New Zealand FMCG Industry Prime for Growth and Innovation

New Zealand FMCG Industry Prime for Growth and Innovation

Following a major overhaul of its local operations and investment in a new NZ distribution partner, Cincinnati-based Procter & Gamble (P&G) says research shows the NZ market has strong growth potential.

Managing director of P&G New Zealand and Australia, Antoine Brun says the industry is looking for category growth – providing a unique opportunity for retailers and suppliers.

“We observe that overall - consumption in the categories where we operate in NZ is essentially flat and even declining in some categories – so we feel we have a role to play in partnering with retailers to achieve total category growth.

“Innovation is first and foremost what can accelerate market growth” adds Brun.

“Innovation starts with superior products that improve consumers’ lives, but it goes beyond, for example with the way we present the products in store.”

Brun says that in some categories: “We haven’t done the job to make the shopping experience efficient nor experiential”, leading to a commoditisation of the categories.

“We need to shift our mindset from treating the shopper as a ‘family manager’ only, who is simply buying commodities and driven heavily by price and promotion – to treating the shopper as a woman or a man, understanding their distinct needs and offering them the most compelling in-store experience every day.

“We are focused on working with our NZ retailer partners to innovate the in-store design and enhance the total shopping experience, using our learnings in category management from other markets including expertise in shopper psychology.”

P&G, which has been supporting the NZ market for over 30 years with its stable of beauty, personal care and household brands, is also introducing a range of new product innovations and increasing media spend as it plans for further growth in the market.

“We have invested significantly in appointing a distributor partner – Diplomat NZ - to give our NZ business independent focus – with its own integrated local operations in market.

“Our media investment in NZ has almost doubled in the past two years and by having more local talent working on the P&G business, we’re more in-touch with NZ retailers and consumers.

Brun says P&G’s NZ business is growing, with retail sales up for the first time in 5 years, and share growing this year in its product categories.

“We aspire to be the innovation leaders of our industry and we are accelerating our investment in new product categories to help bring the world’s best product innovation and value to NZ consumers.”

The company has recently launched a new range of toothpaste, Oral-B Pro-Health Advanced, which is backed by clinical trials showing unprecedented care for areas like cavities, gum health and whitening.

Other P&G brands in NZ include Gillette, Vicks, Metamucil, Pantene, Herbal Essences, Olay, Head & Shoulders, Venus, Clearblue, Braun and Ambi Pur.

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