Reckitt Benckiser proves popular in Argentina following good Q2 growth
Although it anticipates a stronger second half of the year after suffering a flat second quarter globally, the company revised its overall net revenue target for the year.
“Our like for like performance in H1 was +1%, somewhat below our expectations,” said Rakesh Kapoor, outgoing CEO of Reckitt Benckiser, in a statement. “On our journey to be a world leader in consumer health, we have work to do to deliver consistent financial performance,” Kapoor expressed. (Starting September 1, Laxman Narasimhan will replace Kapoor as CEO).
“However, we believe that much of this is behind us and strong plans are in place to restore growth, including an exciting innovation pipeline such as Mucinex Night Relief and Enfa Grass Fed,” Kapoor added.
In Latin America, it was "good growth" in the infant nutrition segment in Argentina that counteracted its slump, according to the company. A similar trend occurred in South East Asia, where the segment's positive sales growth in Indonesia propped up an overall slump in the region.
New Product Arrivals
Reckitt Benckiser will launch a number of new product initiatives for the second half of 2019. In the health arm of its company, Reckitt Benckiser will further its innovations in, and accessibility of, infant and toddler nutrition products. It has announced the entry of its Enfagrow Grass Fed, which features a high quality natural milk source, and its Enfamil/Enfinitas Stage 4 nutrition for children over three years old.
Latin America will also see the arrival of the company’s Enfagrow Pro Mental, as it selects the region as a key marketplace to extend its NeuroPro model. Following the success of the NeuroPro range, which includes an innovative fat-protein blend that aids brain function and immune health in babies, Reckitt Benckiser will roll-out the range to the Latin American region.
E-commerce continues to prove a strong channel for the company, with over 40% of its global media spend taking place online. Reckitt Benckiser reported that it has doubled the number of its digital brand marketing personnel for its Health segment in 2018. It has also planned for ten in-house content studios by the end of 2019. A key growth driver, e-commerce currently represents approximately 11% of net revenue for the company’s health business.
In Argentina, brands are embracing the direct selling approach when it comes to health, global market research firm Euromonitor International reveals. Brands in the dietary supplements market, for example, are opting for contemporary sales techniques like digital marketing instead of traditional retail choices. Looking ahead, brands are expected to see growing traction levels in e-commerce, largely due to its associated low sales, marketing and distribution costs.