Bath and Shower in the Philippines

Euromonitor International June 2011

....................................................................................................................... 4 Table 1 Sales of Bath and Shower by Category: Value 2005-2010 ................................................................................... 4 Table 3 Bath and Shower Premium Vs Mass % Analysis 2005-2010 ...... 3 Category Data ................. 7  Euromonitor International Page i ...................... 1 Trends ... 7 Table 9 Forecast Bath and Shower Premium Vs Mass % Analysis 2010-2015 ........................................ 4 Table 4 Bath and Shower Company Shares 2006-2010........................................................................ 1 Competitive Landscape .................................................................................................. 4 Table 2 Sales of Bath and Shower by Category: % Value Growth 2005-2010....... 6 Table 7 Forecast Sales of Bath and Shower by Category: Value 2010-2015.........................................................Bath and Shower Philippines List of Contents and Tables Headlines ................................................................ 7 Table 8 Forecast Sales of Bath and Shower by Category: % Value Growth 2010-2015 ............................................................................................................................................................................................................................ 5 Table 6 Bath and Shower Premium Brand Shares by GBN 2007-2010.......................................................................................................................................................... 2 Prospects ...................................................... 5 Table 5 Bath and Shower Brand Shares by GBN 2007-2010 .....................................................................................................................................

remains the fastest growing category in bath and shower in the Philippines. The 3% value growth recorded in bath and shower during 2010 was an improvement on the 2% value growth recorded during 2009. Along the same lines. Liquid soap. For example. whitening remained the most prominent value added feature in bath and shower and was offered by several brands in response to the penchant among Filipinos for fairer complexions. The 3% growth in unit price recorded during 2010 can be largely attributed to growth in demand for bath and shower products with value-added features.Bath and Shower Philippines BATH AND SHOWER IN THE PHILIPPINES HEADLINES • • • • • • Bath and shower increases in value by 3% in 2010. the fruit of the carica papaya tree. specifically in men’s grooming. scrub gloves and other similar exfoliating tools leads many Filipinos to the conclusion that bath and shower products which offer exfoliating benefits • • • • •  Euromonitor International Page 1 . Advertising campaigns which alert customers to the potential benefits of certain products also contributed to the improved performance of bath and shower in 2010. shampoo and shaving cream. Beiersdorf AG introduced Nivea Active 3 Shower Shampoo Shave. With relatively low inflation of 3% and all-year-round price discounts offered for brands such as Dove and Safeguard. Similarly. The positioning of products which contain papaya focuses more on the whitening properties of papaya than it being a natural ingredient. The higher growth recorded during 2010 is testament to the optimism and confidence which currently prevails in the Philippines following the recent change in political administration and the high economic growth currently being experienced in the country. Dove Men+Care offers a bar soap which can also be used as a facial cleanser. Splash Corp launched its Hygienix brand during 2010.3 billion Value added features define the positioning of the majority of leading brands in bath and shower Liquid soap leads growth in bath and shower during 2010. is a popular added ingredient in bath and shower products in the Philippines for its whitening properties. posting a value increase of 10% Unit price increases by 2% during 2010 Procter & Gamble Philippines Inc continues to lead bath and shower with a value share of 23% Bath and shower is set to decline in constant value at a CAGR of -1% over the forecast period. Dove Men+Care was launched in the Philippines during 2010. Exfoliating/scrubbing bath and shower products are not popular in the Philippines and mainstream brands tend not to carry such variants. The widespread use of loofahs. Anti-aging and whitening soaps have proven able to maintain strong followings. Natural and organic products continue to cater to narrow niches of upscale consumers who are more concerned about product ingredients than the stated benefits of the products. a product which can be used as a shower gel. which stimulated growth in liquid soap. boosting demand for anti-bacterial products. falling to Ps11. New features in products such as multiple purpose bath and shower products also emerged during 2010. which is having a positive effect on value sales and bolstering value growth. Anti-aging features have also spilled over into bath and shower with the formulations of Olay Age Defy and Kissa Anti-aging Soap offering anti-aging features. rising to Ps11. It should be noted that papaya. A number of major players are focusing on pushing liquid soap in the Philippines. The need for constant anti-microbial protection has brought about a surge in sales of anti-bacterial hand sanitisers which can be conveniently carried around and used on-the-go. The lingering fears of an influenza pandemic stemming from 2009’s H1N1 scare remains vivid in the collective Filipino consciousness. which increased in value by 10% during 2010. allowing manufacturers to increase unit prices. the value-added features which are now offered in bath and shower products are boosting demand for higher priced products. the unit prices of bath and shower products generally stabilised during 2010.0 billion by 2015 TRENDS • During 2010. Domestic brands such as SkinWhite and Silka continue to bank on their promises of delivering whiter skin to users.

