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00646573630000000000000012735247422049454336313936362d32 2e31000000000000000000000012735247422049454336313936362d 322e3100000000000000000000000000000000000000000000000000 0000

A Report on Hair Care Industry in India

STUDENTS: INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE September 4, 2010

Authored by:

Jatin Bhagat, K

Sudharshna and Vardhan Singh

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AReportonHairCareIndustryinIndia Hair Care Product Sector in India Evolution of the Hair care market in the country The Rs.85,000 crore FMCG market in India is growing at a fast pace despite of the economic downtrend. The increasing disposable income and improved standard of living in most tier II and tire III cities are spearheading the FMCG growth across the nation. The changing profile and mind set of the consumers has shifted the thought to 'Value for Money' from 'Money for Value'. The Indian hair care market is part of the burgeoning personal care sector under FMCG in the country. A growing population with higher disposable incomes and greater consciousness about appearance has made a strong case for the Indian personal care sector.

Till 1991 personal care products in the country were treated as luxury goods and had a huge excise duty of 120% attached to them (except oral care).Since then, however gradual taxation relaxations has brought down the excise duty level as low as 30%.This fact coupled with the paradigm shift of changing lifestyles of the Indian middle class and growing income levels have made these products more affordable.
P Personal Care products include the following sectors

Hair care Oral care Skin care Cosmetics Female hygiene The annual personal care segment in the country is expected to be $54.6 billion as of 2010 end. It is one of the highly marketed sectors in the FMCG category and accounts for an astounding 20% share of the total television advertising in 2009 ffd8ffe000104a46494600010201009a009a0000ffe20c584943435f50524f4649 4c4500010100000c484c696e6f021000006d6e74725247422058595a2007ce000 20009000600310000616373704d534654000000004945432073524742000000 0000000000000000000000f6d6000100000000d32d4850202000000000000000 000000000000000000000000000000000000000000000000000000000000000 000000000000000001163707274000001500000003364657363000001840000 006c77747074000001f000000014626b707400000204000000147258595a0000 0218000000146758595a0000022c000000146258595a0000024000000014646d 6e640000025400000070646d6464000002c400000088767565640000034c0000 008676696577000003d4000000246c756d69000003f8000000146d6561730000 040c0000002474656368000004300000000c725452430000043c0000080c6754 52430000043c0000080c625452430000043c0000080c7465787400000000436f 70797269676874202863292031393938204865776c6574742d5061636b617264 20436f6d70616e79000064657363000000000000001273524742204945433631 3936362d322e3100000000000000000000001273524742204945433631393636 2d322e31000000000000000000000000000000000000000000000000000000

Out of which the split up of sub divisions was as follows

H Hair care

Market Analysis Its one of the fastest growing segments within the personal care sector along with baby care and feminine hygiene. the growth in hair care industry is specifically robust in the hair colorants category. As of 2009 the sector as a whole generated total revenues of $1.4 billion ,representing a compound annual growth rate (CAGR) of 15.4% for the period spanning 2005-2009. In comparison, the Japanese and Chinese markets grew with CAGRs of 1.2% and 6.2%, respectively, over the same period, to reach respective values of $4.9 billion and $2.4 billion in 2009. Sales of conditioners proved the most lucrative in the previous year with a total sales of $703 million and around 48.6% of the total market share. This trend is expected to continue till the projected period of 2014 albeit a slower growth rate in the latter years.

$INR % Year million million million Growth

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2006 938.4 445842.6 674.9 14.90% ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f505 24f46494c4500010100000c484c696e6f021000006d6e747252474220 58595a2007ce00020009000600310000616373704d53465400000000 49454320735247420000000000000000000000000000f6d6000100000 000d32d4850202000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000116 3707274000001500000003364657363000001840000006c777470740 00001f000000014626b707400000204000000147258595a0000021800 0000146758595a0000022c000000146258595a000002400000001464 6d6e640000025400000070646d6464000002c4000000887675656400 00034c0000008676696577000003d4000000246c756d69000003f8000 000146d6561730000040c0000002474656368000004300000000c725 452430000043c0000080c675452430000043c0000080c625452430000 043c0000080c7465787400000000436f7079726967687420286329203 1393938204865776c6574742d5061636b61726420436f6d70616e7900 00646573630000000000000012735247422049454336313936362d32 2e31000000000000000000000012735247422049454336313936362d 322e3100000000000000000000000000000000000000000000000000 0000 2008 1248 60965.4 897.5 15.80%
TA BLE I INDIA HAIR CARE MARKET VALUE 200508 FIGURE 1INDIAN HAIR CARE PERCENTAGE GROWTH

