The document summarizes the Indian beauty market and L'Oreal's presence in India. It notes that while still small, India's beauty market is the fastest growing in Asia, expected to reach $1.7 billion by 2010. It outlines L'Oreal's major brands and divisions in India, their focus on traditional retailers, and efforts to combat counterfeits through customs seizures and identifying authentic product markings.
3. STILL SMALL BUT YET THE
FASTEST GROWING IN ASIA
((in billion €)
South Korea
3.1 Japan
19
+7.8%
Greater China
11.2 +1.3%
India
1.7
+8.1%
+16.2%
ASEAN** +8.5%
5.2 * excluding soaps , razors, blades and toothpaste
L’Oréal Estimates– On a 2010 higher revised basis.
Translated into euros at foreign exchange rates of 12.31.2010
**ASEAN : including here only Thailand, Indonesia,
Malaysia, Philippines, Vietnam, Singapore.
4. YEARLY COSMETICS CONSUMPTION IN THE
ASIAN MARKETS
€148.1 (in €, per capita)
France : 104.2 €
United States : 88.7 €
€88.6
€62.9
€24.5 €20.1
€10.9
€6.7 €5.4 €4.3 €1.4
Japan Singapore Korea Malaysia Thailand Philippines China Indonesia Vietnam India
Excluding soaps, toothpastes and razors
L’Oréal estimates – 2010 Net manufacturing prices
Exchange rates at December 31st, 2010
5. SIZE AND EVOLUTION OF THE INDIAN BEAUTY
MARKET
1.7 Billion €
100000
90000
80000
70000
60000
50000 16.2%
40000 18%
18.6%
17%
30000 5.7 %
20000
10000
0
2005 2006 2007 2008 T 2009 2010
INR
Health & Beauty
Source: Nielsen Total India 2010
6. THERE ARE TWO MAJOR FORMATS AMONGST
RETAILERS . . .
Retail Landscape
Traditional Trade Modern Trade
• Traditional Mom & Pop stores • Self Service Stores
• 7.7 MM stores in India • Hyper markets, supermarkets, department
• Urban distribution ~ 2 MM stores stores, drug stores, cash & carries
• 85% of L’Oreal India business • 15% of L’Oréal India business
7. DESPITE MODERN TRADE EXPLOSION, TRADITIONAL
TRADE WILL CONTINUE TO DOMINATE
Share of each channel (Percent)**
2008 2012
Shampoo
+11% Grocers/Gen
Per cent 81 78
Stores /chemist
2,202 Modern Trade* 6 10
1,425
Cosmetic counter 5 5
Hair color Grocers/Gen
Per cent 76 66
Stores/chemist
12%
923 Modern Trade 3 8
588
Cosmetic counter 14 19
Skin care 16% Grocers/Gen
Per cent 74 66
Stores/Chemist
3,653
2,047 Modern Trade 6 13
Cosmetic counter 15 16
2008 2012
Makeup Grocers/Gen
27 22
Per cent Stores/Chemist
17%
503
943 Modern Trade 4 8
Source: AC Nielsen data
Cosmetic counter 69 70
2008 2012
8. STRENGTHS OF TRADITIONAL TRADE
•Proximity
•Price (MRP)
•Choice
•Credit
•Home delivery
•Personal relationship
A “pull system” based on consumer demand generated by mass media
9. KEY FIGURES
No.1 cosmetics group worldwide
27 international brands(1)
20.3 billion euros in sales
130 countries
68,900 employees
613 patents registered in 2011
(1) International brands with annual sales of more than €50 million
17. RESEARCH & INNOVATION
• October 2011 :creation of
R & I, evaluation in
Mumbai
• 2012 Creation of
Formulation Labs in
Mumbai
•2013 Full scope R& I with
advanced research
27. INDENTIFYING MARKS
Mfd. By: L'Oréal India Pvt. Ltd.,
Chakan, Pune – 410 501
M. Lic. No. : MPD/C-44
B. No:
Pkd. On: see crimp
Cap orifice in counterfeit is bigger than original
Content filled volume is more in counterfeit (original
tube will have fill : empty ratio in the content)
Difference in Cap Manufacturer’s
mark –
Counterfeit: N,
Original: SC or AT
Counterfeit Original Counterfeit Original
28. UNIQUE INDENTIFYING MARKS
GARNIER MEN POWER LIGHT FACE WASH-100g
Counterfeit Original
Number of inner ribs in the
counterfeit cap lesser than the
original
Seal (silver foil) present on orifice of the
counterfeit cap
Spacing in the batch code on the crimp is different
Finishing on the Label
Counterfeit: Glossy
Original: Matte (black background) & Glossy mix
29. GARNIER LIGHT PURE LEMON ESSENCE FACE WASH– 50g
Counterfeit Original Counterfeit Original
The product content in the Cap is transparent in
counterfeit tube is liquid counterfeit whereas
and thinner than original original is milky white
30. GARNIER PURE EXFOLIATING FACE GARNIER LIGHT PURE
WASH – 100g LEMON ESSENCE FACE Counterfeit Original
WASH– 100g
Cap gate-mark is visibly Upper side of the cap is less
bigger in counterfeit. oval in shape in original
Counterfeit Counterfeit
31. FRUCTIS STYLE - HARD GEL-125g
counterfeit Original
Original Cap inner has long nozzle
unlike in counterfeit
Label in counterfeit is in plain printing whereas original has
screen printing
Tube size in counterfeit is smaller [135mm] than Original
[140mm]
Cap size in counterfeit is smaller than original
Colour graphics in counterfeit including logo of “Fructis
Style” is lighter than original
Counterfeit Original
32. GARNIER ELVIVE FUEL FOR LIFE TRESOR
GARNIER COLOUR
