BY IRMA ISIP

Crisis-stricken households cut, split and stretch their budget even for their laundry needs, sending the detergent market down 5 percent, according to James M. Lafferty, president and general manager of market leader Procter & Gamble Philippines.

Lafferty said the laundry market in terms of volume has been declining since April 2006 as consumers reduce consumption by stretching the product or using less powder with the same wash load to economize.

Lafferty also said consumers are moving from higher-priced to lower-priced laundry products.

But despite this, P&G, makers of Tide, Ariel and Mr. Clean, is holding its share of 37 percent steady in a shrinking market. Prices have been relatively steady because of stiff competition in the laundry business.

Laundry care, including Downy fabric softener, accounts for about half of total P&G revenues which stands at P30 billion a year. Products in sachet account for about 70 percent of the business with the "tingi" still a preference of consumers.

P&G’s laundry brands are also 100-percent made at its Cabuyao, Laguna factory.

The industry’s decline is still relatively manageable compared to other industries, which are falling double-digit.

P&G Philippines prospects for the year are aligned with P&G global business, which is projected to slightly fall but as of the first quarter, Lafferty said the local subsidiary is hitting sales targets but declined to give numbers.

P&G yesterday launched the "taba" a P1-billion six-month value packaging initiative that would give consumers savings of anywhere from P1 to P3.50 on their detergent purchases. Available for Tide, Ariel and Mr. Clean, it would have more powder of anywhere from 9 to 14 grams (14 to 35 percent) at the same price.

Lafferty said with the campaign, P&G hopes to increase its market share but did not provide any numbers.

"When consumers reduce their consumption of detergent, it stresses the technology in (their wash load). We want to give consumers more product at the same price," Lafferty said.

He said the company hopes to recoup the investments over time.

Lafferty said P&G is cutting down on petroleum dependency and reducing operational expenses in its plant and pass on these savings to consumers.

P&G’s multi-tier and multi-brand laundry products hope to meet consumers’ preferences. Mr. Clean is still available at P5.50 per sachet; Tide at P8.50 and Ariel at P10 and P12.

Aside from the laundry care line, P&G products manufactured locally include Joy dishwashing liquid; Whisper napkins and Pampers diapers. The paper products and laundry care are also being expoted.

Lafferty said the company has no plans to ramp up export of Pampers, currently its bestselling brand, as paper manufacturing is capital intensive. Pampers diapers are exported to Indonesia , Malaysia and India.

P&G Philippines is the third oldest subsidiary of the Ohio-based multinational. The local operations would celebrate its 75th year in 2010.