Market volume
The hair care sector can be subdivided into hair care products and hair care services. The latter is a growing trend with clinics such as Dr.Batras, Kayas skin clinic etc across the nation. We shall however examine the former in this report. H Hair care products consists of the following major sub sectors Hair oils Hair shampoos Hair colorants & conditioners Hair gels Source: data monitor Major players Hair colorants -Godrej, Garnier, L'Oreal, and Lakme. Hair oils -HLL, Marico, and Dabur India Hair oils -HLL, and Procter & Gamble.

Consumer demarcation in Indian Hair Care Industry Traditional Problems associated with the hair care sector When the FMCG companies embarked upon hair care products they faced a seemingly uphill task in changing the life style of the people .Indians were traditionally used to oiling their hair with coconut oil and using either bath soap or conventional powders such as shikkakai for washing their hair. Hence hair care products were viewed as a luxury and often with mistrust an attitude shown both by the consumers and reciprocated by the government. Over the years a combination of increased awareness, growing income and aggressive marketing has ensured a steady change in the consumer psyche and has resulted in greater penetration of hair care products.

Preferences of hair care products is still dominated by personal lifestyle biases as seen by the urban vs rural divide Urban Indian: most do not prefer oiling their hair and hence hair colorants, shampoos and conditioners are more favorable to them Rural Indians: they still predominantly oil their hair and are increasingly switching from local players to established ones due to fear of adulteration and aggressive selling by the FMCGs. Usage of hair oil is a typical Indian traditional habit now being increasingly restricted to the rural side. It is perceived to offer benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem of falling hair. This divide is also reflected in the major hair care players with HUL increasingly concentrating on after wash and colorant segment and Marico leveraging its hair oil leader position with the take over of HULs Nihar by Marico.

Industry Analysis by Porters five forces Buyer power

The major retailers in the Indian hair care market are supermarkets/hypermarkets, pharmacies and drugstores. These have considerable negotiating power over the FMCG majors because hair care constitutes only a small segment of the retail stores product range. Backward integration is more of a common sight with the use of private labels rather than forward integration. The major hair care players have increasingly started niche targeting of customers aiming at a greater loyalty and hence forcing the decrease in buyer power. Supplier power Suppliers in the hair care market include manufacturers of chemical ingredients, such as foam boosters, thickeners, conditioning agents, preservatives, modifiers, and special additives, and packaging materials. The main active ingredients of hair care products are surfactants, which are

typically derived from petrochemicals. The increased regulations by the government requires that the ingredients be environment friendly which drives up the R&D cost and hence reduces the suppliers power. New entrants Presence of existing multi national brands with high degree of economies of scale acts as a huge deterant. However new entrants have increasingly adopted a strategy of micro segmentation concentrating on a few niche markets. Substitutes Includes soap and its old nemesis of traditional Indian hair care products. However with changing attitudes as previously elaborated threat of substitutes is increasingly looking dumb. Rivalry This is dominated by few big players who often, offer a wide range of products. Robust market growth, customer loyalty and product diversification has helped to ease the rivalry.

