E-commerce loves cleanliness

The decrease in the range of non-food products in retail due to the withdrawal of some foreign brands from the Russian market contributed to an increase in demand for these categories in the online channel. Laundry and hygiene products were the fastest growing here, showing an increase in online sales of more than 96% in 2022. The trend supports the investment of sites in discounts and traffic.

Laundry and hygiene products have become the fastest growing online channel sales segments among the FMCG products, according to a NielsenIQ study. According to analysts, in 2022, online sales of laundry products grew by 96.8% year-on-year, feminine hygiene products – by 96.1%. Demand for body care products increased by 79.9%, for oral and shaving products by 67.9%, and for cleaning products by 65.8%.

A year earlier, according to NielsenIQ, the fastest growing online FMCG sales were snacks and cold drinks. In 2022, FMCG online sales grew by 43.5% overall.

An increase in demand for household chemicals and hygiene products in the online channel is noted in the context of a reduction in the range of these categories in traditional retail. According to NielsenIQ, in 2022, the assortment of non-food products in stores decreased by 16.2% year-on-year, which can be explained by the revision of the format of work in the Russian Federation for some global companies after the outbreak of hostilities in Ukraine.

The supply of personal care products was suspended by the American Johnson & Johnson (brands OB, Carefree, etc.), and P&G (brands Ariel, Lenor, Pampers, Always, etc.) announced a reduction local assortment and not investing in discounts. The largest retail chains in such conditions are actively increased the share of goods under their own brands.

Roman Kvinikadze, one of the founders and CEO of NappyClub, a manufacturer of hygiene products, cosmetics and household chemicals, says that the increase in retail prices and the reduction in marketing budgets of multinational companies in Russia also contributed to consumers switching to online.

Executive Director of the Association of Manufacturers of Perfumery, Cosmetics, Household Chemicals and Hygiene Products Petr Bobrovsky connects the outpacing growth in online sales of household chemicals and hygiene products with a temporary reduction in the level of discounts in brick-and-mortar stores.

Wildberries says that the FMCG segment became the leader in terms of sales in 2022, and household and cleaning products showed the highest growth rates – by 158%. The company attributes this to the online presence of new sellers of such goods, which leads to an expansion of supply and demand.

Ozon noted that during the fall sales, FMCG accounted for about 80% of the most purchased products. Household chemicals are one of the most popular categories, the range of which has almost doubled in 2022 due to new Asian and Russian brands, they say.

According to Roman Kvinikadze, it is easier and cheaper for manufacturers to go online than in classic retail. For example, he points out, the Chinese feminine hygiene brand Sisters, at the start of online sales, set prices on the site comparable to already popular positions, which helped to quickly find buyers. In addition, says Mr. Kvinikadze, for e-commerce, FCMG promotion is becoming an important part of the strategy, as it allows you to ensure customer return, regular purchases and predicted demand. Therefore, sites compensate prices, conduct marketing campaigns, drive traffic, he points out.

Daria Vilizhanina, head of traffic and conversion at Russian Unilever (Domestos, Cif, Dove, Chistaya Liniya), says that consumers today are trying to plan their purchases more carefully and purchase more units at a time, choosing less expensive items, which leads to the replacement of familiar brands analogues from lower price categories.

NielsenIQ Retail Director Konstantin Loktev notes that the savings trend supports online sales in Russia — buyers compare prices and find great deals.

Anatoly Kostyrev