The ongoing influx of new economy and standard-priced brands prevented substantial unit price increases in home care during 2010 and extended the range of product available. Azerbaijan’s increasingly price sensitive consumers remained unwilling to switch to more expensive home care brands, eschewing innovative products for more basic alternatives. However, an increasing number of Azeri consumers seemed keener on maintaining the living standards to which they had become accustomed during the period immediately preceding the global economic crisis.
1. ReportsnReports | Home Care in Azerbaijan
Retail value sales speed up during 2010
The ongoing influx of new economy and standard-priced brands prevented substantial unit price
increases in home care during 2010 and extended the range of product available.
Azerbaijan’s increasingly price sensitive consumers remained unwilling to switch to more expensive
home care brands, eschewing innovative products for more basic alternatives. However, an
increasing number of Azeri consumers seemed keener on maintaining the living standards to which
they had become accustomed during the period immediately preceding the global economic crisis,
and home care products benefited from this trend during 2010.
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Inevitable price increases place pressure on consumer confidence
Towards the end of review period, the growing popularity of task-specific home care products with
value added properties was fuelled by the rising demand for more convenient and effective products.
Consumer interest in automatic detergents increased during 2010 in line with the improved
penetration of washing machines and dishwashers in Azerbaijan and various in-store promotional
campaigns. Consumer attitudes towards task-specific home care products continued to shift during
2010 as Azerbaijanis were encouraged to forget the austerity resulting from the global economic
crisis, at least for a while.
Multinationals continue to lead home care in Azerbaijan
Despite the high penetration of domestic products in home care in Azerbaijan, multinational players
continued to lead home care in Azerbaijan during 2010. Procter & Gamble, Henkel, Unilever, SC
Johnson & Son and Reckitt Benckiser remained the leading international players, and all of these
companies maintained a strong presence in home care in Azerbaijan during 2010. Those strong
multinationals have established themselves strongly in the country by offering a wide range of
products which are supported by aggressive advertising. This has led to a high level of brand
recognition among home care consumers in Azerbaijan. Furthermore, in 2010, the competitive
landscape in home care in Azerbaijan continued to be shaped by the activities of other several
international players from Russia, Turkey, Ukraine, Bulgaria, Poland and Germany. Domestic
companies AzerPak MMC, Kuguar MMC, Zaman Muessissesi and Ilkin-A MMC continued to attempt to
enlarge their value shares in home care by developing new formulations and fragrances. Domestic
home care players continued to focus on being more innovative, copying the developments of
multinationals throughout 2010.
Grocery retailers among the key distribution channels in 2010
Azerbaijani consumers typically purchase their home care products through a range of distribution
channels including independent small grocers, supermarkets/hypermarkets, kiosks, health and
2. beauty retailers and outdoor markets. In the country’s big cities, supermarkets/hypermarkets are
promoted as retail outlets which offer a wide variety of home care options at competitive prices
which offer added convenience. In a number of outlets, supermarkets/hypermarkets remain the only
channel through which consumers can expect to find premium home care brands.
Good constant value sales prospects for home care during the forecast period
Over the forecast period, home care in Azerbaijan is expected to feature a number of categories with
high constant value sales, especially laundry care, polishes, surface care and toilet care. Home care
in Azerbaijan will continue comprising products which are an indispensable part of daily life in the
majority of Azerbaijani households. This performance will be driven by Azeris becoming increasingly
concerned about hygiene and sanitation, which will further fuel demand for home care products. This
trend bodes well for on-going strong growth in task-specific home care products. Multinational
companies will continue to lead home care in Azerbaijan over the forecast period.
