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 non-durable 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. as and when required ‡ Many of these products are perishable ‡ The consumer spends little time on the purchase decision. recommendations of the retailer or neighbors / friends. 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. 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.

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 . ‡ These products cater to necessities.Typical Characteristics of FMCG products«contd.

Hair Care Category in India ‡ There are 5 main products ‡ Hair Oil ‡ Shampoo / Conditioners ‡ Styling products ‡ Herbal Remedies ‡ Hair Dyes / colors .

Sunday Ke Sunday. Teil Maalish Champi Teil Maalish.Meri Jaan. that the word Shampoo is derived from the Hindi word ´Champiµ. Meri Jaan. The British loved the massage so much.Shampoos Did you know. they started calling Champi as Shampoo . Remember Johnny Walker·s famous song .

also middle class and house wives ‡ Upper class rural consumers ‡ Teenagers .they are the major segment .TG for Shampoos ‡ Hair Shampoos and Conditioners are targeted at ‡ Upper middle class ‡ Now.

Dandruff ‡ Herbal . health.Types of Shampoos ‡ Shampoo market is segmented on benefit platforms ‡ Cosmetic ( shine. strength ) ‡ Anti .

Most consumers use shampoo only once or twice in a week. 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 ‡ The frequency of shampoo usage is very low. 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. these products are used on special occasions such as weddings. In many cases.

giving softness and bounce to hair.Hair Care Facts«contd. Consumers frequently look for a change. accounting for 70 % of sachet volumes . ‡ Brand loyalties in shampoo are not very strong. 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. particularly in fragrance ‡ Consumers attribute lathering to the act of cleaning ‡ Major expectations from the product are improvement in texture and manageability.

local brands such as Ayur have strong equities and these products being low priced dilute sachet·s USP of low price . 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.Hair Care Facts«contd. ‡ In Contrast.

20 % of above ‡ Sachet Sales .70 % of above .Shampoo market Size in India ‡ Size of shampoo market .930 Cr ‡ Anti .Dandruff Shampoo .

90 %.Shampoo Awareness in India ‡ Urban areas . accounting for 80 % of shampoo sold in the country ‡ Rural areas .80 %. accounting for 20 % of shampoo sold in the country .

13 ml ‡ Per Capita consumption of Shampoo in Indonesia 160 ml ‡ Per Capita consumption of Shampoo in Thailand 330 ml .Shampoo Usage ‡ Per Capita consumption of Shampoo in India .

14 % ‡ Urban .10 % .40 % ‡ Rural .Shampoo Penetration in India ‡ All India Shampoo .

20 % every year. H & S growing at 15 . growing at 10 .25 % AD segment is the fastest growing segment. .Growth in Shampoo Market ‡ Average Growth over the last few yrs .12 % every year.> 20 ‡ Expected Average growth over the next few yrs .

health platform ) ‡ Sunsilk re-positioned and re-launched in 1994 ( Nutracare) Pink for dry hair.Shampoo + Conditioner ( Beauty platform ) with Sachet SKU ‡ HLL Goes rural with Sachet ‡ Clinic Active launched in 1991 ( with Pro Vitamin B .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. yellow for normal hair. health shampoo platform ) ‡ Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo ) ‡ Sunsilk re-launched in 1987 . 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 .

The brand name also had low price connotations .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.

a unique antimicrobial agent.regular and menthol ‡ Sachet sale became 40 % of all shampoo consumption in the country . 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 ) . per capita consumption of Shampoo increased ‡ Of the Rs.Shampoo Boom in India ‡ In mid 1997. There were 2 variants . 350 Cr.

Clinic Plus and Clinic All Clear put together have a market share of about 70 % . the company re-launched Clinic and Sunsilk brands ‡ Sunsilk was re-launched with Fruitamins. Sunsilk.HLL Dominance ‡ Clinic. ‡ Today HLL has a 63 % market share in the shampoo market ‡ In South India. Organics and Lux and their various brand extensions dominate the shampoo market ‡ In 1998.


The top Shampoo brands ‡ Normal Shampoo·s ‡ Clinic Plus ‡ Sunsilk ‡ Chik .

The top Shampoo brands ‡ Herbal Shampoos ‡ Ayush ‡ Dabur Vatika ‡ Nyle .

The top Shampoo brands ‡ Anti Dandruff Shampoos ‡ Clinic All Clear ‡ Head and Shoulders ‡ Dabur Vatika AD .

The top Shampoo brands ‡ Premium Products ‡ Shehnaz Hussain ‡ Revlon Flex ‡ L'Oreal .

Shampoo penetration is expected to grow from 314 thousand households in 1998-99.The way forward ‡ While toilet soaps have reached saturation. there is immense potential for penetration of shampoos into Indian households. to 502 per thousand households in 2006-07. ‡ According to NCAER. .

Ad Budgets are on the rise ‡ The reasons are ² ² ² ² 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 .

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