Luxury brands are geared towards more affluent customers and demand for these products is largely insulated from the effects of the global economic slowdown as demand from discriminating and extremely loyal customers remains undimmed by economic concerns. Meanwhile. For instance. emphasising that using Safeguard products when washing one’s hands could efficiently reduce sick days and help breadwinners earn more money for their families. Rising from a small base. These international business entities accounted for 80% of value sales in bath and shower in the Philippines during 2010. However. its Nivea for Men brand managed to record 13% in shower gel during 2010. Dove Showeroke is a fun promotion which challenges customers to take a video of themselves singing in the shower while holding Dove Go Fresh Beauty Bar or a Body Wash or Deodorant Stick as a makeshift microphone. a very marginal improvement from the same figure in 2009. as a whiter complexion is desired by both male and female consumers in the Philippines. a high-end bar in Makati City. while Beiersdorf’s first mover advantage in mens grooming assured its products of steadily increasing demand. where customers could win cash prixes by buying specially marked packages of these products. Safeguard. the strong foothold enjoyed by multinational players remains unassailable for domestic companies as Filipinos are far more loyal to the more established brands of multinational companies. is best known for its anti-bacterial protection and is positioned as a soap which suitable for the entire family to use. launched a series of Yaman promotions. Schools across the country were targeted by the campaign as one million handprints were collected for the project. while Green Cross Inc is maintaining its value share by positioning itself as a cheaper alternative to the anti-microbial soaps of multinational companies. The rise of the ‘metrosexual’ lifestyle in the Philippines remained the key driver for sales of mens Nivea for Men. During 2010. Domestic players which currently enjoy high sales in bath and shower in the Philippines include Splash Corp. Procter & Gamble brands including Tide. The strong brand equity enjoyed by Safeguard is supported by intensive marketing stressing the product’s efficacy and the potential savings on offer in terms of lower medical expenses.6 billion in 2010 through the leading position of its Safeguard brand. The leading brand. Dove and Olay appeal to middle income women who are less price sensitive than the average Philippine consumer. which has achieved success through its whitening brands SkinWhite.Bath and Shower Philippines are not really essential. Having been present in the Philippines for a very long period of time. whitening products tend not to be gender specific. Ariel. In partnership with UNICEF. cementing the brand image of Safeguard as a leading anti-bacterial bath and shower product. Procter & Gamble’s value sales in bath and shower increased to Ps2. Local companies continue to lag behind as these domestic players often pursue sales among niche segments and more price sensitive low income consumers. Procter & Gamble’s Safeguard launched the second Global Handwashing Day in the Philippines during 2010. In terms of products positioned as beauty soaps. Multinationals reign supreme in bath and shower in the Philippines due to their long standing presence. an advantage which extends to all members of the family. Aside from price discounts. Dove launched two other promotional strategies: Dove Showeroke. with winners invited to perform at STRUMMS. In • • • •  Euromonitor International Page 2 . and Safeguard. Safeguard has by now become a true household name and is synonymous with anti-microbial protection for the skin. Meanwhile. • Segmentation in bath and shower in the Philippines tends to occur according to the benefits that products convey. the advertising for Safeguard focused on its microbe fighting formulation. • COMPETITIVE LANDSCAPE • Procter & Gamble Philippines Inc remained the undisputed leader in bath and shower in the Philippines during 2010. maintaining leadership with a 23% value share. and Dove Seven Day No Mirror Challenge. it is estimated that premium brands accounted for a meagre 2% of total bath and shower value sales. This promotional activity emphasised the importance of washing one’s hands among Filipino students and school pupils. Premium bath and shower products continue to cater to a very small niche of high-end consumers due to the higher pricing strategies employed by manufacturers. Beiersdorf AG’s venture into the rapidly growing men’s grooming category gave it the status of the best performer in bath and shower in the Philippines during 2010. Below-the-line marketing activities abounded in bath and shower during 2010. Biolink and Likas. It should be noted that the majority of exfoliants/scrubs variants in the Philippines are present only in bath salts. the Dove Seven Day No Mirror Challenge asked customers to wash their faces with Dove for seven days whilst refraining from looking at themselves in the mirror until after seven days had passed.

