for fabrics and fabric conditioner, by demographic sub-group, 2002 Liquid detergents popular among Western Germans Figure 27: Frequency of using washing liquid for fabrics, by demographic sub-group, 2002 Strong family bias in use of fabric conditioners Figure 28: Frequency of using fabric conditioner, by demographic sub-group, 2002 Almost a third of consumers use tablets Figure 29: Use of washing powder and tablets, by type and demographic sub-group, 2002 Figure 30: Use of tablets, by age and income group, 2002 Figure 31: Frequency of using powder detergents, by demographic sub-group, 2002 Men appreciate the convenience of tablets Figure 32: Frequency of using tablets, by demographic sub-group, 2002 Use of stain removers linked to income level Figure 33: Use of stain removers, by demographic sub-group, 2002 Figure 34: Use of stain removers, by income group, 2002 Figure 35: Frequency of using stain removers, by demographic sub-group, 2002 Prospects Own-labels to dent value growth Liquids to make ground, especially in specialist detergents Environmental concerns affect market Varying consumer needs More innovations in the pipeline Continued stress on convenience Forecast Competitive and conservative Figure 36: Forecast for German retail sales of fabric care products, 2003-07 Little scope for expansion overall... ...but some potential in certain sectors Niche products have short-term success Rise in households not necessarily helpful Appendix: Research Methodology Index of reports |