By Macharia Kamau
Multinational firms dominate the local detergents market, with local manufacturers of homecare products struggling to keep pace with the international companies.
A survey by Consumer Insight Africa shows that detergents by Procter and Gamble and Unilever control 60 per cent of the market, while products by local firms have marginal market shares, with major players like Kapa Oils and Bidco having a combined market share of 14 per cent in the washing detergents market.
The Reja Shopper study by Consumer Insight shows that Ariel, which is manufactured by Procter and Gamble, sits top of the market with a 25 per cent market share, while Unilever’s two detergents — Omo and Sunlight — follow in second and third place with 18 per cent and 17 per cent market shares respectively.
“Omo and Sunlight — both from the same multinational — have a combined share that more than beats what Ariel controls. This proves that a multiple brand strategy within one category is actually workable,” said Consumer Insight’s Reja Study, which is done on a regular basis and on different consumer product categories.
Ariel was reintroduced in 2009 following a ten-year absence from the market. P&G withdrew the detergent from Kenya following a marketing war with Omo that it could not sustain. However, it came back, started from scratch with a strategy that seems to be winning and has taken market share from other detergents, including old time rival Omo to sit pretty at the top.
Brands by local firms in the fight for a share of the homecare products market include Kapa Oil’s Toss with a market share of six per cent, and Bidco’s Gental that has controls five per cent of the market, while Power boy, another Bidco brand, has a market share of three per cent. Other significant brands are Henkel’s Persil that has a market share of four per cent.
PZ Cussons’ Ushindi laundry soap has a market share of six per cent, which the research firm notes has made inroads in a key market segment that might see it increase its market share.
“Coming in at a respectable position is Ushindi, whose brand is based on the broad appeal at the mid to upper class. That simple fact alone makes it the brand to watch in this segment,” said the Consumer Insight study.
The manufacturers of homecare products are among the largest advertisers in their bids to sell their products. Like their counterparts in manufacturing, they have cited a difficult doing business environment in the past, a fact that usually pushes up their costs, making their products uncompetitive in the local and export markets.
Unilever, Kapa Oils and Bidco have manufacturing plants in the country.
Despite its market leadership position, P&G does not manufacture locally and imports products that its markets in Kenya including Ariel.
