SHAMPOO Industry in India

Indians have evolved from the champi times, wherein hair oil was considered to be the only product meant for hair care. Today, there are a plethora of options available from shampoos and conditioners to hair dyes and post wash products. The hair care category in India can be divided into 4 groups Hair Oil Shampoo / Conditioners Styling products Hair Dyes / colours

The shampoo segment is considered to be one of the fastest growing segments in the hair care industry. The India shampoo industry is estimated at Rs. 21.41 billion per annum as of February 2008, growing annually at a rate of 14.5 percent. According to AC Nielsen, shampoo is one of the fastest growing categories within FMCG sector and is expected to grow at 15% per annum in the coming years. However the shampoo is predominantly urban product with urban areas accounting for 80% of the sales while rural areas account for the remaining 20%.

Segmentation
The shampoo industry is segmented on benefit platforms: Cosmetic (shine, health and strength), Anti dandruff (AD) and Herbal.

20% of the total shampoo market is accounted by the AD shampoos. The AD segment is the fastest growing segment, growing at 10% to 12 % every year

Consumer Behaviour
The frequency of shampoo usage is very low in India. 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. 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. An Indian needs more shampoo for a proper wash (average 6 ml) compared to 4ml needed in Western countries as most Indian women have long hair. Regular users would need smaller quantity of shampoo per bath. Hair tends to collect more dust due to dusty environment and oiling habit

Brand loyalties in shampoo are not very strong. Consumers frequently look for a change, particularly in fragrance. Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair. Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes. In Contrast, shampoo bottles are more popular in the Northern markets. About 50 % of the shampoo bottles are sold in the Northern region alone. The shampoo industry has lot of scope to be penetrated with all India penetration level at 51% with urban penetration at 62% and rural penetration at 46% till now.

Market players
HLL is the undisputed leader from the early 1990s with brands like Sunsilk, Clinic All Clear and Clinic Plus. P & G entered India in Nov 1995, with the worlds largest selling brand Pantene. It also launched Head &Shoulders, which is the leading AD shampoo. Amongst other players are Dabur, CavinKare and Ayur. During the first quarter (April-June)of 2009, HUL lost market share in both volume and value terms in the fast growing shampoo market. While Dabur increased its share and now occupies 7.3% of the market, HUL's share with brands like Sunsilk dipped to 50% (51.5%) and in value terms to 45.4% (46.5%) during the quarter. Procter & Gamble (Head & Shoulders and Pantene) also increased share marginally, while CavinKare (Nyle and Chik brands) maintained its share, according to AC Nielsen data. Overall, the shampoo market is growing at 14% a year. Cheaper variants of rival companies and a stronger marketing push have led to HUL losing market share.

MARKET SHARE
3.30% 2.00% 6.20% Hindustan Unilever 7.80% 45.40% 11.20% P&G Cavin Care Others Dabur Loreal 24.10% ITC

The top three brands in the Normal shampoo range are Clinic Plus, Sunsilk and Chik while in Herbal shampoo range, the top three brands are Ayush, Dabur Vatika and Nyle. The antidandruff shampoos include Clinic All Clear, Head and Shoulders and DaburVatika as the best performing brands. The premium products in the shampoo market include Shehnaz Hussain, LOreal and Revlon Flex as the ruling brands in the market. The shampoo market in India has changed significantly since the 1960s when it first became a lifestyle product in urban homes. As of 2008, it was a very competitive market with dominant players such as Hindustan Unilever Ltd. and Procter & Gamble Company. Competition in the market will intensify further with the entry of companies such as ITC Ltd. The market is marked by intense competition from domestic as well as multinational companies. The changing dynamics in the industry coupled with comparatively low penetration rates offer the players in this market the opportunity to grow in both the top and bottom ends of the market.

Opportunity for Growth

Penetration of shampoo is very low in India. The average per-capita consumption of shampoo in India is very low at approximately 13 ml and many people in rural India still use toilet soaps. People still perceive shampoo as high end product in the rural areas. This provides a huge opportunity to the players. The huge size of the untapped market leads to a great potential for the existing players. India is one of the youngest countries in the world. Currently there is a population of 163 m teen in India. Approximately half of the 1 bn plus population is under the age of 20, which is one of the largest consumers of hair care products. This provides huge market for the shampoo players. Also, with the increasing income levels of the middle class population, the usage of shampoos has increased.