GLOBAL HAIR CARE MARKET

The hair care product market is expanding like never before! According to a report issued by Global Industry Analysts, Hair care is witnessing tremendous growth primarily due to the increasing consumer emphasis on healthy hair, the catchword being Personal care begins with hair. Hair care is one of the most competitive segments in the toiletry industry. World market for hair care products is projected to reach $42.5 billion by the year 2010, a growth of 19.6% over five years. Men becoming more conscious of their appearance and devoting a larger portion of their resources towards adorning their locks and looks, imparted a new dimension to the hair care industry. Within the hair care products market,

demand for hairdresser-related products is greatly influenced by growth in disposable income and changes in consumer spending and habits. Upscale professional products are increasingly finding takers for home use. Demand is also on the rise for natural and salon-based products. Ingredients gaining popularity include aromatherapy oils, natural plant extracts, proteins, exotic botanicals, shine enhancers and products fortified with vitamins and UV protection. Shampoo Market worldwide is forecasted to grow at a CAGR of 3.35% over the years 2011 through 2015, as stated in a recent report published by Global Industry Analysts, Inc. Conditioner Market in Asia-Pacific is projected to reach $405.64 million by the year 2012. Major players in the marketplace include Alberto-Culver, Aveda Corporation, Beiersdorf AG, Henkel KGaA, John Paul Mitchell Systems, Neutrogena Corp, Kao Corporation, Lion Corporation, L'Oreal, Procter & Gamble, Revlon Inc., Shiseido Co. Ltd, and Unilever Plc, among others.
FIGURE 2 GLOBAL MARKET TREND OF HAIR CARE INDUSTRY

HAIR OILS
The hair oil industry in India is different as in the case against shampoos or any other hair care product. The use of hair oils have been ingrained into the habits of Indian people so the need of building a market for it is not required. However that does not imply that the competition is any easier in 1800 crore Indian Hair Oil Industry. Major competitors like Hindustan Unilever, Marico Industries, Dabur India and Cavin Care have been out with a slew of products to vociferate their presence in the industry. The industry is out against not only against each other but also against natural oils like mustard oil and coconut oil which people have been using traditionally over the years. The fact is manifested when we say that branded players collectively account for only onethird of the total hair oil market up against loose oils. The branded oil players or the Value added oil players are severely dependent on the availability and price of their inputs. For example, the price of copra, the key input in coconut based hair oils, has been a key factor determining the fortunes of the major players in this segment. The coconut oil market accounts for 72 per cent share in the hair oil market. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the leading players.

ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f4649 4c4500010100000c484c696e6f021000006d6e74725247422058595a2007ce000 20009000600310000616373704d534654000000004945432073524742000000 0000000000000000000000f6d6000100000000d32d4850202000000000000000 000000000000000000000000000000000000000000000000000000000000000 000000000000000001163707274000001500000003364657363000001840000 006c77747074000001f000000014626b707400000204000000147258595a0000 0218000000146758595a0000022c000000146258595a0000024000000014646d 6e640000025400000070646d6464000002c400000088767565640000034c0000 008676696577000003d4000000246c756d69000003f8000000146d6561730000 040c0000002474656368000004300000000c725452430000043c0000080c6754 52430000043c0000080c625452430000043c0000080c7465787400000000436f 70797269676874202863292031393938204865776c6574742d5061636b617264 20436f6d70616e79000064657363000000000000001273524742204945433631 3936362d322e3100000000000000000000001273524742204945433631393636 2d322e31000000000000000000000000000000000000000000000000000000
Conversion from unbranded to branded products and growth in the light hair oil category is what is driving the Rs 5,770-crore hair oil market. Perfumed oil (Rs 2,930 crore) and coconut oil (Rs 2,110 crore) comprise the two main segments of the hair oil market. Volume growth for the hair oil category is currently pegged at 12.8 per cent and value growth at 17.7 per cent. However, it is the light hair oil segment within perfumed oil that is the fastest growing segment recording a value growth of 23.8 per cent and a volume growth of 14.1 per cent in 2009, according to The Nielsen Company. Hair oils have primarily been the forte of Indian companies such as Dabur, Emami and Bajaj Corp (previously Bajaj Sevashram). The various types of Hair oils in the market are:

Coconut oil
Marico started branding in the coconut oil category with its Parachute brand in the early 1990s. This led to the growth in the overall category that had been stagnating earlier. Parachute currently dominates the branded coconut oil segment which continues to grow at 10 per cent.

The hair oil segment with perfumed oil (includes heavy amla oils, cooling oils and light hair oils) and coconut oil accounts for more than 55 per cent of the larger hair care industry (Rs 9, 150 crore) which includes shampoos (Rs 2,840 crore), conditioners (Rs 80 crore) and dyes (Rs 1,190 crore). Today, players such as Bajaj Corp are making a steady effort to move coconut hair oil users to light oils.

