Deodorants in Argentina

PROSPECTS

Decreased frequency of use of deodorants in the face of the economic crisis

With the economic crisis, consumers have become more economical in their usage of many products, including deodorants. 2018 saw a significant contraction in retail volume terms in all deodorants categories.

The economic crisis continues to boost sales in traditional grocery retailers

The economic crisis that the country is going through has led to changes in consumer habits. Wholesale supermarkets, such as Vital, Diarco and Maxiconsumo, have made significant changes by allowing any consumer to buy in the premises, not just commercial purchasers.

Deodorants record a sharp price increase in 2018

Deodorant sprays is by far the preferred category among Argentinians. Many of the inputs for manufacturing are imported, so the devaluation of the currency in mid-2018 had a direct impact on the final prices of products.

COMPETITIVE LANDSCAPE

La Fármaco Argentina SA is in negotiations with creditors

La Fármaco Argentina SA was acquired by Santiago Saenz SA at the end of 2015. The National Commission for the Defence of Competition had determined that Unilever de Argentina SA, the previous owner of La Fármaco, should divest certain brands as it had a dominant position in the market.

Unilever de Argentina leads sales and is a barrier to entry for new competitors

Unilever de Argentina leads sales of deodorants in Argentina, thanks to its broad portfolio of brands that occupy virtually all price segments. Axe and Rexona are positioned in the high price segment, Dove is positioned in the mid-priced segment, while Patrichs is the most economical brand.

An encouraging outlook, with changes to attract consumers

Over the forecast period, a recovery in sales is expected, reversing the poor performance seen in the review period. The better economic context will favour increased sales of deodorants in retail volume terms in the short term.

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