The document summarizes the shampoo industry in India. It discusses key facts about the FMCG industry and hair care category. It details market size, segmentation, usage patterns and growth of the shampoo industry. It also outlines the evolution of popular shampoo brands and their market leadership over the years.

1. Shampoo Industry 20.11.02 Category : FMCG Product : Shampoo

2. 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

3. 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.

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

5. 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.

6. 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

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

8. 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

9. 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

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

11. 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

12. 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

13. 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

14. Shampoo market Size in India Size of shampoo market - 930 Cr Anti - Dandruff Shampoo - 20 % of above Sachet Sales - 70 % of above

15. 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

16. 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

17. Shampoo Penetration in India All India Shampoo - 14 % Urban - 40 % Rural - 10 %

18. 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.

19. 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

20. Entry of Competition Why did competition Enter India Teeming millions Burgeoning middle class Westernized youth low penetration levels Huge untapped market

21. 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

22. 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

23. 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 %

25. The top Shampoo brands Normal Shampoo’s Clinic Plus Sunsilk Chik

26. The top Shampoo brands Herbal Shampoos Ayush Dabur Vatika Nyle

27. The top Shampoo brands Anti Dandruff Shampoos Clinic All Clear Head and Shoulders Dabur Vatika AD

28. The top Shampoo brands Premium Products Shehnaz Hussain Revlon Flex L'Oreal

29. 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.

30. 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

31. Brands on the Net Clinic All Clear Sunsilk Head & Shoulders Pantene

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