Table of Contents
Home Care in Azerbaijan – Industry Overview
EXECUTIVE SUMMARY
Retail value sales speed up during 2010
Inevitable price increases place pressure on consumer confidence
Multinationals continue to lead home care in Azerbaijan
Grocery retailers among the key distribution channels in 2010
Good constant value sales prospects for home care during the forecast period
MARKET INDICATORS
Table 1 Households 2005-2010
MARKET DATA
Table 2 Sales of Home Care by Category: Value 2005-2010
Table 3 Sales of Home Care by Category: % Value Growth 2005-2010
Table 4 Home Care Company Shares 2006-2010
Table 5 Home Care Brand Shares 2007-2010
Table 6 Sales of Home Care by Distribution Format: % Analysis 2005-2010
Table 7 Sales of Home Care by Category and Distribution Format: % Analysis 2010
Table 8 Forecast Sales of Home Care by Category: Value 2010-2015
Table 9 Forecast Sales of Home Care by Category: % Value Growth 2010-2015
DEFINITIONS
Summary 1 Research Sources
Home Care in Azerbaijan – Company Profiles
Atropatena Ltd in Home Care (Azerbaijan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
3. PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Atropatena Ltd: Competitive Position 2010
AzerPak MMC in Home Care (Azerbaijan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 AzerPak MMC: Competitive Position 2010
Improtex DC in Home Care (Azerbaijan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Improtex DC: Competitive Position 2010
Air Care in Azerbaijan – Category Analysis
HEADLINES
TRENDS
The major trend in air care in Azerbaijan during 2010 was the rising interest in more versatile
products. While many Azeri people consider air care products to be unhealthy, some are showing
more interest in more convenient and longer-lasting air care products. The advent of decorative air
care products is boosting the appeal of air care, mainly among young working women, who are the
main targets of air care advertising. Taking full advantage of its first mover advantage, Azerbaijan’s
most popular direct selling company, Oriflame, entered air care towards the end of review period by
introducing standard spray/aerosol air fresheners and candle air fresheners under the Oriflame Home
Collection brand. Oriflame’s beauty and personal care products are well known among the
Azerbaijani population as the brand has been present in Azerbaijan for a very long time, which
makes Oriflame’s air care products attractive in terms of convenience and economy.
COMPETITIVE LANDSCAPE
SC Johnson & Son Inc remains the leading player in air care in Azerbaijan through its Glade and Oust
brands, which combined accounted for 31% of total air care retail value sales in 2010. The company
was active in shaping a strong image for its Glade range of air care products throughout the year.
Television spots and other forms of advertising have been used to promote Glade for many years.
Following in second position in 2010 was Reckitt Benckiser Plc, which held a 22% value share
through its Air Wick brand, although it experienced a slight decline in value share during 2010,
largely due to ongoing price promotional campaigns. Year-round television advertising, price
promotions and two refills together at a discounted price—which was a strategy employed in 2010 by
both SC Johnson & Son Inc’s Glade brand and Reckitt Benckiser’s Air Wick brand—boosted the
4. awareness of both of these leading brands. In addition, these two companies each invest heavily in
research and development activities.
PROSPECTS
Over the forecast period, innovations in air care will focus on aerosol-free and propellant-free
products with improved fragrance longevity which can also be used for fabric furniture as well as
being sprayed into the air. These developments are expected to become evident as early as 2011.
The main drivers of innovation in air care are expected to be launched by well-established operators
such as Reckitt Benckiser and SC Johnson & Son Inc through their respective Air Wick and Glade
brands. Furthermore, it is expected that new packaging formats such as transparent bottles with
trigger spray devices will appear in air care in Azerbaijan during the first half of the forecast period.
