The repercussions of Covid-19 have subverted the relationship between the consumer and retail tissue. Throughout 2020, government guidance to frequently sanitise surfaces in the home as a means of limiting the exposure of transmitting coronavirus, significantly multiplied the quantity of retail tissue used as well as the number of cleaning cycles. This new requirement, in conjunction with a tumultuous economic recovery period, forced many households to reassess their needs and priorities. The budgetary allocation of grocery spending was disproportionately skewed towards the purchase of antibacterial home care and retail tissue products, as households placed greater attention on cleaning and sanitisation. High-touch areas around the home such as bathrooms and kitchens spurred anxiety since these were prone to contamination. Rigorous cleaning patterns took precedence over other lifestyle habits and in doing so, provided a level of psychological confidence for safety.
This emergence of the hygiene-conscious consumer essentially guided the increased purchase of retail tissue in 2020.
Marketing strategies for tissue products may look to emphasise performance and hygiene
Consumer attitudes around the price, quality and durability that usually make up the rational decision-making matrix of purchasing retail tissue, therefore, experienced a shift in accordance with the changing global economic and social environment. Most retail tissue brands saw an uptick in sales in 2020, predominantly as a result of stockpiling. However, as consumers evaluate the substantial increase in their household tissue consumption over a long period of time, the feasibility of financially sustaining the purchase of greater amounts of retail tissue takes a toll in the decision of purchasing a specific type or brand. For some households, the matrix of features that contribute to the value of purchasing retail tissue products are restructured in a hierarchical fashion, with the price being the main factor swaying consumer choice to purchase. This trend, previously pertinent in lower-income households, has now seeped into the rationale of many consumers from all socio-economic backgrounds. Thus, the post-pandemic economic environment is conducive to boosting sales of cost-sensitive, private label products across many FMCG industries, which poses a challenge to global retail tissue brands.
For example, as a result of the elongated impact of Covid-19, consumers that reside in countries in regions such as the Americas and Western Europe have experienced a significant shock to their foreseeable levels of disposable income. Rising unemployment affecting the purchasing power of many households is the predominant cause for consumers pivoting towards more private label retail tissue products. The demand for retail tissue was propelled by the advice from government and public health authorities to families, instructing them to clean their homes frequently. The quantity of retail tissue usually used multiplied, thus accumulating greater levels than in previous years.
Being the regions where similar patterns of panic buying and stockpiling retail tissue ensued, many of the popular brands were rarely available. Where retailers could not meet this demand, consumers would turn to a private label if their preferred brand was out-of-stock. Therefore, consumers were more willing to trail private label and nascent brands, which generated momentous growth during this time.
It is important to highlight that the continuous improvement in the “quality” of private label offerings in retail tissue in the context of recessionary spending habits and a higher recurrence of cleaning, created a gateway to permanently switching from branded in 2020. This was a result of the previous developments of many supermarket labels in renovating product quality and comfort, which was instrumental in shifting consumer preference across time. For toilet paper, the concept of “quality” is synonymous with enhancing comfort. Whereas, for paper towels, durability is key to repeat customers. When intersecting these qualities with the lower price points that private label manufacturers can offer, the yardstick by which the value of the purchase is assessed moves closer to the power of the consumers and the promotions offered by the retailers. These functional improvements have also made strides in diversifying quality across private label brands. Multi-tiered pricing systems that cater to consumers from either end of the economic spectrum gives rise to staggering increases in the overall share of private label versus individual brands. This is a consequence of aggressive private label product development in the last decade or so, that had slowly but progressively minimised the gap in quality, attracting new consumers especially during 2020. One distinct challenge in the near future for retail tissue brands, therefore, is the growing dissociation of premium quality tissue with higher price points.
