Dishwashing in Brazil

PROSPECTS

Aggressive competition forces value sales down

The continued strong competition among major brands Ypê, Limpol and Minuano, coupled with tight budgets among families, is keeping prices down. In a period where consumers are being more rational and prioritising lower costs, especially in categories where differentiation among the leading brands is barely noticeable, cheaper products are being favoured.

Incremental innovation is being seen

More concentrated versions of products have not been successful because of the persistent misconception among consumers on how to differentiate concentrate and standard dosages. This in turn is preventing consumers from achieving savings over time by using concentrated dishwashing products.

Low penetration of automatic dishwashers inhibits consumption of automatic dishwashing products

The category remains low-key in regard to automatic dishwashing. Disposable incomes in 2018 continued to be low, which has not supported an increase in the penetration of new automatic dishwashers.

COMPETITIVE LANDSCAPE

Fierce competition is expected to strengthen with Unilever Brasil Ltda’s return

The hand dishwashing category is expected to keep being cost-driven, especially now that Unilever has returned with its Brilhante brand to compete directly with the leaders – Química Amparo Ltda, Bombril SA and Flora Produtos de Higiene e Limpeza Ltda. Brilhante is typically positioned as the second-tier brand in Unilever’s portfolio, underpinning its strategy of using competitive prices to gain volume share.

Regional brands and private label account for a quarter of total value sales

Leading brands are making more efforts to bring value to hand dishwashing. Girando Sol, which competes robustly in the southern states of Brazil, and Brilux, which is well positioned in the northeastern states of the country, are examples of regional-based brands that are replicating their success in other home care categories in dishwashing.

Except for Bombril, local players are not heading towards automatic dishwashing

Limpol from Bombril represents the latest effort from a local player embarking in automatic dishwashing. More such attempts are expected from local players over the forecast period, but Limpol alone has not been enough to develop the category further.

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