Detergent market suddenly gets fierce
Detergent market suddenly gets fierce
The detergent market, which has been “peaceful” over the last three years, has suddenly become boisterous.
With the total estimated revenue of $600-650 million a year and the average growth rate of 10 percent, the Vietnamese detergent market is believed to have great potentials
Unilever has been dominating the domestic market over the last few years with its products, bearing the trademarks of Omo, Viso, and Surf, accounting for 50 percent of the market share. The remaining part of the market belongs to P&G with Tide, and other products for popular consumers such as Lix, Vi Dan or Net.
Market seething
The peaceful market has suddenly become seething because of the appearance of a new trademark, Aba of Dai Viet Huong Company. The joining of Aba into the market is believed to lead to the re-division of the market share.
Unlike the other domestic manufacturers who make low cost products to target popular consumers and avoid the direct confrontation with the two big guys Unilever and P&G, Dai Viet Huong has unexpectedly set up the high price levels for its products, which are only lower than Omo, which is considered the best product now in the market which has the highest selling price.
Dai Viet Huong may well understand that it would have to face when competing with the big guy Unilever, a foreign brand with powerful financial capability. Therefore, it decided to follow a special marketing strategy.
The company has launched its products in the Mekong Delta provinces, considering this the general headquarters of the marketing campaign. The launching proves to be very impressive, which has gradually conquered the hearts of the local consumers.
In some localities, Aba products have been competing on the same rank with the big guys of Omo, Viso and Surf, while it has far exceeded other domestic brands just after one year of joining the market.
P&G, whose Tide products have been less favored than Unilever’s Omo, has also made a big leap in the market by launching Ariel powder detergent after succeeding with Ariel liquid products, which is the direct rival to Omo.
P&G may have learned the lesson from the failure with Tide, which has been put on the par with lower-class products of Unilever. When launching Ariel this time, P&G might have prepared very carefully to introduce Ariel as the high class product.
As such, a tripodal position has taken shape in the Vietnamese detergent market which comprises of Unilever with Omo, Viso, Surf; P&G with Ariel and Tide, and Dai Viet Huong with Aba.
The marketing war
Aba and Ariel are believed to make very wise moves to scramble for the market shares from Unilever.
In the eyes of the experts from LSA, a consultancy firm, Dai Viet Huong has been “venturesome” but “wise.” The pricing policy of Dai Viet Huong allows bringing a big margin profit to Aba products.
Meanwhile, Dai Viet Huong has been running very big trade marketing campaigns to create an impression on consumers. In an effort to successfully occupy the space at retail points, Dai Viet Huong once accepted the high discount rates of 10 percent or even 20 percent for retailers, the thing which never happened in the market before.
As for Ariel, P&G has been following a methodical marketing campaign, which is believed to be the biggest one of the group so far since the day the group set its foot in Vietnam.
vietnamnet
