Exclusive: The Swiss Market
Posted: April 25, 2008According to the latest research from Euromonitor International, multinationals in Switzerland are consolidating their shares. The top five players—Procter & Gamble, L’Oréal, Beiersdorf, Colgate-Palmolive and Unilever—held a combined value share shares of approximately 41% in 2007. Large multinationals are taking advantage of effective distribution, strong marketing support and frequent new product developments.
However, many multinationals lost share to private label products in 2007. The strength of private label products came from greater choice and quality improvements. Private label penetration is highest in commodity products such as bar soap or bath foam/gel and general purpose body care products, while in color cosmetics, fragrances and skin care, private labels’ share is relatively low—as many consumers believe that when it comes to quality, private label products do not deliver with regard to such products.
Innovation will remain the focus of consumers, as they are eager to try new products, particularly improved formulations offering added value features. This will be the ace up the sleeve of large multinational companies. Local players will increasingly focus on organic and environmentally friendly products in order to put themselves in a position where they do not have to compete directly with multinationals. At the same time, multinationals will continue with their acquisition of smaller companies or company branches.
For more information about Euromonitor International’s cosmetics and toiletries reports, click here.