CATEGORY DATA
Table 10 Sales of Air Care by Category: Value 2005-2010
Table 11 Sales of Air Care by Category: % Value Growth 2005-2010
Table 12 Air Care Company Shares 2006-2010
Table 13 Air Care Brand Shares 2007-2010
Table 14 Forecast Sales of Air Care by Category: Value 2010-2015
Table 15 Forecast Sales of Air Care by Category: % Value Growth 2010-2015
Bleach in Azerbaijan – Category Analysis
HEADLINES
TRENDS
Bleach in Azerbaijan continued to register positive growth in 2010 due to the increasing number of
bleach brands available. Many Azeri consumers believe that chlorine bleach provides superior levels
of hygiene than alternative home care products. However, many Azeri consumers are becoming
increasingly concerned about using home care products which contain chlorine as an ingredient, such
as bathroom cleaners, toilet care and colour-safe laundry bleach, because find chlorine as harmful
product for their skin.
COMPETITIVE LANDSCAPE
Al-Afrah Detergents East Syria continued to lead bleach in Azerbaijan in 2010 with a 40%
value share achieved through its Alafrah Bleacher brand. The company continues to benefit
from the wide distribution coverage and low unit price of its Alafrah Bleacher brand, which
makes it very popular.
PROSPECTS
Over the forecast period, bleach in Azerbaijan is expected to continue being positioned mostly for
use as a laundry care product. The leading producers are expected to continue launching new value-
added products with new fragrances and organic raw materials in a bid to fuel further growth in the
category.
CATEGORY DATA
Table 16 Sales of Bleach: Value 2005-2010
Table 17 Sales of Bleach: % Value Growth 2005-2010
Table 18 Bleach Company Shares 2006-2010
5. Table 19 Bleach Brand Shares 2007-2010
Table 20 Forecast Sales of Bleach: Value 2010-2015
Table 21 Forecast Sales of Bleach: % Value Growth 2010-2015
Dishwashing in Azerbaijan – Category Analysis
HEADLINES
TRENDS
The most notable trend in dishwashing in 2010 was the rising demand for value-added properties in
existing products as Azerbaijanis sought more practicality and convenience in their dishwashing
products. Features such as glass and silver protection and cold wash formulas continued to stimulate
demand during 2010. Dermatologically safe products also entered hand dishwashing in 2010,
including Werner & Mertz GmbH’s Frosch Dishwashing Pearl Vitamin and Frosch Soda Dishwashing
Liquid.
COMPETITIVE LANDSCAPE
Henkel KGaA retained its leadership in dishwashing in Azerbaijan during 2010, with a value share of
27%. The company’s Pril brand enjoys high consumer recognition thanks to various formulation sub-
brands such as Pril Power Antijir and Pril Balzam, which are available in different package sizes of
500ml and 1-litre. Henkel has managed to maintain its dominance by focusing mainly on developing
its hand dishwashing products.
PROSPECTS
Over the forecast period, developments in dishwashing in Azerbaijan will be driven by new fragrance
variants such as avocado and almond extract, while gel and/or balsam formats will become more
popular as these are considered to be kinder to the skin. Previously launched dishwashing variants
with aromatherapy and fresh fragrances are expected to be re-launched over the forecast period as
consumers will seek relaxing and refreshing fragrances and properties in their dishwashing products.
CATEGORY INDICATORS
Table 22 Household Penetration of Dishwashers 2005-2010
CATEGORY DATA
Table 23 Sales of Dishwashing by Category: Value 2005-2010
Table 24 Sales of Dishwashing by Category: % Value Growth 2005-2010
Table 25 Dishwashing Company Shares 2006-2010
Table 26 Dishwashing Brand Shares 2007-2010
Table 27 Forecast Sales of Dishwashing by Category: Value 2010-2015
Table 28 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015
Insecticides in Azerbaijan – Category Analysis
HEADLINES
TRENDS
Demand for more convenient, longer lasting, and less hazardous insecticides continued to increase in
Azerbaijan during 2010. For large groups of the country’s consumers, quality remained the most
6. important factor when choosing insecticides, especially crawling insects such as cockroaches as
cockroaches are considered to be the most disgusting types of pests which can invade one’s home.
COMPETITIVE LANDSCAPE
Arnest OAO continued to lead insecticides in Azerbaijan during 2010 with a 20% value share due to
the enduring popularity of its Dikhlofos, Armol, Lira and Uboinaya Sila brands.
