Arihant Ltd. launched a particular brand of washing powder called Chamak Wash”. It worked out well in the market and the firm was earning a handsome profit out of the sale of washing powder “Chamak Wash”. After six months of the launch of "Chamak Wash”, Bharat Traders launched a washing powder in the brand name of “Ujala Washing Powder”. Seeing the handsome amount of profit of both the firms many other competitors entered the market of washing powder. After few months Arihant Ltd. stopped the production of 'Chamak Wash' due to less profit margin. What type of market is seen in the above passage?
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Answer:
US city or town and you will encounter row upon gleaming row of stout, colorful bottles of liquid laundry detergent. Powdered detergents are relegated to a sad corner at the end of the aisle, if they can be found at all.
The scene is quite different at, say, the giant Idumota Market in Lagos, Nigeria. There, economical powdered detergents dominate. They come in sizes ranging from cheap single-use packets to multikilogram bags. In rural areas, powdered detergents are often sold out of large sacks by the cup to buyers who bring their own containers. Liquids are nowhere to be found.
These are the two ends of the global laundry detergent market. Consumers in the US, accustomed to liquids or newer unit-dose pod products, may not be aware that powders are alive and well in Africa, India, China, Latin America, and elsewhere in the developing world. Powders also persist in highly developed western European countries, where families prize them for their whitening ability.
Related: Periodic Graphics: Powder versus liquid detergents
Liquids, with their bold hues and connotations of upward mobility, are steadily taking market share from powders as standards of living improve around the world. Still, demand for powdered detergents continues to grow. Momentum may be on the side of liquid detergents, but for now liquids and powders coexist in laundry detergent markets around the globe.
David Cumming is associate R&D director for the North American fabric care business of Procter & Gamble, one of the world’s largest detergent producers and by far the North American leader. He points to P&G research showing that liquids and powders are “neck and neck” in sales around the world. The firm reckons that they each have 40–45% market share by value, with pod products taking up the rest.
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