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Shampoo Industry. 20.11.02 Category : FMCG Product : Shampoo. 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

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Shampoo industry l.jpg

Shampoo Industry

20.11.02

Category : FMCG

Product : Shampoo


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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


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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.


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FMCG Products

  • Detergents

  • Toilet soaps

  • Toothpaste

  • Shampoos

  • Creams

  • Powders

  • Food products

  • Confectioneries

  • Beverages

  • Cigarettes


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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.


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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


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Hair Care Category in India

  • There are 5 main products

    • Hair Oil

    • Shampoo / Conditioners

    • Styling products

    • Herbal Remedies

    • Hair Dyes / colors


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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


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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


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Types of Shampoos

  • Shampoo market is segmented on benefit platforms

    • Cosmetic ( shine, health, strength )

    • Anti - Dandruff

    • Herbal


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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


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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


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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


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Shampoo market Size in India

  • Size of shampoo market - 930 Cr

  • Anti - Dandruff Shampoo - 20 % of above

  • Sachet Sales - 70 % of above


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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


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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


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Shampoo Penetration in India

  • All India Shampoo - 14 %

  • Urban - 40 %

  • Rural - 10 %


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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.


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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


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Entry of Competition

  • Why did competition Enter India

    • Teeming millions

    • Burgeoning middle class

    • Westernized youth

    • low penetration levels

    • Huge untapped market


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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


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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


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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 %


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The top Shampoo brands

  • Normal Shampoo’s

    • Clinic Plus

    • Sunsilk

    • Chik


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The top Shampoo brands

  • Herbal Shampoos

    • Ayush

    • Dabur Vatika

    • Nyle


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The top Shampoo brands

  • Anti Dandruff Shampoos

    • Clinic All Clear

    • Head and Shoulders

    • Dabur Vatika AD


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The top Shampoo brands

  • Premium Products

    • Shehnaz Hussain

    • Revlon Flex

    • L'Oreal


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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.


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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


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Brands on the Net

  • Clinic All Clear

  • Sunsilk

  • Head & Shoulders

  • Pantene



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