Despite promotions on personal care products being at an all-time high, growth in sales across Europe is declining, and price increases have become difficult to justify. With promotions no longer exciting consumers and driving increased volume sales the way they used to, a need for innovation has come to the fore.
As consumers reacted to continued pressure on their budgets by deal-hunting to save money, brands and retailers in Europe increased promotions in the hope of combating the drop in unit sales caused by people cutting back on spending. Personal care saw the largest average year-on-year increase in volume on promotion of all categories, up 7% in the last year (IRI’s Price and Promotion Special Report, July 2013).
Yet these offers had little effect, as volume sales fell by 1.1% and value sales by 0.4% compared with the previous year – while volume sales across all FMCG categories dipped 0.1%. The personal care category also achieved the lowest average price increase, at just 0.7%.
Where it exists, growth is fragile. Although products that clearly and directly serve a consumer need are faring well across Europe – including mouthwash, toothpaste, hair care, shower gels, liquid soaps and sun care – this tends to be due to extensive promotions. And in countries where turnover is more dynamic, including the UK, Germany and France, lines such as hair care are only growing in value terms because prices are rising; volumes are actually decreasing.
Log in or register FREE to read the rest
This story is Premium Content and is only available to registered users. Please log in at the top of the page to view the full text.
If you don't already have an account, please register with us completely free of charge.
