m Earliest documented use of cosmetics was around 4000BC

way back in ancient Egypt

m "Cosmetics" is "Makeup"

m Cosmetic market place is a huge global economy worth

approximately $40 billion

m Mostly generated in the western countries

m Brands are now represented by key celebrities around the
world in a bid to increase the market share

m Cosmetics range includes: Skincare, Lotions, Powders,

Perfumes, Lip Color, Nail polishes, Eye Makeup, Face
Makeup, Hair Color, Hair Care, Baby products, Bath Products
etc

m FDA is a government Department of Health and Human

Services and is responsible for the safety regulation of many
things including Cosmetics
m =orld¶s popular cosmetics brands entered the Indian market in
the 1990s

m Cosmetics and personal care industry has been growing at an

average rate of 15-20%

m Growth has come mainly from the low and medium-priced

categories, which account for 90% of the cosmetics market in
terms of volume

m Urban population - main force that drives the demand for

various cosmetic products
m Greater access to television - created a growing awareness
of the western world

m A boom in the Indian fashion world has contributed to the

rise in demand for professional beauty care products

m Market penetration of cosmetics and toiletries products in

India is very low

m Can be viewed as an opportunity for more significant

growth down the road
—
: Morgan Stanley Report
Tata Strategic Management Group
m Personal Care products are one of the key constituents of the
Fast Moving Consumer Goods (FMCG) sector

m The brand wars for increasing ³mind share´ is intense in this

sector - recent years have also seen price wars

m =ith increase in income levels, penetration of mass media, the

personal care sector has witnessed strong growth in the recent
years
m The Indian cosmetic industry registered a growth of US$ 2.47 billion in 2008

m Fourth largest cosmetic market in Asia Pacific

m Expected to grow at a CAGR of 7-8%

m Colour cosmetics and spas to grow at a CAGR of 20-30%

m The cosmetics segment is broadly classified as :

Skin care
Colour cosmetics
Hair care
Perfumes & Deodorants

m Based on the price factor, the market can further be classified as :

Popular Brands
Premium Brands
SHAMPOOS
m Most astounding growth rates compared to other FMCG categories
in Rural India
m 13% point growth in 2000
m =as expected that half of the population will use shampoos by 2010
m 31% growth in the category (2000-2008)

SKIN/FACE CREAMS
m Overall penetration rose to 25%
m Orissa (14% to 29%)
m Assam (32% to 45%)
m Karnataka (15% - 25%)
—
: IRS, conducted
jointly by MRUC and Hansa
Research
—
: IRS, conducted
jointly by MRUC and Hansa
Research
] Higher Income urban consumers ± Niche products
Fragrances
Skin Care
Colour Cosmetics

] Lower income and rural consumers ± Basic products

Oral Hygiene
Bath & Shower
Hair Care

] The total —

market is estimated to be around Rs. 3,400 Cr
Fairness segment is stagnant in terms of penetration
Major players in this segment are HUL with a market share of 54% followed by
CavinKare with a market share of 12% and Godrej with a market share of 3%
Fair & Lovely drives the category trend
—
: CMIE, IBEF
Jan 28, 2009
] The ë

market in India is estimated at around Rs. 3,800
Cr
hair oils, shampoos, hair colorants & conditioners, and hair gels
Marico is the leader in Hair Oil segment with market share of
33% and Dabur occupies second position at 17%

] The Indian —
 market is estimated to be around Rs.
2,700 Cr
Shampoo market ± Cosmetic and Antidandruff
Sachet makes up to 40% of the total shampoo sale
Antidandruff segment constitutes around 15% of the total
shampoo market
Market is dominated by HUL with around 47% market share;
P&G occupies second position with market share of around
23%

—
: CMIE, IBEF

Jan 28, 2009
Market is expected to record a CAGR of around 21% (2009-2012)
Lipstick and nail enamel sub-segments will be the key drivers
Rising incomes ± major growth driver for sales

—
: RNCOS
m P2: 2008 Oct ± 2009 Sep
m Universe (000s) - 67714

—
: IMRB International

m P2: 2008 Oct ± 2009 Sep
m Universe (000s) - 147750

—
: IMRB International

m P2: 2008 Oct ± 2009 Sep
m Universe (000s) - 203805

—
: IMRB International

m P2: 2008 Oct ± 2009 Sep
m Universe (000s) - 147750

—
: IMRB International

m Indian fashion is fueling growth in the industry by making Indians to realize
the importance of having good looks and appearances

m Indian cosmetic industry has an even greater potential for growth in future

m Indian cosmetic manufactures have received orders from overseas markets; for
example - Indian herbal cosmetic products have a tremendous demand in the
international market

m The penetration rate is higher in the skin- care segment compared to lipsticks

m Great demand for herbal cosmetic products, away from synthetics, this so,
because these herbal and natural cosmetics are safe to use and do not have any
side effects
m Neem is increasingly being used by leading herbal cosmetic manufacturers
right from body lotions to face packs, from skin cleansers to fairness
creams

m Herbal cosmetics are the current rage not only in Asian countries like India,
but also countries like US, UK and Australia

m Cosmetic industry, herbal industry, agricultural industry are benefiting from

neem and its products

m Micro-Segmentation: The Future of Cosmetics

 Aahna Vaswani
Amal Parkar
Chirag Surti
Dhruvesh Morjaria
Geetanjali Thorbole