Light hair oils

The light hair oil category is dominated by Bajaj Almond Drops with a share of 46.8 per cent volume share followed by Dey Chemical's Keo Karpin at 21.5 per cent and Marico's Hair & Care at 15.2 per cent. In other categories such as heavy amla oil, where growth has been flat, it is Dabur Amla which dominates the segment with a volume share of 69.5 per cent followed by Marico's Shanti Amla Badam at 8.3 per cent and Dabur Sarson Amla at 5.8 per cent and Bajaj Brahmi Amla with a 3.4 per cent share.

Cooling oils
The cooling oils segment also recorded robust growth at 21 per cent last year due to Emami's Navratna hair oil brand spending heavily on advertising the brand. Today Emami's Navratna leads in the cooling hair oil category with a 44 per cent volume share followed by brands such as Him Gange (from GK Burman Labs) with a 29 per cent share.

HAIR GELS
Hair gel market segment is at a primary stage and not many local brands are available in India. Hair gels/creams are mainly used for hair grooming by men and is used as a fashion accessory. The market penetration of hair gels/creams is very low, and is limited to a small section of the urban market. The major brands in Hair Gels for men are Brylcreem by Sara Lee and Parachute After Shower Anti-Dandruff hair cream and Styling Gel by

Marico. Brylcreem was a well-known brand in India, the brand lost ground as it did not come up with new offerings. After Sara Lee acquired the brand from Smithkline Beecham in 1993, the brand was repositioned as a young, cool and upwardly mobile one which helped in garnering more share. In the hair cream market, Brylcreem had a market share of 42 per cent in 1996 that has grown to 72 per cent in 2002. In the hair gel market, the brand in 1998 had a market share of five per cent while now the share is 70 per cent.The increase in market shares also coincides with the growth of the men's toiletries market in India, which is estimated to be in the region of Rs 250 crore. Parachute Hair Styling Gel was launched in November 06 meant for a younger audience looking for a product that would help them look the part every day. The gels natural ingredients not only helped in styling but also made them softer by providing nourishment unlike any other gel. Parachute After shower anti-dandruff hair cream was launched in March-06. The product was positioned as an all natural product not only for styling but also boasted of 4 in 1 benefit i.e. Non-sticky, Anti Dandruff, Works all day and prevents breakage. ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f4649 4c4500010100000c484c696e6f021000006d6e74725247422058595a2007ce000 20009000600310000616373704d534654000000004945432073524742000000 0000000000000000000000f6d6000100000000d32d4850202000000000000000 000000000000000000000000000000000000000000000000000000000000000 000000000000000001163707274000001500000003364657363000001840000 006c77747074000001f000000014626b707400000204000000147258595a0000 0218000000146758595a0000022c000000146258595a0000024000000014646d 6e640000025400000070646d6464000002c400000088767565640000034c0000 008676696577000003d4000000246c756d69000003f8000000146d6561730000 040c0000002474656368000004300000000c725452430000043c0000080c6754 52430000043c0000080c625452430000043c0000080c7465787400000000436f 70797269676874202863292031393938204865776c6574742d5061636b617264 20436f6d70616e79000064657363000000000000001273524742204945433631 3936362d322e3100000000000000000000001273524742204945433631393636 2d322e31000000000000000000000000000000000000000000000000000000
The market for Hair Gel for men is growing at a rate of 12 per cent to 15 per cent.

