Hair Color Market in India 2011 - Sample


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The hair color market in India is driven by growth in the need to not only cover grey hairs and look presentable but also look stylish and feel better. Rise in disposable income and media penetration has only added to increasing fashion consciousness among not just women but also men across India. Aided with the availability of products and with foreign brands being within the reach of consumers, this sector has witnessed major growth in recent years.

The report begins with an overview of the hair care market in India including market size and growth. A clear indication in terms of penetration and segmentation has also been highlighted. This is followed by an overview of the hair color market in India. The section talks of the market size and growth of the sector and provides a distinction of the various types of hair color present in the sector. Information regarding the different types of hair coloring techniques is also included. The various distribution channels adopted by the major manufacturing companies are highlighted. The section on EXIM provides an overview to the imports and exports with specification in terms of value and volume.

The section based on social media insights provides information based on consumer usage segregated across the source distribution, distribution by tonality, topics of discussion and sentiment analysis. Posts on various social media platforms have been analyzed towards providing an overview of the market driven by consumer perception.

An analysis of the drivers explains the factors for growth of the market including rise in disposable income, growth in fashion conscious consumers, increase in awareness among population across the nation, growth in percentage of male using grooming products and rise in organized retail. India is an emerging economy and with a rising GDP. People today are equipped with more disposable income allowing them to spend on FMCG products. Furthermore, with increased penetration of media, consumers are becoming more aware regarding fashion trends and also about the characteristics and benefits of the products available in the arena. Thus, it has been witnessed that consumers are becoming extremely fashion conscious and are willing to go the extra mile to buy products that deliver quality. It is also seen that there is an increase in percentage of males opting for grooming products. Thus, beauty no longer remains a domain restricted to women only, it has gone beyond and encompassed males who are spending more and has led to a thriving hair color market as a whole. However, the key challenge faced by this sector is the presence of harmful chemicals in hair colorants. Presence of certain chemicals in hair color products which can result in dangerous reactions pose act as a barrier for growth.

The major trends indentified in the market include usage of herbal products, tie-up with salons, 3D color service and brands seeking to be natural products.

The competition section begins with

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Hair Color Market in India 2011 - Sample

