Batteries 2021: the leading duo keeps the brands in the dark | Reports
Battery power appears to be decreasing in grocery stores. With less home use of remotes and gaming systems since the lockdowns ended, it’s probably no surprise that the category has only seen 0.4% growth in value.
A closer look at the data, however, shows that the weak performance is down 12.1% by its own mark. Brand values are up 2.5% relatively robustly – and market leaders Duracell and Energizer are largely responsible. They increased by 5.1% and 3.5% respectively. That’s the equivalent of £ 9.1million between them as buyers continued to favor trusted brands.
“We had the biggest gain in market share over our closest competitors,” said Christina Turner, Marketing Director of Duracell, noting that the brand’s 2.4 percentage point gain represents 54% of the market value.
“We have the strongest brand in the category and, as we’ve seen in other categories over the past year, people tend to look to the brands they trust in times of difficulty. . “
Duracell has done its best to build that confidence, with the launch of its Optimum range (see below), the relaunch of Duracell Plus with extended battery life and sustained marketing investments. The brand is also leading an education campaign around child safety issues raised by lithium batteries.
Supply chain resilience has also been critical to sales performance, adds Turner. Having a manufacturing base in neighboring Belgium gave Duracell an advantage as global shipping routes became obstructed.
“We are closer than our competitors,” she says. “We were preparing for Brexit before 2020 to build up a stock. Having manufacturing closer to home means we can be more responsive and haven’t been so affected by the larger shipping crisis. “
Meanwhile, Energizer – which manufactures its batteries in China and the United States – increased its market share by 0.9 percentage points to 29.4%.
“There has been a shift in the use of batteries purchased as potential stock to be purchased for immediate use,” says David Cautley, brand marketing director for modern markets.
“The lockdown has resulted in increased use of battery-powered devices such as remote controls, portable lights, play devices, clocks, children’s games and toys, home health / medical devices, and radios. Many buyers have also switched to larger packaging sizes, which has resulted in an increase in the average purchase weight.
Now that the Covid restrictions are well and truly over, battery sales are showing signs of normalizing, suggests Rebecca Hallam, director of analysis at NielsenIQ.
“Since the ease of restrictions in May, battery sales have declined slightly but are returning to normal baseline sales as before Covid,” she said. “Over the past four weeks, Duracell has lost sales and Energizer is growing. “
And that’s good news for number three brand Panasonic, which has lost the most value in the past year. The brand fell 25.8% “despite a drop in its average price of 10.6%,” Hallam notes. “Its biggest drop was during the lockdown, but it’s showing a recovery over the past four weeks. “
Top launch 2021
Optimal | Duracell
Duracell played the blind with the launch of the Optimum line in July. Not only do 1.5 volt AA and AAA batteries provide “up to 200% more life,” they also promise better performance in the devices they power. That means the torches shine brighter and rc cars go faster, says the leader in batteries, which has moved an additional 1.1 million units through the mults in the past year. Optimum’s rsps range from £ 5.50 for a four-pack to £ 13 for a 12-pack.