BATH AND SHOWER IN PAKISTAN

Euromonitor International October 2012

BATH AND SHOWER IN PAKISTAN

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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 2 Prospects ..................................................................................................................................... 2 Category Data .............................................................................................................................. 3 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Sales of Bath and Shower by Category: Value 2006-2011 .......................... 3 Sales of Bath and Shower by Category: % Value Growth 2006-2011 .......... 3 Bath and Shower Premium Vs Mass % Analysis 2006-2011 ....................... 3 Bath and Shower Company Shares 2007-2011 ........................................... 4 Bath and Shower Brand Shares 2008-2011 ................................................. 4 Forecast Sales of Bath and Shower by Category: Value 2011-2016 ........... 5 Forecast Sales of Bath and Shower by Category: % Value Growth 2011-2016 .................................................................................................... 5 Forecast Bath and Shower Premium Vs Mass % Analysis 2011-2016 ........ 6

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BATH AND SHOWER IN PAKISTAN

HEADLINES
Bath and shower grows by 16.4% to PKR12 billion in 2011 Liquid products gain importance as compared to traditional products Bar Soaps is the fastest-growing category in 2011 Unit price moves upwards as higher cost of production is passed on to consumers Multinational companies Unilever and Procter & Gamble maintain their stronghold Bath and shower is forecast to grow at a constant value CAGR of 12% to PKR21 billion by 2016

TRENDS
As opposed to the long-famous usage of bar soap in bath and shower, liquid products such as liquid soap and shower gel increased their penetration further in urban centres in 2011. Liquid products gained preference over bar soap especially at hotels, restaurants and other public rest places. Major brands and television ad campaigns continued to use their liquid products as the face of the brand as opposed to the bar soaps, reflecting this shift in priority levels. In 2011, bath and shower value growth reached 16.4% from 11% CAGR growth during the review period. The slower growth was due to economic slowdown and falling disposable household incomes, which led to a slower growth in demand and usage of bath and shower products. Bar soaps continued be the fastest growing products in 2011 with a 17.7% increase in value sales on the previous year. Additionally, bath and shower gels recorded a growth of over 16% in 2011. This category is still new and is fast gaining demand in the middle and upper classes of the urban society. Rising availability in supermarkets and department stores is helping this category gain demand. Talcum powder experienced a growth of 12.5% in 2011 in value sales terms. This indicates that despite stern competition from modern substitutes like deodorants, consumers of talcum powder find the product to be economically priced, comfortable to use and easily available. Bar soap is the most well-known bath and shower product that consumers are most familiar with, due to its affordabilty and established use for years. Bar soap is the product of the masses and finds alternative uses in areas such as hair care. As compared to liquid soap and shower gel, bar soap is economically priced and widely available. Moisturising, whitening and anti-bacterial properties are the three added benefits most associated with bath and shower products. These continued to be recurring themes in marketing campaigns, with women as targets for the moisturising and whitening benefits and children for anti-bacterial care. There have been no recent innovations in the way these benefits are used or portrayed to the consumers. Exfoliators/scrubs had yet to enter the market on a major scale, and it represented a negligible category in Pakistan in 2011. Premium brands form a negligible share of sales as most products fall in the mass brands range. However, some imported products or versions of the domestically manufactured brands such as Dove or Pears are sold as premium products in selected outlets. Intimate care products were also yet to penetrate the market, and as a result, also still formed a negligible category in Pakistan in 2011.

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COMPETITIVE LANDSCAPE
Unilever Pakistans Lux was the leading brand in bath and shower during 2011 with a 29% value share. Lux is the most popular bath and shower brand in Pakistan due to its constant product innovation and its sponsorship of the popular media event Lux Style Awards as well as its ongoing media advertising campaign, which features some o f the countrys top celebrities as brand ambassadors. It is a household name for soaps and is known to be a high-quality beauty soap. Unilever Pakistans recorded the highest increase in value share in 2011. The reason behind this successful year was the effective advertising campaigns run on the television for the Lux brand. Prominent shelf placement and below-the-line marketing also helped Lux to gain relatively higher prominence in 2011. International brands and manufacturers outperformed their domestic peers as they continued to lead the category as well as increasing their shares as compared to domestic brands. Lux, Lifebuoy, Safeguard, Palmolive and other international brands dominated the airwaves as well as store shelves as they remained the top choices of consumers in Pakistan in 2011. Lifebuoy successfully continued its "Healthy Hoga Pakistan" campaign from 2010 and launched the "10 Infections Campaign" in 2011 to successfully drive growth. Lux launched a purple variant in 2011, which added to its range of variants and helped boost its image further after 2010s relaunch. Safeguard continued with its animated series that portrays Captain Safeguard as the protagonist hero fighting against different germs. Most advertising campaigns in this category in 2011 focused on the anti-bacterial powers of the soaps with a special focus on children as users of these products and the need to have a proper antibacterial soap. There were no notable packaging innovations in bath and shower in Pakistan in 2011, as manufacturers chose to stick with existing designs and focus on advertising campaigns to boost value share. Standard bath and shower products compete on the basis of their brand appeal and media image, whilst economy brands focus on price positioning and aim to offer value for money. Premium bath and shower products consist mainly of expensive imported products and therefore maintain a very low presence in Pakistan.

