DEODORANTS IN THE

PHILIPPINES
Euromonitor International
July 2012
DEODORANTS IN THE PHILIPPINES Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 4
Table 1 Sales of Deodorants by Category: Value 2006-2011 ................................... 4
Table 2 Sales of Deodorants by Category: % Value Growth 2006-2011................... 4
Table 3 Deodorants Premium Vs Mass % Analysis 2006-2011 ................................ 4
Table 4 Deodorants Company Shares 2007-2011 .................................................... 5
Table 5 Deodorants Brand Shares 2008-2011 .......................................................... 5
Table 6 Forecast Sales of Deodorants by Category: Value 2011-2016 .................... 6
Table 7 Forecast Sales of Deodorants by Category: % Value Growth 2011-
2016 ............................................................................................................. 6
Table 8 Forecast Deodorants Premium Vs Mass % Analysis 2011-2016 ................. 7

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DEODORANTS IN THE PHILIPPINES

HEADLINES
 Deodorants increases by 3% in current value terms in 2011, reaching Ps6.3 billion
 More men become conscious about their hygiene in the Philippines
 Deodorant creams sees a surge in growth in 2011, with a 4% increase in current value terms
 Deodorants experiences higher average unit prices, with an increase of 2% in 2011
 Unilever Philippines holds a 35% share of value sales in deodorants in 2011
 Deodorants is expected to see a constant value CAGR of 2% over the forecast period

TRENDS
 More men are becoming conscious about body odour in the Philippines. The hot weather,
paired with the difficult and crowded daily commute that most men have to experience,
resulted in more men purchasing deodorants to carry with them and use throughout the day to
freshen up. The influence of the media has made many young men feel the need to smell
good to be attractive to women. Along with rapid urbanisation in the Philippines, more men
are picking up on this trend, which assisted the overall growth of deodorants in 2011.
 Deodorants saw faster growth in 2011 than in the previous year, with an increase of 3% in
current value terms. There was an improvement in sales across all categories in deodorants,
making up for the poor performance in 2010. Stronger growth came from improved
distribution in provincial markets. Stronger sales of sachets and smaller packaging formats
also helped to push the growth of deodorants.
 Deodorant creams saw the fastest growth in 2011, with a 4% current value increase. This
strong performance was due to the increase in purchases of sachets. The poor global
economic performance resulted in fewer remittances entering the Philippines, resulting in
more Filipinos needing to purchase smaller packaging formats to stay within their budgets. If
viewed from a value per litre perspective, deodorant sachets actually cost more, contributing
to the higher value performance.
 Average unit prices increased across all deodorant categories except deodorant sprays in
2011. The average unit price of deodorant sprays decreased because of the intense
competition amongst deodorant spray brands targeting men. The average retail unit price of
deodorant sprays decreased by 1% in 2011. Deodorant creams saw strongest increase in
average unit price due to increasing sales of sachets. Deodorant creams averaged a unit
price increase of 4% in 2011. The average unit price increase in overall deodorants was 2% in
2011.
 Deodorant roll-ons continued to enjoy healthy growth in 2011, with an increase of 3% in
current value terms. Sales growth continued to come from customers who tended to buy this
format out of habit, since it was the first type of packaged deodorant available in the market.
The low price of deodorant roll-ons also attracts new customers and the younger generation,
who may be trying out deodorants for the first time.
 In the Philippines there is no clear distinction between deodorants and antiperspirants. The
majority of brands market themselves as being able to both reduce perspiration and make the
user smell good throughout the day. However, the majority of deodorant roll-ons and
deodorant creams, such as Block & White and Secret, focus on the benefits of underarm

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whitening and no visible perspiration. Meanwhile, deodorant sprays, which are usually
targeted towards men, focus on scent innovation and attractive packaging designs.
 In the Philippines, deodorant sprays are typically targeted towards men and those who are
into sport. Many of the younger generation, especially male teenagers, tend to use deodorant
sprays as a fragrance, due to its lower cost and mass availability compared with mass men’s
fragrances. Women do not usually use deodorant sprays to replace fragrances, but instead
use spray cologne as a cheaper alternative to fragrances.

