New wash in the mid priced detergent market

It is time for the two major detergent manufacturers — Hindustan Lever (HLL) and Henkel Spic — to lather up a froth by aggressively relaunching their mid-priced (Rs. 42 — Rs.45) detergent powder market in India.

While HLL relaunched its Rin Shakti, Henkel Spic followed suit with Mr. White. Both products have an improved product proposition with new ingredients and come in redesigned packs.

The Rs.5,700 crore detergent market is segmented into two product categories — powder and cake. Within this, the detergent powder market is further sub divided into four categories — concentrates/compact (variants of Surf, Henko, Ariel), premium (variants of Surf, Henko, Ariel), mass premium/mid price (Rin, Mr.White, Tide and regional brands) and popular (Nirma, Wheel, Chek).

Value-wise, the premium segment contributes a major share while the popular brands contributes the volumes. However the detergents market in a general has not grown in the last couple of years, hence the relaunches

Says Henkel Spic's managing director, Satish Kumar, "The relaunch is not only to infuse some excitement into the market but also to offer better product to the consumers."

The first to move was HLL. Early in January, this year, the company relaunched its Rin Shakti powder as the New Rin Powder. The newness is the detergent's property to dissolve fully in the water unlike with the earlier product and other competing brands. This, claims the manufacturer, results in lower usage and better cleaning of the fabric — a technology patented by Unilever.