Detergent industry growing amid sharp competition.Detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. has been used widely as a cleaning agent and growing from year to year in the country. Detergent is still unrivaled with no cheaper, more efficient and safer substitute to challenge its position.
Demand for detergent in the country grows with the growing populations. The country's production capacity for detergent, therefore, has expanded especially with the growing number of players in the industry in Indonesia.
Imports are small and hardly pose a threat to the domestic industry. Imports are insignificant compared to the domestic production.
Competition among the producers in the country, however, is sharp. The producers are seeking to grab a larger share of the market by adopting strategies --cheaper prices, more attractive appearance of packaging in addition to maintaining good quality.
Powder detergent gaining popularity
Detergent is an ingredient of cleaning agent. Detergent products consist of powder detergent, liquid and cream detergent. In the beginning, the most popular product of detergent was in the form of cream, but later detergent in the form of bar was preferred more by the consumers, but now powder detergent has the largest market size. See the following table.
The country's detergent production capacity grew slightly over the years until 2009. In 2009, the production capacity was recorded at 771,330 tons per year or an increase of 8.6% from the previous year.
The production capacity grows to follow the trend of demand on the domestic market as most of the production is disposed dis·pose
v. dis·posed, dis·pos·ing, dis·pos·es
1. To place or set in a particular order; arrange.
2. of on the domestic market.
The production capacity of Total Chemindo Loka is 24,000 tons per year. This company was acquired by the Salim Group The Salim Group is Indonesia's biggest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation . The group was founded by Sudono Salim. in 2005.
Player in detergent industry
There are not many big players in detergent industry in Indonesia. Producers categorized cat·e·go·rize
tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es
To put into a category or categories; classify.
cat as big players are those having production capacity of more than 2,000 tons per month or 24,000 tons a year. Big players have popular brands with distributors among big and small retailers.
Among the big players in the detergent industry include PT Wings Surya Surabaya (Wings), PT Unilever Tbk (Unilever), PT Kao Indonesia, PT Sinar Antjol, PT Total Chemindo Loka, PT Birina Multidaya, and PT Jayabaya Raya. Medium and small players are generally producers with marketing coverage limited to certain areas.
Wings have a number of products of detergent including Wings, Ekonomi, Daia, and So Klin. The detergent products of PT Unilever Indonesia PT Unilever Indonesia Tbk was established in Indonesia on December 5, 1933 as Zeepfabrieken N.V., a subsidiary of Lever Brothers which initially operated a soap factory at Angke, Jakarta. The name was changed to Unilever Indonesia on July 22, 1980. Tbk include Rinso, Surf, and Omo.
Other producers include PT Kao Indonesia with brands of Attack and Dino, PT Sinar Antjol with the brand of B-29, PT Total Chemindo Loka with the brand of Total, and PT Jayabaya Raya with the brand of Suroboyo.
Wings Group operates an integrated industry as it has production facility for alkyl alkyl /al·kyl/ (al´k'l) the monovalent radical formed when an aliphatic hydrocarbon loses one hydrogen atom.
n. benzene benzene (bĕn`zēn, bĕnzēn`), colorless, flammable, toxic liquid with a pleasant aromatic odor. It boils at 80.1°C; and solidifies at 5.5°C;. Benzene is a hydrocarbon, with formula C6H6. the basic material of detergent under PT Unggul Indah Cahaya.
The Wings Group was a member of the consortium that acquired Ecogreen Oleochemical Oleochemicals are chemicals derived from biological oils or fats. They are analogous to petrochemicals which are chemicals derived from petroleum. The hydrolysis or alcoholysis of oils or fats form the basis of the oleochemical industry. . Ecogreen is a producer oleochemicals including natural fatty alcohol fatty alcohol
Any of various alcohols derived from plant or animal oils and fats and used in plastics and pharmaceuticals. , which is also used as basic material for detergent and toiletries toi·let·ry
n. pl. toi·let·ries
An article, such as toothpaste or a hairbrush, used in personal grooming or dressing.
toiletries npl → artículos mpl de aseo (= with a production capacity of 100,000 metric tons/year.
The country's production of detergent has increase din DIN - Deutsche Institut fuer Normung. The German standardisation body, a member of ISO. the past several years. The domestic consumption of detergent grows to follow the trend of the population growth.
The domestic consumption of detergent has been supplied mainly by local producers. Imports are relatively small and insignificant.
The production in 2005-2009 averaged 681,575 tons per year. And from 200 to 2009, the production grew 2.1% a year.
