Shampoo

Haircare products have been the fastest growing segment of the

personalcare market. While the market size of products such as skincare
and toothbrushes nearly doubled in value, the size of the shampoo market
expanded two-and-a-half times during the last decade. The size of the
shampoo market is estimated at over Rs 25 bn corresponding to some
60,000 to 70,000 tonne of the material. Besides, the untapped market has
a big potential, especially the rural segment.
While soaps and detergents claim a penetration level of more than 90% in
the urban areas, shampoos remain in a low penetration category in rural
areas with a penetration level of mere 15%. Consumption per capita of
shampoos in India is estimated at 60 ml compared to 160 ml in Indonesia
and 330 ml in Thailand.
Shampoo market in India is segmented into three distinct parts in terms
of users, namely, cosmetic type (shine, health, strength); anti-dandruff
(22%) and lastly herbal (15%).
Hindustan Unilever, (HUL) is active in first two segments. It has several
brands such as Sunsilk, Clinic Plus and Clinic All Clear. HUL had introduced
new variants of its Sunsilk brand, Black Shine, Bouncy Volume, Silky
Strength and Natural Nourishment. It also introduced 50 paise version of
Lux shampoo. It introduced an innovative Sunsilk 28 ml Bubble Pack'
priced at Rs 8. The company claims that the 30 ml bubble pack for Clinic
Plus was a more preferred substitute. Sunsilk also has special one litre
packs of and conditioners for salons.
The company had decided to take the rural route to increase market
penetration for its different shampoo brands. Lux shampoo had been
relaunched with a new improved formulation and a new packaging in 4 ml
and 6 ml sachets. The rural market is growing at 7% while the total
market has registered a growth of over 10% in the last five years.
The company had earlier forayed into personalcare products exclusively
for kids and sold only through its network - the direct selling business arm
of the company. Under the Little Animals brands, it launched shampoos,
bubble baths and body lotions. It expects the brand to contribute around
20% of its turnover. Products targeting kids in India are estimated 16% of
the. personalcare products.
Clinic All Clear has launched India's first claimed to be anti-dandruff
shampoo for men. The brand is launched in two variants: Active Sport and
Hairfall Decrease. HUL had conducted intensive research which revealed
men's scalp is significantly different than the female scalp and hence
requires specilized care. Also men's scalp grows to have 33% more
dandruff than that of females, reason being more sweat and less haircare.
A basic reason behind this launch was, perhaps, booming men's grooming
market. Moreover, brands like Garnier are already targeting men for their
shampoo range.

Procter & Gamble's Pantene Pro-V and Heads & Shoulders brands continue
to be directly imported from other Asian countries like Thailand, Taiwan
and Vietnam after the discontinuation of production in India in 2000.
CavinKare, a Chennai based unlisted FMCG company known for its Chik
brand, has em-barked on a strategy which will place it as a low-cost
bottled shampoo-maker in the southern markets. Chik Satin is priced at
Rs 56 for a 200-ml bottle, while Clinic Plus is priced at Rs 63 and Sunsilk
at around Rs 87 at the higher price point. CavinKare's sub-brand Chik
Satin will address the affluent customers, pitting the company against
HUL's Clinic Plus and Sunsilk brands.
The popular segment, where Chik Satin has been positioned, commands
an estimated 25% of this market. About 75% of Chik sales come from
rural market, while the industry sells only 52% of its shampoo brands in
the rural markets. In the Indian shampoo market, sachet (7ml) format
accounts for 75% of the total sales. Chik has been bringing in 90% of its
sales in this format.
Premium brands such as Garnier have also started selling sachets to tap
the growth op-portunity.
CavinKare claims a sixth of the market with its brands, Chik and Nyle.
CavinKare focussed on scaled-down version of its brands and herbal
shampoos * two segments in which the market leader did not have a
presence. CavinKare's shampoo business has grown faster than the
overall market. Chik Innovation (Cavin's sachet) has expanded the overall
market.
CavinKare has made a value-addition move by relaunching its Chik
shampoo with active double conditioner in a new pack for the same price.
CavinKare's flagship brand Chik shampoo is the second-largest selling
brand in the rural markets. CavinKare's other hair care brands are Meera,
a herbal hairwash powder and Nyle shampoo, a herbal shampoo. Nyle is
the third-largest-selling herbal shampoo brand in the country with an
overall market share of 2.5%.
The brands with the highest recall value are reported to be HUL'S Clinic
and Sunsilk and P&G's Heads & Shoulders and Pantene. HUL along with
Pond's and Lakme products continues to be market leader with a share of
around 50%. CavinKare and P&G command a market share of 15% each
in the segment.
Mediker has gone in for a new look. Marico, after having bought over the
brand from Procter & Gamble, created a new brand equity with a newer
communication and packaging along with beefing up the distribution
network.
LG Household and Haircare had launched LG Double Rich, claimed to be
intensive shampoos. It is claimed to help in repairing and strengthening
the weakened hair from inside and also provides lasting conditioning effect
to the hair. It has, however, yet to create a significant impact.

