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net/9924927019/shampoomarket-research

TG for Shampoos : TG for Shampoos Hair Shampoos and Conditioners are targeted at Upper middle class Now, also middle class and house wives Upper class rural consumers Teenagers - they are the major segment Hair Care Facts : Hair Care Facts The frequency of shampoo usage is very low. Most consumers use shampoo only once or twice in a week. In many cases, these products are used on special occasions such as weddings, parties etc Some customers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair Use of conditioners is not common. It is restricted to the super premium segment or those who are very involved with their hair care Some consumers use natural conditioning agents such as henna About 50% of consumers use ordinary toilet soaps to wash their hair About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair Brand loyalties in shampoo are not very strong. Consumers frequently look for a change, particularly in fragrance Consumers attribute lathering to the act of cleaning Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml

needed in Western countries as most Indian women have long hair Most consumers do not use shampoo daily Regular users would need smaller quantity of shampoo per bath. Hair tend to collect more dust due to dusty environment and oiling habits Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes In Contrast, shampoo bottles are more popular in the Northern markets About 50 % of the shampoo bottles are sold in the Northern region alone In the North, local brands such as Ayur have strong equities and these products being low priced dilute sachets USP of low price Shampoo market Size in India : Shampoo market Size in India Size of shampoo market 930 Cr Anti - Dandruff Shampoo - 20 % of above Sachet Sales - 70 % of above Shampoo Awareness in India : Shampoo Awareness in India Urban areas - 90 %, accounting for 80 % of shampoo sold in the country Rural areas - 80 %, accounting for 20 % of shampoo sold in the country Shampoo Usage : Shampoo Usage Per Capita consumption of Shampoo in India - 13 ml Per Capita consumption of Shampoo in Indonesia - 160 ml Per Capita consumption of Shampoo in Thailand - 330 ml Shampoo Penetration in India : Shampoo Penetration in India All India Shampoo - 14 % Urban - 40 % Rural - 10 % Growth in Shampoo Market : Growth in Shampoo Market Average Growth over the

last few yrs - > 20 Expected Average growth over the next few yrs - 25 % AD segment is the fastest growing segment, growing at 10 - 12 % every year. H & S growing at 15 - 20 % every year. Evolution of Shampoo in India : Evolution of Shampoo in India HLL undisputed leader from the early 90s Sunsilk launched in 1964 ( General Shampoo platform ) Clinic Plus launched in 1971 ( Family, health shampoo platform ) Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo ) Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty platform ) with Sachet SKU HLL Goes rural with Sachet Clinic Active launched in 1991 ( with Pro Vitamin B health platform ) Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal hair, green for oily hair and black for long hair Entry of Competition : Entry of Competition Why did competition Enter India Teeming millions Burgeoning middle class Westernized youth low penetration levels Huge untapped market New Entrants into the Market : New Entrants into the Market P & G enters India in Nov 1995, with the worlds largest selling brand - Pantene Colgate Palmolive launched Optima also in Nov 1995 ( break through in Keratin treatment ) Nirma launched Nirma Shampoo which went into rough weather because it also had a detergent and soap with the same name. The brand name also had low price connotations Shampoo Boom in India : Shampoo Boom in India In mid 1997, per capita consumption of Shampoo increased Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20

% share P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine ( ZPT ) a unique anti-microbial agent. There were 2 variants regular and menthol Sachet sale became 40 % of all shampoo consumption in the country HLL Dominance : HLL Dominance Clinic, Sunsilk, Organics and Lux and their various brand extensions dominate the shampoo market In 1998, the company re-launched Clinic and Sunsilk brands Sunsilk was re-launched with Fruitamins. Today HLL has a 63 % market share in the shampoo market In South India, Clinic Plus and Clinic All Clear put together have a market share of about 70 % The top Shampoo brands : The top Shampoo brands Normal Shampoos Clinic Plus Sunsilk Chik The top Shampoo brands : The top Shampoo brands Herbal Shampoos Ayush Dabur Vatika Nyle The top Shampoo brands : The top Shampoo brands Anti Dandruff Shampoos Clinic All Clear Head and Shoulders Dabur Vatika AD The top Shampoo brands : The top Shampoo brands Premium Products Shehnaz Hussain Revlon Flex L'Oreal The way forward : The way forward While toilet soaps have reached saturation, there is immense potential for penetration of shampoos into Indian households. According to NCAER, Shampoo penetration is expected to grow from 314 thousand households in 1998-99, to 502 per

thousand households in 2006-07. Ad Budgets are on the rise : Ad Budgets are on the rise The reasons are Lot of competition in the market Low penetration levels High potential Untapped rural market to reach to There are a few brands that are already on the net Brands on the Net : Brands on the Net Clinic All Clear Sunsilk Head & Shoulders Pantene

Dabur enters health shampoo market(http://www.indiaretailing.com/news.aspx? topic=1&Id=3949)

STRENGTHS: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG-& there by in CND sector. 4. Increase in the income level of the consumer. 5. Availability of in many places in verity WEAKNESSES : Lower scope of investing in technology and achieving economies of scale, especially in small sectors. Low exports levels. Education in rural Market. Pilferage So many products Availability of Product in every sectors not possible

OPPORTUNITIES 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers & increase in the demand. 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending THREATS: Removal of import restrictions resulting in replacing of domestic brands Slowdown in rural demand New entrants. spurious goods and illegal foreign imports. Low infrastructure. Forecast 2010 Rural and semi-urban 128 million population thrice the urban Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR) Increase penetration from the current less than 1% Problems in the rural sector Low per capita disposable incomes Large number of daily wage earners Acute dependence on vagaries of monsoon Seasonal consumption Poor infrastructure roads and power supply Urban

Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR) Intense competition severe pressure on margins Focus on newer products, such as fruit juices Source: Assocham Report Future Prospects of FMCG

Hair Care - ShampoosThe shampoo market in India is valued at Rs 4.5 bn with the penetration level at 13% only. The market is expected to increase due to lower duties and aggressive marketing by players Shampoo is also available in a sachet, which is affordable and makes upto 40% of the total shampoo sale. The Indian shampoo market is characterised by a twinbenefit platform: cosmetic and anti-dandruff. It is basically an upper middle class product, as more than 50% of the consumers use ordinary toilet soap for washing hair. While the awareness level is high, the penetration level is very low even in the metros which is only 30%. Urban markets account for 80% of the total shampoo market, The penetration level is rapidly increasing due to decline in excise duty, which was 120% in 1993 to 30% currently. India has about 57 million urban and 136 million rural households
The shampoo market in India is estimated to be Rs 2,500-3,000 crore. The shampoo market is India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic,

herbal and anti dandruff, the shampoo market in India has managed to tap users of the various segments according to their requirements and preferences. Due to the continuous efforts of the top shampoo brands in India penetration of shampoos in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned it has risen by almost 18% in the current scenario.