WalMart Rolls Out New Laundry Detergent, Persil
WalMart Stores, Inc. rolls out a direct competitor in the laundry-detergent market
WalMart Stores, Inc. (NYSE: WMT) pits two laundry detergents up against one another. The retailing giant introduces to Americans; Europe’s leading detergent, Persil of Germany’s Henkel AG & Co KGaA. The laundry detergent is expected to show exceptional results, and pose difficulty for its existing competitors which includes Tide detergent and others.
The move is deemed as unbecoming by industry experts as the superstore chain operator, WalMart expands its premium priced laundry detergent line, by shelving Procter & Gamble Co.’s Tide, side by side with Persil, as both products fall under the category and carry a similar price tag.
Industry experts cite the likely reason for WalMart to expand the line is to give its penny wise customer-base more options and better prices, as introducing a well-suited competitor would drive prices to an optimum level. Procter & Gamble’s (PG) Tide is perhaps the only leading detergent in the US, which has successfully increased prices and simultaneously reduced the number of laundry loads per container. Tide accounts for no less than 85% of PG’s profits and 60% of all the US-based sales specifically for the laundry-detergent market.
A statement issued by PG’s spokesperson, Paul Fox, states: “Competition is good for the category, and it is good for consumers.” Tide is dubbed as one of the leading factor for attracting consumers into stores as more and more consumers prefer to shop online.
WalMart has been selling Persil in Mexico; it is regarded as a leading laundry-detergent brand in Europe, as it generates more than one billion dollars in annual revenues in the region. Persil is reported to be sold around the world in no less than 60 countries. PG sells its Tide brand as Ariel.
WalMart has introduced Persil’s ProClean detergent nationwide, Persil’s liquid detergent, which resembles Tide’s iconic blue liquid detergent, is competitively priced at $11.97 per 100-ounce jug.
Persil is reported to roll out an aggressive advertisement campaign in hopes of raising enough awareness to capture some of PG’s 60% market share.
