Hey there!

We are four young ladies taking a “Strategic Brand Management” class and here is our blog covering the deodorant market.

Through this blog we want to explore the overall market, but also to go deeper into the analysis of the motivations and the emotions of consumers of deodorants.

Enjoy!

History of Deodorants

The history of deodorant goes back centuries. As long as people have been sweating and stinking, people have been searching for ways to limit the impact of their odors. Once you've read this history of deodorant products, you'll consider yourself lucky to live in this age of advanced odor-control.

Before Commercial Deodorant- Before commercial deodorant was available, people spent centuries creating ways to mask the smell of their body odors. Among some of the approaches were:

• Heavy scents. The Egyptians created a blend of citrus and cinnamon that resisted the tendency of many scents to turn rancid; this was used as an early deodorant. Incense, carob and other perfumes were used as well.
• Removal of underarm hair. Some people realized that the removal of underarm hair cut down on the unpleasant body odor, so this practice became commonplace in certain sects of society throughout the world. The reason the removal of underarm hair works is because the hair provides more surface for the bacteria that produces body odor to grow; this bacteria grows best in warm, wet places, so the underarm area is a perfect breeding ground for smelly bacteria. People learned that removing the underarm hair, washing often, and applying a heavy scent helped deal with the body odor problem.
• Salt preparations. In some parts of Asia, the application of rock salt became a popular deodorant. The salt kills off the bacteria under the arms, working much like modern day deodorants. You'd still sweat, but at least it didn't smell so bad. You can still buy rock salt deodorants online.

Commercial DeodorantsWhen commercial antiperspirant made its debut onto the market in 1888, the deodorant world began to change forever.

In 1888 the first commercial antiperspirant was developed and sold. It was called Mum and was a zinc chloride and wax paste you applied to your underarms. It was sticky, tacky and messy, but it helped to kill bacteria, which meant less odor.

In the 1890s, a variety of antiperspirants made with aluminum chloride were developed. Aluminum chloride prevented odor by reducing sweating. By 1900, a host of antiperspirants in a variety of forms were on the market as sticks, powders, dabbers, pastes, creams and roll-ons.

In the 1950s, aerosol antiperspirants and deodorants containing aluminum zirconium and chlorofluorocarbon propellants appeared on the market. These products became so popular that they accounted for over 80 percent of antiperspirant sales by the 1970s. However, in 1977 the US government banned the use of aluminum zirconium because they worried about the effect of this agent when inhaled, and the Environmental Protection Agency restricted the use of chlorofluorocarbon propellants. Aerosol antiperspirants went from popular to almost non-existent even though the companies producing them quickly found alternatives to the banned ingredients.

In the late 1970s, stick deodorants and antiperspirants gained popularity. While roll-ons, aerosol, dabbers and powders are still available, stick preparations have remained the most popular. Most stick deodorants contain aluminum chlorohydrate, aluminum chloride, aluminum sulfate or aluminum zirconium. One of these compounds is mixed with a waxy substance to create a stick that will both inhibit sweating and kill bacteria.

Today, pleasant scents are often added to the mixture to create a lovely aroma as you apply the substance to your freshly cleaned underarms. The end result? You end up smelling like a rose.

Overview of the market

Deodorants are part of many people’s lives. They are part of the segment “hygiene & beauty”, and we can find them in hyper and supermarkets, but also in pharmacies, drugstores, or also beauty shop, depending of the brand.

 

Whereas today hygiene and beauty products seem to be negatively affected by the economic crisis (- 2 % of gross sales in P4 2009), deodorants are not. Indeed, deodorant is seen as staple, and even in economic crisis period, we do not go out without deo!  So, on the same period, deodorants have represented a turnover of 415 million Euros, which represents 7,5% of the segment hygiene-beauty (total turnover of 5,5 billion Euros)

The deodorant market is quite competitive, and we can find three main players that are sharing two third of it:

-       Laboratoires LaScad, from L’Oreal (Mennen, Narta, Ushuaia)

-       Unilever France (Axe, Brut, Dove, Men+Care, Rexona)

-       Coty (Adidas, Play Boy…)

In France, the deodorant market can be segmented like this:

-FMCG brands

- Pharmaceutical brands

-Perfumes brands

- Organic brands

And in each of them, deodorants can be presented in different forms: creams, pumps, roll-ons, sprays, sticks, or wipes.

Each segment offers differences in term of price, ingredients, scents, but also in term of purpose of the use or even of the user’s personality. Indeed, FMCG brands are considered as the cheapest ones, but offer a wide range of brands. We will analyze some of them later. They offer deodorants with different purposes (anti-white trace, long lasting effect, special odors, deodorants for sport efforts…). Many brands also play on the environmental vibe and offer organic deodorants without aluminum for example. We can also find deodorants in pharmacies, where their purposes of action are more specific: they are dedicated for people with sensitive skin, or for people who suffer from excessive sweating. Beauty shops like Sephora offer deodorants that are variations of famous fragrances. Finally, some more organic oriented brands like Lush Cosmetics or L’Occitane en Provence offer solid deodorants that are 100% natural.

Performance and Benefits

As you stand in front of the the antiperspirant/deodorant shelf, will you find the performance benefits you are looking for in a product through the clutter of multiple brands offered?

Visualize yourself as a consumer and start off with a basic question: do you have a problem with underarm odor or wetness? If so, you are not alone. Most people do. Although some cultures consider underarm odor and wetness unimportant, most cultures find it offensive. Those that do probably use some type of deodorant or antiperspirant.

Consumers who visit a retail store and navigate through the large array of antiperspirant/deodorant products available are overwhelmed. There are so many to choose from and they look the same, having similar messages. All these choices often lead consumers to go with a product that is familiar.

