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
Growth in this industry
Evolution of shampoo as a product
The top brands
Ad Spends, and brands on the net

What is FMCG ?
FMCG refers to consumer nondurable goods required for
daily or frequent use.
Typically, a consumer buys
these goods at least once a
month.

FMCG Products

Detergents
Toilet soaps
Toothpaste
Shampoos
Creams
Powders
Food products
Confectioneries
Beverages
Cigarettes

Typical Characteristics of
FMCG products
Individual products are of small value. But, all FMCG
products put together account for a significant part of
the consumers 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 productscontd.
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
There are 5 main products
Hair Oil
Shampoo / Conditioners
Styling products
Herbal Remedies
Hair Dyes / colors

Shampoos
Did you know, that the word Shampoo is
derived from the Hindi word Champi.
Remember Johnny Walkers 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
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
Shampoo market is segmented
on benefit platforms
Cosmetic ( shine, health, strength )
Anti - Dandruf
Herbal

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 Factscontd.

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 Factscontd.

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
sachets USP of low price

Shampoo market Size in

India
Size of shampoo market - 930 Cr
Anti - Dandruf Shampoo - 20 % of above
Sachet Sales - 70 % of above

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
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
All India Shampoo - 14 %
Urban - 40 %
Rural - 10 %

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
HLL undisputed leader from the early 90s
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
Why did competition Enter India

Teeming millions
Burgeoning middle class
Westernized youth
low penetration levels
Huge untapped market

New Entrants into the

Market
P & G enters India in Nov 1995, with the worlds
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

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
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
Normal Shampoos
Clinic Plus
Sunsilk
Chik

The top Shampoo

brands
Herbal Shampoos
Ayush
Dabur Vatika
Nyle

The top Shampoo

brands
Anti Dandruf Shampoos
Clinic All Clear
Head and Shoulders
Dabur Vatika AD

The top Shampoo

brands
Premium Products
Shehnaz Hussain
Revlon Flex
L'Oreal

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

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

Clinic All Clear

Sunsilk
Head & Shoulders
Pantene

Thank You