|Title:||Indonesia detergents market share by manufacturer and brand in percentages as reported September 2011|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Estimated market of detergent in Indonesia Market share Players Brand (%)
Wings Surya So Klin, Daia, Wings, XX Ekonomi
Unilever Rinso, Surf XX
Kao Indonesia, Sinar Attack, B-XX, Total, etc. XX Antjol, Total Chemindo Loka, and other
Total -- XXX
Sources: Data Consult
Detergent 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 XXX,XXX tons per year or an increase of X.X% 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 of on the domestic market.
The production capacity of Total Chemindo Loka is XX,XXX tons per year. This company was acquired by the Salim Group in 2005.
Player in detergent industry
There are not many big players in detergent industry in Indonesia. Producers categorized as big players are those having production capacity of more than X,XXX tons per month or XX,XXX 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 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-XX, 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 benzene the basic material of detergent under PT Unggul Indah Cahaya.
The Wings Group was a member of the consortium that acquired Ecogreen Oleochemical. Ecogreen is a producer oleochemicals including natural fatty alcohol, which is also used as basic material for detergent and toiletries with a production capacity of XXX,XXX metric tons/year.
The country's production of detergent has increase din 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 XXX,XXX tons per year. And from XXX to 2009, the production grew X.X% a year.
Countries of destination
The country's detergent industry is oriented more too domestic market. Exports are only X% 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 XX,XXX tons in 2005. Since then exports have continued to decline down to only X,XXX tons in 2006 and down again to X,XXX tons in 2009.
The export value also shrank over that period excepting in 2008 when the export value rose XX.X% to US$X,XXX,XXX though exports rose X.X% in volume to X,XXX tons.
Sharp competition in export market and strong foothold on the domestic market are the reasons for the producers to remain oriented to domestic market. The players began business in this industry as small traditional enterprises before they grew with experience to become modern companies.
Some producers, however, have been aggressive in expanding market abroad such as Sinar Antjol and Wings with exports to African countries.
The main export commodity of Wings is detergent with the brand of SoKlin. Its main export destinations are Nigeria (XX%), the Philippines (XX%), Congo (XX%), Angola (X%), Ghana (X%), Japan (X%), Malaysia (X%), Madagascar (X%), Thailand (X%) and Cameroon (X%) and a number of other countries in Asia, Africa, Europe and the Pacific region. In Nigeria, Mauritania, Mali Mozambique and Angola, SoKlin dominate XX% of detergent markets.
Meanwhile, Sinar Antjol built its first factory abroad in 1994. The company built its factory in the Light Industrial Area of Ghana. The factory produces detergent and soap. In 2002, the company opened its second factory abroad in Ethiopia, producing soap and detergent.
Imports not significant
The country's imports of detergent are relatively small. In 2009, imports were only X.X% of the country's production of detergent.
Detergent imports grew only in 2006 when imports rose XX.X% to XX,XXX tons. In the following years imports declined sharply. Increase in import value was recorded in 2008 when imports rose X.X% to US$X,XXX,XXX. See the following table.
In 2009, the domestic consumption of detergent grew X.X% to XXX,XXX tons. The annual growth was the lowest compared with the previous years. The highest growth of X.X% was recorded in 2006 when consumption totaled XXX,XXX 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 partly caused by the factors. The Wings Group is estimated to have a XX% share of the market, with Unilever having a XX% share. The remaining XX% 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 X% with value at RpX.XX trillion. In 2010, the market value was Rp X trillion. See the following table.
Efficiency in distribution also determines success in the marketing of detergent, which is categorized as fast moving consumer goods (FMCG) 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 XXX independent distributors. It has distribution center with warehouses, depots and other facilities. Sinar Antjol has XX distributors in XX provinces of the country
Advertisement and promotion key to success in marketing