Personal Wash

Drug Store News, July 20, 1998

New products are helping retailers generate incremental sales in the $2.1 billion personal wash category

Despite the high penetration of usage of personal wash products - 93 percent of the population use some form of personal wash - retailers are enjoying incremental sales in the $2.1 billion category thanks to new product developments.

Perfect examples are the explosive growth of shower gels and emerging anti-bacterial products. Innovations like these have helped the personal wash category outpace overall inflation. Category sales jumped 6.5 percent from 1994 to 1996 and are projected to grow another 2 percent in 1998. Moreover, much of the growth is coming from items, such as shower gels, that deliver higher register rings and bring more dollars into the category.

The personal wash category consists of bars and liquids. Two-thirds of the business is produced by bars, with shower gels representing 20 percent and hand/liquids another 14 percent. Unilever is the market leader in bar soaps with a 36 percent share. Unilever's bars cross all-consumer preferences in bar soap. Flagship Dove is a well-respected brand and it is joined by Caress, which has strong brand equity with women and Lever 2000, the leading added value franchise.

Shower gels have indeed been a success story over the past few years. Although growth has slowed from high double digits to about 7 percent per year, there is still tremendous potential. "It hasn't reached the 50 percent penetration we see in Europe," explained Brett Van de Bovenkamp, senior sales plans development manager, for Unilever. Shower gels should continue to generate sales gains of 4 percent through 1998. Unilever commands a 30 percent market share of shower gels.

Just as shower gels carved out a new market niche, the hand/liquid category is now emerging as an important catalyst to growth.

"Most people don't like to keep bars at their sink. That's created the demand for liquids." Observed Van de Bovenkamp. 'And it is mostly incremental sales"

Reacting to that need, Unilever is set to introduce liquids under its newly merged Helene Curtis Suave brand. "Consumers want a quality product at a value price," he said. Answering that strong consumer demand is Unilever with a new liquid under its Suave banner. Suave is already the number one price-value leader in other categories such as hair hand and body, deodorants, face care and baby care.

Responding to consumer fears about germs, Unilever is including a Suave hand sanitizer. "Our point of differentiation is that we will offer anti-bacterial and moisturization with a brand name that has 100 percent consumer awareness at a value. We think we have a powerful portfolio of items, explained Van de Bovenkamp.

With the new launches, retailers are taking a look at the category to make sure it is merchandised the way consumers shop for personal washes. "It is important to have sufficient space, a large selection of sizes and products," said Van de Bovenkamp. Personal wash is such a personal choice that you have to cover all segments and sku's. People shop for benefits, promise and value. There are distinct differences." Unilever's strength in this category' has helped it recommend how to merchandise personal wash. One important merchandising tenet is that the category' responds better to different locations by trade class. For drug store retailers, health and beauty' care is the best location because there is stronger consumer traffic.

With the merging of Lever, Chesebrough-Pond's and Helene Curtis into Unilever Home and Personal Care USA, the unified company is able to structure its pricing for co-merchandising events. Retailers can make a powerful statement by pulling together brands such as Lever 2000, Dove, Caress and Suave in advertisements and displays that meet needs of all consumers.

"We can offer great efficiencies with our companies together. We have established brand equities and we can increase our technological advancements. It is easier to work with category management because we can focus across entire categories,' Van de Bovenkamp said.

The company also is working on micro-marketing and database programs. Unilever is helping drug chains maintain their fair share of personal wash sales. "Drug stores' shares are flat. We want to provide an opportunity to close the gap Our whole co-merchandising portfolio offers tremendous opportunities. We're at the forefront of category management. We've increased our analysis. We're dedicated to it. We an building partnerships with retailers because if they win, we win," he concluded.