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, 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.
• 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 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
• 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 - Dandruff
• 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 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…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

• Size of shampoo market - 930 Cr

• Anti - Dandruff 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 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

• 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 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
• 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 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
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