PIONEER INSTITUTE OF PROFESSIONAL STUDIES
PRESENTATION ON MARKET REPORT OF COSMETICS
SUBMITTED BY:- ANKITA SINGHAI
• • • • • • • • • • • • INTRODUCTION WITH TYPES DISTRIBUTION OF SALES CURRENT TRENDS SIZE OF MARKET MARKET SEGMENTS WITH GROWTH % KEY PLAYERS MARKET SHARE OF KEY PLAYERS LARGEST MARKET PLAYER MARKET STRATEGY 5 MAJOR BRANDS KEY SUCCESS FACTORS FUTURE GROWTH
. • The cosmetics market has been growing at the rate of 15-20% for the last few years. and perfumes. eye. deodorants.
The cosmetics market can be segregated into talcum powder. increase in personal disposable incomes. The key growth drivers for the cosmetics market in India are rapid urbanization. and nail care products). face.INTRODUCTION WITH TYPES
• Cosmetics are substances used to enhance the appearance or odour of the human body. and changes in people's tastes. colour cosmetics (lip. • Indian cosmetics market is valued at $950 million.
blush-on. Its penetration level is 45.• Talcum powder is one of the most popular cosmetic products in India. • Colour cosmetics are the fastest growing segment. • The nail polish segment is valued at Rs.25 billions followed by the lipstick market at Rs 7 millions. 1.
.4% and 25. valued at $60 million. • Its market is valued at Rs 3. nail enamels. compacts. lipsticks.5 billions and is growing at the rate of 12% per annum. etc. All the categories in this segment are growing at around 25-30%. • Lipsticks and Nail Enamel account for 65% of the Color cosmetic segment. • Ponds dominates talcum powder market with a market share of 70%. eye make-up.2% in urban and rural areas respectively. followed by Johnson & Johnson with a market share of 15%. The major products in colour cosmetics market are foundation.
the penetration level of cosmetics and toiletries product is still very low in India.DISTRIBUTION OF SALES
• Greater access to television. increased advertisement.
. • The per capita expenditure on cosmetic products in India is approximately $0. • However. growing awareness of western world.68 cents compared to $36. and greater product choice and availability have resulted in growing demand for cosmetic products in India.65 in other Asian countries.
Only the richest consumers can afford these. • Examples include toners. especially the premium variety
. This also explains the relatively poor showing of perfumes.Cont……
• The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products. hand care and other value-added skin care products. • Products that are too specialized have yet to be successful on the Indian market. the average consumer may be unaware of their purpose or even existence. while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. bath & shower products and aftershave balm. indeed.
• Modern retail rises.514 crore by 2012.CURRENT TRENDS
• THE COSMETICS market in India is valued at Rs 712 crore and is expected to reach Rs 1. • Global financial crisis plays spoilsport to growth story. but comes under increasing pressure. • Hindustan Unilever still leads. but traditional “kiranas” are still leading players to focus on super-mass and super-premium products
. • The economy is undergoing substantial changes.
the market for nail enamels is estimated at around Rs 110 crore. While lipsticks account for nearly a third of the colour cosmetics market at Rs 90-100 crore. • The size of India's colour cosmetics market is Rs 250 crore. That of fragrances is Rs 85 crore while the skincare market size is larger at Rs 400 crore.
. eye-liners etc.SIZE OF MARKET
• THE COSMETICS market in India is valued at Rs 712 crore and is expected to reach Rs 1.514 crore by 2012. The remainder consists of products such as mascara.
Marico. • The Hair care segment is growing at a rate of 6% • The major companies in this segment are the Hindustan Lever (HUL). • Marico & Dabur are the leading companies in Oils. • Hindustan Lever dominates the Indian Shampoo market. shampoos. • The Indian Cosmetic market is approximately growing at a rate of 4% between 2006-2010 • The leading hair care segments are the oils.MARKET SEGMENTS WITH GROWTH IN %
• The Cosmetics market is broadly categorized into Hair Care. conditioners.
. Skin Care and Fragrances. Dabur and P&G and Cavin Care. hair colorants/dyes & others like the hair treatments.
5%. and Dabur. • Fragrances are mainly dominated by the multinationals & foreign brands like Givaudan. Fairness creams are gaining wide popularity especially among the teens.
