HAIR COLOUR MARKET IN INDIA

The hair colour market in India has shown a robust growth of 21% in the year 2009
over the previous year. It is important to note that the main growth has come from
the mid-level powder brands that have from Rs 118 crores in 2008 to Rs 202 crores
in 209. This is a whopping 71% growth. Size of Hair Colour market in India(2009) :
Rs 1200 crores ( $ 267 Million)Growth of the total market over last year : 21% Size
of the mid-level powder brands : Rs 202 crores ( $ 45 Million) Leading Players
Godrej Comsumer : 33 % of the hair dye market L’Oreal & Garnier : 60% of the hair
cream market Color Mate : 38% of the hair powder market BL030410

Should I color my hair? This is a Rs 1200 crore question. That's the size of the
Indian hair dye market. Just imagine how many individuals like me ponder over this
question every day. Looks like a lot of people decide in favour.

All this started yesterday with a debate at home whether I should color my hair. I
put up a bold front and ducked under the line, "I do not want an artificial look".
Well, the debate raised many questions in my mind. A quick google search on Indian
hair dye market threw up some interesting information. In 2006 the hair dye (or
more broadly hair care) market was close to Rs 300 crore, according to a Business
Standard story (Nov 2006). In two years it jumped to Rs 580 crore, according to
another story in Business Standard on August 22, 2008. A recent blog entry puts the
hair dye market at Rs 1200 crore.
It struck me later that there is another industry that doubles almost 2 years once
(actually doubles every 18 months). It's the microprocessor industry (remember
Moore's law?) I am now diving into some reading on what makes hair gray faster. Any
suggestions? http://www.dare.co.in/blog-entries/ideas/hair-dye-market-in-india.htm

Godrej to develop more hair colour products

Ruchita Saxena / Mumbai August 22, 2008, 5:28 IST

Godrej Consumer Products (GCPL) is focusing on expanding its product portfolio in

the mid-priced hair colour segment as part of strategy to cement its lead in the
category instead of competiting with French cosmetic major L’Oréal’s super premium
brands like Garnier and Excellence. Godrej doesn’t plan to enter the segment for
now. The company is lining up its research and development investments towards
developing newer technologies in mid-price hair colour segment. Hoshedar Press,
executive director and president, GCPL said, “The number of consumers using powder
hair dye is still very huge as powder hair dyes are much cheaper. Hence we will
continue to develop products in the popular, subpopular and premium categories.”
For GCPL, hair colour is the second biggest business for the company making up 23
per cent of its net sales in the last financial year. Also being one of the most
inflation-resistant categories in the fast moving consumer goods sector, GCPL plans
to launch more products periodically in this space in the coming months, said
Press. The powder hair dyes, make up 50 per cent of the Rs 580 crore hair colour
market in India. However, in terms of volumes it makes up an even greater share of
75 per cent of the total market, said GCPL. The rest of the market is made up of
cream based hair colourants, which are catching up fast among the affluent
consumers. GCPL is still the market leader in the overall category with a share of
35.2 per cent. Although its share has gone down in the last six years from 43.9 per
cent in 2002 as many players both global and local have entered the Indian market
since then like Schwarzkopf and Cavin Kare. L’Oréal, which entered the Indian
personal care market in 1994 has already garnered a share of nearly 20 per cent
from local hair dye brands with its cream based colourant Garnier.
Whereas powder hair dye satches are available at a price as low as Rs 9 per sachet,
cream based colours are priced in the range of Rs 80 to Rs 100 and super premium
brands like L’Oréal’s Excellence cost about Rs 500 per pack. GCPL’s focus on powder
hair dyes also resulted in the relaunch of its largest selling powder hair dye
Godrej Expert. Witnessing higher growth rates in the premium colour segment the
company also launched the powder hair dye extension of its cream based colourant
Renew this year. Matching up with competitor L’Oréal’s aggressive marketing
strategy, GCPL then roped in bollywood celebrity Katrina Kaif as the brand
ambassador for Renew. GCPL’s other hair colour brands include Anoop, Kesh Kala oil,
permanent liquid hair dye, Kali Mehndi and Colour Soft. Industry experts say that
only 20 per cent of Indian women use hair colour in India compared to 90 per cent
in developed markets. In value terms as well, the hair colour market is just one-
tenth of the soap market in India, which is in sharp contrast to world over where
hair colour market is double the size of the soap market. This makes hair colour
category much under penetrated one in the country.

