Cosmetic Products Industry in India

Cosmetic Products Industry in India
August 2013
ISIEmergingMarketsPDF in-iimbemis from 14.139.157.22 on 2014-01-19 14:55:25 EST. DownloadPDF. Downloaded by in-iimbemis from 14.139.157.22 at 2014-01-19 14:55:25 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
Cosmetic Products in India
Table of Contents
Introduction .............................................................................................................................................. 2 Product Segmentation .......................................................................................................................... 4 Industry Structure .................................................................................................................................. 5 Overview .................................................................................................................................................... 6 Major Players and Key Brands ........................................................................................................ 13 Key Drivers and Trends ....................................................................................................................... 18 Recent Developments ........................................................................................................................ 19 Future Outlook ...................................................................................................................................... 21 Disclaimer.............................................................................................................................................. 22
FRPT Research
Introduction
Cosmetics is among the fastest growing FMCG segments in India driven by several factors such as rising disposable incomes, heightened exposure to media and increased awareness about personal grooming. The robust growth in per capita income estimated around INR 61,564 during 2011-12 has resulted in improved life styles with a willingness to pay for the extra edge on personality. While women are the single leading customer segment for Cosmetics products, the mens market is steadily gaining ground with an exclusive range of products. Cosmetics products catering to the mens segment is now a mainstream segment across metropolitan cities and urban markets. Traditionally, toilet soaps and talcum powder have been the mainstay of the domestic Cosmetics sector. New age products such as colour cosmetics, fragrances and deodorants are now sought after products with an increasing market share. The age group of consumers who regularly use Cosmetics products has also widened considerably in the recent years. Modern retailing formats that offer complete range of health & beauty products have improved visibility for the products. With heightened media exposure, rural markets are opening up to Cosmetics products and are witnessing high growth in demand.
FRPT Research
Multi national companies have a well entrenched presence in the domestic Cosmetics sector. Players are positioning products at various price points to cater to a large section of the population. Product innovation and sleek packaging are key differentiators that are adopted for the premium end range. Herbal ingredients are sought after and several domestic companies have an established presence in the herbal market space as well. Motivated by the buoyant demand in segments such as creams & lotions and fragrance, the Cosmetics sector in India is set to witness robust growth in the coming years.
FRPT Research
Product Segmentation
Product segmentation of Cosmetics sectors is provided below:
FRPT Research
Industry Structure
The Cosmetics sectors are largely organised with a significant presence of both domestic and multinational players
The presence of unorganised players has reduced in recent years primarily due to intense brand building and strong distribution networks
Fragrance sector has a sizeable presence of unorganized players accounting for around 30% of the market
Cosmetics players largely operate on low margins and rely on volume-driven growth
Product distributions are mainly through modern retailing formats and convenience stores
Multi-level marketing and direct marketing approaches are used by few multinational players mainly to cater to the premium segment
Shop-in-shop model is a popular format used in urban areas by companies to showcase their Cosmetics brands
FRPT Research
Overview
The market for Cosmetics stood at around INR 180 billion in 2011-12, witnessing a growth rate of 12.5% over the previous year Creams & lotions, talcum powder and colour cosmetics are the major skin care products accounting for around 31% of the overall market Toilet soaps are the leading body care products followed by deodorants and perfumes
Break up by segments 2011-12 (%) Total market INR 180 billion
FRPT Research
Toilet soap segment commands a leading presence in the overall Cosmetics sector The market for toilet soaps stood at INR 90 billion in 2011-12 and the segment is marked by high penetration levels Soaps at the premium price range have a growing market and are largely retailed through modern retail store formats The market for premium soaps stood at INR 10 billion in 2011-12 Players have opted for product differentiation strategies and have introduced gel and liquid soap categories such as face wash and hand & body wash to drive growth These newly introduced segments are an emerging market and have registered healthy double digit growth rates of 40-50% over the last year
The fragrance market comprising perfumes, deodorants and roll-on has grown rapidly and the market was estimated at INR 35 billion in 2011-12
FRPT Research
While mens products account for around 60% of the fragrance market, products catering to the womens market are expanding rapidly The fragrance market is expected to grow at around 30% per annum during the next 2 -3 years