For instance. the proliferation of bloggers in the Philippines has the potential to develop into a significant influence over the thoughts and actions of the general population. As the usage of internet technology widens rapidly in the Philippines. any rises will not be very high as it is not expected that any major changes will occur in the overall shares of the majority of bath and shower brands. growth in population represents be the key potential driver as per capita consumption and the frequency of use of bath and shower products is already very high. Companies would be well advised to continue investing in keeping their customers updated on new product developments through these emerging communication channels. This represents a nascent resource which could be tapped into over the forecast period • • • • • •  Euromonitor International Page 3 . Even though the rise in the availability of specially positioned products has the potential to push unit prices up. SM Bonus and Watsons are the leading private label players in liquid soap and have achieved favourable positions due to their competitive pricing strategies. manufacturers can be expected to look towards expanding sales through product innovation that responds to emerging consumer needs. Sanofi-Synthélabo Philippines Inc organised a marathon relay event called Woman by Lactacyd Team Run. Unit prices will not increase significantly in bath and shower during the forecast period. In light of the already saturated demand for bath and shower. PROSPECTS • In line with its status as a saturated category with high penetration. it largely fails to communicate its basic benefits. anti-aging bath and shower products will be continuously offered to women who are concerned in maintaining their youthful appearance. It should be noted that despite the fact that the brand’s target audience consists mainly of upscale. bath and shower manufacturers have the opportunity to cater to the needs of younger demographics through social networking websites and blogs. • Private label has only a limited presence in bath and shower in the Philippines and is visible only in liquid soap. Liquid soap is expected to increase in volume at a CAGR of 5% over the forecast period. More companies are expected to recognise the growth potential inherent in liquid soap.Bath and Shower Philippines addition to this. Thus. leading them to venture into liquid soap during the early stages of the forecast period. falling to total constant value sales of Ps11 billion in 2015. particularly in comparison with the clear marketing messages of its competitors. Bath and shower in the Philippines is a highly saturated category as the majority of Filipinos already take a bath or shower every at least once a day. Bath and shower is set to decline in constant value at a CAGR of -1% over the forecast period. address specific customer concerns and engender greater knowledge of and familiarity with products among key target audiences. which promoted the healthy properties of its Lactacyd brand. Liquid soap remains the brightest prospect for growth in bath and shower during the forecast period as its growth stage remains relatively undeveloped. highly educated women. Social networks have the potential to be used to launch new promotions. the performance of Hygienix Hand Sanitiser will be largely dependent on its commitment to differentiating itself from its competitors. rising to constant value sales of Ps472 million by 2015. Another opportunity will arise to widen demand for men’s bath and shower products as more Filipino consumers place a higher value on bath and shower products which are especially formulated for their specific needs. Meanwhile. Filipino consumers are less concerned about using branded hand soap. Annual unit price increases of between 3% and 5% should be expected as manufacturers attempt to maintain their price increases in line with inflation and manage any rises in the manufacturing and distribution costs. bath and shower in the Philippines will suffer from stagnation and declining growth during the forecast period. The trend towards whitening is likely to be sustained by innovation in terms of more effective whitening ingredients which could be incorporated in bath and shower products. The bath and shower products specifically for men which were launched by under the Nivea and Dove brands during 2010 are expected to fare well during the forecast period. It should be noted that volume expansion will be limited by the continuous decline in population growth. The increasing need for convenience and on-the-go antibacterial protection will be the key driver for the rising demand for hand sanitisers in the Philippines. Meanwhile. especially as these high profile brands will continue to increase awareness of male-specific bath and shower products through advertising and promotional campaigns.