The perception that shampoos contain harsh chemicals that could damage hair, high price and the view that the shampoo is more of a glamour product rather than a hygiene product are the major hindrance to the use of shampoos. By offering consumers shampoos in Re 1 sachets companies were able to get people to trial the products and ensured adoption by a larger market. In recent times, the value-added shampoo segment is getting quite crowded, with a range of pharmaceutical and cosmetics companies launching specialised products. Godrej Soaps has leveraged its dominance of the hair colour market to launch Godrej Colour gloss shampoo, for users with coloured hair, while pharma companies (including Johnson & Johnson) have launched medicated anti-dandruff shampoos (which will probably carry higher credibility with buyers). Going forward, by 2015, the under 20 crowd will make up 55% of all Indians providing a huge opportunity to players in this sector. Further, there is potential for converting users of toilet soaps and occasional users. With increasing awareness and advertising campaigns, the overall penetration of shampoos in India is likely to multiply manifold in the next two to three years.

HUL
Hindustan UniLever is the dominant player in the Indian shampoo market with brands like Sunsilk, Clinic Plus and Clinic All Clear.

Sunsilk:
Sunsilk was the first shampoo to be launched in India in 1964. It was originally positioned as a normal shampoo however in 1984 it was repositioned as a beauty shampoo and was launched in the sachet variant. It is currently the largest beauty shampoo brand in India. The sachet variant was introduced for the first time in India by HUL to penetrate the rural markets. Sunsilk was also added with a new ingredient conditioner. Sunsilk was again repositioned and re-launched in 1994 with 4 new variants; green for oily hair, pink for dry hair, yellow for normal hair and black for long hair to match the growing demands of the consumer as the market expanded due to increasing awareness among youth and the growth of the middle class. To give a more natural image to the brand, Sunsilk was re-launched in 1998 with fruitamins. Sunsilk is currently positioned as the Hair Expert which identifies different hair needs and offers a shampoo each one of them. The product comes in premium packaging and design with 5 variants: Pink Sunsilk for thick and strong long hairs, Black Shine for black hair that lacks lustre, Yellow Sunsilk for converting rough dry hair to soft smooth hair Orange Sunsilk-repairs and protect damaged hair, Blue Sunsilk to drive out dandruff and restore the natural beauty of hair.

Clinic All Clear:

Clinic All clear was the first anti-dandruff shampoo launched in India. Clinic All Clear brand is the Indian version of 'Clear' brand which is the global brand from Unilever. It not only offers freedom from dandruff by fighting the last dandruff flake, but also adds back lost nutrients to give the consumer great looking hair. Clinic All Clear has couple of line extensions like CAC for Men-Active sport, CAC Soft and Silky etc. The Brand wants to expand the user base to a larger audience. Clinic All Clears attributes are youth, freshness, confidence and fun. Clinic All Clear has had a face lift recently. The colours and the typography of the bottle containers and the sachets have changed, giving it a new look and feel. It primarily appears to be a respite from the Old look, which had been there for quite some time, and so grown monotonous. Clinic All Clears brand ambassadors include youth stars like Shahid Kapoor, Madhavan, Bipasha, John etc

Clinic Plus
Clinic Plus was a leading brand of Unilever, marketed in more than 50 countries in Asia, Latin America, the Middle East and North Africa. It was launched in India in 1964. From the beginning clinic plus was positioned as a healthy shampoo for family usage. It offered the five most important hair benefits: Strengthening weak hair, prevents hair breakage, softens rough hair, gives shine for thick and healthy hair and reduces dandruff.

DOVE
Dove became Indias largest premium Shampoo brand within 1 year of its launch. HUL rolled out three variants of the shampoo and conditioner combo: essential care, daily care and moisture therapy to satisfy the whole range of customer needs. HUL has been constantly adding to the brand line with addition of Dove anti-dandruff shampoo and creams. Dove has especially successful in the 6 metros capturing value share of 18.6 percent. The core message of dove moisturisation and prevention of dryness in a way that is relevant to every category has been successful even in the shampoo category.

