|
|
 |
  |
| Sunday, 4 April 2004 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
"Health and Convenience" trend ACNielsen findings in over 100 countries show that in the global FMCG market, products related to "Health and/or Convenience" are the fastest growing in the world today. Here "Health" connotes better eating and drinking habits as well as looking after the personal appearance. Therefore, products for the future should be those that give the above "Health" factor along with "Convenience". It seems that any product that does not give either benefits is not likely to be well accepted by the consumers of the 21st century. These remarks were made by CEO/Managing Director ACNielsen Lanka Janaki Kuruppu at an evening meeting organised by the chartered Institute of Marketing (CIM). Taking a closer look at more recent trends in some of the south east Asian countries also indicate the above Health and Convenience trend with growth lead by Personal Care categories such as Hair care and Skin care followed by the Food and Beverages sector. In this region, the personal care sector is led by growth in hair care such as shampoos and conditioners, followed by skin care constituting creams; lotions and oral care such as mouth wash and tooth brushes. In the Food and Beverages sector, the beverage growth drivers besides fruit and milk based drinks are mineral water, instant tea/coffee based drinks, while in the foods sector they are snack foods, RTE/frozen foods, flavour enhancers, and some impulse foods such as ice cream and chocolates. In Sri Lanka however, the growth is still lead by the Food and beverages sector (66% in contribution and growing at around 7%), followed by Personal Care (22% in contribution and growing at around 7%) and Household Care (12% and growing at around 5%) sectors. Please note that the Food & Beverage total does not include Tobacco and Liquor. If one is to compare regional trends with that of Sri Lanka, it appears that Sri Lanka seems to be following regional growth trends in categories such as shampoos, fruit based drinks and flavour enhancers. Further, Sri Lanka is seen as the second highest growth in the bottled water category that was the global trend some 1-2 years ago. This is an ideal illustration for a product that gives Health and Convenience in one. Hence, if we were to follow regional and global trends, our next trend move should be for higher growth in personal care immediately and eventually to "Health and Convenience." Within the Food and Beverages sector in Sri Lanka, not only are categories like biscuits, chocolates and malted food drinks large in market size they also show significant growths of approximately 12-25%. In terms of category dynamics, the noodles, biscuits and mineral water has seen the most amount of activity in 2003 with around 15 brands entering the categories in this year alone. It is no surprise that there are 5 milk powder brands in the top 10 contributor brands in size to the FMCG basket with Milk Powder being the largest category in the FMCG market. Four of the other five brands in this top 10 are all personal care brands in soaps and toothpaste. Finally, some interesting findings are also seen with the Media and Retail scenario. Despite the growth in the FMCG sector, it is interesting to note that the service sector brands are outperforming the FMCG sector in terms of media-spend-per-brand. These big noisemakers in the service sector are mainly in the telecom and lottery industries. In terms of retailer presence, ACNielsen retail census shows that the traditional trade (i.e. all outlets excluding supermarkets) has grown by around 28% during the 3 years from 1997 to 2000, while supermarkets have grown by about 21% during Q1 and Q3 of 2003 contributing to a total change in our roadside landscape. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
