Cosmetics, Perfumery Compounds, Flavours & Essential Oils, Essential Perfume Oil, Cosmetics Fragrances, Perfumes & Fragrances,

Aromatic Oils, Chemicals, Attar, Essences, Toiletries, Nail Polish, Hair Care, Personal Care, Skin Care, Makeup, Beauty Products
The Indian cosmetic market, which comprises of skin care, hair care, color cosmetics, fragrances and oral care categories, has outperformed worlds leading cosmetic markets in terms of growth in the recent past. The Indian cosmetic market has started witnessing rampant growth driven by improved spending power and rising consumer awareness about cosmetic products amid growing beauty consciousness. The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008 ,according to market analysts. With improving purchasing power and increasing fashion consciousness, the cosmetics industry is expected to maintain the growth momentum during the period 2009-2012 with a projected growth at a CAGR of around 7%. The average consumer spending on cosmetics in India is much lesser than any other part of the world. This implies that the Indian cosmetic industry has an even greater potential for growth in future than present. The personalcare market in India is currently estimated at over Rs 300 billion and growing at a rate of about 12% annually. The major contributor to the size of the market is the soaps and synthetic detergents market of close to Rs 190 billion. Besides, skin care market at Rs 20 billion (including fairness creams at Rs 9 billion); hair care (including hair dyes, hair oils and shampoos) at Rs 26 billion; male grooming (and female hygiene) market at Rs 11 billion; colour cosmetics at Rs 5 billion; oral hygiene (tooth pastes, tooth powder and brushes) add another Rs 26 billion to the overall market. Other important components include perfumes and fragrances, estimated at over Rs 5 billion. The market for perfumes and fragrances, as perceived in western parlance, is of a recent origin. The perfumes and fragrances market had remained confined to small quantities of scents, eau de colognes, deodorants and after shave lotions. Presently there are some 500 companies in the fragrance industry, for the small volumes, a little too many. The small scale sector is dominating the market. The unorganised market could be four times the size of the organised market. The growth in demand for perfumes and fragrances over the last 15 years has been phenomenal. From a very small demand of 950 tonnes in 1990-91, it grew to 12,500 tonnes in 2000-01. The market for the product is estimated to have expanded by over 50% in three years to 18,300 tonnes in 2003-04. It is further expected to grow to 26,650 tonnes in 2006-07 and to 36,400 tonnes in 2009-10. The organised sector is dominated mainly by the multinationals. The unorganised sector, with hundreds of units producing a large number of domestic concoctions, caters to the high upper-middle tier of the market for low price-end of products. The share of the small and informal sector is estimated at about one-third of the total market.

Several MNCs have forayed into the Indian market. These include Givaudan SA, Switzerland; International Fragrances and Flavours (incorporating Bushbooke Allen), USA; Quest International (subsidiary ICI and earlier a part of Unilever); Firmenc of Switzerland; Haarman & Reioner of Bayer, Germany; Taleasago, Japan (contract manufacturing). The perfumes market is becoming highly competitive with the presence of an increasing number of new players. The consumer is getting used to the imported fragrances. As the process matures, the market will need to be diversified and more Indian. Companies are importing alcohols and oils to overcome the need for the right mix and process technology which does not exist in India. The consumer preferences and product variety are so wide that technology import is unavoidable at this stage. The market is growing. It is catching up with the nouveau rich life style. A long-term high growth trend can be seen provided the consumer finds the product within the reach of his pocket. Some leading brands include Exclamation, Masumi, Longing, Emeraude, Vanilla Fields, Jill Sanders, David Off, Adidas, Jovan Musk, Joop (All Cotys Premium brand) Wild Orchid, Ivana, Shie (Lakme), Fire, Ice, Charlie, Red and White (Revlon) Denim, Yardleys gold, Park Avenue, Premium, old spice (HLL) etc. Some of the lead playersinclude Coty India, Lakme Lever, Revlon, Yardly, Palmolive, Helene Curtis, Baccarose Hindustan Lever, Oriflame etc. With a population of more than one billion and a growing taste for Western sophistication, India has become one of the fastest growing markets for cosmetics, perfumes and toiletries. There is a tremendous potential in this budding market.