However, the growth of private label retail tissue is likely to occur in parallel to the growth in branded tissue products, also. Factors considering hygiene, comfort, sustainability and style is of increasing importance across many regions. The intensity of each factor, however, relies upon the extent to which the value-added perception of the product satisfies the consumer problem. The perpetual reconfiguration of the path to purchase in a post-pandemic period is determined by a confluence of external effects encompassing – but not limited to – the extremity and longevity of the consequences of Covid-19, the competitive landscape of the tissue manufacturers, the promotional power of retailers, and the economic, social and cultural context of the consumers. How retail tissue brands may take advantage of the heightened demand and continue to grow shares in 2021 onwards is a result of when each controllable entity – suppliers, manufacturers and retailers – know when to identify opportunities for cross-collaboration and when to push new product development. Assessing the positioning of branded retail tissue products in a pandemic era, as well as taking inspiration from other branded developments can help retail tissue manufacturers connect with the hygiene-conscious consumer in their respective social and cultural backgrounds.
For instance, to further differentiate branded tissue products from private label products, marketing strategies may look to emphasise performance and hygiene as the fundamental reason for purchasing tissue products. Where the consumer is conditioned to trust retail tissue products specially positioned to help eradicate household germs, the importance of price is overridden. Questions around ‘how long does it last’ and ‘how much do I need’ are respectively associated with the durability and longevity of the tissue product. These considerations remain pertinent in 2021, as consumers want to instil confidence and reliability in the household products that will aid the curtailment of COVID contamination. The consumer problem is therefore reframed as a search for value through a function from the lens of maintaining hygiene in the home. Another way for global players to gain share is to push higher margins in retail tissue through strengthening consumer interest in sustainable products. Fluctuating pulp prices are a constant issue for tissue manufacturers to consider. To limit uncertainty, global players may be incentivised to explore the cost-benefits of using alternative materials. Bamboo, hemp and other organic fibres may be substituted in place of pulp and give further ideas for distinct marketing campaigns that appeal to the ethical consumer profile. To some extent, global brands will have some influence in persuading consumers to switch to sustainable – particularly in the developed regions. Consequently, the move of the mass market towards sustainable products may prove to be a dual effort, with global manufacturers pushing for greater uptake just as much as the socially conscious consumer.
Factors considering hygiene, comfort, sustainability and style is of increasing importance
Finally, taking inspiration from regions where branded retail tissue products prove popular by aligning product development with cultural and demographical influences, trends in comparatively developed countries in Asia, such as Hong Kong, South Korea and Japan are highlighted. Here, the standards of strength and softness for toilet paper, paper towels and boxed tissues are expected to be held at equal importance to a vibrant and youthful packaging that is positioned within the overarching brand message. Retail tissue incorporating cartoon visuals, gentle but distinguishable aromas and 4D embossed textures push higher margins and provide further differentiation from the status quo. Price is relatively unconsidered, as demonstrated by its low percentage shares of private label brands in the retail tissue competitive landscape.
Appealing to younger generations in millennials and generation Z demographics is essential to increasing brand share in a near saturating market, especially as a greater number are moving into age brackets where living apart from families requires a separate branch of retail tissue purchases. It is also notable that such demographics can, at times, have an extremely varied lifestyle from the common nuclear family arrangement. Single-parent households, urban areas with smaller living spaces and longer working hours characterise some of the new generational trends in these markets. Resultantly, compactable soft box tissues and single-roll toilet paper prove popular with younger demographics, as well as more flexible omnichannel services that both meet the convenience of purchasing and storing retail tissue. The larger global and domestic players, here, can harmonise the premium quality and appearance of their products with an elevated service that fosters a direct connection to their brand. Utilising live streaming, hyper localised delivery and direct-to-consumer sales through social media emphasises a greater personal touch and is agile enough to meet the needs of a multitude of familial circumstances. Subsequently, aligning premium distribution strategies and services with higher-priced products intensifies the strength of brand loyalty through sustained engagement.
Awareness of the magnitude of the growth of private label and the heterogeneity of retail tissue trends across each region will construct the foundation for more specialised approaches to growing sales in an economic downturn and navigating through the new hygiene-conscious consumer mindset. Visualising how the retail tissue market may develop in accordance with public health, economic and social change in the future is key to taking advantage of the increasing consumption set to take place as consumers work and spend time at home more often. The industry is thus at a critical point and the need to leverage new opportunities from both sourcing raw materials to retailing in line with the expectations of the end consumer becomes ever more crucial.