PROSPECTS
Pakistan has a lot of untapped potential in this category as the regular use of bath and shower products and the penetration of liquid products are relatively low as compared to other developing countries. Penetration is forecast to increase with improving socioeconomic factors and increasing awareness about hygiene amongst consumers. Growth rates are expected to rise in the forecast period as hygiene awareness campaigns, urbanisation and increased literacy in the country are likely to drive the demand for bath and shower products. A high rise in prices of mass brands is a potential threat to forecast growth as it would decrease the demand for these products and lead to sparing use. With growing penetration and better distribution networks, body washes and shower gels are expected to produce the fastest growth over the forecast period, being novelty products starting from a small base.

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Affordability is likely to play a significant role in attracting consumers. For bar soap, unit price will not play a significant role as the prices are already lower than those of the substitute products and are tightly packed together in terms of competing brands. Luxs variant launch in 2011 and Lifebuoys launch in 2010 have both been successful in driving strong growth in demand for these products. Other manufacturers will also be looking to plan and execute similar launches or relaunches to reinvigorate their brands and attract a higher level of attention from the public.

CATEGORY DATA
Table 1 PKR mn 2006 Bar Soap Bath Additives - Bath Foam/Gel - Bath Oil/Pearls - Bath Salts/Powder - Other Bath Additives Body Wash/Shower Gel Intimate Hygiene - Intimate Washes - Intimate Wipes Liquid Soap Talcum Powder Bath and Shower
Source:

Sales of Bath and Shower by Category: Value 2006-2011

2007 5,520.0 110.0 1,810.0 7,440.0

2008 5,950.0 40.0 150.0 1,890.0 8,030.0

2009 6,490.0 50.0 190.0 2,170.0 8,900.0

2010 7,260.0 70.0 240.0 2,480.0 10,050.0

2011 8,550.0 80.0 280.0 2,790.0 11,700.0

5,020.0 80.0 1,640.0 6,740.0

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

Table 2

Sales of Bath and Shower by Category: % Value Growth 2006-2011

% current value growth 2010/11 Bar Soap Bath Additives - Bath Foam/Gel - Bath Oil/Pearls - Bath Salts/Powder - Other Bath Additives Body Wash/Shower Gel Intimate Hygiene - Intimate Washes - Intimate Wipes Liquid Soap Talcum Powder Bath and Shower
Source:

2006-11 CAGR 11.2 28.5 11.2 11.7

2006/11 Total 70.3 250.0 70.1 73.6

17.8 14.3 16.7 12.5 16.4

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

Table 3

Bath and Shower Premium Vs Mass % Analysis 2006-2011

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% retail value rsp 2006 Premium Mass Total

Source:

2007 0.9 99.1 100.0

2008 1.0 99.0 100.0

2009 1.0 99.0 100.0

2010 1.0 99.0 100.0

2011 1.0 99.0 100.0

0.9 99.1 100.0

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

Table 4 % retail value rsp Company

Bath and Shower Company Shares 2007-2011

2007 27.6 11.9 8.7 10.2 5.6 6.2 4.5 4.1 4.6 2.2 2.0 0.7 1.1 1.0 0.7 0.2 8.6 100.0

2008 27.3 13.0 9.0 9.7 5.4 6.4 4.1 3.9 4.2 2.2 1.9 0.8 1.0 1.1 0.8 0.2 9.0 100.0

2009 27.4 13.8 9.5 9.0 5.4 5.8 4.1 3.7 3.9 2.3 1.8 0.9 1.1 0.9 0.8 0.3 9.3 100.0

2010 27.2 13.9 9.8 9.0 5.5 5.6 4.0 3.5 3.8 2.2 1.6 0.9 1.0 0.8 0.7 0.4 9.8 100.0

2011 29.0 14.5 10.4 8.2 5.7 4.8 4.4 3.4 2.9 2.1 1.3 0.9 0.9 0.6 0.6 0.5 9.7 100.0

