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ReportsnReports.com: Home Care in the United Arab Emirates

Euromonitor International’s “Home Care in the United Arab Emirates” is now available at ReportsnReports.com.
Dallas, Texas, United States of America (prbd.net) 24/10/2011
Report Summary
Slower growth for home care as the effects of the recession persist
The fallout from the global financial crisis is still taking its toll on the home care industry in the United Arab Emirates although the economy is on the verge of recovery. The post-crisis impact has been a smaller population and weaker population growth, trading down to cheaper brands and lower consumer confidence. Nevertheless, 2010 marked an improvement in the economic climate and in the home care industry compared to the previous two years, thanks partly to the efforts made by manufacturers and retailers in terms of product innovation and discounting and marketing activity in an effort to improve consumer confidence.

Manufacturers concentrating on product innovation to stimulate sales
As the United Arab Emirates home care market has not fully recovered from the fallout of the economic downturn, manufacturers have relied on product innovation to stimulate growth. Firstly, manufacturers have started focusing on the convenience factor as evidenced by the expansion of concentrated fabric softeners and growing demand for specialised products, thus moving away from mixing bleach and other economy-type products. Secondly, growing environmental awareness has spurred the emergence of green products, which has been witnessed in laundry care for example. Thirdly, rising health awareness has come to benefit brands offering maximum protection from germs and viruses.

Multinationals extend their offerings while private label products enter the mainstream

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Multinational companies/brands continue to lead all home care categories, emphasising their well-established presence in the United Arab Emirates, high quality, product innovation and reasonable pricing for most products, while domestic products are finding it difficult to compete with these brands. On the other hand, post-crisis price-consciousness has led to trading down to cheaper brands and more importantly the rise of private label products into the mainstream. This rising competition from private label products has not posed a threat to domestic manufacturers as they have collaborated with the leading grocery retailers to produce their respective private label lines.

Supermarkets/hypermarkets lead distribution and influence home care sales
In the United Arab Emirates where traditional retailing has a minor presence, supermarkets/hypermarkets continued to be leading distribution channel for home care products over the review period and in 2010. In addition, these outlets influence purchasing decisions and market growth in many ways, for example through discounting. Rising costs of production and construction towards the end of the review period, along with product innovation and the launch of value-added products, have all led to higher average unit prices. However, discounting activities, launched jointly between manufacturers and retailers, partly offset these rising prices.

Lower growth forecast, albeit alongside rising sophistication and premiumisation
As the effects of the economic slowdown fade over the forecast period, home care is expected to witness steady growth although this will be lower than that seen over the review period in light of the smaller population and weaker population growth. Following a period of trading down to cheaper economy brands and private label products, the market is expected to witness rising premiumisation and sophistication over the forecast period, manifested by buoyant demand for green products for example. Against the historical trend among low and some mid-income earners of mixing bleach with other products for use around the house, rising awareness is likely to drive growing demand for task-specific home care products.

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