PZ Cussons East Africa is investing Sh150 million to introduce products targeting the younger generation, even as it allays fears of exiting the Kenyan market.
The firm, which produces brands such as Imperial Leather and Carex, said it was working on introducing new fragrances, distribution channels and package sizes in a bid to grow its sales among those aged below 35 years.
The company, which enjoys a 25 percent share in Kenya’s beauty and personal care market, had triggered concerns of exiting the market after its divestiture in Nigeria’s PZ Wilmar edible oils and remarks by its top management that it was reviewing its African operations.
“Our research shows that consumers in this region under 35 years are adventurous with fragrance and personal care, consistently stretching their imagination and experimentation with new formats, favouring bold, differentiated scents and buying across online and modern retail channels,” said PZ Cussons EA Managing Director Sekar Ramamoorthy.
“PZ Cussons intends to grow here and has no plans to divest from the local market,” he added.
Mr Rammoorthy said those below 35 years constitute between 35-45 percent of what is spent on personal care.
“The category we play in is increasingly becoming more nuanced, with differentiation leaning towards niche markets. We are opting to go for broader sections of the population, having recognised that they have more in common,” said Mr Ramamoorthy.
Cussons has been operating in Kenya for over 60 years and has a production unit at Baba Dogo. Kenya, the United States and Ghana contribute 15 percent of the company’s global revenues.
“Kenya delivered good, volume-led growth driven by strong Modern Trade performance,” PZ Cussons said in its annual report.
Kenya’s beauty & personal-care market is estimated at Sh20 billion and shows a steady high-single-digit growth rate.
Margins made by local soap manufacturers have taken a hit from heightened competition from imports from Egypt and reduced buying power due to inflation.
The Kenyan beauty market has also been cited for being flooded with counterfeit and sub-standard products, which hurts producers of quality goods.