6 537.3 616.Bath and Shower Philippines so as to promote new product launches and disseminate genuine and trustworthy independent product reviews.8 4.259.194.341.1 906.843.069.0 3.798.6 45.0 271.1 51.2 11.7 0.7 248.2 2.6 357.0 5.3 100.4 36.4 42.6 9.341.6 411.3 117.1 20.0 3. trade sources Table 3 % retail value rsp Bath and Shower Premium Vs Mass % Analysis 2005-2010 2005 Premium Mass Total Source: 2006 1.5 214.8 10.9 10.3 1.4 18.3 Euromonitor International from official statistics.0 2009 1.Bath Oil/Pearls .5 335.5 98.5 727.2 203.3 2. trade interviews.2 1.3 98.3 808.4 745.6 39.1 57.Bath Foam/Gel .594.8 3.2 10. store checks.4 214.7 263.4 617.176.4 22.7 98.3 2007 5.5 6.5 6.0 2010 1.6 -25.0 -76.9 117.3 100.6 2.6 1.316.4 2.5 788.9 0.Intimate Washes .6 347. trade associations.8 13.4 17.Bath Salts/Powder .4 38. trade interviews.5 2005/10 TOTAL 10.5 25.8 2.8 2.6 100.2 2010 5.943.8 724.9 39.066. trade sources  Euromonitor International Page 4 .Intimate Wipes Liquid Soap Talcum Powder Bath and Shower Source: Sales of Bath and Shower by Category: Value 2005-2010 2006 4. company research.1 66.6 1.7 Euromonitor International from official statistics.0 4.8 1.760.0 1.1 191.7 1.6 334.7 6.6 3. company research. trade interviews. trade associations.6 174.Intimate Washes .3 2009 5.795. CATEGORY DATA Table 1 Ps million 2005 Bar Soap Bath Additives .4 2.Other Bath Additives Body Wash/Shower Gel Intimate Hygiene .Bath Foam/Gel .9 13.1 0.6 2008 5.6 16.6 0.977.6 98.5 2.3 100.177.0 2007 1.8 -37.6 55.5 575.0 2008 1.Other Bath Additives Body Wash/Shower Gel Intimate Hygiene .7 10.2 6.3 60.0 2.540.3 1. store checks.2 39.693.4 98.3 907.9 561.8 576.7 766.7 100.3 4. trade press.3 241.4 1.259.5 3.2 503.Bath Oil/Pearls .1 10.Intimate Wipes Liquid Soap Talcum Powder Bath and Shower Source: 2005-10 CAGR 2. trade associations.0 Euromonitor International from official statistics.297.5 48.9 6. store checks.4 228.Bath Salts/Powder .0 0.7 0.720.7 98.142.5 100.8 16. company research. trade sources Table 2 Sales of Bath and Shower by Category: % Value Growth 2005-2010 % current value growth 2009/10 Bar Soap Bath Additives .5 3. trade press.5 6.9 461.960.0 2.528.7 194.6 374.8 0.2 231.0 2. trade press.193.070.

7 2008 18.2 0. The Tupperware Brands Corp Rustan Group of Cos Siam Yoko Co Ltd Other Private Label JVS Worldwide Inc Amway Philippines LLC Kao Brands Co HBC Inc Dial Corp.3 0.8 0.7 1.0 0.9 4.4 2.0 2010 22.3 0.7 13.3 14.2 0.1 2.6 0.3 4.5 1.5 0.8 0.0 1.5 3.1 0.6 1.3 0.8 0.2 0.6 4.1 14.1 13.1 7.1 1.1 2.4 0. Inc Ascendia Brands Inc Henkel Philippines Inc Sara Lee Philippines Inc Andrew Jergens Co.7 0.7 100.5 0.0 4.6 100.8 0.6 2010 18.1 1.4 1.4 0.1 3.0 5.7 2.0 2008 22.3 0.4 14.0 0.9 0.1 0.5 7.0 2009 22.1 0.4 0.1 0.5 1.8 3.0 Procter & Gamble Philippines Inc Johnson & Johnson (Philippines) Inc Splash Corp Unilever Philippines Inc Colgate-Palmolive Philippines Inc