• Godrej & L’Oreal (Garnier) are the major players in the Hair colorants. Deodorants at rate of 11. • Major brands in the deodorant segment are Axe. P&G. Other major players include Colgate-Palmolive. Park Avenue and Cinthol
. Brands like Fair & lovely. Old spice. • The skincare segment is growing at a rate of 4%. Fa. • The Fragrances market is growing at a faster pace of 14-15%. • Hindustan Lever dominates the skin care segment. Godrej. Nivea.Conti……………. • The major skin care sub-segments are Skin Creams & Toners. Color cosmetics (make-up) and talcum powders. Fairever and Fair & Handsome are highly popular ones among the teens.
lipsticks and lip glosses account for the most sales. for instance are not as popular as facial creams. moisturizers and fairness creams in this genre. • In this area. cleansers and toners. the most popular items are color cosmetics. • Skin-care cosmetics have experienced a slower growth and products such as anti-wrinkle creams. • Unilever and Procter & Gamble are major players in the Indian cosmetic sector of shampoos and hair products. of which nail varnish. • Companies like Ponds and Fair and Lovely rule the roost in this segment.KEY PLAYERS
• In the entire range of products that fall within the territory of the Indian cosmetic and toiletries market. popular local brand names include Lakme and Revlon.
Emami and Biotique products are the most well-known in this area.CONTI……
• However. Shahnaz Husain. • Finally. one of the most popular cosmetic produced in India are herbal cosmetics which have gained popularity internationally in recent years. the Indian hair-care cosmetic sector now has a few foreign brands to compete with these giants as well.
Lifebuoy.Pepsodent. Dove. Vaseline. Rexona • Skin Care .Fair & Lovely. Breeze. Detergents & Household Care49%. Pond’s.51 crores for the period 2008-09 (Company considered 15 months period) • Segment-wise sales – Soaps. Liril.Personal Wash – Lux. Clinic • Oralcare. Hamam. Closeup • Deodorants – Axe. Personal products – 29% • Major Brands .Lakme • Ayurvedic – Ayush
.MAJOR PLAYERS WITH FINANCIAL INFORMATION
• Hindustan Unilever Limited • Financial Information – Gross Sales of Rs 21649. Pears. and Aviance • Haircare – Sunsilk Naturals. Rexona • Color Cosmetics.
Colgate Active Salt. 62.230.6 Cr Hair Colors – Rs.Colgate Dental Cream. Colgate Max Fresh.0 Cr
. Palmolive Naturals Liquid Hand Wash Family Health.5 Cr Toiletries – Rs. Colgate 360 Toothbrush • Personal Care . Colgate Total 12. Colgate Sensitive Toothbrush.Palmolive Thermal Spa. Palmolive Naturals Moisturizing Body Wash .Milk and Honey • Godrej Consumer Products Limited • Segment-Wise Sales – Toilet Soaps – Rs.Oral Care .Colgate Extra Clean Gum Care.Conti…………. 705.
• Colgate-Palmolive India Limited • Major Brands. Palmolive Aroma Shower Gel .Relaxing.
Vigil. Colour Soft. Renew.Hair Care – Pantene Pro V. No. Godrej Shaving cream • Hair Care.540. Head & Shoulders. Evita. Rejoice • Oral care – Oral-B
. Nupur • Procter & Gamble Hygiene & Health Care Ltd • Financial Information – Net Sales Rs.1.Anoop.38 Cr in 2006-07 • Major Brands .Conti……
• Major Brands – Soaps – Cinthol. Fair & Glow • Toiletries – Cinthol. Shikakai.
Dabur Total Protect Shampoo.Uveda Range: Complete Fairness Cream. Vatika Dandruff Control. Vatika Enriched Coconut Hair Oil.Net sales for FY08-09 is RS 65101 lacs (Standalone) and Rs75565 Lac (Consolidated)
. • Shampoo . Vatika Root Strengthening Conditioner • Skin Care .Hair Care . Dabur Amla. Moisturizing Face Wash.Hair Oils. • Conditioner . Dabur Amla Flower Magic.Vatika Smooth & Silky Conditioner. Root Strengthening and Black Shine. Dabur Gulabari Moisturizing Cream & Lotion • Emami Ltd • Financial Information . Vatika Enriched Almond Hair Oil.Conti…………
• Dabur India Ltd • Major Brands . Clarifying Face Wash.Vatika range of Smooth & Silky.2-in-1 Moisturizer .
