Industry analysis personal care by MAHAMMAD AZHARUDDIN
Why personal care?
• The personal care category has the largest
number of brands, i.e., 21,
• Note: There are 11 HUL brands in the 21,
aggregating Rs. 3,799 crore or 54% of the
personal care category.
List of top fmcg companies
MARKET CAP (IN CRORES)
DABUR INDIA LTD.
NOW THE QUESTION CALLED INTO
• WHAT IS MARKET CAP THEN????
Market capitalization (or market cap) is the
total value of the issued shares of a publicly
traded company; it is equal to the share
price times the number of shares outstanding.
As outstanding stock is bought and sold in public
markets, capitalization could be used as
a proxy for the public opinion of a
company's net worth.
Market cap reflects only the equity value of a
company. It is important to note that a firm's
choice of capital structure has a significant
impact on how the total value of a company is
allocated between equity and debt.
Future plan of the major player…
• Hul finding- HUL saw a slowdown in
discretionary spends by consumers. Skincare and
ice creams were two categories that saw reduced
spending. Both categories were affected by the
shutting down of modern trade stores that
contributed to a disproportionate amount of
sales. About 300 modern trade stores have closed
in the last year.
• Hul initiatives- it is investing in what it terms are
categories of the future. These products – conditioners,
shower gels, tea bags and so on – now make up
Rs.1000 crore in sales.
Other initiatives includes- it is powering ahead with
trebling its rural direct distribution reach, as part of an
initiative it had launched in July 2010. The company
has added a million outlets across rural India to its
distribution network so far.
UNILEVER SUSTAINABLE LIVING PLAN
We work to create a better future every day,
with brands and services that help people feel
good, look good and get more out of life. Our
first priority is to our consumers – then
customers, employees, suppliers and
When we fulfil our responsibilities to them, we
believe that our shareholders will be rewarded.
What did hul want to accomplish in
By 2020, we will help more than a billion people
take action to improve their health and wellbeing through:
• HEALTH AND HYGIENE
• GREENHOUSE GASES
• BETTER LIVELIHOODS
Itc future plan..
• ITC's Personal Care portfolio under the 'Essenza
Di Wills', 'Fiama Di Wills', 'Vivel', "Engage"
and 'Superia' brands has received encouraging
consumer response and is being progressively
• Extensive insights gained by ITC through its
numerous consumer engagements have provided
the platform for its R&D and Product
Development teams to develop superior,
differentiated products that meet the consumer's
stated and innate needs
Colgate future plan of 3 p’s
Who will be the major player?
• Hindustan unilever
• More product category and variety..
• More acceptance in rural markets..
• Rural consumer feel old is gold
Though selection of the real hero is a bit shillyshallied in nature….
KSF of fmcg (personal care)
• Newness (composition)
• Good relationship with channels
Potentiality of personal care..
• FMCG in India has a strong and competitive
MNC presence across the entire value chain. It
has been predicted that the FMCG market will
reach to US$ 33.4 billion in 2015 from US $
billion 11.6 in 2003. The middle class and the
rural segments of the Indian population are
the most promising market for FMCG, and
give brand makers the opportunity to convert
them to branded products.
• Increasing urbanization
• Rising participation of women in urban work
• Growing importance of looks and personal
grooming not only for personal but professional
• Increase in disposable income.
Stability of demand..
• Habits are easy to develop but hard to leave…
• Ordinary or local product
• Ayurvedic or natural product
• Substitute goods like soap to shampoo
Factors that acts as DE accelerator
Sometimes religion poses a threat
Cultural or sub-cultural belief….
• Inflation (food, agri)
• Natural calamities