Perhaps nowhere has the rise of the discounter stunted value growth more than in the household goods sector
Perhaps nowhere has the rise of the discounter stunted value growth more than in the household goods sector. Surface care, lavatory care, dishwasher products and washing-up liquids all saw declines in value as any volume growth was wiped out by continued pressure on price. Most dramatically, washing up goods were down 8.1% in value while toilet cleaning products slumped 4.7%.
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Data supplied by nielsen.com
One exception to this rather downbeat story is aircare, which has seen volume and value growth driven in part by NPD and more premium products. While traditional brands have come under pressure from cheaper supermarket own-label and discounter alternatives, of the four declining categories only surface care saw own-label growth and own-label slumps generally outpaced the fall of brands. Brands paid to hold on to share through lower prices and increased deals.
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Responding to ongoing trends, retailers and brand owners have looked to simplify their ranges to give a clearer message on value. “This confusion has led to value erosion of the category, with shoppers looking for a less complex choice in the high street, or simply resorting to the least expensive products within the store,” says Ian Morley, P&G’s group sales director, Northern Europe.
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Aircare the only winner in household