Sanofi-Aventis Philippines Inc Inovitelle Inc Avon Cosmetics Inc Green Cross Inc Trinidad Cosmetics Laboratories Inc Suyen Corp Rogemson Co Inc.Bath and Shower Philippines Table 4 % retail value rsp Company Bath and Shower Company Shares 2006-2010 2006 23. company research.4 0.9 0.4 14.4 1.6 14.3 0.5 1.8 0.6 0.2 5.6 5.9 4.0 0. trade interviews.7 1.9 3.1 0.8 100. The Lander Co Inc Sanofi-Synthélabo Philippines Inc Sara Lee Direct Selling Philippines.0 2009 18.5 0.4 0.8 0.9 0.1 0.2 2.7 1.2 0.1 2.4 1.6 1.3 0. Inc Others Total Source: Euromonitor International from official statistics.1 9.5 0.8 4.9 4.1 0. The Galderma Philippines Inc St Ives SA.6 7.4 1.3 0. Laboratoires Philusa Corp Nu Skin Enterprises Philippines Inc Drammock International Ltd Beiersdorf AG S & J International Enterprises PCL Pigeon Corp Fuller Life Direct Selling Philippines. store checks.0 1. trade associations.9 0.9 5.9 3.7 13.1 1.8 0. trade press.3 0.4 0.3 3.8 0.2 5.9 2.1 1.2 1.4 0.0 2007 22.1 1.1 0.4 4.4 4.1 2.9 1.2 2.3 0.3 4.6 13.8 4.3 3.3 0.0 100.4 8.1 0.6 0.2 0.0 0.3 0.0 4.5 0.1 0.5 1.7 4.7 0.2 2.3 0.7 1.0 3.7 0.4 0.9 0.3 1.6 100.9 0.0 3.9 13.7 3.1 0.6 0.2 1.1 0. trade sources Table 5 % retail value rsp Brand Safeguard Bath and Shower Brand Shares by GBN 2007-2010 Company Procter & Gamble 2007 17.1 0.4  Euromonitor International Page 5 .

9 0.1 0.8 0.0 100.1 0.4 0.7 1.9 4.4 4.0 0.4 0.2 0. trade sources  Euromonitor International Page 6 . trade associations.0 1.3 67.6 0.1 0.3 0.2 0.5 0.1 0.1 0.5 1.7 1.7 1.1 1.3 0. trade interviews.3 0.3 1.0 1.0 3.4 4.6 0.1 0.1 0.2 2.8 0.1 0.0 2008 37.8 100.1 0. trade interviews.4 6.3 4.9 0.9 3.6 1.6 0. trade sources Table 6 % retail value rsp Brand Artistry Others Total Source: Bath and Shower Premium Brand Shares by GBN 2007-2010 Company Amway Philippines LLC 2007 32.3 0.9 2.2 1.0 13.4 100.4 0.5 0.3 0. trade press.4 0. The Galderma Philippines Inc Procter & Gamble Philippines Inc St Ives SA.2 0.1 14.2 5.4 0.8 0.0 4.3 0.2 0.0 0.5 0.0 0. store checks.0 4.3 3.9 100.4 2.6 14.6 0.7 1.0 Euromonitor International from official statistics.5 0.1 3.5 2.4 4.1 0.4 1.1 13.0 13.9 0.0 0.2 60.2 0.5 6.2 1.9 3.4 0. trade press.9 4.0 1.3 0.4 15.0 63.3 3.4 0.1 0.7 1.1 0.9 1.Bath and Shower Philippines Johnson's Baby SkinWhite Dove Lactacyd pH Care Palmolive Zest Green Cross Likas Avon Avon Simply Delicate Bench Bambini Zwitsal Lush Yoko Other Private Label Tender Care The Body Shop Jergens Biolink Artistry Vitasoft Dial Cetaphil Ivory St Ives Swiss Formula Hygienix Babyflo Nu Skin Body Series Protect & Clean Nivea Body Hiyas Enfant Extract Pigeon Zwitsal Lander Others Total Source: Philippines Inc Johnson & Johnson (Philippines) Inc Splash Corp Unilever Philippines Inc Sanofi-Aventis Philippines Inc Inovitelle Inc Colgate-Palmolive Philippines Inc Procter & Gamble Philippines Inc Green Cross Inc Trinidad Cosmetics Laboratories Inc