Perfumes are among the premium fragrance products accounting for around 40-45% of the overall fragrance market Several international perfume brands such as Armani, Burberry, Calvin Klein, Christian Dior, Hugo Boss and Polo have an increasing market in India Import of perfumes and toilet waters in India grew by over 60% during 2011-12 and stood at INR 3.2 billion
Deodorants market is highly competitive with a large presence of organized players
FRPT Research
Deo spray market is witnessing a growth rate of 25% per year backed by extensive marketing campaigns undertaken by the leading players Deodorant products are positioned to tackle product odour and the market registers peak sales during the summer season Around 90% of deodorants are priced as mid range products to cater to the mass market
Creams and lotions account for around 18% of the overall Cosmetics market with an estimated market size of around INR 33 billion in 2011-12 Creams account for around 70% of the creams & lotions market with a market of around INR 23 billion
Moisturising lotions segment have witnessed a range of new product launches catering to the premium hand and body segment
Sunscreen products have a growing market and players are offering creams and lotions with active sun protection formula
FRPT Research
Creams and lotions: Break up by segments 2011-12 (%) Total market INR 33 billion
Fairness creams segment was valued at around INR 15 billion in 2011-12 with a sizeable market in South India Mens fairness cream accounted for around 15% of the overall fairness cream market in 2011-12 while anti-ageing cream market, valued at around INR 2.6 billion, is among the fastest growing segments Bleach cream is another noted product category within the creams and lotions segment valued at INR 2 billion in 2011-12
FRPT Research
10
The talcum powder market was valued at around INR 13 billion in 2011-12 registering annual growth rate of 44% over previous year The talcum powder segment is characterised by high brand loyalty and has a sizeable presence of regional players The talcum powder market is facing stiff competition from the deodorant market especially in urban markets Players are undertaking extensive marketing campaigns focusing on benefits such as natural ingredients and de-odorising to drive the market Double fragrance talcum powder is among the latest product innovation introduced in the talcum powder market Prickly heat powder is the fast growing category within the talcum powder segment registering peak sales during summer season
Colour cosmetics segment registered a growth rate of around12.5% in 201112 was valued at around INR 9 billion
FRPT Research
11
Lip colours and nail enamel are the popular colour cosmetics in the domestic market with leading market share Color cosmetic products for eye, lash and brow have a small share of the market Waterproof cosmetics that offer hydrating benefits is an innovative range of colour cosmetic products introduced recently
FRPT Research
12
Major Players and Key Brands
HUL is the leading player in the Cosmetics market with a wide product portfolio catering to all segments of the market
Proctor & Gamble, Reckitt & Benckiser, Heinz India and Johnson & Johnson are the other noted multinational Cosmetics players in the domestic market
Godrej Consumer Products Limited, CavinKare, Marico and Emami are well established domestic players that cater to one or more Cosmetics segments
ITC Ltd is a recent entrant in the Cosmetics market with its brands Fiama di Wills and Vivel
Himalaya, Lotus Herbals, VLCC, Shahnaz Husain, Biotique, Banjara Herbals and Dabur are among established domestic herbal cosmetic players with growing market share.
FRPT Research
13
Toilet Soaps HUL is the market leader in the toilet soap segment with around 50% share, followed by Godrej Consumer Products Limited (GPCL) with around 10% share Other noted players include Wipro, Reckitt Benckiser and ITC Ltd.
Toilet Soaps: Key Players & Market Share (%), 2011-12 Total market: INR 90 billion
HULs Lux and Lifebuoy are the leading toilet soap brands followed by Wipro Consumer Cares brand Santoor
FRPT Research
14
Talcum Powder HUL is the market leader in the talcum powder category with its brand Ponds followed by Johnson & Johnson Cavinkare with its brand Spinz is gaining ground in the national market
Talcum powder: Market share by brands, 2011-12, (%) Total market INR 13 billion
Heinz India and Paras Pharma with their respective brands Nycil and Dermicool account for over 70% of prickly heat talcum powder category
FRPT Research
15
Emamis BoroPlus Ice is the other popular brand in the prickly heat category
Creams and Lotions HUL is the market leader in the overall skin cream category with its brand Fair & Lovely Other established players are Emami, Procter & Gamble, CavinKare and ITC Ltd Several players have introduced unit packaging especially in rural markets to counter the large presence of local brands HULs Fair & Lovely brand commands major share of over 70% of the overall fairness cream market Emami Limited with its brand Fair & Handsome is the market leader in the mens fairness cream category followed by HULs Fair & Lovely Max Procter & Gambles Olay is the leading anti-ageing cream brand with a market share of around 40%
FRPT Research
16
Fragrances HUL with its brand Axe is the market leader in the deodorant segment followed by Raymonds Park Avenue Nivea, Set Wet, and Wild Stone are the other major deodorant brands in the country Marico recently acquired leading deodorant brands Set Wet and Zatak
Colour Cosmetics Modi Revlon and Lakme are the top colour cosmetics players in the country Revlon, Lakme, Colorbar, Maybelline, Lotus Herbals, LOreal are some of the popular color cosmetic brands
FRPT Research
17
Key Drivers and Trends