Interestingly, over the last six years the leaders have not radically changed.

Four of those companies control more than 80 percent of the market. There are at least 22 brands with multiple forms and fragrances.

Deodorants can mean different things based on their mode of action. A deodorant by definition is something that cosmetically masks, absorbs or prevents odors.

> Like a fragrance, a deodorant may have a masking effect. All underarm products, whether deodorantor antiperspirant, use fragrances to provide a pleasing scent that counteracts or masks body odor.

> A deodorant may absorb and lock up the odor chemically. Cyclodextrin, carbohydrates and clays are examples of ingredients that absorb the odor-causing compounds.
Most underarm deodorant products act to eliminate the perception of odor, but the masking performance of the fragrance varies. Fragrance preferences and personal hygiene have a lot to do with performance in this area.

How do you determine the best form and product to use? Deodorant is generally enough for just an odor problem. For heavier sweat that stains clothes, something stronger for wetness protection may be needed.

Strategies

Every consumer company wants to differentiate itself. The consumer has basic needs in mind when choosing to buy an underarm product. The compelling reasons are odor and wetness protection. If it doesn't deliver this protection, a deodorant or antiperspirant with other benefits has minimal value. Due to formulation design or antiperspirant active selection, some products will be more effective than others. Skin physiology, diet, comfort tolerances and level of activity play a key role in the perception of performance.


Once a product provides the basics, the real differentiation begins. The package and print claims can be daunting. Most will promote odor and wetness protection and promise the maximum or ultimate strength and performance. The trend over the past few years has been an invisible or transparent product focused on the promise of elimination of residue on the skin and clothing.


As long as there is competition in the marketplace, consumer companies will continue to try to differentiate with novel packaging, multiple claims, superior performance and better fragrances. Overall, nobody wants a product that is irritating, wet, tacky or sticky, leaves a white mark on clothing or is unappealing to the senses. So where do we go from here?


Today's trends suggest products that easily wash off, have advanced deodorancy, prevent shaving irritation and use visual cues such as stripes and beads. Globally, some interesting trends are evolving. Whether they have staying power will be in the hands of the consumer.

Male Market

As deodorants are part of the “beauty & hygiene” segment, the first target that pops into our minds is women. Even if men can also using deodorants, studies have shown that men over 45 years old were not necessarily using deo every day. However, the today new generation of young men is more and more perceived by the beauty industry as an important target to care of, as they like to take care of them, and have no shame in using beauty products. Because of this new trend, innovation for men deodorants is booming, and thanks to men, the loss in value (-0,6% in 2009) and in volume (-1,6%) of women deodorants is compensated by the dynamic men deodorants sales (+3,9% in value and +3% in volume). On the same period, the index of penetration of deodorants for men was 36% (compared to 51% for women), but brands expect to make this index grow to 40-45% in the next years. 

The offer for men could be seen as identical to the women offer, with FMCG deodorants, pharmaceuticals, fragranced deodorants, and organic ones, depending of the needs. However, some brands seem to understand men’s needs better than others, like Axe (24,2% of market shares in value in 2009). We will analyze this brand to see how it manages its success. Following Axe, we find the brand Brut (Unilever Group), and Adidas (Coty group), which is constantly, innovate in order to gain market shares in front of its main competitors. Other brands like Play Boy (Coty Group), or Nivea, are sharing the rest of the market for FMCG.

Thanks to this “new generation” of males who are more sensitive about the beauty aspect, and also thanks to sociological factors of seduction, deodorants created by famous fragrances also encounter a great success toward the masculine target. To cite some of them: “Le Male” by Jean Paul Gautier, “Chrome” by Azzaro, “Hugo Man” by Hugo Boss…

Organic Trend

Innovations go further with the wave of natural products, and organic brands diversifying their offerings to best meet consumers’ expectations. While the segment " nature" is growing, it still is very small (6.5% of the market value at P5 2009). But brands like Sanex and Mon Savon for example have positioned themsleves in this natural and organic segment, with products based on alum stone (“Sanex Nature Protect antitrace white” and “Monsavon Lotus Flower and Almond”). And it works. "These are the only two brands that are experiencing double-digit growth," mentions Julien Ribault, Product manager Sanex and Monsavon, “with, respectively, sales up 28% and 30%, CAM P4 2009”

But these kind of brands surfing on the new organic trend are facing a main competitor: Bio Ushuaia, from Lascad (L’Oreal Group). Bio Ushuaia has been labeled “Cosmébio”, ans is placed in the top of the range. This success is explained by the the reputation of Ushuaia, number 2 of the female deodorants. 

Other smaller players also explore this segment, like Bio Kuomayé (present in 100 stores), which has launched a deodorant in the alum stone and Ecocert certified Cosmébio in 2008. Weleda, distributed in drugstores, pharmacies and specialty stores, moved, for one, three references, Citrus, Sage and Rose (launched in 2005). These deodorant spray and are certified BDIH Natrue. For its part, the Institute Jérodia launched on each of its three brands, a reference to deodorants essential oils, labeled Cosmebio and Ecocert: Phyt's (institutes), Gamarde (pharmacies) and Biguine Bio (Casino and chains hair Biguine). These references are available in spray-free nitrogen to be green all the way.

All other brands, who see this market as a niche with great potential, seek to innovate in order to position themselves on it. Nivea, for example, has a range without aluminum salt. Similarly, in 2008, Unilever launched the new Dove Go Fresh deodorant whose ingredients are of natural origin only.

After the segment of men and natural, brands will have to tap into their imagination to continue to innovate!