MAJOR PLAYERS MARICO LIMITED

Marico Limited (formerly Marico Industries) is engaged in the manufacture, sales and distribution of consumer products and services such as hair care, skin care and health foods. The company's products and services are marketed in more than 20 countries in the Middle East, the Asian sub-continent, Australia and the US. The company has 11 manufacturing facilities including six in India and five outside India. The company sells various hair care products under brand names such as Parachute, Mediker, Shanti Badam Amla, Nihar, Starz, Oil of Malabar. In addition, it markets two hair care brands under Hair & Care, a perfumed non-sticky hair oil and Silk N Shine, a hair conditioner. In 2009, the company launched Almond Gold non sticky hair oil with almond proteins) under the brand Hair & Care, Parachute Advanced revitalizing hot oil and Parachute Advansed cooling oil in the hair care product category. Further, the company offers perfumed oils to consumers in Bangladesh and hair creams and hair oils (with lower coconut oil content) in the Gulf countries. Its products include Camelia, Aromatic, Fiancee, Hair Code, Caivil, Black Chic, Hercules and Sundari. Marico Limited generated revenues of $491.4 million in the financial year (FY) ended March 2009, an increase of 25.4% over 2008. The company's net income totalled $38.6 million in FY2009, an increase of 11.6% over 2008. During the FY2009, the consumer products division recorded revenues of $454.5 million, an increase of 23.7% over 2008 India, Maricos largest geographical market, accounted for 79% of the total revenues in FY2009. Revenues from India reached $388.4 million in 2009, an increase of 19.4% over 2008.

UNILEVER
Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company having product ranges across 20 distinct categories in Home and Personal Care products. Unilever is a global manufacturer and marketer of consumer goods in the food, personal and homecare segments. Unilever operates under a dual structure. The group has two parent companies: Unilever NV and Unilever plc. Unilever NV is a public limited company registered in the Netherlands,

while Unilever plc is a public limited company registered in the UK and Wales. The two parent companies, Unilever NV and Unilever plc, along with the group companies, operate as a single economic entity: Unilever. It operates through subsidiaries in Germany, Switzerland, France, the UK, the US, and China and has operations in over 170 countries. The group's primary operating segment comprises three geographic regions: Western Europe, The Americas and Asia-Africa Central and Eastern Europe (CEE). The Americas region includes operations in North America and Latin America. The AsiaAfrica CEE region includes operations in the Middle East, Africa, South Asia, South-East Asia, North-East Asia, Australasia and Central and Eastern Europe. The Western Europe region includes operations in France, Germany, The UK, Belgium, Italy, Netherlands, Spain, Denmark, Norway and Sweden. In April 2009, Unilever acquired TIGIs professional hair product business and its associated advanced education academies for a cash consideration of $411.5 million. TIGI's major brands include Bed Head, Catwalk and S-Factor. Unilever generated revenues of $55.4 billion in the financial year (FY) ended December 2009, a decrease of 1.7% over 2008. The company's net income totalled $4.7 billion in FY2009, a decrease of 33.0% over 2008. During the FY2009, the personal care division recorded revenues of $16.5 billion, an increase of 4.1% over 2008. The increase in revenues was attributable to underlying volume growth of 2.3%, driven by stronger innovation, advertising and promotional activities. AsiaAfrica CEE accounted for 37.4% of the total revenues in FY2009. Revenues from Asia-Africa CEE, reached $20.7 billion in FY2009, an increase of 2.9% over 2008. A total of 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 33 lakh retail outlets in India and overseas. Marico's focus on sustainable profitable growth is manifest through its consistent financial performance -a CAGR of 21% in Turnover and 27% in Profits over the past 5 years-while setting a record of several consecutive quarters of year on year growth-43 for Profits and 39 for Sales. The Marico scrip is listed on the Bombay Stock Exchange (BSE) (Code 531642) & on the National Stock Exchange (NSE) (Code "MARICO")

