This document analyzes the fairness cream market in India. Some key points: 1) The fairness cream market is growing at 25% annually compared to 15% for the overall cosmetics market. The mass market segment has the most potential for growth. 2) Factors driving demand include increased media exposure making Indians more beauty conscious, and a preference for lighter skin, especially in Southern India. 3) Major players in the fairness cream market are Fair & Lovely with 75% market share, Fairever with 15% share, and Fair Glow with 4% share. 4) Opportunities exist to expand into new segments like moisturizing fairness creams and products for men.

1. 1
Product Market
Analysis of
Fairness Creams

2. 2
Geographical Distribution
South
36%
West
23%
East
18%
North
23%
Cosmetics & Toiletries Industry
1200
40%
1800
60%
Skin-care segment Others
Skin-Care Segment
720
60%
480
40%
Fairness Cream Others
Industry Overview
Fairness cream market – 25% p.a. vs cosmetic market – 15% p.a.

3. 3
 Reasons for the growing demand
• Greater access to television, which has made the Indian
consumers beauty consciousness and increased his or her
need to look presentable and attractive
• Increased advertising in general
• Greater product choice and availability
 To succeed: The positioning and the style of the
product’s appeal for “making consumers fairest of
all” will make the difference
Reality is that Indians at large, and most of Asia, for that matter, are partial towards light skin
Demand Drivers

4. 4
 Broadly divided into mass and premium
• Premium segment
­ Niche ûÿ~wÿÿ· and so small base
­ Low scope for increasing volumes
­ Growth mainly from up­gradation
• Mass segment
­ Scope for increasing volumes is much higher because
­ Much larger base
­ Low price drives first­time users
Industry Overview
Mass segment: Concentrated market structure - 70% by top 3 brands

5. 5
Consumer Behaviour
Analysis

6. 6
Physiological - Clean Face
Social – Beauty, Complexion
Esteem – Compliments
Self
Actualization -
Confidence
Safety - Anti ageing, no pimples
Hierarchy of Needs

7. 7
Market Growth Factors
 Increased media exposure
 More working women
 Growing consumerism
 Move towards personal grooming
 Increased penetration levels

8. 8
Demographic Effects
 Greater tendency to use fairness creams in Southern
India
 Frequency of application decreases with age
 Highest percentage of users among single working
women
 Younger women more inclined towards branded
products
 Men are increasingly using fairness creams

9. 9
Product
Differentiation
Analysis

10. 10
Product Differentiation
 Bases
• Type
• Price range
• Chemical characteristics
• Application
• Packaging

11. 11
Product Differentiation - Type
 Cleansing creams
 All purpose creams
 Emollient creams
 Skin protective and hand creams
 Soap bars
Usage of Talcum powder for fairness purposes was prevalent in earlier
days

12. 12
Product Differentiation – Chemical
Characteristics
Functional Property Physio-chemical Property
Cleansing creams
Cold creams
Medium to high oil content
Oil in water or water in oil
Neutral pH
May contain surfactants of improved
penetration and suspension properties
Hand and body
protective
Low to medium oil content
Usually oil in water
May have slightly alkaline or acidic PH
May contain protective factors especially
silicones and lanolin
All purpose creams
Medium oil content
Oil in water or water in oil

13. 13
Product Differentiation – Application
 Even tone
 Clearing dark spots
 Reducing pigmentation
 UV protection

14. 14
Product Differentiation - Packaging
 Creams/Lotions
• Tubes
• Bottles
 Soap
• Bars

15. 15
Competition Analysis

16. 16
Positioning
 Herbal – safe and traditional
 Age – teenagers, middle aged, all age groups
 Lifestyle – working women, party goers
 Occasions – marriage, date, interview
 Benefits – confidence, impact, fashionable

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Low End
Godrej Fair Glow
‘Fairever
Freschia
Vicco Turmeric
Middle End
Fair and Lovely
Samara Fairness cream
Lotus Fairness gel
Avon VIP Fairness cream
Biotique Coconut Milk
Oriflame Love A ‘Fair
High End
L’Oreal Plenitude White Perfect
YSL’s Blanc Absolu Serum
Clinique’s Active White Line
Elizabeth Arden’s Visible Whitening
Pure Intensive Capsules
Estee Lauder’s White Light.
Major Players

18. 18
Market Shares
75%
15%
4%
2%
4%
Fair & Lovely
Fairever
Fair Glow
Himalaya
Others

19. 19
Prominent Brands

20. 20
 Product proposition – “Change your destiny” -
transforms a woman in ways, more than just skin
deep
 Target segment – Women in the age group of 20s
to late 50s
 Packaging – Tubes and soap bars
SKUs 25 gm 50 gm 80 gm 75 gm
Pricing Rs 26.5 Rs 48 Rs 70 Rs 15

21. 21
 Key ingredients – UV sunscreens, niacin
amide, papaya and watermelon extracts
 Other attributes – sunscreen system
typically optimized for Indian skin
 Market share – 76%

22. 22
 Product proposition – a cream that will help
the "world notice you"
 Target segment – middle class young girls in
their early 20s who are in college or have just
started working
 Packaging – tubes and sachets
SKUs 9 gm 25 gm 50 gm 80 gm
Pricing Rs 5 Rs 27 Rs 49 Rs 70

23. 23
 Key ingredients – saffron, milk, fruit
vitalizers
 Other attributes – lasting fragrance
 Market share – 15%

24. 24
 Product proposition – first fairness soap,
blemish free fairness
 Target segment – mass market
 Packaging – bars
 SKUs – 75 gm
 Pricing – Rs 13

25. 25
 Key ingredients – bio-extract natural
Oxy-G, 76% TFM (Total Fatty Matter)
 Other attributes – visible fairness
without leaving the skin greasy
 Market share – 3.5%

26. 26
 Product proposition – herbal fairness
cream - give ayurveda a modern image
 Target segment – college students
 Packaging – tubes
 SKUs – 25 gm and 50 gm
 Pricing – Rs 25 and Rs 46, respectively

27. 27
 Key ingredients – rose, orange, aloe,
walnut
 Other attributes – antiseptic, no side-
effects and suits all skin types
 Market share – 2% to 2.5%

28. 28
Vacant Position
 Need for a new product
• Fairness products contain bleaching agents which
make the skin dry and flaky, especially during the
winter season
• Consumers need to apply a separate moisturizer
after the application of the fairness product
• No existing products for use on other visible
parts like arms and feet
 Vacant position
• A fairness product that contains a moisturizer and
is priced low enough to be applied on arms and
feet

29. 29
 Increase rural market penetration
 Launch new brands like ‘Handsome’ for men, specially
target at urban youth
 Media exposure
 Increased focus on personal grooming – adaptive products
Road Ahead

30. 30
Thank You!!!
For the confident look