Unilever Pakistan Ltd Procter & Gamble Pakistan (Pvt) Ltd Reckitt Benckiser Ltd Megasurya Mass PT Colgate-Palmolive Ltd Zulfeqar Industries Ltd Medora of London (Pvt) Ltd Touchme (Pvt) Ltd Marriana International (Pvt) Ltd Yardley & Co Ltd Globe Cosmetics (Pvt) Ltd Henkel AG & Co KGaA Takuba (Pvt) Ltd Trend International (Pvt) Ltd Unza Co Pte Ltd PZ Cussons International Ltd Others Total
Source:

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

Table 5 % retail value rsp Brand Lux Safeguard

Bath and Shower Brand Shares 2008-2011

Company Unilever Pakistan Ltd Procter & Gamble Pakistan (Pvt) Ltd Unilever Pakistan Ltd Reckitt Benckiser Ltd Colgate-Palmolive Ltd Medora of London (Pvt) Ltd Megasurya Mass PT Zulfeqar Industries Ltd Marriana International (Pvt) Ltd

2008 14.7 13.0 12.6 9.0 5.4 4.1 6.5 4.6 4.2

2009 14.9 13.8 12.5 9.5 5.4 4.1 5.7 4.4 3.9

2010 15.0 13.9 12.2 9.8 5.5 4.0 5.5 4.3 3.8

2011 16.2 14.5 12.9 10.4 5.7 4.4 4.3 3.7 2.9

Lifebuoy Dettol Palmolive Medora of London Anita Capri Medicam

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Life Guard Touch Me Yardley Opal Dial T Rose Admiral of New York Viceroy General Nisa Enchanteur Allen Harmony Imperial Leather Silk Others Total
Source:

Megasurya Mass PT Touchme (Pvt) Ltd Yardley & Co Ltd Zulfeqar Industries Ltd Henkel AG & Co KGaA Takuba (Pvt) Ltd Globe Cosmetics (Pvt) Ltd Globe Cosmetics (Pvt) Ltd Trend International (Pvt) Ltd Unza Co Pte Ltd Touchme (Pvt) Ltd Megasurya Mass PT PZ Cussons International Ltd Megasurya Mass PT

2.4 3.1 2.2 1.8 0.8 1.0 0.9 1.1 1.1 0.8 0.8 0.4 0.2 0.4 9.0 100.0

2.5 3.0 2.3 1.4 0.9 1.1 0.9 0.9 0.9 0.8 0.7 0.5 0.3 0.3 9.3 100.0

2.6 2.9 2.2 1.3 0.9 1.0 0.8 0.8 0.8 0.7 0.6 0.6 0.4 0.4 9.8 100.0

2.9 2.8 2.1 1.1 0.9 0.9 0.7 0.6 0.6 0.6 0.6 0.6 0.5 0.4 9.7 100.0

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

Table 6 PKR mn

Forecast Sales of Bath and Shower by Category: Value 2011-2016

2011 Bar Soap Bath Additives - Bath Foam/Gel - Bath Oil/Pearls - Bath Salts/Powder - Other Bath Additives Body Wash/Shower Gel Intimate Hygiene - Intimate Washes - Intimate Wipes Liquid Soap Talcum Powder Bath and Shower
Source:

2012 9,730.0 90.0 320.0 3,110.0 13,250.0

2013 11,040.0 110.0 360.0 3,430.0 14,940.0

2014 12,460.0 120.0 410.0 3,740.0 16,730.0

2015 14,000.0 130.0 460.0 4,050.0 18,640.0

2016 15,660.0 150.0 520.0 4,340.0 20,670.0

8,550.0 80.0 280.0 2,790.0 11,700.0

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

Table 7

Forecast Sales of Bath and Shower by Category: % Value Growth 2011-2016

% constant value growth 2011-16 CAGR Bar Soap Bath Additives - Bath Foam/Gel - Bath Oil/Pearls - Bath Salts/Powder - Other Bath Additives Body Wash/Shower Gel Intimate Hygiene - Intimate Washes - Intimate Wipes 12.9 13.4 2011/16 TOTAL 83.2 87.5 -

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Liquid Soap Talcum Powder Bath and Shower

Source:

13.2 9.2 12.1

85.7 55.6 76.7

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

Table 8 % retail value rsp

Forecast Bath and Shower Premium Vs Mass % Analysis 2011-2016

2011 Premium Mass Total

Source:

2012 1.1 98.9 100.0

2013 1.1 98.9 100.0

2014 1.1 98.9 100.0

2015 1.2 98.8 100.0

2016 1.2 98.8 100.0

1.0 99.0 100.0

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

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