Countries of destination
The country's detergent industry is oriented o·ri·ent
1. Orient The countries of Asia, especially of eastern Asia.
a. The luster characteristic of a pearl of high quality.
b. A pearl having exceptional luster.
3. more too domestic market. Exports are only 1% of the country's total production of detergent in 2009.
Exports have tended to decline in he past several years. The largest annual exports were 41,929 tons in 2005. Since then exports have continued to decline down to only 8,188 tons in 2006 and down again to 2,268 tons in 2009.
The export value also shrank shrank
A past tense of shrink.
a past tense of shrink
shrank shrink over that period excepting in 2008 when the export value rose 12.9% to US$7,930,000 though exports rose 5.2% in volume to 6,454 tons.
Sharp competition in export market and strong foothold foot·hold
1. A place providing support for the foot in climbing or standing.
2. A firm or secure position that provides a base for further advancement.
1. on the domestic market are the reasons for the producers to remain oriented to domestic market. The players began business in this industry as small traditional enterprises before they grew with experience to become modern companies.
Some producers, however, have been aggressive in expanding market abroad such as Sinar Antjol and Wings with exports to African countries.
The main export commodity of Wings is detergent with the brand of SoKlin. Its main export destinations are Nigeria (25%), the Philippines (18%), Congo (12%), Angola (8%), Ghana (6%), Japan (4%), Malaysia (4%), Madagascar (2%), Thailand (3%) and Cameroon (3%) and a number of other countries in Asia, Africa, Europe and the Pacific region. In Nigeria, Mauritania, Mali Mozambique and Angola, SoKlin dominate 75% of detergent markets.
Meanwhile, Sinar Antjol built its first factory abroad in 1994. The company built its factory in the Light Industrial Area of Ghana. The factory produces detergent and soap. In 2002, the company opened its second factory abroad in Ethiopia, producing soap and detergent.
Imports not significant
The country's imports of detergent are relatively small. In 2009, imports were only 0.5% of the country's production of detergent.
Detergent imports grew only in 2006 when imports rose 33.1% to 10,564 tons. In the following years imports declined sharply. Increase in import value was recorded in 2008 when imports rose 7.5% to US$5,704,000. See the following table.
In 2009, the domestic consumption of detergent grew 2.5% to 738,365 tons. The annual growth was the lowest compared with the previous years. The highest growth of 8.6% was recorded in 2006 when consumption totaled 643,064 tons. See the following table.
Aggressively and intensiveness of marketing and promotion including advertisements will determine success in marketing of detergent in Indonesia. Wings have won the market domination domination
the relationship between animals and humans in which little consideration is given to the rights of the animals. The prevailing sentiment is one of proprietary domination. partly caused by the factors. The Wings Group is estimated to have a 60% share of the market, with Unilever having a 30% share. The remaining 10% is split by other producers including Kao Indonesia, Sinar Antjol, Total Chemindo Loka, etc.
In 2011, the domestic market of detergent was estimated to grow 6% with value at Rp9.54 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. . In 2010, the market value was Rp 9 trillion. See the following table.
Efficiency in distribution also determines success in the marketing of detergent, which is categorized as fast moving consumer goods “CPG” redirects here. For other uses, see CPG (disambiguation).
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover and relatively low cost. (FMCG FMCG Fast Moving Consumer Goods ) and generally last not more than one month. Detergent may lose its quality if kept too long in store. Efficiency in distribution, therefore, is important
Generally distribution of detergent is handled by the producers themselves. Wings' distribution system runs from factories to wholesalers and to retailers. Unilever has 370 independent distributors. It has distribution center with warehouses, depots and other facilities. Sinar Antjol has 90 distributors in 32 provinces of the country
Advertisement and promotion key to success in marketing
Advertisements are especially determinant determinant, a polynomial expression that is inherent in the entries of a square matrix. The size n of the square matrix, as determined from the number of entries in any row or column, is called the order of the determinant. in the success of marketing for consumer goods consumer goods
Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and especially those that could not last long. Advertisements are used also to introduce new products. The strategy in advertising for new products is below the line to be followed with above the line advertisements.
The system is used mainly by new producers like Birina Multidaya, to introduce its product of cream detergent with the brand of Bucream. Below the line strategy is used by marketing the product in suburban areas and when the products have been distributed widely promotion is continued with open advertisement.
Promotion is launched in a number of strategies such as by offering prizes. The prizes are generally crockery such as plates or glasses needed by households.
Wings are known to always offer prizes to attract buyers for its new products.
