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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

Shampoo Industry


Category : FMCG

Product : Shampoo

this presentation covers
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
what is fmcg
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.

fmcg products
FMCG Products
  • Detergents
  • Toilet soaps
  • Toothpaste
  • Shampoos
  • Creams
  • Powders
  • Food products
  • Confectioneries
  • Beverages
  • Cigarettes
typical characteristics of fmcg products
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.
typical characteristics of fmcg products contd
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
hair care category in india
Hair Care Category in India
  • There are 5 main products
      • Hair Oil
      • Shampoo / Conditioners
      • Styling products
      • Herbal Remedies
      • Hair Dyes / colors

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

tg for shampoos
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
types of shampoos
Types of Shampoos
  • Shampoo market is segmented on benefit platforms
      • Cosmetic ( shine, health, strength )
      • Anti - Dandruff
      • Herbal
hair care facts
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
hair care facts contd
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
hair care facts contd13
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
shampoo market size in india
Shampoo market Size in India
  • Size of shampoo market - 930 Cr
  • Anti - Dandruff Shampoo - 20 % of above
  • Sachet Sales - 70 % of above
shampoo awareness in india
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
shampoo usage
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
shampoo penetration in india
Shampoo Penetration in India
  • All India Shampoo - 14 %
  • Urban - 40 %
  • Rural - 10 %
growth in shampoo market
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.

evolution of shampoo in india
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
entry of competition
Entry of Competition
  • Why did competition Enter India
      • Teeming millions
      • Burgeoning middle class
      • Westernized youth
      • low penetration levels
      • Huge untapped market
new entrants into the market
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
shampoo boom in india
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
hll dominance
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 %
the top shampoo brands
The top Shampoo brands
  • Normal Shampoo’s
      • Clinic Plus
      • Sunsilk
      • Chik
the top shampoo brands26
The top Shampoo brands
  • Herbal Shampoos
      • Ayush
      • Dabur Vatika
      • Nyle
the top shampoo brands27
The top Shampoo brands
  • Anti Dandruff Shampoos
      • Clinic All Clear
      • Head and Shoulders
      • Dabur Vatika AD
the top shampoo brands28
The top Shampoo brands
  • Premium Products
      • Shehnaz Hussain
      • Revlon Flex
      • L'Oreal
the way forward
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.
ad budgets are on the rise
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

brands on the net
Brands on the Net
  • Clinic All Clear
  • Sunsilk
  • Head & Shoulders
  • Pantene