PZ Cussons in Sh35 million market expansion drive to ride on devolution

Nairobi,

Monday, October 24, 2023

KNA by Ian Chepkuto

PZ Cussons, a leading personal care manufacturer, is investing at least Sh35 million over three months to expand its local market share for its flagship Imperial Leather brand in Kenya.

The company has launched a consumer promotion campaign and brand influencer to boost brand visibility, sales, and reward loyal customers.

In an event presided over by the Managing Director Kenya (East Africa) and Ghana, PZ Cussons East Africa Ltd, Sekar Ramamoorthy, in the Nairobi Hotel on October 23, 2023, the MD said the move is aimed at growing its national footprint by tapping into the growth in purchasing power in counties outside the major cities.

“Devolution has led to a rise in incomes and diversification of consumer tastes, presenting us with an opportunity to deepen the availability of our flagship products,” said Ramamoorthy.

The MD pointed out that the company had timed this renewed vigor while recognising that the current tough economy was driving consumers into brand switching led by cost consciousness.

He said many Kenyans are facing challenges due to high living costs, causing consumers to make difficult purchasing decisions, especially on personal care essentials.

“We are cognizant of the prevailing tough economic times that Kenyans are currently experiencing. The shifts in the macroeconomic climate have resulted in high cost of living, forcing consumers to make tough buying choices, particularly on personal care essentials,” he added.

According to a recent report, consumers are paying up to 20% more for Fast Moving Consumer Goods (FMCG) products. In personal care, consumers have reduced their frequency of purchase by up to 10%, according to the same report. Consequently, this has left the consumer in a dilemma: seeking affordability while still desiring the key benefits delivered by the personal care category to help them take care of themselves and their families.

The MD added, “We are confident of local growth opportunities. We see significant potential for long-term market growth and are increasingly adopting a position and mindset of a 'challenger'—bringing scale by working with additional distribution points and delivering agility and strong consumer understanding.”

The MD noted that the firm will focus increasingly on using data and artificial intelligence to inform its business and marketing programmes.

The consumer, added Ramamoorthy, is evolving, and so is how to reach them. Millennials, Gen Z, and Gen-Alphas are the biggest consumer base, with global data showing that 40% of purchases are made by Gen Zs who demand clear brand values and sustainability.

"By the end of 2024, Imperial leather will have doubled in value from 2020, when the COVID-19 pandemic hit. This has not been by happenstance, but a series of intentional business-wide moves against aggressive tides,” he explained.

The MD expressed gratitude to partners and retailers for their support and pledged to grow the market for imperial leather, morning fresh, and Cussons baby after taking a lead in respective categories.

With consumer inflation rates increasing, a key focus for the firm has been on better serving the cost-conscious consumer through targeting efficiencies across our supply chain, reducing the need to pass through inflation, and using innovation and a product portfolio to support the consumer at various price points. One of these innovations has been the foray into the growing male grooming space, as signified by the latest move to sign up musical artiste David Mathenge, alias Nameless, to be the Imperial Leather brand ambassador.

Courtesy; KNA