Industry Shampoo

Shampoo Industry 20.11.02 Category : FMCG Product : Shampoo

This Presentation Covers
What is FMCG ?
Characteristics of FMCG products
Hair Care Category in India
Types of Shampoos
Hair Care Facts
Market Size
Awareness
Shampoo usage details
Penetration details
Growth in this industry
Evolution of shampoo as a product
The top brands
Ad Spends, and brands on the net

What is FMCG ?
FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month.

FMCG Products
Detergents
Toilet soaps
Toothpaste
Shampoos
Creams
Powders
Food products
Confectioneries
Beverages
Cigarettes

Typical Characteristics of FMCG products
Individual products are of small value. But, all FMCG products put together account for a significant part of the consumer’s budget
The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required
Many of these products are perishable
The consumer spends little time on the purchase decision. Rarely does he / she look for technical specifications ( in contrast to industrial goods )
Brand loyalties or recommendations of reliable retailer / dealer drive purchase decision
Trial of a new product i.e brand switching is often induced by heavy advertisement, recommendations of the retailer or neighbors / friends.

Typical Characteristics of FMCG products…contd.
These products cater to necessities, comforts as well as luxuries
They meet the demands of the entire cross section of population
Price and income elasticity of demand varies across products and consumers

Hair Care Category in India
There are 5 main products
Hair Oil
Shampoo / Conditioners
Styling products
Herbal Remedies
Hair Dyes / colors

Shampoos
Did you know, that the word Shampoo is derived from the Hindi word “Champi”.
Remember Johnny Walker’s famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish.
The British loved the massage so much, they started calling Champi as Shampoo

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

Types of Shampoos
Shampoo market is segmented on benefit platforms
Cosmetic ( shine, health, strength )
Anti - Dandruff
Herbal

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

Hair Care Facts…contd.
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

Hair Care Facts…contd.
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 sachet’s USP of low price

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
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
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
All India Shampoo - 14 %
Urban - 40 %
Rural - 10 %

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
HLL undisputed leader from the early 90’s
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
Why did competition Enter India
Teeming millions
Burgeoning middle class
Westernized youth
low penetration levels
Huge untapped market

New Entrants into the Market
P & G enters India in Nov 1995, with the world’s 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
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
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
Normal Shampoo’s
Clinic Plus
Sunsilk
Chik

Herbal Shampoos
Ayush
Dabur Vatika
Nyle

Anti Dandruff Shampoos
Clinic All Clear
Head and Shoulders
Dabur Vatika AD

Premium Products
Shehnaz Hussain
Revlon Flex
L'Oreal

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
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
Clinic All Clear
Sunsilk
Head & Shoulders
Pantene

Thank You

http://www.slideshare.net	57
http://webcache.googleusercontent.com	1
http://translate.googleusercontent.com	1

Industry Shampoo

by srire

Accessibility

Categories

Upload Details

Usage Rights

3 Embeds 59

Statistics

Industry Shampoo Presentation Transcript