The annual cleaning has great meaning among consumers, a process of renewal before the summer. Although among the Jewish sector cleaning is considered part of the tradition of removing chametz from the house and preparing it for Passover, it turns out that even in the Arab sector there is an increase in the sales of cleaning materials at this time of the year.
Either way, the various manufacturers come up with new campaigns, promotions, and more, while in recent years network influencers have also been used to promote the various brands, especially those of the large chains.
The leading manufacturer of cleaning materials in Israel is the Southern Marketing Company – Sano, which presents not only the widest and largest variety of products, but a high and significant consumer loyalty compared to all of its competitors, thanks to constant innovation and following global trends, Sano manages to launch new products at the same time as the international brands.
Companies representing international brands such as Diplomat with the well-known Procter & Gamble brands Ariel and Fairey and the Shastovitz company with the Ajax and Palmolive brands and the Unilever company with Sif and Din. These fight not only the private brands of the retail chains, but also the parallel imports that led to the lowering of the prices of the brands.
The competition in the market for cleaning, laundry and home care products has long been no longer a competition between local manufacturers, but a competition against the marketing chains themselves, which reduce shelf space for the major manufacturers in favor of exposure and increased sales of private brands.
The leader in the field of private brands with the number of items is Shufersal chain, whose private brand has already been measured in comparison to the major importers. The second one with a significantly expanded variety is the Rami Levy chain with the WOW brand. The third is a semi-free network with the Perfect brand.
We built a basket of products for cleaning and home care that includes 26 products, starting with cleaning agents, disposables, cleaning aids, cloths, wipes, soaps, disinfectant products, paper towels and toilet paper, and we checked which chain gives us the cheapest and most profitable basket. We reviewed the Shufersell Deal chain, the Half Free department store chain and the Rami Levy Marketing Sycamore chain in a basket of the same value under the private brands of each of the chains, we also made a sample comparison to the average for the same basket if we purchase similar products under well-known brands.
We found the cheapest basket in the Rami Levy network with a basket at a price of NIS 280.65. After it, with a small margin of 2%, is a half-free network with a basket at a price of NIS 287.30. The Shufersell Deal chain offers the most expensive basket in the survey at a price of 355.90 shekels, with the gap between it and Rami Levy standing at 26% and against half-free at 24%, a considerable gap, the question is whether the strengthening and expansion of Shufersell’s private brand leads it to charge a higher premium for its products ?
The writer is the CEO of the Retail Research Institute