Is Innovation Killing the Soap Business?
With the recently new and creative innovation of the pod detergents, Tide Pod capsules, that has fixed amounts of detergent for every load, has lead to a decrease in sales of laundry detergents within the past year. The decrease in detergent sales has been from $7.44 billion to $7.06 billion within three years. This is causing controversy for many of the laundry detergent companies because new products are supposed to expand the revenue for both the manufacturers and the retailers. The problem that contributes to the decline in other varieties of laundry detergent is because of the factors such as the size of the detergent bottle, transportation costs, and packaging material. Many of the consumer-goods giants have little incentive to help customers overdose on the amount used so that they could return quickly to the supermarkets.
I believe that it was very innovative of Procter & Gamble Co. to come up with such an idea because it made laundry more convenient for traveling as well as more efficient so that they were already packaged with the right amount for each wash. Although it was a great innovation, I believe that it was still unfair to drive out the other competitors and decrease the overall sales of the laundry detergent companies.
Written by: Samantha Chin
Source: The Wall Street Journal
Ziobro, P., & Ng, S. (2013, April 3). Is Innovation Killing the Soap Business? Retrieved April 4, 2013, from The Wall Street Journal: http://online.wsj.com/article/SB10001424127887323916304578400521297972496.html?mod=WSJ_business_LeadStoryCollection