Indian home care market driven by consumers switching to branded products

Press Release   •   Aug 09, 2013 10:32 BST

The Indian home care market continued to grow through 2012, even amidst the economic slowdown as rural consumers continued to switch to branded products.

Whilst rural consumers supported volume sales, acceptance of high value products by urban consumers drove value sales in 2012. Leading manufacturers continued to promote their products in rural India to gain volume sales even further.

A switch to branded products by rural consumers, rising incomes and hence affordability in Tier II cities, and increasingly Westernised lifestyles in urban areas, were some of the primary factors contributing to the growth of the Indian home care market.

Furthermore, as manufacturers continued to promote their products through campaigns such as 'Daag Achhe Hain' (Dirt is Good campaign) and introduced new products, consumers were encouraged to purchase new products.

Most traditional home care witnessed strong volume growth in 2012, while relatively newer products such as spray/aerosol insecticides, and air care recorded a rise in value sales. To capitalise on the growth potential of the better performers, many companies introduced new products.

For instance, Godrej Consumer Products Ltd introduced AER air fresheners to leverage on the potential growth in air care. In addition, leading companies maintained their prices and focused on increasing volume sales by expanding the distribution network.

According to a recent market report, 'Home Care in India,' home grown brands from companies such as Rohit Surfactants Pvt Ltd offered tough competition to multinationals, including Hindustan Unilever Ltd especially in rural areas.

Domestic companies started to expand their foothold to reach new consumers and new regions. Rohit Surfactants' Ghari expanded its presence in South India and competed with both Wheel and Tide to gain volume sales mainly in rural regions.

Celebrity endorsements which were quite a common advertising tool in industries such as beauty and personal care, expanded footprints in home care as well. For instance, Hindustan Unilever Ltd collaborated with leading Bollywood actor Salam Khan to promote its brand Active Wheel especially amongst rural consumers. In addition, Rohit Surfactants Pvt Ltd joined forces with Madhuri Dixit to promote its hand dishwashing bar Xpert in 2012.

For more information on the Indian home care market, see the latest research: Indian Home Care Market

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