Hair colour market booms India

Posted on May 27, 2005 Filed Under Uncategorized Fast growing hair colour market
booms India with different National and International brands. Chocolate, almond,
honey, caramel… these all not only flavours of ice-cream on a dessert menu? Maybe,
but they also represent the new, funky shades of hair colour that have entered the
Indian market in the past few years. After L’Oreal, Godrej and Revlon, the new
player to enter the Indian retail market is German major Henkel-Schwarzkopf. Making
its India debut in 2003, Schwa-rzkopf was a salon brand. Now, the retail brand
Henkel has made its way to shop shelves. For the moment, its products are imported.
Today, the total hair colour industry in India is around Rs 650 crore. This is
further divided into two segments. The Rs 450 crore retail segment, which is
growing at a 20 per cent clip annually . According to market research Godrej’s
market share at 40 per cent, followed by L’Oreal at 15 per cent and Revlon at 8 per
cent. Rest of the brands make up the remaining 37 per cent. The two big brands in
the salon category are multinationals L’Oreal and Schwarzkopf.
The professional segment encompasses not only the selling of hair colour products
but also the training of stylists at high-end salons. Industry sources peg
Schwarzkopf’s share at 24 per cent with L’Oreal dominating at 76 per cent. Today,
while Godrej is largely mass-based, selling its Colour Soft and Renew brands at Rs
99 and Rs 65 respectively, both L’Oreal and Schwarzkopf straddle different price
segments. While L’Oreal’s sub-brand Garnier Colour Naturals carries a tag of Rs 99,
its Excellence is priced at Rs 399. Today, if there are more brands in the Indian
market, it’s largely due to demand. When hair colours first came to India, more
than a decade ago, it was largely to cover grey hair. But with the increasing
number of youth in the country, it has become a fashion statement, especially with
the young and trendy. Hair colours were traditionally aimed at the 15-45 age female
segment. But market research shows that there was a growing population of 15-45
males which patronized the category in a big way. “This is because of the corporate
culture that places an emphasis on young male employees looking smart and trendy.
That’s why all the players have plans to modify existing products, launch new
products and target different geographic segments and age-groups. Godrej is in the
process of developing additional colours in its Colour Soft range. There are plans
to launch an advertising campaign reassuring the public about concerns about the
safety of hair colour. This, say industry sources, is largely to quell the
controversies surrounding the after-effects of Godrej products. The newly launched
Henkel is now testing the waters. After gauging the initial response, there are
plans to launch new variants in the coming months. Meanwhile, it is strengthening
its Schwarzkopf salon brand. It plans to launch Indola at 30 per cent lower than
its premium brand Igora Royale. And the target audience? Lower-end salons in
smaller cities. They will also train salon stylists in smaller cities. There’s also
the new Igora Action Paint, a ‘weekend’ product aimed at teens. Even L’Oreal, which
is constantly revamping its retail colour palette, is now concentrating on the high
value salon business. Having entered this category in 1997 with the premium Majirel
(priced at Rs 210), L’Oreal is now tapping the mass-based middle segment. In
February, it launched Matrix (Rs 119), the brand aquired from Bristol Myers five
years ago. It is positioned as ‘fun and lively’ compared to its ‘sophisticated’
counterpart. There are plans to penetrate every salon in Mumbai and Delhi before
taking Matrix to second-tier towns. Now a days several National and international
brands in hair colour market are available in India. Many more making their way,
well the market is vast.