COMPETITIVE LANDSCAPE
 In 2011 Unilever Philippines held the leading position in deodorants, with a 35% share of
value sales. Rexona continued to perform well through its sales of sachets. Axe’s unique
market strategy of launching at least one new scent every year continued to attract new
customers. Axe Provoke was launched in the first quarter of 2011, and Axe Final Edition was
launched in the last quarter of 2011. In addition, Dove deodorants saw a strong performance
amongst middle- and high-income consumers. Dove Men+Care deodorant, launched only in
2010, slowly gained popularity in 2011. It should be noted that the data for Dove Men+Care
was not yet represented in brand shares in 2011.
 Golden ABC, owner of the Penshoppe deodorant brand, saw the weakest performance in
2011, with a decline in value sales of 2%. Golden ABC focused its marketing on its apparel
brands, and provided very little support to its beauty and personal care products, as they were
seen to be only extension brands. In addition, Penshoppe deodorants are only distributed
through the company’s retail outlets; therefore limiting its market reach in the Philippines.
 International brands continued to monopolise deodorants in 2011. The top three brands,
namely Rexona, Avon and Nivea Deodorant, are all internationally owned, and entered the
Philippine market at a very early stage, gaining brand recognition and loyalty over the years.
Domestic brands of deodorants entered the market later, and were not able to achieve the
same recognition as international brands, because of limited marketing budget, and they are
perceived to be of lower quality.
 The most notable marketing campaigns in 2011 came from Axe. Axe Provoke was launched
in the first quarter of 2011 in the Philippines. The Goddess Fashion Show was its official press
launch, and was the starting point for its SM Mall tours. Axe Provoke was also supported by
television commercials to promote its raffle, whereby customers had to input the codes found
on bottles for a chance to win prizes. The second launch was in the last quarter of 2011, with
the launch of its Axe Final Edition brand. Axe Final Edition used the 2012 end of the world
theory as its marketing point to conceive its witty television commercial, which was used
internationally. In the Philippines, Axe Final Edition sponsored the hippest parties, such as the
Bigfish Cream Halloween Ball. Rexona, on the other hand, took advantage of the craze for
running marathons in the Philippines, and organised the Rexona Run 2011.
 No new packaging innovations were introduced in 2011. Deodorant sprays continued to use
metal spray canisters which usually came in a size of 150ml. Meanwhile, deodorant creams
continued to use plastic bottles in 50-60ml, and sachets in 5ml. Deodorant roll-ons and
deodorant sticks also remained unchanged, and used plastic bottles in 40-60ml and 40-80g
sizes respectively. Brands continued to use their trademark colours on the packaging, with the
brand name clearly written on the front.
 Mass brands dominated deodorants in the Philippines in 2011. Brands such as Rexona, Axe
and Safeguard are available in almost all retail distribution channels, such as hypermarkets,
supermarkets and convenience stores. Avon Cosmetics, Sara Lee Philippines and
Tupperware Brands continued to focus distribution through direct selling. Splash Corp entered

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direct selling late in 2010; it also continued to distribute its products through modern retail
channels such as hypermarkets and supermarkets. Mass brands usually compete through
price promotions, and provide free samples to attract sales.
 In the Philippines, international brands which are commonly known as mass products in other
countries, such as Right Guard, Old Spice and Gillette, are perceived to be premium brands
in the Philippines, and target middle- and high-income consumers. These brands are usually
available in popular hypermarkets and supermarkets. Brands which are internationally known
to be premium, such as Aramis Classic 24Hour Anti-Perspirant Spray and LAB Series Anti-
Perspirant Deo Stick were also available in 2011. Premium brands are usually distributed in
upscale department stores in the Philippines.

PROSPECTS
 Deodorant brands are expected to expand further to less urban areas in the Philippines. The
majority of consumers in urban areas such as Manila and Quezon City already use
deodorants as part of their daily routine. However, developing areas outside the main cities
present a great deal of opportunity for growth. Manufacturers are likely to continue to develop
smaller pack sizes and sachets to make deodorants affordable by consumers in less
developed areas. Distribution is likely to expand alongside the growing number of chained
retailers in provincial regions, such as SM and Robinsons.
 Deodorants is expected to increase moderately over the forecast period, with a constant value
CAGR of 2% expected. All categories in deodorants are expected to perform well, as
deodorant usage becomes part of everyday hygiene for consumers. Men’s deodorants is also
expected to be a main driver of growth, with men in urban areas becoming more conscious of
their body odour.
 In the Philippines, deodorant sprays are typically used as fragrances rather than for their
antiperspirant function. Baby and child-specific toiletries such as Bambini and Lewis & Pearl
are available in spray cologne format, and are constantly used to replace women’s deodorant
spays. These spray colognes are usually a fraction of the price of deodorant sprays, and
come in smaller, more compact bottles, which provide more convenience for consumers to
carry in their bags compared with deodorant sprays, which are usually in larger pressurised
metal bottles.
 Deodorant sprays is expected to see the strongest growth over the forecast period, even with
the threat of other baby and child-specific products being used as alternatives. Men’s
deodorant spray brands such as Axe, Nivea for Men and Rexona for Men are expected to be
the main driver of growth in deodorant sprays. Men’s deodorant sprays are used as an
alternative to mass men’s fragrances. Men’s deodorant sprays typically sell at a third of the
price of men’s mass fragrances, and are widely available in almost every retail outlet, making
them affordable and convenient for the majority of men to purchase. In addition, many male
consumers find the lighter metal pressurised bottles more convenient to carry in their bags
compared with the glass bottles of mass men’s fragrances.
 Constant unit prices of deodorants are expected to increase marginally over the forecast
period. Deodorant creams and deodorant sprays are expected to see the fastest increase in
constant unit price, with a negligible CAGR over the forecast period. Unit price increases are
likely to be driven by increasing production costs and the expected increase in sales of
sachets. Although the competition amongst deodorant brands is intense, production costs are
bound to limit discount promotions.
 The new launches of Axe Provoke and Axe Final Edition are expected to perform well over
the short term. As for all Axe brands, the initial marketing launch was aggressive. Marketing