PROSPECTS
Insecticides in Azerbaijan is expected to increase in constant value at a CAGR of 6% over the
forecast period, which is set to be faster than the 1% constant value CAGR recorded during the
review period. Sales of insecticides will be fuelled during the forecast period by the rising demand for
insecticides which are produced from non-hazardous components and materials and which provide
long-lasting and effective protection from insects. It is also expected that Azeri consumers will
continue to shift towards more convenient and sophisticated insecticides such as electric insecticides,
insecticide baits and traditional spray/aerosol insecticides.
CATEGORY DATA
Table 29 Sales of Insecticides by Category: Value 2005-2010
Table 30 Sales of Insecticides by Category: % Value Growth 2005-2010
Table 31 Insecticides Company Shares 2006-2010
Table 32 Insecticides Brand Shares 2007-2010
Table 33 Forecast Sales of Insecticides by Category: Value 2010-2015
Table 34 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015
Laundry Care in Azerbaijan – Category Analysis
HEADLINES
TRENDS
Towards the end of review period, laundry care in Azerbaijan was marked by the rising popularity of
products which offer enhanced softening claims and fragrance longevity. These products were
generally offered as new modified extensions of well-established brands such as Ariel 100% Etalon,
Persil Gold Vernel Scan System Sorti Avtomat Intelletest, Bingo Avtomat Soda Effect.
COMPETITIVE LANDSCAPE
Procter & Gamble maintained its strong lead in laundry care in Azerbaijan in 2010, accounting for
44% of total laundry care value sales. The company’s value share increased marginally during 2010.
Procter & Gamble’s success in laundry care in Azerbaijan can be attributed to its wide product range,
constant experimentation with the formulations of its products, its well developed brand portfolio and
its huge investment in advertising. The company’s Ariel brand accounted for 12% of total laundry
care value sales in 2010, while its Tide brand accounted for 9% and Bonux a further 7%. Procter &
Gamble supports all of these brands with regular new product launches and strong marketing
campaigns. Procter & Gamble was followed in second position by Henkel with a value share of 26%,
while Unilever Group held third position with an 11% value share.
PROSPECTS
Laundry care is expected to increase in constant value at a CAGR of 2% over the forecast period,
rising to AZN109 million by 2015. The growing penetration of automatic washing machines, rapid
7. urbanisation and the increasing interest of younger consumers in laundry care products, especially
added-value products, will continue to drive value growth in laundry care over the forecast period.
CATEGORY INDICATORS
Table 35 Household Penetration of Washing Machines 2005-2010
CATEGORY DATA
Table 36 Sales of Laundry Care by Category: Value 2005-2010
Table 37 Sales of Laundry Care by Category: % Value Growth 2005-2010
Table 38 Sales of Laundry Aids by Category: Value 2005-2010
Table 39 Sales of Laundry Aids by Category: % Value Growth 2005-2010
Table 40 Sales of Laundry Detergents by Category: Value 2005-2010
Table 41 Sales of Laundry Detergents by Category: % Value Growth 2005-2010
Table 42 Laundry Care Company Shares 2006-2010
Table 43 Laundry Care Brand Shares 2007-2010
Table 44 Laundry Aids Company Shares 2006-2010
Table 45 Laundry Aids Brand Shares 2007-2010
Table 46 Laundry Detergents Company Shares 2006-2010
Table 47 Laundry Detergents Brand Shares 2007-2010
Table 48 Forecast Sales of Laundry Care by Category: Value 2010-2015
Table 49 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015
Polishes in Azerbaijan – Category Analysis
HEADLINES
TRENDS
Towards the end of review period, Azeri consumers turned to multi-purpose surface care solutions in
search of effective and cheap options to more expensive task-specific solutions. Among recent trends
in shoe polish is the growth in popularity of sponges soaked with neutral colour polish, which allows
consumers to polish shoes without a necessity of use several different products, a shoe cream and
velvet fabric to polish a shoe.
