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Bellamy's organic annual report 2016

30/03/2021 Client: saad24vbs Deadline: 2 Day

Online grocery shopping gaining momentum Online shopping has been prevalent across the country for years, with 71% of consumers having shopped online. A Statistics Canada report showed that Canadians are increasingly interested in buying groceries online, with 18% saying they ordered food, beverages or groceries online in 2013. Busy consumers are also partaking in “click-and-collect” options available at big store chains such as Walmart and Loblaw where the consumer orders their food online and enjoys kerb-side pickup. With many consumers not having enough time in a day to allot to shopping for groceries, this service offers flexibility, especially when faced with rising commute times and jam-packed sports and activity schedules for their kids. Payments can be handled online or in- store.

COMPETITIVE LANDSCAPE Procter & Gamble led men’s grooming in 2016 with a value share of 31%. The company’s strong position in the category is down to its best-selling men’s shaving brands, including Gillette Fusion and Gillette Mach3. Together, the Gillette family of products held a 59% value share in men’s shaving in 2016, accruing sales of CAD258 million. As category leader, Procter & Gamble is focused on continuing to innovate and protect its share. With new shaving technology including the Flexball™ rotating razor head, the company is well positioned to retain its leading position. Unilever ranked second in 2016 with value sales of CAD142 million. To date, the company’s activity in men’s grooming has been focused on its Dove Men + Care brand. However, through the purchase of Dollar Shave Club in 2016, the company was able to increase its sales by CAD44 million, in turn boosting its share from 10% in 2015 to 14% in 2016. In addition to boosting Unilever’s presence in men’s grooming, the acquisition of Dollar Shave Club has given the company an immediate presence in men’s razors and blades, with it commanding the second highest value share behind Procter & Gamble. Going forward, Unilever is expected to invest heavily in further developing the brand in order to take share from Gillette. Men’s grooming in Canada is dominated by international companies and brands. With a highly consolidated retail environment, it is extremely difficult for new brands to enter the fray and compete against existing large players. As such, well-established companies such as Procter & Gamble, Unilever and Coty enjoy strong positions in the country. While the availability of premium men’s skin care and bath and shower products has been growing, premium fragrances remained by far the biggest premium category in 2016. With sales of CAD217 million, it accounted for a 73% share of overall men’s fragrance sales. The success of premium fragrances is largely a result of strong marketing campaigns.

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