P&G
HEAD & SHOULDERS (H&S)
Head & Shoulders is a brand of anti-dandruff shampoo produced by Procter & Gamble. It is world's No.1 anti-dandruff shampoo. A power brand from P&G, this brand made its debut in India in 1997. In the highly competitive Indian shampoo market, Head & Shoulders is a major player in the AntiDandruff niche. The high profile launch of Head & Shoulders fuelled the growth of this specialty market. Head & Shoulders Solutions is designed to treat itching, flaking, dryness, irritation and redness in a medicated formula. Conditioner technology also helps protect hair against damage. The emphasis is on healthy, long and beautiful hair, cleanness and removal of dandruff. The brand used the Markonym ZPT (Zinc Pyrithine) Formula which has anti-fungal properties as its differentiator. The brand ambassadors of H&S are Preity Zinta, Kareena Kapoor, Saif Ali Khan etc

Pantene Pro-V
P&G launched the Pantene brand in 1995 targeted at the premium segment. The brand was relaunched as Pantene Pro-V to give it a new image. The New Pantene Range with Amino Pro-V Complex focussed on the main benefit that it makes Hair Ten Times Stronger against damage and deposits back essential Aminos that hair loses due to daily weathering. The New Pantene range with Amino Pro-V Complex is the only shampoo that deposits on to hair a unique combination of Pro-Vitamins and three essential aminos that hair loses due to daily weathering, making hair ten times stronger, and restoring its lost beauty. The New Pantene Amino Pro-V Complex also comes with an all new refreshing exotic fruity fragrance called Asian Zest, created specially to suit Asian women. Extensive research before the launch of the New Pantene Amino Pro-V Complex showed that women around the world were concerned over deterioration of their hair caused by four types of damage, such as: mechanical (e.g. excessive brushing or combing), thermal (e.g. excessive use of blow dryer, curling tongs, straightening irons), chemical (e.g. colouring, relaxing and perming) and environmental (such as pollution and UV damage). Thus causing the quality of hair to deteriorate resulting in less resilient, weaker hair that loses its shine. Combined research and expertise of Pantene along with the University of Surrey and the Premier Science Panel led to the uncovering of the Amino Pro-V Complex breakthrough.

The New Pantene Amino Pro-V Complex range of shampoo comes in five variants suited for individual needs: Pantene Smooth & Silky, Volume & Fullness, Long Black, Hair Fall Control, and Lively Clean; and is available at all general and chemists stores at a price of Rs. 98 for a 200ml. bottle; Rs. 51 for a 100ml. bottle and Rs. 3 for a 7.5ml sachet. P&G had also launched a new variant to the New Pantene Range: New Pantene Shampoo with Goodness of Coconut Oil which makes hair strong against damage with regular use. New Pantene with its Micro-Vita technology ensures optimized conditioning to suit varied Indian hair care needs and provides conditioning benefits similar to Coconut Oil - as it penetrates deep into the roots, strengthens each strand against damage, giving smoother, shinier and stronger hair against damage.

Rejoice
P&G announces the launch of Asias No. 1 shampoo Rejoice, in India. Rejoice with its patented Micro-Silicone conditioning technology gives twice as smooth, and easy to comb hair versus ordinary shampoos. Rejoice has a strong global heritage and is the No. 1 i.e., the largest selling shampoo in Asia (China, Japan, Singapore, Thailand, Philippines, Hong Kong, Indonesia, Malaysia, Vietnam, etc.). Rejoice has been launched by P&G to specifically meet the unique needs of Indian consumers. Its patented Micro-Silicone conditioning technology gives twice as smooth, detangled and easy to comb hair than ordinary shampoos or the combination of home remedies such as henna, amla,

reetha and shikakai. The shampoos unique high-tech suspension system holds the surfactant and conditioner together, thus ensuring both wet and dry conditioning. Wet conditioning makes it easy to comb hair when wet, while dry conditioning ensures that hair remains smooth even after it has dried up, thus making tangles a thing of the past. Rejoice is mild enough for everyday use and has a fresh floral fragrance that leaves hair pleasantly scented for several hours after use. Given the diversity of Indian consumers and their varied hair needs, P&G has launched Rejoice in three unique variants:

Rich: Specially formulated with higher conditioning to make hair extra smooth and superbly easy to comb. Suitable for those with dry hair. Silky Clean: Specially formulated for hair which is oiled frequently. It provides gentle, effective cleaning of oil and dirt from hair and then conditions the hair to make it silky smooth. Suitable for those who oil hair/ whose hair tends to get naturally oily or sticky. Complete: Specially formulated as a 3-in-1 shampoo that fights dandruff, and gives silky smooth hair that smells great all day long. Suitable for the entire family.