Avon Cosmetics Inc Avon Cosmetics Inc Suyen Corp Rogemson Co Inc.1 0.1 1. The Tupperware Brands Corp Rustan Group of Cos Siam Yoko Co Ltd Colgate-Palmolive Philippines Inc JVS Worldwide Inc Kao Brands Co Splash Corp Amway Philippines LLC HBC Inc Dial Corp.2 0.2 0. company research.0 2009 39.0 0.1 2.8 100.9 4.1 1.0 0.5 2.1 1.2 0.7 0. company research.3 4.3 0.7 0.1 1.6 2.3 0.3 0.1 2.8 4.8 0.4 0.1 6.1 1.3 0.2 100.8 4.0 13.0 1.3 0.1 60.0 1.5 1.6 5. Inc Ascendia Brands Inc 13.2 2.2 0.0 2010 39. store checks.2 0.9 1.7 4.7 1.7 100.3 0.5 2.1 0. Laboratoires Splash Corp Philusa Corp Nu Skin Enterprises Philippines Inc Amway Philippines LLC Drammock International Ltd Beiersdorf AG Splash Corp S & J International Enterprises PCL Splash Corp Pigeon Corp Fuller Life Direct Selling Philippines.2 0.1 1.4 0.9 100.0 1.6 4.4 6.1 2.4 1.9 1.0 Euromonitor International from official statistics.2 3.1 1.3 0.3 0.4 0. trade associations.

3 590.100.1 51.477.7 461.7 98.5 1.8 13.Other Bath Additives Body Wash/Shower Gel Intimate Hygiene .Bath Oil/Pearls .0 1.Bath Salts/Powder .388.4 1.8 -0.5 1.5 250.556.3 1. trade press.192.1 100.1 1.8 -1.1 757.4 11.8 576.Bath Oil/Pearls .5 1.3 5.869.5 7.2 753.8 13.9 0.062.434.9 10.7 11.4 2.3 2012 5.316.7 1.0 0.8 759.6 425.1 613.1 56.803.692.0 16.0 2014 2.3 3.0 1.747.0 3.2 11.1 1.0 0.9 58.6 450.341.518.5 13.0 271.4 745.0 4.007.3 760.3 2. trade interviews.2 100. trade sources Table 9 % retail value rsp Forecast Bath and Shower Premium Vs Mass % Analysis 2010-2015 2010 Premium Mass Total Source: 2011 1.1 97.0 98.7 -8.8 2.2 623.0 2015 2.5 2.387.986.Bath Foam/Gel . trade sources Table 8 Forecast Sales of Bath and Shower by Category: % Value Growth 2010-2015 % constant value growth 2010-15 CAGR Bar Soap Bath Additives .2 100.4 2.0 1.6 1.8 Euromonitor International from trade associations. trade sources  Euromonitor International Page 7 .7 472.9 98.038.Intimate Washes .5 0.Other Bath Additives Body Wash/Shower Gel Intimate Hygiene .8 98.6 411.6 -1.5 -2.4 290.6 1.1 0. trade interviews.1 245.1 2014 4.0 1.9 14.518.4 257.4 13.7 11.9 98.9 53.433.Bath Salts/Powder .Intimate Wipes Liquid Soap Talcum Powder Bath and Shower Source: 2010/15 TOTAL -7. trade press.Intimate Wipes Liquid Soap Talcum Powder Bath and Shower Source: 2011 5. trade press.5 631.165.5 Euromonitor International from trade associations.556.6 13.0 2013 1.3 100.943.0 Euromonitor International from trade associations.341. trade interviews.8 2.6 1.706.6 11.4 57.2 278.8 11. company research.9 100.022.9 13. company research.1 2.Bath and Shower Philippines Table 7 Ps million Forecast Sales of Bath and Shower by Category: Value 2010-2015 2010 Bar Soap Bath Additives .1 2015 4.911.1 2013 4.7 0.0 602.0 2012 1.Intimate Washes .1 762.5 299.Bath Foam/Gel .9 13.8 1.7 2.3 9.8 0.7 1.5 3.936.5 295.3 284. company research.6 438.3 241.7 0.0 100.2 254.9 259.6 16.476.297.3 54.0 2.