The anti-dandruff shampoo market is growing annually at 15%. Its total

value is estimated at around Rs 4.0 bn, which is approximately 20% of
the total shampoo market. If the anti-dandruff shampoo market maintains
the same growth rate, its share in the overall shampoo market can rise to
over 50%.
In the anti-dandruff shampoo market, P&G scored over HUL. P&G's Head
& Shoulders brand, the market leader in the segment, saw its share
increase by 3.3 percentage points to around 55%. HUL's Clinic All Clear
saw its share decline by 2.4 percentage points to around 40%.
Dabur entered the fray with Vatika anti-dandruff shampoo in late 2000.
The company aimed further to increase the brand presence by raising inshop advertising (through displays). Brands like Shahnaz Herbals,
Ayurvedic Concepts and Biotique too enjoy some presence in the market.
Emami has come up with its own shampoos in 3 variants.
Oriflame India, a leading direct selling company, had launched a new
range of professional haircare system. The new range of shampoos include
Balance-Shampoo for dandruff and damaged hair to help repair damaged
hair and eliminate dandruff, Fortify-Shampoo for dry and dull hair to help
moisturise, repair and add shine and lustre. It had also launched Marine
Elements Body Scrub Bar, claimed to be an innovative product, containing
natural exfoliants to remove dead cells, clean and to moisturise the skin.
Herbal varieties or botanicals are a fast growing segment. Ayur from RDM
Traders and Nyle Herbal, a herbal shampoo by CavinKare, have been
some of the early entrants in the Indian herbal shampoos market. Nyle
Herbal is among the top five ayurvedic shampoo brands in the country
and herbal shampoos today account for 15% of the market.
The value-added shampoo segment is getting quite crowded with a range
of pharmaceutical and cosmetics companies launching specialised
products. Dabur used Vatika's brand equity to have Vatika Herbal
shampoo. Several pharma companies (such as Johnson & Johnson) have
come out with medicated anti-dandruff shampoos, while cosmetic
companies such as Biotique and Lotus Herbals also have herbal shampoos
to attract the customers, especially the fair sex.
The Rs 25 bn plus shampoo market remained almost flat in 2006-07 and
has grown just 6.6% in terms of value, but it is reported to have
expanded by a more-than-healthy 14.4% in the three months ending June
2007. However, HUL and Procter & Gamble (P&G) India do not seem to
have significantly benefited from this growth.
HUL's share in the shampoo market registered a marginal increase to 47%
(in terms of value) while P&G's share dipped marginally from 25% during
the first three months of 2007-08.
While HUL's best-selling brand Clinic Plus continued to lead the segment
with a 31% market share, the share of Rejoice, a mass-market brand of
P&G, slipped somewhat, P&G's Pantene, however, increased its share by
about half a present to12%. Dabur India Vatika had a share of about 5%

while the share of smaller brands such as Nyle and Ayur stood at about
1.5% and 3.0%, respectively.
Several companies are now eyeing the growing shampoo market and
existing players have to defend their turf by launching new products,
reducing prices, and focusing on promotions. Companies are pushing rural
penetration by focusing on the sales of sachets. Godrej Consumer
Products recently made an aggressive entry into the market with the
launch of its brand Godrej No.1, priced at 50 paise. The launch challenged
the share of products of companies such as CavinKare. The latter's share
in the market declined to 12.7% in mid-2007.
Benchmarking is the buzzword.
Buzzword for higher productivity.
Buzzword for better performance.
And the goal: total quality of management.
S. R. Mohnot
Shampoos
Demand : Past & Future
Year
1990-91
1991-92
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2019-20

th MT
6.60
6.90
16.00
20.00
25.00
29.00
32.60
36.00
37.08
35.90
42.50
54.18
60.14
67.06
74.10
81.50
89.25
96.84
104.10
111.91
120.30
172.71

Leading Brands
Clinic Plus/
Clinic All Clear
Sunsilk
Organics

Videl
Sassoon
Chik Nyle
Nizral Blue
Antidandruff

Kids
Detangling
Vatika
Velvette
Tiara
Lux Super
Rich
Palmolive
Pro-V
Nutracare

Pantene
Optima
Ultra Doux
Satin Rinse
Flex
Gluecasil
Head & Shoulder

Market Growth Rates

1990-91-1996-97
1996-97-2001-02
2001-02-2006-07
2006-07-2011-12
2011-12-2019-20

15.9%
17.6%
10.3%
10.0%
7.5%

Sensitivity Coefficient

4.2%

Market Structure
Market Segmentation
Segment
North
East
West
South
Rural
Urban

Share (%)
30
20
33
17
35
65

Lead Players
Company
Hindustan Unilever
CavinKare
P&G
Others
Dabur
Colgate Palmolive

Source: Intecos - CIER