Excuse me, how much did you pay for aluminum foil last year?

Everything related to pasta or tuna, we have learned to be conscious consumers, but when the prices of paper towels, aluminum foil or diapers are raised, we remain silent.

The price increases for Kimberly-Clark products are supposed to go into effect today, but our assessment is that they will be delayed for two weeks and will be incorporated into the holiday sales

Dr. Hezi Gur Mizrahi

08/15/2022

Monday, August 15, 2022, 1:05 p.m. Updated: 1:20 p.m.

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Supermarket, Walla La Perrayir (Photo: ShutterStock, Doron Shiner)

The Kimberly Clark Israel company (or "Hogula" as many consumers know it) is one of the ten giant companies in Israel that lead the trend of concentration in the consumer goods market, with leading brands and dominance in its fields of activity.

Kimberly Clark owns a number of well-known brands such as Huggies, Kleenex, Kotex, Lilly, Titul, Mult, Defend and Nicole.

All of the company's products specialize in the segment of auxiliary products for cleaning and care, diapers for children and adults, wet wipes and cloths, cleaning cloths and pads, tissue paper products, toilet paper and paper towels.

The company not only has a good grip on the retail market, but also on the institutional and professional markets as well as the paramedical market.

Kimberly Clark's biggest competitor in Israel is the southern marketing company, Snow Company - which competes with it in segments such as paper and hospitality products, wet cloths and wipes, pillows and sponges, and cooking and baking aids, mainly with brands such as Snow Sushi, Litupim and Snow Soft, whose price levels are quite similar.

Unlike Kimberly-Clark, Snow did not announce a price increase for its products to the public and even made it clear that it does not intend to do so soon, unless there is a significant change in the market.

But Snow and Hogla are not the only players in the market, there are lesser-known brands that manage to compete here and there, made by companies such as: the port company, the Dansher company and the Mika company - as well as the private brand series that offer solutions that are 25% cheaper than Kimberly's brands.

In contrast, there are more difficult segments, as in the case of the diaper brand Haggis, which dominates diaper sales in Israel, while the well-known brand of Diplomat, Pampers, and new brands such as Babysitter, are unable to narrow the gaps, perhaps because even in the market for discounted diapers, Hogula is involved with the help of the premium diaper brand, which gives A cheaper solution and is a leading brand in the ultra-orthodox sector.

The competition in feminine hygiene products is also limited, where the one who leads the market is actually Diplomat with the Always Old Days brand, followed by Kimberly's Kotex brand.

What the last two categories have in common is the power of the brands, in a market where consumers tend to be less flexible: who will skimp on the diaper that is close to their baby's skin?

Do you prefer wet wipes in the bathroom?

Get ready for an increase of almost 10. The price increase of Kimberly-Clark brands according to segments (photo: Walla! system, without)

This is perhaps the reason that while we tend to cry out when the price of pasta or tuna changes, in the market for cleaning products and especially hygiene and care, we tend to be less aware consumers.

When the price of tuna rose a few weeks ago, consumers mounted barricades and forced the producers, importers and marketing chains to offer tuna at reduced prices.

Of course, a few days later, when we were all engrossed in the news, we paid more attention to the dawn and not to the rising cost of living in Israel - and the prices of tuna jumped again...

but there at least we tried: the garbage bags, the package of diapers or the rolls of paper towels, we simply put them in the cart without checking the price.

All of Kimberly Clark's products are becoming more expensive these days - and at least the timing of the price increase indicates overthinking, not to mention - wisdom: the price increase takes effect today, in the middle of August, but by the time it is reflected on the shelves, we will already be deep into Rosh Hashanah sales, a period of discounts and deals Special ones that will blur the elevations.

Who among us can even remember how much they last paid for aluminum foil or baking paper?

In the sample we conducted on the price fluctuations for the consumer, the prices of the Kimberly Clark company became more expensive this year by more than 2% for the consumer, and this without declarations of the price increases for the consumer, but following the changes of the retailers or the changes of the supplier's discount mix.

According to a veteran retailer in the market, the company's representatives are not attentive to the needs of the small and medium-sized businesses and a significant part of the basket of products for the small businesses is sold at a more expensive price than the prices for the food giants and leaves the small players without profit and often even at a loss, just to keep the clientele.

The same source also said: "It is not possible to make money on baby products. Many retailers are forced to go and buy physically from the huge marketing chains where the products are on sale, in order to respond to the store's customers. Now, with the demand for price increases, many retailers are waiting to see how the big chains will behave. All this is not good for the consumer who pays more - and is going to pay a lot more."

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