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support for the new launches is likely to be pulled away as soon as Axe comes out with the
next new launch. Competitors are likely to continue to focus on their current marketing
strategies of targeting other niche male target markets. Rexona for Men differentiates itself by
targeting the athletic and active male market, whilst Nivea for Men focuses on targeting more
mature or sophisticated men in their 30s to early 40s.
 Deodorant cream brands such as Secret are expected to develop products in sachets to
compete with Rexona’s deodorant cream sachets. Deodorant sprays may launch smaller
spray bottle sizes to compete with baby and child-specific toiletry brands such as Bambini and
Lewis & Pearl spray cologne. Additional scents are likely to be launched over the forecast
period, because consumers tend to get tired of old scents, and frequently prefer to try new
ones.

CATEGORY DATA
Table 1 Sales of Deodorants by Category: Value 2006-2011

Ps million
2006 2007 2008 2009 2010 2011

Deodorant Creams 343.7 384.9 425.3 440.2 438.0 455.5

Deodorant Pumps - - - - - -
Deodorant Roll-Ons 2,199.8 2,463.7 2,710.1 2,805.0 2,810.6 2,894.9
Deodorant Sprays 1,440.4 1,621.9 1,808.4 1,926.0 1,839.3 1,876.1
Deodorant Sticks 882.6 970.9 1,038.8 1,096.0 1,057.6 1,080.9
Deodorant Wipes - - - - - -
Deodorants 4,866.4 5,441.4 5,982.7 6,267.1 6,145.5 6,307.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Deodorants by Category: % Value Growth 2006-2011

% current value growth

2010/11 2006-11 CAGR 2006/11 Total

Deodorant Creams 4.0 5.8 32.6

Deodorant Pumps - - -
Deodorant Roll-Ons 3.0 5.6 31.6
Deodorant Sprays 2.0 5.4 30.3
Deodorant Sticks 2.2 4.1 22.5
Deodorant Wipes - - -
Deodorants 2.6 5.3 29.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Deodorants Premium Vs Mass % Analysis 2006-2011

% retail value rsp

2006 2007 2008 2009 2010 2011

Premium 1.3 1.3 1.2 1.2 1.1 1.1

Mass 98.7 98.7 98.8 98.8 98.9 98.9
Total 100.0 100.0 100.0 100.0 100.0 100.0

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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Deodorants Company Shares 2007-2011

% retail value rsp

Company 2007 2008 2009 2010 2011

Unilever Philippines Inc 34.1 34.1 34.7 39.0 39.0

Avon Cosmetics Inc 24.1 24.1 24.2 23.8 23.9
Beiersdorf AG 10.5 11.0 11.1 11.6 11.8
Procter & Gamble 9.2 8.0 7.2 7.1 7.0
Philippines Inc
Ever Bilena Cosmetics Inc - 0.3 1.0 2.1 2.1
Tupperware Brands Corp - - - 1.8 1.8
Coty Inc 1.5 1.4 1.4 1.3 1.3
Suyen Corp 0.6 0.5 0.5 0.4 0.4
Splash Corp 0.3 0.4 0.4 0.4 0.4
Nu Skin Enterprises 0.0 0.1 0.1 0.2 0.2
Philippines Inc
Golden ABC Inc 0.2 0.2 0.2 0.2 0.2
Sara Lee Philippines Inc 4.3 4.3 4.4 - -
Fuller Life Direct 2.2 2.0 1.9 - -
Selling Philippines, Inc
Gillette (Philippines) - - - - -
Inc
Rogemson Co Inc, The - - - - -
ZAA Enterprises Inc - - - - -
Fabergé Co - - - - -
Sara Lee Direct Selling - - - - -
Philippines, Inc
Others 13.0 13.6 13.0 12.0 11.9
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Deodorants Brand Shares 2008-2011

