Suppliers have relatively complex supply chains to get access to several different types of chemicals and borax needed to sell the wide variety of products the chain providers.
Highly dependent on the price of borax and other whitening products, which is used in many Proctor and Gamble products. Detergent market growth in India is predicted to be 6 to 8% according to many industry sources.
Potential Entrants
Proctor & Gamble, Lever Brothers, and brands from Europe are continually working on Joint Ventures to move into the Indian and Pakistani markets. Of these, Proctor and Gamble has the majority of the existing market share, with approximately 10% of the total Indian market.
There is a wide variety of smaller and lesser-known competitors throughout the two countries. Pradeep, Meeem Perfumes and Cosmetics, Gloebal Chem, S.R. Soaps, and over fifty other smaller companies all compete for Indian consumers. The quality level and the ability of these new entrants to ensure a consistent stream of products is unknown. What further makes this new entrant's success uncertain is the supply chain for key detergent chemicals and additives being sporadic and difficult to predict. As a result each of these companies often have several quarters or even years of sales, and when their supply chains become impacted by a lack of chemicals and substrates country-wide. This high cyclicality in overall availability of key ingredients for detergents causes a high turnover rate of manufacturers within India and Pakistan. To be a potential entrant that stays the course in the Indian market, any market entrant must have an established and stable supply chain that can compensate for the wide variations in demand and raw materials within the entire region.
Competitive Strategy for Market Entrance
In summary, the following conclusions emerge from the analysis of entering the Indian and Pakistani markets with detergents:
New Entrant and Supplier analyses show that the establishing of a stable and reliable...
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