  1. 1. Hair Color Market – India  Hair Color Market IndiaAugust 2011
  2. 2. Executive Summary  Indian hair care market is valued at INR XX bn and is expected to see strong growth in the future   Hair color is a part of the cosmetics industry and has been growing at a CAGR of a% Market  Hair color can be segregated into – Segment 1, Segment 2 and Segment 3  Drivers Challenges – Increasing disposable income – Usage of harmful chemicals Drivers &  – Growth in fashion conscious  Challenges consumers – Rise in organized retail – Increase in awareness – Increase in male grooming  Usage of herbal products  Tie‐ up with salons Trends   3D color service  Brands seek to be natural Brands seek to be natural Major PlayersCompetition Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 HAIR COLOR MARKET IN INDIA 2011.PPT 2
  3. 3. •Introduction•Market Overview k•Social Media Insights•Import‐Export•Drivers & Challenges•Drivers & Challenges•Trends •Competition C ii•Strategic Recommendations HAIR COLOR MARKET IN INDIA 2011.PPT 3
  4. 4. Market for hair care is becoming a dominant segment in the  personal care market and is expected to grow further Hair Care ‐ Overview  Market Size and Growth • It comprises of Y  of the fast moving consumer goods  INR R market 150 a% X2 • The market has seen the entry of new domestic and  X1 100 international players who are looking to capitalize on  the growing market 50 • St Strong opportunity exists in Segment 3 and Segment  t it it i S t3 dS t 0 4 due to low penetration levels 20-- - --- 20-- - --e Hair Care – Penetration (20‐‐)  Hair Care – Segmentation (20‐‐)  O1 Segment 4 9% Segment 3 1% Segment 1 R1% 12% Segment 2 Segment 2 R2% 50% Segment 1 Segment 3 R3% Segment 4 R4% 28% Segment 5 R5% Segment 2Source: HAIR COLOR MARKET IN INDIA 2011.PPT 4
  5. 5. Growing emphasis on personal grooming will lead to the  growth in hair color market in India Hair Color Market – Overview  Market Size and Growth • Hair color was traditionally used to cover grey hairs  INR P A% but now its usage has increased more for cosmetic  V 15 purposes U 10 • Hair colorants are available in a variety of delivery  formats – d1, d2, d3 and d4  5  D1 comprises of the biggest segment controlling nearly a D1 comprises of the biggest segment controlling nearly a  0 third by value 20-- - -- 20-- - --e • Only g% of Indian women use hair colour as  compared to w% in developed markets  This indicates huge H market to with strong I potential  Types of Hair Color T fH i C l • Hair color products have largely been aimed at L‐M  age female segment; however, with time, there has  been a growing population of male consumers as well  S1 S2 S3 • Consumers today are more willing to spend large  sums on these products primarily due to growing  • Contains both  • Does not contain  • Low peroxide  peroxide and  peroxide or  level, no  awareness about recent fashion trends ammonia ammonia ammonia • Touch‐ups  • Lasts t1‐t2 Lasts t1 t2  • Lasts upto  t3  p required every  i d shampoos shampoos t4‐t5 weeksSource: HAIR COLOR MARKET IN INDIA 2011.PPT 5
  6. 6. Drivers & Challenges – Summary Drivers Increase in disposable income I i di bl i Growth in fashion conscious  consumers Challenges Rise in organized retail Usage of harmful chemicals Increase in awareness Increase in male grooming HAIR COLOR MARKET IN INDIA 2011.PPT 6
  7. 7. Trends – Summary  Brands seek to be natural Usage of Herbal products Key  Trends 3D Color service Tie‐up with salons HAIR COLOR MARKET IN INDIA 2011.PPT 7
  8. 8. Few major players account for a large share of the market  with Player 1 being the market leader  • An FMCG major in India SAMPLE  Hair Color ‐ Market Share (20‐‐) Player 1 • Hair color products range includes  Brand 1, Brand 2, Brand 3 Player 1 Player 2 Player 3 Player 4 Player 5 • Provides products P1, P2 and P3  Y% Player 2 brands X% • Is a cosmetic giant  U% W% Player 3 • Hair color products include C1, C2,  C3 and C4 • Provides hair fashion products  worldwide V% Player 4 • G constitutes a premium product G constitutes a premium product  under its wing • Certain other players like E and  f% of the market is dominated by the  Player 5 local players constitute the rest of  oca p aye s co s u e e es o top four players top four players market Source: HAIR COLOR MARKET IN INDIA 2011.PPT 8
  9. 9. M1 is the market leader, but M4 leads in the Social Media  Platform Share of Voice : Social Media Share of Voice : Social Media • G had maximum social media share : P1 P2 P3 P4  “T Campaign”, in which it provided Y to C was the major topic of discussion  Nf its hair color was appreciated by many A1%  Customers also showed their willingness to purchase DF A2% Hair color  People were disappointed by the fact that certain hair colors were NM for the Indian S, but was still promoted by G • P2 and P3 were the other most talked about brands A3%  Mixed response in case of P1  E hair color was appreciated A4%  T1 and t2 of the hair color were the demotivating factors  U had the most customer complaints regarding its product p g g p quality Top three players account for U% of the  market based on social media presence  market based on social media presenceSource: HAIR COLOR MARKET IN INDIA 2011.PPT 9
  10. 10. Players in the Market (1/9) Company Snapshot: Company 1Corporate Information Financial Performance INR bn Revenue INR bn Headquarters City 1, Country 1 15 Profit / Loss I4 3 Founded 19‐‐ I3 10 I2 2 I1 Cosmetics, Health and Personal Care  Products 5 1 Products 0 0 Key People Person 1– Executive Chairman 2008 2009 2010 2011 Business Highlights Business Highlights • ABC reaches consumers across nearly T countries, with Country 2 and Region 1 being key growth market • In 20‐‐, Company 2 , the erstwhile marketing company of the Company 3 merged with Company 1  With this total turnover of Company 1 including sales in domestic and export market stood at INR RR bn in FY ‐‐ ‐ ‐‐ With this, total turnover of Company 1 including sales in domestic and export market stood at INR  RR bn in FY ‐‐ • In 20‐‐, it launched its hair color Product A both for men and women, both in cream and powder based forms  Product was created  through Company 1’s exclusive technology developed by Institution 1 Source: HAIR COLOR MARKET IN INDIA 2011.PPT 10
  11. 11. Thank you for the attentionHair Color Market ‐ India report is a part of Research on India’s Manufacturing Industry Series.For more detailed information or customized research requirements please contact:Gaurav KumarGaurav Kumar Gagan Uppal Gagan UppalPhone: +91 33 4064 6214 Tel:  +91 22 4098 7530Email: Email:  gagan.uppal@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the Netscribes (India) Pvt Ltd or “Netscribes” is not responsible for any loss or damage arising from use of this document This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. HAIR COLOR MARKET IN INDIA 2011.PPT 11