Meera Badam Shampoo. Spinz Talc.Hair Care . Karthika Hair Wash Powder. Meera Aritha Ras • Skin Care .
• Major Brands – skincare . Navratna Oil. Boroplus Antiseptic Cream. • CavinKare Pvt Ltd • Major Brands . Navratna Cool Talc. Nyle Cold cream and lotion
. Boroplus prickly heat powder.Conti……………. Malai Kesar Cold Cream. • Hair care . Spinz Deodorants. Fairever Fruit. Indica Hair Colorant • Ethnic Care . Navratna Oil Lite.Emami Hairlife.Fairever.Chik Shampoo.Meera Hair Wash Powder.Fair and Handsome. Nyle Herbal Shampoo. Chik Satin Shampoo.
Johnson & Johnson. Vicco laboratories.Conti………………
• Other major players include – Amway India. Oriflame. Modicare. VLCC & Shanaz Herbals
Lakme Beauty Salons and exclusive Lakme product outlets all over the country.R. the French name "Lakme" has its origins in the Indian name "Lakshmi.MAJOR BRANDS
• LAKME • The name of the Indian cosmetic brand "Lakme" has its origins in Leo Delibes' opera of the same name. At present. • Lakme produces cosmetics as well as skin and hair care products. However. Lakme is a part of Hindustan Unilever Limited (HUL). The idea of the Indian cosmetic brand Lakme was conceived by the Indian industrialist J.D." • Lakme was inaugurated in the year 1952 by Pandit Jawaharlal Nehru. This leading Indian cosmetic brand has its own. Tata.
. • Lakme leads the market with sales of Rs 100 crore.
• Lakme's share stands at 34 % • Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices. has recently joined forces with Hindustan Lever Limited (HLL) and calls itself Lakme-Lever.. Lakme. both.
. • Like chamber for its premium product orchid is placed only in large and reputed retail stores.MARKETING STRATEGY
• Lakme has always advertised in various mass media available. • It has very good distribution network.
Navratna. Fast Relief have become popular.
. • Besides being one of the major companies in India. advanced technology. brands like Boroplus.OTHER MAJOR BRANDS
• The Emami Group was launched back in the mid seventies. Emami Limited has also maintained its global presence over the years. • Emami is a great fusion of modernism. product efficiency and smart pricing. • Since they have been able to understand the pulse of Indian consumers.
a wonder product containing witch-hazel.PONDS
• Pond's has a remarkable track record and took shape way back in the middle of the 19th century. The Pond's vanishing cream was the turning point of the company from where the company evolved to become one of the greatest beauty icons. The idea was introduced by Theron T.
It was again re-launched in the following years as Pond's Extract and Pond's Cold Cream. Pond. a pharmacist from Utica New York who launched 'Pond's Golden Treasure' in 1846. PONDS BRANDS Pond's age miracle creams Pond's flawless white Pond's white beauty Pond's perfect results Pond's moisturizing cold cream
• • • • • •
It had its beginning in 1911. • Nivea product line:• Face care • NIVEA Soft • NIVEA Crème • Body care
. Nivea is owned by Beiersdorf. • Globalization during the 1980s catapulted Nivea brand to greater fame and recognition.NIVEA
• Considered one of the largest skin and body care brand globally. a German company.
they are fuelling the change using satellite television. women's magazines and beauty pageants.
.KEY SUCCESS FACTORS
• Brand image and high degree of consumer acceptability need to be established in the personal products sector. The growth of direct marketing as an alternative channel without incurring high promotional and developmental costs needs to be evaluated by new entrants in the sector. • Fired with the zeal of changing the complexion of the cosmetics market. and call for heavy promotional investments in awareness building. in order to formulate the most appropriate market development strategy for their products. besides tie-ups with good FMCG companies to leverage their distribution strengths.
• Latest forecasts and market developments indicate that the Indian cosmetics market is set to resist the recession and continue on a high growth path. • Indian market researchers have published a report on the cosmetics market in the country. predicting annual growth of nearly 7% between 2009 and 2012.
the average consumer may be unaware of their purpose or even existence. Only the richest consumers can afford these. hand care and other value-added skin care products.
. This also explains the relatively poor showing of perfumes. while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. Examples include toners. • Products that are too specialized have yet to be successful on the Indian market. especially the premium variety.CONCLUSION
• The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products. indeed. bath & shower products and aftershave balm.