Laundry Care in Venezuela

PROSPECTS

Government regulations force companies to get creative

Since the implementation of the Law of Fair Costs and Prices on this category in 2012, the government has not authorised price increases in line with inflation. As such, prices lagged behind inflation for several years.

Operating difficulties negatively affect sales

The downward trend that started in 2014 in the majority of laundry care categories is projected to continue over the forecast period. Limitations in the access to foreign currency will continue to impede firms with payment commitments to suppliers of raw materials, which will make it difficult to significantly increase production levels.

Changing consumer habits

One of the main business trends with regard to launderettes was the rental of automatic and semi-automatic washing machines for one day, which are carried to the consumer’s home. This was common among the lowest-income segments, which cannot afford to buy a washing machine and did not wish to hand-wash clothes.

COMPETITIVE LANDSCAPE

Procter & Gamble de Venezuela CA regains the lead

Procter & Gamble de Venezuela CA led laundry care. The company managed flagship international brands Ace and Ariel, as well as domestic brand Rindex.

International brands and manufacturers account for half of retail value sales

Despite restrictions on imports, international brands and manufacturers accounted for half of the retail value sales in laundry care in 2017. Significant multinationals included Procter & Gamble de Venezuela CA (Ace and Ariel), Colgate-Palmolive CA (ABC and Soflan) and Reckitt Benckiser Venezuela SA (Woolite and Vanish).

Local competitor Fácil Quimica strengthens its presence in laundry care

Fácil Quimica ranked sixth in laundry care in 2017, up three places on the previous year. The company predicted that the government would introduce price regulation and strategically reformulated its products to suit the changed operating environment.

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