The introduction of affordable unit size packaging across the entire range of products is a key driver for growth and penetration in Cosmetics segments. Other significant growth enablers include: Increasing urbanisation, higher personal disposable income, and westernised outlook Increased awareness and need for personal grooming and wellness Brand consciousness and preference for premium products Growth of beauty service industry with the launch of spas and salons Increasing women in workforce Demographic dividend as well as changes in social trends, user perception, product availability and innovation Availability of climate specific and gender specific beauty products
FRPT Research
18
Recent Developments
The Legal Metrological (Packaged Commodities) Rules, 2011 has mandated new rules for standard pack sizes of 19 FMCG products including toilet soaps. Standard pack sizes permitted for toilet soaps including all kinds of bath soaps (cakes) are 15g, 25g, 50g, 60g, 75g, 100g, 125g, 150g and thereafter in multiples of 50g. Australian skin care firm Intraceuticals is in on an expansion drive in India to enhance brand presence.. Intraceuticals has six clinics in Mumbai, New Delhi and Bangalore and plan to expand to 50 clinics in all major and mini metros Footwear and apparel brand Woodland is extending to organic skincare and bodycare products. The company had tied up with a Germany-based personal care products company to bring 20 premium brand products Domestic consumer products major, Marico, has launched its flagship brand Parachute in body lotion and skincare segments. CavinKare Chennai-based manufacturers of hair care, skin care and personal care products has launched a double fragrance talcum powder, Cool Duet.
FRPT Research
19
The talcum powder has two fragrances a flowery minty fragrance and a fruity fragrance which is activated when the user perspires. Nivea India subsidiary of Beierdorf AG of Germany intends to expand beyond the top cities in India and is planning to appeal to the younger generation through focused digital presence Wipro Consumer Care has relaunched its male grooming brand, Aramusk, to include soaps, deodorants and talcum powder
FRPT Research
20
Future Outlook
The fragrances segment is expected to drive sales in the body care sector with increasing demand for deodorants from tier II and tier III markets Liquid soaps are increasingly being positioned as a wellness product and is expected to reach out to the mass market to drive sales Specialised products such as sunscreen lotions, exfoliating creams, skin whitening products and under eye cream are expected to drive the creams and lotions market With growing awareness about personal grooming, anti-ageing creams are set to drive sales in the skin care segment especially in the urban and semi-urban markets Unconventional product segments such as mens cosmetics are seen as growth enablers for the future Prickly heat powder category will drive the talcum powder market in the coming years but overall talcum powder market is expected to exhibit dormant
FRPT Research
21
Disclaimer
The contents (Information, material, suggestions) have been provided for general information. The information and opinions contained in the document have been compiled from publicly available data or sources believed to be reliable. If the said content contains any mistakes, omissions, inaccuracies and typographical errors, etc. FRPT Research assumes no responsibility thereof. The company does not warrant the totality and absolute accuracy, adequacy or completeness of this information and materials and expressly disclaims any liability for errors or omissions in this information and materials herein.
Copyright by FRPT Research No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, recording, photo copying or otherwise without the permission of FRPT Research. For more details kindly contact :: frptresearch@gmail.com
FRPT Research
22

Cosmetic Products Industry in India - Full Report

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Cosmetic Products Industry in India - Full Report

Transféré par

Droits d'auteur :

Formats disponibles

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Break up by segments 2011-12 (%) Total market INR 180 billion

Cosmetic Products in India

Cosmetic Products in India

Deodorants market is highly competitive with a large presence of organized players

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Major Players and Key Brands

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Key Drivers and Trends

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Cosmetic Products in India

Vous aimerez peut-être aussi