Competition in the market of detergent is sharp marked with producers began to undercut undercut,
n 1. the portion of a tooth that lies between its height of contour and the gingivae, only if that portion is of less circumference than the height of contour.
2. each other in prices. Producers have to continue to think of ways to survive amid the sharp competition. Some producers seek to differentiate products to attract buyers and win the competition.
In the beginning the detergent production was dominated by cream and bars when the technology was not yet as advanced as at present. Later, however, powder detergent took the domination started by Unilever with the brand of Rinso in the 1970s; Rinso was very popular that all detergent products including those of other brands were identified as Rinso.
At that time Unilever dominated the market of powder detergent. Bar detergent and cream detergent, however, remained popular until the end of 1980s.
By the end of the 1980s, the popularity of powder detergent increased. Other detergent producers also have produced powder detergent.
In 1990, the Wings Group began to produce powder detergent with the brand of So Klin that grew to become a powerful rival of Rinso in the market. Kao Indonesia also came up with a product of powder detergent, Attack, aimed at premium segment of the market.
The regional monetary crisis in 1998 rendered a big blow to the market. The purchasing power Purchasing Power
1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.
2. of the people was weakened resulting in falling demand including for detergent. Producers were forced to come up with new products which were lower in prices.
Wings launched such products with the brand of Daia, followed by Unilever with its Surf. Both Daia and Surf are cheaper in price.
Other producers also were forced to follow such as Sinar Antjol which came up with a new detergent product, WOW (1) (World Organization of Webmasters, Folsom, CA, www.joinwow.org) A membership organization for professionals who are involved with creating and maintaining Web sites. WOW also provides certification via testing centers throughout the U.S. , which is a variant variant /var·i·ant/ (var´e-ant)
1. something that differs in some characteristic from the class to which it belongs.
2. exhibiting such variation.
adj. of its B-29. Total Chemindo Loka which already long focused on lower segment of the market launched new product of powder detergent, Total Harum.
The types of products are growing in variety with the growing number of producers as they are continuing to seek an effective strategy to win the market. After all were busy in the production of powder detergent some producers want to appear differently to win the market. They began to produce liquid detergent Noun 1. liquid detergent - a detergent in liquid form
detergent - a cleansing agent that differs from soap but can also emulsify oils and hold dirt in suspension , which is also enthusiastically welcome by the market. Powder detergent, however, is expected to remain the most popular.
Some producers claimed their products have certain ingredients that make their products more effective and softer.
Packaging is also a factor to attract consumers. In the beginning producers packed their detergent generally in 1,000 gram sachet sa·chet
A small packet of perfumed powder used to scent clothes, as in trunks or closets.
[French, from Old French, diminutive of sac, bag, from Latin saccus; see sack , but later they also produce in larger sachets.
PT Kao Indonesia hoped to gain from niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.
By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. by producing detergent especially for batik batik (bətēk`), method of decorating fabrics practiced for centuries by the natives of Indonesia. It consists of applying a design to the surface of the cloth by using melted wax. textile. Unilever followed by producing detergents specially for used by washing machines. Unilever even more serious in seeking to boost sales in niche market producing detergent specially for used in washing machines. It has introduced two types of such detergent for use in washing machine with upper shutters and side shutters. The detergent products are different in specialty for each type of washing machines Electrolux, Toshiba, Panasonic, Samsung, Sanyo and Sharp.
Detergent in bulk
In urban areas business in laundry Laundry can be:
- items of clothing and other textiles that require washing
- the act of washing clothing and textiles
- the room of a house in which this is done
Before industrialization service has expanded that requires supply of detergent than a laundry shop needs much larger supply of detergent than a household. Laundry shop, therefore, could buy detergent in bulk in larger quantity in cheaper price per kg.
Products with brands will not be used by laundry shop as the cost would be higher. Producers have also competed to win the market of detergent in bulk
Prospects of detergent industry
The detergent industry has grown even before the country gained independence. Until now local products are quite competitive facing imported products.
The local producers have succeeded in keeping the loyalty of their consumers. The market is expanding especially with the growing population. The market is estimated to grow 6%-7% a year. The market demand is forecast to grow also with the improvement of the economy and purchasing power of the consumers in general.
Meanwhile, producers are seeking to strengthen integration of heir operations from the upstream From the consumer to the provider. See downstream.
(networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger to downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). sectors to improve efficiency and strengthen competitiveness.
Table-1 Products of detergent in Indonesia Size of Producers Brand Sub brand Type packaging PT Wings Surya Daia Putih Powder 2 Surabaya Lemon Powder 2 Bunga Powder 2 Ekonomi Anti Noda Cream 4 (Cream) Wings Biru Cream 4 (Cream) So Klin Higinis Powder 3 Pro Powder 2 So Klin Powder 2 Deterjen Softener Extra 1 Aktif (bar) Unilever, Tbk Rinso Anti Noda Powder, 3 Liquid Rinso Liquid Liquid Rinso Thousand Powder Lilies Molto Rinso Color Powder and Care Matic (Rinso Powder 1 Matic Top Load for upper cup washing machine, Rinso Matic Front Load for front cup washing machine ) Surf Clean Fresh, 2 Lime Fresh Sinar Antjol B-29 B-29 Express 1 Powder Detergent B-29 Powder 2 Detergent (Rose, Blue 7 Fantastic Orchid/ yellow, Classy Jasmine/blue and Exotic Lemon/green.) Fantastic Cream 2 Orchid (yellow), Classy Jasmine (blue) and an Exotic Lemon (green). B-29 cream Up Cup, Layer (yellow, blue) Cup 6 B-29 Big Top Big Top, 3 Standing Big Top B-29 Milky Box 1 B-29 Ember 3 B-29 TR (bread 2 plate) B-29 TA (water 2 container) B-29 Refill 3 B-29 TK (cake plate) B-29 TN (rice plate) B-29 PASS Sachet B-29 PASS Cup B29 Powder Detergent with Softener B29 Powder Detergent Fresh Lime B29 Powder Detergent Classy Jasmine B29 Fruity B29 Powder Softener WoW WoW Powder Powder 12 Detergent (Oxygen Power, Fresh Lime) Kao Indonesia Attack Easy Regular Powder 5 Easy Romantic Powder 2 Flowers Attack Clean Powder 4 Maximizer Attack Color Powder 4 Attack plus Powder 4 Softener Attack Auto Powder 2 Double Clean Auto Smooth Powder 2 Care Attack Batik Powder 1 Cleaner Total Chemindo Total Total Putih Powder 2 Loka Total Harum Powder Softener (Lemon, Bunga) Bu Cream Superklin Powder 2 Anti Kuman Powder 2 Birina Bucream -- Cream 2 Multidaya Source: Data Consult Table-2 Indonesia's production capacity for detergent, 2005-2009 Year Production (tons) Growth (%) 2005 710,250 -- 2006 710,250 0 2007 710,250 0 2008 710,250 0 2009 771,330 8,6 Source: Industry ministry Table-3 Indonesia's production of detergent, 2005--2009 Production Year (tons) Growth (%) 2005 628,125 2006 640,688 2.0 2007 679,903 6.1 2008 721,982 6.2 2009 737,178 2.1 Average growth 4.1 Sources: Industry ministry, Data Consult Table-4 Indonesia's detergent exports and value, 2005-2009 Value Growth Year Volume Growth (%) (US$ 000) (%) 2005 41,929 30,494 2006 8,188 -80.5 8,203 -73.1 2007 6,805 -16.9 7,024 -14.4 2008 6,454 -5.2 7,930 12.9 2009 2,268 -64.9 2,626 -66.9 Sources: Industry ministry, Data Consult Table-5 Imports of detergent in volume and value, 2005-2009 Year Volume Growth Value Growth (tons) (US$ 000) 2005 7,939 -- 5,978 -- 2006 10,564 33.1 7,690 28.6 2007 6,989 -33.8 5,305 -31.0 2008 5,084 -27.3 5,704 7.5 2009 3,455 -32.0 2,939 -48.5 Sources: Industry ministry, Data Consult Table-6 Indonesia's consumption of detergent, 2005--2009 Year Production Exports Imports Consumption Growth (%) 2005 628,125 41,929 7,939 594,135 2006 640,688 8,188 10,564 643,064 8.2 2007 679,903 6,805 6,989 680,087 5.8 2008 721,982 6,454 5,084 720,612 6.0 2009 737,178 2,268 3,455 738,365 2.5 Sources: Industry ministry, Data Consult Table-7 Estimated market of detergent in Indonesia Market share Players Brand (%) Wings Surya So Klin, Daia, Wings, 60 Ekonomi Unilever Rinso, Surf 30 Kao Indonesia, Sinar Attack, B-29, Total, etc. 10 Antjol, Total Chemindo Loka, and other Total -- 100 Sources: Data Consult
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|Publication:||Indonesian Commercial Newsletter|
|Date:||Sep 1, 2011|
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