DABUR ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f5 0524f46494c4500010100000c484c696e6f021000006d6e747252474 22058595a2007ce00020009000600310000616373704d53465400000 00049454320735247420000000000000000000000000000f6d600010 0000000d32d48502020000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000 0001163707274000001500000003364657363000001840000006c77 747074000001f000000014626b707400000204000000147258595a00 000218000000146758595a0000022c000000146258595a0000024000 000014646d6e640000025400000070646d6464000002c4000000887 67565640000034c0000008676696577000003d4000000246c756d69 000003f8000000146d6561730000040c000000247465636800000430 0000000c725452430000043c0000080c675452430000043c0000080c 625452430000043c0000080c7465787400000000436f707972696768 74202863292031393938204865776c6574742d5061636b617264204 36f6d70616e790000646573630000000000000012735247422049454 336313936362d322e31000000000000000000000012735247422049 454336313936362d322e31000000000000000000000000000000000 000000000000000000000
Dabur India Limited (DIL) is a fast moving consumer goods (FMCG) company that manufactures and distributes products in health care, personal care and food products sectors. The companys distribution network includes 50 carrying and forwarding (C&F) agents, about 5,000 distributors and over 2.8 million retail outlets all over India. It operates in India, Nigeria, Egypt, Nepal, Bangladesh, the UAE and the UK. The company operates through three business units: consumer care business, consumer health business, and international business. The consumer care division (CCD) caters to seven distinct segments: hair care, oral care, health supplements, digestives & candies, home care, baby oils & skin care and foods. The hair care segment products include hair oils, mustard oil and shampoos. These products are marketed under brands Dabur Amla, Vatika and Anmol. Dabur India Limited generated revenues of $583.9 million in the financial year (FY) ended March 2009, an increase of 19.1% over 2008. The company's net income totalled $80.1 million in FY2009, an increase of 17.1% over 2008.

Hair colorants & Conditioners

According to A C Nielsen (the world's leading marketing information company), hair colorants, feminine hygiene, and baby care have accelerated growth in personal care market. Hair colorants are substitutes for hair dye to counter graying hair. Hair colorants indicate strong growth trends with a YoY (year over year) growth of 8 per cent. Gone are the days when hair conditioners and hair colorants were used occasionally to look beautiful. Today, they have become the way of life. However, hair conditioners in India still face a difficult market due to long established habit of using hair oil and ayurvedic treatments, as they are cheaper for consumers and lack the chemicals of conditioners. Hair colorants Hair color market has seen a boom in recent years. LOreal, Godrej and Revlon and Henkel-Schwarzkopf are some of the major brands in this country Today, the total hair color industry in India is around Rs 650 crore. This is further divided into the retail and the salon segment. The former is growing at over 20% annually. According to market research Godrejs market share at 40 per cent, followed by LOreal at 15 per cent and Revlon at 8 per cent. Rest of the brands make up the remaining 37 per cent. Today, if there are more brands in the Indian market, its largely due to demand. When hair colors 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 colors were traditionally aimed at the 15-45 age female segments. But market research shows that there was a growing population of 15-45 males which patronized the category in a big way. Conditioners The hair conditioner market is estimated at around Rs 200 crore and is growing at about 40 to 50 per cent a year.

In India, the share of hair conditioners is merely one-fifteenth of the shampoo market. In most mature markets, the share of hair conditioners is about one-third.

Hair shampoos
Hair shampoo market in India is pegged at Rs 2,200-crore but it has fragmented where the smaller players in the market such as Dabur India and CavinKare have registered sizzling growth rates recently. According to industry data, while value growth achieved by the industry in the first nine months of the financial year 2009-10 slowed down to 9.3 per cent compared with the 15.2 per cent growth recorded in the comparable period of the last year, Dabur, with a growth of 19.4 per cent in the nine months of 200910 outpaced market growth, while CavinKare, with brands such as Chik and Meera, too registered a 11 per cent growth. Market leader Hindustan Unilever's growth in shampoos this fiscal was, however, slower than the market at 7.8 per cent. In fact, Johnny-come-lately brands from ITC such as Fiama di Wills, Vivel and Superia, with a growth rate of 10.5 per cent have outpaced category growth in the first nine months of this fiscal. ITC's brands also carved out a two per cent share of the market. Dabur's brands have seen 20-30 per cent growth rates for the fourth year in a row. It has stuck to its strategy of offering shampoos which are natural products. Besides that it has added more variants to its Vatika range earlier it had only two variants but added root strengthening and hair fall control shampoos. Vatika also had a packaging makeover and extended the brand to hair oil as well, which makes it a complete hair care brand. The Rs 2,200-crore market for shampoos also includes Rs 600 crore of antidandruff shampoos.

ffd8ffe000104a46494600010201006200620000ffe20c584943435f50524f4649 4c4500010100000c484c696e6f021000006d6e74725247422058595a2007ce000 20009000600310000616373704d534654000000004945432073524742000000

