Home ›› 26 Dec 2022 ›› Front
The use of beauty and personal care products, including soap, shampoo, cosmetics and detergent, among domestic consumers has fallen nearly under the full control of Unilever Bangladesh in recent times, according to market data.
Even 10 years ago, the scenario was different as only a handful of local companies were dominating the domestic market. But over the years, they have failed to compete with the multinational consumer goods company’s Bangladesh chapter and are now in a precarious position.
Unilever Bangladesh — of which, London-based Unilever owns 60 per cent and the Bangladesh government 40 per cent — has used this opportunity to create a monopoly and control the market as they want, even though it violates consumers’ rights, allege industry insiders.
Market data and retailers say Unilever Bangladesh is increasing prices of daily consumer goods including soap, shampoo and cosmetics products every month, sometimes even weekly.
The Business Post has found that the prices of every Unilever product have nearly doubled in the last two years, which in turn has also forced local companies like Square, Keya and Kohinoor to hike their prices.
Data from market inspections and the Consumers Association of Bangladesh (CAB) also showed a similar picture. However, despite the 100 per cent price hike, manufacturers claim they are not making significant profits.
CAB Vice President SM Nazer Hossain blamed the government’s inaction for such a chaotic situation in the market.
“Unilever and other companies are discreetly raising the prices. It’s alarming and affecting the common people severely,” he said.
Prices nearly double
Two years ago, the price of Unilever’s 100-gram Lux soap was Tk 30. It rose to Tk 40 at the beginning of this year and went up to Tk 55 after the fuel price hikes last August.
The same weight Lifebuoy soap was Tk 40 and now it’s Tk 50. The price of Wheel laundry soap also rose to Tk 30 from Tk 20. A Tk 40 Dove soap is now being sold at Tk 80.
Meanwhile, Square’s 100-gram Meril soap is currently being sold at Tk 50 after a Tk 10 hike. Also, Kohinoor’s Tk 35 Sandalina soap now costs Tk 65.
Unilever’s one kg Rin detergent powder now costs Tk 180. It was Tk 120 just two months ago. Wheel detergent powder’s price has also increased by Tk 30 and is now being sold at Tk 140 per kg.
Moreover, Unilever’s half kg Surf Excel now costs Tk 145. It was Tk 99 in September last year. The price of Kohinoor’s Fast Wash detergent powder has also gone up from Tk 120 to Tk 170 per kg.
The Vim dishwashing bar’s (300 grams) price has increased from Tk 30 to Tk 50 and Vim liquid’s (500 grams) price rose from Tk 110 to Tk 150.
The prices of shampoos of different brands have also increased abnormally at the same time.
A month ago, a 170-gram bottle of Unilever’s Sunsilk was sold at Tk 200, now it’s Tk 280. A bottle of same-weight Dove shampoo is now Tk 250, up from Tk 210-220.
Mohammad Ali Imran, head of corporate legal affairs at Square Toiletries Ltd, recently told reporters that the prices have increased for three specific reasons.
The abnormal rise in prices of raw materials in the global market and shipping rates, the US dollar crisis and the increased transport costs caused by the fuel price hike have led to the rise in prices, he said.
Raising prices on weekends!
Over the last six months, the price hike competition among the companies has reached such a level that it has left the retailers confused.
Four Dhaka shopkeepers this reporter spoke to said Unilever was increasing the prices of some products every week.
Mithu Hawlader, a shopkeeper at Dhanmondi, said the price of Unilever’s big-size Sunsilk gold shampoo bottle was Tk 400 two weeks ago. “Next week, it will be Tk 450 and we are hearing that it’ll be Tk 490 the week after.”
“Prices are rising so fast that it’s become hard to keep track,” he said.
According to the shopkeepers, Unilever products’ prices increased most in the last six months. When Unilever raises prices, other brands follow suit. As a result, consumers are losing interest in the products of both Unilever and the local brands as they are
becoming costlier.
However, talking to The Business Post, Unilever salesman Sajib Ahmed claimed the company is not raising the prices of all products every week. “If the company hikes the prices of some selected products in a week, it may choose to increase the rates of other products, not the same ones, the next week.
“Since Unilever has a vast array of products, retailers are most probably failing to keep track and saying the same thing’s price is rising weekly.”
Shamima Akhter, the director of Corporate Affairs, Partnerships and Communications at Unilever Bangladesh, told The Business Post, “Everyone is saying that we are unreasonably raising the prices but it’s not true. We can’t fight with global prices.”
She claimed that the company’s profit has decreased even after increasing the prices. “We are worried because our consumers have shifted to different brands.”
Retailers’ profits down
Retailers have said that they used to make a Tk 5-6 profit by selling one Unilever soap but now it has come down to Tk 4. The profit is also down in the case of other products of Unilever and other companies.
“Customers are paying more but our profits are down. The companies claim they are not seeing profits as well. Where is the money going then?” asked Abdullah Al Mamun, another shopkeeper at Dhanmondi.
AHM Shafiquzzaman, director general of the Directorate of National Consumers Right Protection, said they have formed a six-member committee to investigate the reasons behind the price hikes.
The committee will visit the factories of the manufacturing companies and submit its findings within one month. Further action will be taken based on the report, he said.
