Home Care – Where is the industry heading?
This article discusses trends and developments impacting the home care industry. What are the main growth drivers? What needs to happen if the industry’s growth of recent years is to be sustained? The topical issue of sustainability and the proliferation of advanced technology have profoundly changed consumer behaviour and the way home care products are purchased and used. New technology enables product innovation through the smart home and encourages direct-to-consumer and auto-replenishment as new ways to market. Brands must adjust if they are to stay relevant in an ever-changing market environment. Developed markets are characterized by saturation and declining brand loyalty, while we observe a significant unmet potential in emerging markets, primarily in Asia-Pacific region.
The home care industry has been witnessing growth for a considerable time, thriving even in uncertainty, whether economic or political. The industry’s relative immunity to external factors can be ascribed to the metronomic nature of its products as an essential part of consumers’ everyday lives. Even in times of economic tension, consumers do their laundry and clean their toilets. A continuous growth in world population naturally drives the industry forward. Consumers tend to stick to their cleaning routine, which describes habit persistence as another important factor impacting the industry performance. At the same time, home care works as a function of income. We can observe the effects of down-trading analogue to consumers’ spending power, leading to an increase in the demand for more basic and cheaper alternatives during crisis. This, for example, has led to the rise of private label, which established itself as a credible alternative to brands during the economic crisis in 2007 and its succeeding years.
The industry is well-equipped, offering universal appeal across different income levels, and remains expertly positioned itself to offer a whole ...