L'Oréal ATTITUDE GIORGIO ARMANI
NATURALS
NUTRITIONIST VIVE HYONOSE AMOR AMOR
AMBER SOLAIRE ELSEVE DRAKKAR NOIR MAGNIFIQUE
FRUCTIS MAYBELLINE DIESEL ARMANI MANIA
DOUBLE EXTENSION VICHY RALPH LAUREN EMPORIO ARMANI IL
GLAM SHINE KERASTASE POEME
EMPORIO ARMANI ELLE
POLO
VOLUME SHOCKING ROMANCE LANCOME
33. SUMMARY
L'Oréal India is the sole licensee for import & trade of the
products owned by L'Oréal Group;
Products are imported by L'Oréal India mainly through:
• Mumbai Customs
• Nhava Sheva, Mumbai
• Kandla Port
Products with pre-labeling: “Mfd. by v/s Imported by”
34. “Coming together is a beginning.
Keeping together is progress.
Working together is success.”
- Henry Ford
Thank you Dinesh,for that lovely Introduction and Overview of L’OrealAnd now to discuss the topic in some detail………Product counterfeiting is,typically an organized group activity,Because… the manufacturing of goods takes manpower and time, and the goal is invariably profit. Many jurisdictions take the offence quite seriously, as a result…most product counterfeiting would be considered as organized crime under the Convention.……Products in high demand can be manufactured,based on the same or similar looking designs, often packaged and branded in ways ,to make them indistinguishable from the original.Counterfeiting accounts for between 5-7% of world trade….In India this accounts for almost 10% of our trade…..One can only imagine,the losses to the exchequer, and hence,the importance of what we are here today for…
To give you a brief overview of,the volume of seizures over the past 3 years,across the 2 main avenues i.e. Customs and Market Seizures.….While market seizures have dropped by 40% over the last 3 years,, Customs seizures have grown approximately 7 times.I think we should applaud your efforts in making this a reality
This shows a geographical representation of the,seizures in units that we have had over the past 3 years,….Notable among this is,the largest seizures have taken place at Ludhiana in 2011,and none at Mumbai, Kolkata and Kochi over the last 3 years.
Let’s take a quick look,at the most counterfeited,from our Garnier stable of products…Of a total of more than 1000 SKU’s,that we have across all brands at L'Oréal, these SKU’s are, the most prone due to their, high turnover and ad spends or what we call “Share Of Voice”As per our past experience in counterfeit seizures, these land in India mainly from China, where ….we believe ..they are manufactured as well.
The products that we have seen so far, have been products, that are found in our Indian Catalogue……The Products that we are now seeing, are non-catalogued products, or products which L'Oréal have never ever made Worldwide…In short, these are purely FAKE products, carrying the Garnier trademarks…
Few more…..We have kept some samples here ….. For your easy reference……
These are the same products, but carrying the L'Oréal Paris trademarks…They have been rather adventurous, in launches atrocious categories, that we would never have even thought of….
Few more….
These too…..
Let us now take a look at , the commonly found visible clues, that set, these counterfeit products, apart from the original ones………..These relevant products, have been kept on your respective tables,…As we go through the slides,you can check the same, with the products kept in front of you… ……..Imported Products CANNOT have a label of Indian Manufacturing Origin……The main orifice from where the product is dispensed is bigger than the original product……Counterfeit products, will be heavier than the original, since they fill the product to the brim …..i.e. full capacity of the containerThere is a distinct difference, in the inner fabrication markings on the cap.
These distinguishing marks are specific to Garnier Men Powerlight….
These distinguishing marks are specific to Garnier Light Fairness Face Wash with Lemon Essence….
These distinguishing marks are specific to Garnier Pure and Light Face Washes….
These distinguishing marks are specific to Garnier Fructis Style….
Now that we have seen, how to distinguish, these counterfeit products, lets take a look at the brands, which have been registered with Customs so far….…
To summarise,Weare the sole licensee for India, to import and market,the products owned by L’Oreal Group….…..We mainly import our products through ,Mumbai customs,NhavaSheva,Kandla…..When products are imported with pre-labeling,Of “Mfd.by” L’Oreal India….The products are definitely “not genuine “…..
I think that, this is just the beginning, and the achievements, that you have seen so far, is just, the tip of the iceberg, as far counterfeit seizures are concerned……..With a team like yours,we forecast, bad times ahead for counterfeiters…