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Branding can be viewed as a tool to position a product or a service with a consistent image of quality and value for money to ensure the development of a recurring preference by the customer. It is common knowledge that the consumers choice is influenced by many surrogates of which the simplest one is a brand name. Although there may be equally satisfying products, the consumer when satisfied with some brand does not want to spend additional effort to evaluate the other alternative choices. Once he or she has liked a particular brand, he or she tends to stay with it, unless there is a steep rise in the price or a discernible better quality product comes to his/her knowledge, which prompts the consumer to switch the brand. Companies spend a lot of money and time on the branding and thus it needs a careful evaluation on the effect of branding on consumer buying behavior.

QUESTIONNAIRE

1. Are you a brand loyal customer?

Yes No

2. Which attributes did attract you to purchase branded products?

attributes in order of their importance to you.
Brand Name Price Easy Availability Transparent Cleanliness Others

Rank these

3. What was the reason for the delay between the purchase decision and the actual
purchase?
Financial constraints Waiting for more innovative product Waiting for market response

4. What influenced you to buy the above stated brand(s) ?

Advertising Word of mouth Attractive packaging Dealer Shop Display Family/Friend/Relatives Any Other

5. Influence of Brand name on purchasing decision

Agree Strongly Agree Disagree Strongly disagree

6. Influence of Quality on Purchase Decision

Agree Disagree

Strongly Agree

Strongly disagree

7. Influence of Price on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

8. Influence of Product features on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

9. Influence of Family members on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

10.

Influence of Peer group on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

11. Influence of Advertisement on Purchase Decision

Agree Strongly Agree Disagree Strongly disagree

12. Will you like to switch your brand preference if you get some promotional scheme with another brand?
Yes No

13. Do you think branded products are better than unbranded products?
Yes No

MONTHLY INCOME:

Global fast-moving consumer good (FMCG) manufacturers, including Stepan, Dow and Huntsman are planning to foray into the Indian market, while companies like Unilever, Clariant, BASF and Akzo have already established their leadership in their different fields. India is now home to the biggest international players in the fragrance sector, like Shiseido, Elizabeth, Arden and Pierre Cardin, along with direct-selling firms Avon and Oriflame. Recently, another direct marketing firm, Modicare, also launched a range of cosmetics and skin-care products. Economic growth has shifted from the West to the East. Hence, global leaders plan to introduce innovative products in India, said Nadir Godrej, managing director, Godrej Industries, one of India's largest producers of personal care products
Beauty and personal care still showed double digit value growth in 2010, driven by economic growth, greater focus on innovative ingredients to create interest, and sustained advertising campaigns through the year. The shift to smaller cities of booming knowledge-based industries, like business process outsourcing (BPO), which typically emWith men becoming more comfortable with the notion of looking good, awareness of mens grooming products increased further in 2010. Apart from the usual categories of pre-shave and razors, mens skin care, which promised fair and blemish-free skin, performed well. Every major brand used Hindi movie stars for instant recall and acceptance. In addition to looking good, smelling good is another important factor for men, which has driven growth in mens deodorants.ploy well-paid young people

The Indian Cosmetics Industry is undergoing rapid evolution and transition following liberalization. It has matured considerably during the last decade. Although economic slowdown all over the world had proved a major handicap for big players but it did not affect the overall growth in the industry which was estimated to be in the range of 1520%. With globalization, there have been changes in many areas viz. upgradation, competition, brand image etc. On the other hand, cosmeceuticals and naturals emerged favourite segments for the consumers. Today, the industry is gearing up for a new phase in its growth, according to market analysts.

Indian FMCG industry constitutes the largest segment in India with considerable contribution to the GDP. It can be categorized into primarily personal care, health care, home care and food and beverage. In India, personal care products traditionally only comprised of toothpaste, soaps and shampoos. However, cosmetics such as beauty creams and lotions or even oral care products such as mouthwash are fast gaining popularity in the personal care market. Expenditure on these emerging products has shown exponential growth. Media penetration and rising consciousness to global fashion and trends have sculpted the course of consumer spending. Acted upon by the availability of international products and aided with rising disposable income, the sector is poised for further growth. The report begins with an overview of the FMCG industry in India providing the market size and growth as well as information regarding its contribution to GDP in India. This is followed by a primary segmentation of the industry. An overview of the personal care market provides an introduction to the sector and covers the market size and growth in India. An analysis of the value chain has been included which is followed by a snapshot of the various distribution channels players opt for in the personal care market. An EXIM trend over a period of five years is included which precedes a Porters Five Forces analysis that concludes the section. The next section deals with the segmentation of the personal care market. Each of the six sub-segments that the sector comprises of is discussed and includes skin care, hair care, oral care, color cosmetics, bath and shower as well as fragrances.