Diversified cleaning product distribution across households

In the first 10 months of 2010 83 percent of Hungarian families bought some kind of product from the household cleaning product category. However, the importance of individual segments showed great diversity: general cleaning products were the most popular, but even these were only found in half of households – revealed GfK Hungária’s ConsumerScan. The second most popular were toilet rim blocks, followed by scrubbing products, liquid toilet cleaners and limescale removers. Private label products had a share lower than 20 percent in this category.

Increased willingness to switch from one cleaning product brand to another

Economic recession may have ended, but its effects linger on: consumers pay more attention to what they spend their money on and their decision making has become much more conscious. – Price/value ratio is an extremely important factor in influencing shopping – says Anna Siba, Henkel Magyarország Kft.’s brand manager. According to Renáta Rabóczki, Unilever Magyarország Kft.’s junior customer marketing manager consumers do not hesitate to cut back on their spending when it comes to this segment because household cleaners are not an involving category. During the recession consumers either remained loyal to their brands but started economising and used less from them or they began using fewer products more universally. A good example for the latter is Domestos 24H disinfecting cleaning product, which can be used around the home on different surfaces and for different types of dirt. There were consumers who switched from premium products to cheaper (even private label) products. – An attractive promotion convinces consumers to buy branded products, showing that they still trust quality more than cheaper brands or private labels – says Viktória Kürt, DunaPro’ brand manager. Iva Sokolovská, EVM Zrt.’s brand manager opines that the significance of products developed for special surfaces can grow as consumers are looking for non-harmful products to clean their expensive equipment. Nóra Tremmel, the head of Spotless Hungary is convinced that Hungarian women are looking for simpler, more economic products. – Unfortunately the market in general and the scrubbing powder/cream segment are contracting – she adds. Unilever’s view is that the biggest segment in the category – in both value and volume – is washing-up liquids, followed by disinfectants with annual sales of HUF 5 billion (with Domestos having the biggest market share). In the toilet rim block segment the last year was characterised by innovation – numerous more comfortable and hygienic new products such as Domestos Bacti Stop were introduced. Small surface cleaners also have a significant share, with important players like Cif and recently introduced Flóraszept sprays. Smaller segments include categories like window cleaners and wet wipes, the significance of which keeps growing. Environmental changes also require new solutions: according to a survey by Henkel, disinfecting has become more important than ever. This is the reason why Henkel introduced the MaxSan disinfectant range (general cleaner in classic and pine scent, kitchen cleaner, bathroom cleaner, disinfecting spray) in January 2011. These products do not contain chlorine, but thanks to their special formula they clean perfectly and have a long-lasting disinfecting effect. A positive side effect of the crisis is that consumers are more willing to switch from one product to another, so Anna Siba is optimistic about the introduction of the MaxSan range. Clorox’s manufacturer also realised that consumers are consciously choosing ‘multifunctional’ cleaning products, preferably disinfecting ones. Therefore Clorox bleach normal has become a 3 in1 product, cleaning, disinfecting and bleaching at the same time. EVM’s experience is that consumers are willing to pay a higher price for real solutions and reliable quality, for instance for their anti-mould product Ultra Szavo. This success encouraged them to come out with new special cleaning products with antibacterial agents under the same brand. Spotless Hungary Kft. appeared on the market with several innovative products last year, one of them was VIM micro-granule scrubbing cream in spray format. They also developed the VIM Inox cream and their VIM Vitro glass cleaning product has a market share above 20 percent. This year Unilever will repeat its ‘Help Smartly’ programme: each time shoppers buy a product in promotion they help the Hungarian National and Emergency Service with 1 Forint. Henkel will launch a several-month TV and press campaign in support of the MaxSan range. DunaPro will focus on in-store communication and promotion with its Clorox brand. All of EVM Zrt.’s Ultra products will return with a new packaging in the spring, supported by TV and trade magazine ads and price promotions. Spotless Hungary Kft. focuses on in-store communication this year, but they will also refurbish the website of VIM products.