% retail value rsp

Brand Company 2008 2009 2010 2011

Rexona Unilever Philippines Inc 21.8 22.1 21.9 21.7

Avon Avon Cosmetics Inc 20.7 18.0 18.0 18.5
Nivea Deodorant Beiersdorf AG 7.3 7.8 7.8 7.8
Axe Unilever Philippines Inc 7.3 7.7 7.6 7.7
Block & White Unilever Philippines Inc - - 4.4 4.4
Nivea for Men Beiersdorf AG 3.7 3.4 3.8 4.0
Secret Procter & Gamble 4.1 3.6 3.5 3.4
Philippines Inc
Rexona for Men Unilever Philippines Inc 2.6 2.4 2.6 2.7
Dove Unilever Philippines Inc 2.3 2.5 2.6 2.5
Avon Feelin' Fresh Avon Cosmetics Inc - 2.4 2.3 2.3
Blackwater Ever Bilena Cosmetics Inc 0.3 1.0 2.1 2.1
Safeguard Procter & Gamble 1.7 1.7 1.7 1.7
Philippines Inc
Calgon Coty Inc 1.4 1.4 1.3 1.3
Avon American Classic Avon Cosmetics Inc 0.8 0.9 0.8 0.8

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Secret Platinum Procter & Gamble 0.7 0.6 0.6 0.6

Philippines Inc
Old Spice Procter & Gamble 0.7 0.6 0.6 0.6
Philippines Inc
Bench Suyen Corp 0.5 0.5 0.4 0.4
Avon Sweet Honesty Avon Cosmetics Inc 0.6 0.6 0.6 0.4
Right Guard Procter & Gamble 0.4 0.4 0.4 0.4
Philippines Inc
Gillette Series Procter & Gamble 0.3 0.3 0.4 0.4
Philippines Inc
Ivana Tupperware Brands Corp - - 0.3 0.3
SkinWhite Splash Corp 0.3 0.3 0.3 0.3
Nu Skin Nu Skin Enterprises 0.1 0.1 0.2 0.2
Philippines Inc
Penshoppe Golden ABC Inc 0.2 0.2 0.2 0.2
Block & White Sara Lee Philippines Inc 4.3 4.4 - -
Ivana Fuller Life Direct 0.4 0.4 - -
Selling Philippines, Inc
A Little Romance Fuller Life Direct 0.1 0.1 - -
Selling Philippines, Inc
Fidelity Fuller Life Direct 0.1 0.1 - -
Selling Philippines, Inc
Brut Fabergé Co - - - -
Gillette Series Gillette (Philippines) Inc - - - -
Right Guard Gillette (Philippines) Inc - - - -
Soft & Dri Gillette (Philippines) Inc - - - -
Babes Rogemson Co Inc, The - - - -
Boss by Babes Rogemson Co Inc, The - - - -
A Little Romance Sara Lee Direct Selling - - - -
Philippines, Inc
Ivana Sara Lee Direct Selling - - - -
Philippines, Inc
A Little Romance Sara Lee Philippines Inc - - - -
Ivana Sara Lee Philippines Inc - - - -
Deo Whitener Splash Corp - - - -
Degree Unilever Philippines Inc - - - -
Others 17.1 16.7 15.7 15.3
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Forecast Sales of Deodorants by Category: Value 2011-2016

Ps million
2011 2012 2013 2014 2015 2016

Deodorant Creams 455.5 460.5 466.5 474.0 482.5 492.2

Deodorant Pumps - - - - - -
Deodorant Roll-Ons 2,894.9 2,909.4 2,935.6 2,973.7 3,024.3 3,084.8
Deodorant Sprays 1,876.1 1,894.9 1,923.3 1,961.8 2,004.9 2,055.0
Deodorant Sticks 1,080.9 1,086.3 1,097.1 1,113.6 1,135.9 1,164.3
Deodorant Wipes - - - - - -
Deodorants 6,307.4 6,351.1 6,422.5 6,523.1 6,647.6 6,796.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 7 Forecast Sales of Deodorants by Category: % Value Growth 2011-2016

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% constant value growth

2011-16 CAGR 2011/16 TOTAL

Deodorant Creams 1.6 8.0

Deodorant Pumps - -
Deodorant Roll-Ons 1.3 6.6
Deodorant Sprays 1.8 9.5
Deodorant Sticks 1.5 7.7
Deodorant Wipes - -
Deodorants 1.5 7.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8 Forecast Deodorants Premium Vs Mass % Analysis 2011-2016

% retail value rsp

2011 2012 2013 2014 2015 2016

Premium 1.1 1.1 1.1 1.0 1.0 1.0

Mass 98.9 98.9 98.9 98.9 99.0 99.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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