Clorox Greenworks Leads Market One Year later- I told You So!

Just about one year ago, Clorox launched their entry into the green and natural cleaning products category with Greenworks. And I wrote, in this piece, What Should An Eco Entrepreneur Do When The Big Boys Go Green?:

Recent headlines may give eco entrepreneurs a reason to worry!… In fact some of the bigger independent players in the natural and organic arena are doing just that according to a recent NY Times article.

“The whole landscape is shifting, and I think everyone is struggling to redefine their strategy in the midst of huge change that ain’t finished,” said Jeffrey Hollender, the president of Seventh Generation…

My concern, when I saw that Clorox entered the market, was that they would pose a threat and a big one, to smaller manufacturers.

The core of the issue is usually the distribution deals that large, established companies are able to make with large well known retailers. For example, it’s much easier for Clorox to sell one more line of products into Wal-Mart than it is for a small eco-cleaner company. Conversely, as Wal-Mart begins to look for green brands smaller companies which once only sold their products to natural stores suddenly have the opportunity to enter the big chains.

It turns out, I was right. As often happens, it didn’t take long for Clorox to flex its marketing muscle and dominate the category.

Clorox’s green gamble appears to be paying off: A year after the company launched its Green Works line of natural cleaning products, the brand has established itself as a leader in the category, capturing 42% market share.

Clorox’s move was only smart business. As they saw smaller natural manufacturers steal market share points, albeit only a few, from their core line product, they sought a way to reverse the flow. Grenworks was the answer, a timely one as the trend toward green was and is moving to a tipping point.

As I write this a year later, I wonder about ecopreneurs impacted by the Clorox decision to enter the green space. Larger, well know natural branded products, like Seventh Generation, may have the ability to compete. Retailers rarely like to have only one brand name in a category – it’s so much more fun to have them compete for shelf space (that is cough up the dough for placement and promotions).

For smaller brands, this is the time of the great shake-out, as recessions often are. Smaller organic and natural brands may find this the time to consider a merger, a buy-out or a joint venture/partnership with a bigger brand. Consolidation may be the only way to survive.

What are your thoughts?