0000000000000000000000f6d6000100000000d32d4850202000000000000000 000000000000000000000000000000000000000000000000000000000000000 000000000000000001163707274000001500000003364657363000001840000 006c77747074000001f000000014626b707400000204000000147258595a0000 0218000000146758595a0000022c000000146258595a0000024000000014646d 6e640000025400000070646d6464000002c400000088767565640000034c0000 008676696577000003d4000000246c756d69000003f8000000146d6561730000 040c0000002474656368000004300000000c725452430000043c0000080c6754 52430000043c0000080c625452430000043c0000080c7465787400000000436f 70797269676874202863292031393938204865776c6574742d5061636b617264 20436f6d70616e79000064657363000000000000001273524742204945433631 3936362d322e3100000000000000000000001273524742204945433631393636 2d322e31000000000000000000000000000000000000000000000000000000 Hit by food inflation In the case of CalvinKare, the slower growth in the shampoo market this fiscal was due to the spiralling food inflation, which impinged on disposable incomes, as well as the delayed monsoons last year. The company's brands still grew better than the last year growth at 11 per cent the first three quarters of this fiscal bettered the 8.1 per value growth in the comparable period last year (see table). Given the lion's share of the market HUL has, even though its growth was slower than the others, its value share of the market only dropped marginally from 46 per cent to 45.4 per cent. Dabur increased share from 5.6 per cent to 6.2 per cent, while CavinKare too saw a marginal increase in share from 11.1 per cent to 11.2 per cent. Still HUL leads the overall shampoo market with a 45.4% share. Clinic, its biggest brand, has approximately 34% share, followed by Sunsilk at 10.9%. Other hair-care brands from HULs basket include Lakme Hair Next at the mass-premium level, Lux with a limited presence in the category and ayurvedic brand Ayush which is sold through the companys direct selling arm. The domestic shampoo market is majorly split into three distinct tiers by price. The top-end constitutes new entrant Dove, LOreal, P&Gs Pantene and Head & Shoulders, HLLs Sunsilk, LOreals Garnier Ultra Doux and Daburs Vatika. Average price points in this segment range from Rs 115-240 for 250-ml bottles. While LOreal and now Dove are at the top of the heap, Pantene and Head & Shoulders occupy the next rung of pricing, followed closely by Sunsilk, Vatika and Garnier Ultra Doux constituting the bulk of the market.

HLLs Clinic Plus and P&Gs Rejoice are at the mid level (price points: Rs 5560 for 200 ml), while low-tier brands include Ayur and Chik. Sachets at price points of Rs 1, 2 and 3, meanwhile, continue their stronghold specially in semiurban and rural markets. The Dove hair-care range, positioned as `premium niche similar to its soap variant, comprises shampoos, conditioners and leave-ons.

Future Research
This report aimed at broadly reviewing the hair care industry in India and its growth pattern in the last few years. We have analyzed the hair care industry as a whole under the framework of porters 5 forces analysis. We also have covered different categories of products under hair care, their growth patterns and the key industry players in each category. In the subsequent report, we will come up with the consumer surveys, market innovations and the segmentation, targeting and positioning framework for a new entrant to invest and thrive in this particular industry.

References
F32ADB7B-0B84-44EF-9034-709BA74E7650-1-data monitor report on the hair care sector in india http://www.superbrands-news.com/2005/05/27/hair-colour-market-boomsindia.htm http://www.reportbuyer.com/consumer_goods_retail/cosmetics_grooming/india n_f mcg_industry_outlook_2013.html http://www.equitymaster.com/research-it/sector-info/consprds/consprdsproducts.html http://www.cosmeticsdesign.com/ProductsMarkets/World-hair-care-market-victim-of-its-own-success http://www.naukrihub.com/india/fmcg/overview/hair-care/ Global Industry Analysts, Inc., (GIA) Hair Care Report http://www.thehindubusinessline.com/2010/04/22/stories/2010042251110500.h

tm http://www.hinduonnet.com/businessline/iw/2001/01/21/stories/0521e051.htm http://www.marico.com http://www.hul.co.in