Dabur
The Dabur brand of shampoos have capitalised on the herbal nature of their brands by portraying a natural, ayurvedic image. The flagship brand is the Dabur Vatika shampoo. Vatika has positioned itself as a conditioning shampoo with natural ingredients. As it contains henna with shikakai and green almonds, herbs generally associated with hair care, Vatika enjoys a very positive image among the women especially in rural areas. Henna is a natural conditioner that makes hair soft and silky. Shikakai is used as a cleanser and green almonds are known to provide nourishment to the hair. The target segment for Vatika are women in the early 20s and middle aged women who are worried about hair fall and dont want to use shampoos which may harm their hair. By emphasizing on its natural ingredients in its ads Vatika has portrayed itself as a safe and healthy shampoo without chemicals. Dabur has launched three variants of anti-dandruff shampoos under its premium hair care brand Vatika.

Dabur Vatika anti dandruff shampoo: Dandruff Shampoo uses the natural goodness of lemon and henna. Cleaning and curing difficult dandruff, while conditioning the hair to give it body and strength. Dabur Vatika root strengthening shampoo: Contains almonds and coconut, helps strengthen hair, reducing hair fall. Dabur Vatika smooth and silky henna cream conditioning shampoo: cleansing and nourishing hair, leaving it soft, silky and radiant.

Dabur has also entered into the health shampoo market with the launch of Dabur Total Protect for its customers. Further, the company plans to achieve 3 per cent market share of the Rs 2,600 crore Indian shampoo market in the first year of its operation, Dabur Total Protect Shampoo is specially targeted at the discerning and contemporary females between 18-32 years of age who care for their family and look for complete hair care solutions Innovative promotions, trials, consumer activation are being initiated by the brand to excite the customers Dabur Total Protect Shampoo has been conceived with the idea of protecting the health of scalp and beauty of hair round the clock and contains ingredients such as Neem, Bhringraj, Triphala, Pushkarmool and Japa Pushpa.

CAVINKARE
Chik Shampoo In 1983, when CavinKare decided to launch its first product - Chik shampoo, the shampoo market had over 200 players with HLL being the market leader with itsClinic Plus brand, which was positioned as a health shampoo. However by focusing on the lower price points and effective rural distribution it has been able to garner a significant share of the market. Meera Herbal and Nyle Shampoo CavinKare identified good potential for herbal products in the hair care market. The company launched Meera Herbal wash powder in 1992 for the benefit of traditional customers, who used herbal powders at home to wash hair. Target Audience: Girls and women of rural and semi urban population of India Variants: Chik Black, Chik Jasmine, Chik Egg, Chik cool, Chik anti dandruff Branding strategies: CavinKare decided to give away one sachet of Chik Shampoo free for 5 empty sachets of any shampoo brand and further extending this strategy in the next stage it restricted the free shampoo exchange only for empty sachets of Chik. Retailers too got benefited from the idea. Apart from the service charges CavinKare also gave retailers a Chik Sachet free for every 15 empty sachets they get from the consumer. CavinKare also kept the prices of the brand higher than the rest of the shampoos in the market, to maintain profits. They advertised more often and hired well qualified professionals to compete with the MNCs. The iconic Chik Girl in every Chik Shampoo commercial showcased the possibility of soft and manageable hair for the customers. As part of its promotional activities CavinKare ran mobile beauty parlours which provided a complete brand experience, where beauticians would wash hair of the consumers with Chik shampoo and also distribute Re 1 sachets of Chik shampoo. These mobile parlours were targeted at young girls in colleges, marketplaces and residential areas. By giving a touch and fell demonstration, CavinKare was able to capture the minds of the users especially in the rural market.

FUTURE TRENDS
Though HUL is poised to retain its leadership position, because it is a national player its shares are being chipped away by regional players like CavinKare through localization of their communication and intense regional promotions. Cheaper variants of rival companies and a stronger marketing push have also led to HUL losing market share. The shampoo market is driven mainly by rupee one small packs, with over 90% of the rural market dominated by sachets. In cities, sachets account for about 40% of total sales. Small packs have helped in increasing penetration in rural areas where pricing plays a major role. Hence sachets will be the focus SKU for all the players. With the addition of new players like Godrej, Wipro and ITC, the Indian shampoo market is getting cluttered and companies will have to find profitable niches to survive. With the growing incomes of the urban middle class, the demand for premium shampoos is expected to rise attracting more foreign players. With Dove managing to grab a major share of this niche market through continuous innovation, product development and innovation are expected to play a major role in this segment.