COMPETITIVE LANDSCAPE
Shoe polish manufacturer Cigir Kimya AS led polishes in 2010 with a 32% value share, followed by
SC Johnson & Son Inc with a 29% value share and Empa Kimya TM with a 15% value share.
PROSPECTS
Over the forecast period, the rising demand for more sophisticated task-specific polishes is likely to
boost growth in polishes. Therefore, the most important growth drivers are expected to be new
product developments, especially in floor polish and furniture polish, as more Azeri people are
expected to switch to wood flooring.
CATEGORY DATA
Table 50 Sales of Polishes by Category: Value 2005-2010
Table 51 Sales of Polishes by Category: % Value Growth 2005-2010
Table 52 Polishes Company Shares 2006-2010
Table 53 Polishes Brand Shares 2007-2010
Table 54 Forecast Sales of Polishes by Category: Value 2010-2015
Table 55 Forecast Sales of Polishes by Category: % Value Growth 2010-2015
Surface Care in Azerbaijan – Category Analysis
8. HEADLINES
TRENDS
Surface care in Azerbaijan was subject to greater demand for versatility towards the end of review
period. On one hand, consumers—especially low-income consumers—sought to make savings on
each and every surface care purchase, which led to higher demand for task-specific products. On the
other hand, the variety of different surfaces within a single household continued to boost the
popularity of multi-purpose brands, which created higher demand for better price/quality ratios.
COMPETITIVE LANDSCAPE
Procter & Gamble was the leading player in surface care in Azerbaijan during 2010 with a value share
of 22%. Procter & Gamble is the company behind some of the strongest brands in surface care such
as Comet and Mr Proper multi-purpose cleaners, both of which are heavily advertised on Azeri
television. The high level of advertising and promotion undertaken for these brands continues to
boost their performance in surface care. Followed in second position in 2010 was SC Johnson & Son
Inc with a 22% value share achieved through its Mr Muscle brand, while Unilever Group was third
with a 13% value share achieved through its Domestos brand. The success of these companies in
surface care can be attributed to the fact that they offer wide product portfolios, are able to invest
large sums in advertising and promotion and have nationwide distribution coverage.
PROSPECTS
The rising demand for specialised surface care products which developed during the review period is
expected to continue over the forecast period. Ongoing improvements in overall hygiene standards in
Azeri homes and rising health awareness will drive growth in bathroom cleaners, window/glass
cleaners, kitchen cleaners and oven cleaners over the forecast period.
CATEGORY DATA
Table 56 Sales of Surface Care by Category: Value 2005-2010
Table 57 Sales of Surface Care by Category: % Value Growth 2005-2010
Table 58 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2007-2009
Table 59 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth
2007-2009
Table 60 Surface Care Company Shares 2006-2010
Table 61 Surface Care Brand Shares 2007-2010
Table 62 Forecast Sales of Surface Care by Category: Value 2010-2015
Table 63 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015
Toilet Care in Azerbaijan – Category Analysis
HEADLINES
TRENDS
The prevailing trend in toilet care in Azerbaijan during 2010 was the sustained interest in in-cistern
devices, toilet liquids and ITBs as health and hygiene awareness fuelled the increasing demand for
these products. However, only those products which have added functionality such as pleasant and
powerful deodorising aromas and anti-bacterial features were in high demand among Azeri
consumers.
CATEGORY DATA
Table 64 Sales of Toilet Care by Category: Value 2005-2010
Table 65 Sales of Toilet Care by Category: % Value Growth 2005-2010
9. Table 66 Toilet Care Company Shares 2006-2010
Table 67 Toilet Care Brand Shares 2007-2010
Table 68 Forecast Sales of Toilet Care by Category: Value 2010-2015
Table 69 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015
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