After a period of less than dazzling sales, things are finally starting to look a little brighter in the laundry detergent aisle. Manufacturers, led by industry giant Procter & Gamble, have introduced innovative items, most notably detergent/fabric softener combinations, targeting consumers' needs
for convenience and value, and shoppers seem to be responding, as sales in the category have begun edging up after years of negligible or even negative growth.
According to ACNielsen, for the 52 weeks ended Aug. 13, sales dollars for the heavy-duty liquid detergent category in food stores with $2 million or more in sales increased 2.5 percent.
Consumers now have a load of value-added laundry detergents to choose from, including ones designed to be used in cold water, or with lower-sudsing high-efficiency washing machines for energy and cost savings, or specifically on fade-prone dark clothes, or for people with concerns about the impact on their health or the environment of using certain soaps.
Consumer packaged goods companies are currently "focusing on innovations of well-established brands," notes Brian Sansoni, v.p., communication and membership for the Soap and Detergent Association in Washington, D.C., a trade organization for such manufacturers. "Laundry detergent is a fairly mature category, and products with added benefits, like fabric softeners and fragrances, meet niche needs."
Sansoni says the value-added tack on the part of companies makes good economic sense, since it can be "expensive to launch a new brand." Of course, he observes, the chief question manufacturers should be asking themselves is, "How can we make doing laundry easier?" The most successful of this new breed of products are doing just that, and smart retailers are paying attention.
Take, for instance, Woodbury, Minn.-based Kowalski's Markets, a 10-store upscale retailer operating in the Minneapolis-St. Paul area. "We carry all the value-added items available to us," says grocery supervisor Britt Lindemann, who handles shelf management for the company. "This includes items with bleach, fragrances, fabric softeners, and items that are free of any additives.
"Usually, when a new type of product comes into the market, the initial reaction is strong, especially when the item is accompanied by a coupon drop to help promote [it]," notes Lindemann, although he acknowledges that "reaction generally levels out after a few months." Still, he confirms, "The most popular items on the shelf in [the category] are the original item, followed by the added-bleach and the free [versions]. [Additionally, among] the fastest-growing items are the high-efficiency products."
Aside from CPG companies' FSI coupons, Kowalski's depends on its wholesaler, Minneapolis-based
To read all of this article, sign in or sign up for membership. It's quick, simple, and free.