1. Household Care & Professional Cleaning and Hygiene Products Value Chain Socio-Economic Analysis
Brussels
November 30, 2016

2. Context Brexit negotiations
A changing landscape across Europe with pressure for protectionism growing
“Juncker Plan” – promoting investment and innovation
Jobs, but which jobs?

3. SEA Objectives
Communicate contribution that industries, their technologies, and their value chains make to modern societies
Highlight public benefits, rather than private gains, of business activity
Transform perceptions, inform public policy debates
Link aspirations of citizens and activities of businesses

4. Industry Characteristics
Two distinct sectors:
Consumer
Professional Hygiene and Cleaning
Value added driven by extensive investments in customer innovation
Scale:
Output – Euro 27 billion (ex factory, ex VAT)
Direct employment – 95,000 jobs
Net exports – Euro 3 billion
production facilities (90 large-scale, multi-national company plants; SME plants)

5. Value Chain – GVA & Jobs GVA JOBS + + + = + + + = Retail Impacts
Direct Industry
Euro 8.6 bn
Retail Impacts
Euro 3.9 bn
Supplier Impacts
Euro 8.0 bn
Induced Effects
Euro 4.1 bn
Euro 24.6 bn
VALUE CHAIN
TOTAL
GVA + + + =
Direct Industry
95,000
Retail Impacts
125,000
Supplier Impacts
80,000
Induced Effects
...60,000...
VALUE CHAIN
360,000
TOTAL
JOBS + + + =

6. Public Benefits Protects us from infections and disease
Underpins/facilitates modern lifestyles
Improves the durability of our investments in the things we value
Strengthens and protects investments in brands
Enhances the efficiency of the economy

7. Efficient Economy – Sectors
19 million

8. Innovation Investment
Need to illustrate importance of innovation
Two ways to measure
Financial reporting conventions (R&D 2-3% of sales)
Resources consumed (9-10% of sales)
R&D 2-3%
New Product Development 1-2%
Manufacturing, sales and marketing, advertising sales and promotion (new/improved products only) 4-5%

9. Types of Innovation Consumer Professional Creation of New Segments
Creation of Additional Value in Existing Segments
Improved Environmental Impact
Professional
Horizontal Solutions
Vertical Solutions
Worker & Environmental Safety

10. This Industry Supporting:
Traditional skilled and semi-skilled jobs in e.g., tourism, food, pharma and horeca
Brand “Europe”
A bellwether for the efficiency of the European economy in socially important sectors
Growth in the sector is essential

11. An Industry for Our Future
Underpins our Efficient & Globally Competitive Economy
A Major Industry Today
A Vital and Desirable “Motor” of Innovation for Europe
Enhances the Quality of our Modern Lifestyles
Strengthens our Future Prosperity

12. The Huggard Consulting Group S. A. R. L
The Huggard Consulting Group S.A.R.L. 94, rue de l’Horizon L-5960, Luxembourg Phone: Fax: