Response: Is Tide Killing the Laundry Detergent Industry?

From this article on Brand Channel, “Tide Pods seem to be very good for Procter & Gamble, but some observers believe they’re killing the rest of the detergent industry.”

Tide Pods prevent overdose of laundry detergent, and thus, saves costs for households and benefits the environment. As one of the most widely-used laundry detergent brand, Tide has numerous products available for consumers. From powder and liquid to detergent for dark clothing and softer clothing, there’s pretty much everything you’ll need. 

Even with such dominance in the market, Tide faces competition from eco-friendly brands such as Seventh Generation and Green Works who have established their name with environmentally-conscious consumers. This new product demonstrates that P&G wants to position the Tide brand closer to its environmentally friendly competitors  in order to stay competitive in an industry that is in the maturity stage of the product life cycle.

At this point, I do not agree that Tide Pods are killing the industry:

  • Consumers still like to use bottled detergent at home and follow cap measurements because it is cheaper. Hence, “doses” are not a solution to excessive use. Rather, if they were aware that they were using more detergent than required, they’ll learn to follow the measurements.
  • Pods are convenient and great for travelling, but most consumers don’t see the value of spending more on this product for daily use.
  • Consumers who use eco-friendly products will still choose those brands because it is the chemical-free component that makes them stand out. Tide Pods does not offer this benefit.

What is your opinion? Are Tide Pods killing the detergent industry? Will we have an entire new industry on pop detergents? Or, is this product an innovation of laundry detergent that will push the industry back to its growth stage?

Leave a Reply

Your email address will not be published. Required fields are marked *