Hair Color Market in India 2011 Sample 110830074456 Phpapp01

Hair Color Market IndiaHair Color Market – India

August 2011

Executive Summary

Market

Indian hair care market is valued at INR XX bn and is expected to see strong growth in the future

Hair color is a part of the cosmetics industry and has been growing at a CAGR of a%

Hair color can be segregated into – Segment 1, Segment 2 and Segment 3

Drivers &

Drivers– Increasing disposable income–Growth in fashion conscious

Challenges–Usage of harmful chemicals

Challenges consumers–Rise in organized retail– Increase in awareness– Increase in male grooming

Usage of herbal products

Tie‐ up with salons

3D color service

Brands seek to be natural

Trends

Competition

Major Players

Player 1 Player 2 Player 3

Brands seek to be natural

2HAIR COLOR MARKET IN INDIA 2011.PPT

Player 4 Player 5 Player 6

•Introduction

k•Market Overview

•Social Media Insights

•Import‐Export

•Drivers & Challenges•Drivers & Challenges

•Trends

C i i•Competition

•Strategic Recommendations


Market for hair care is becoming a dominant segment in the personal care market and is expected to grow further

• It comprises of Y of the fast moving consumer goods

market

Hair Care ‐ Overview Market Size and Growth

150INR R

a%X2

• The market has seen the entry of new domestic and

international players who are looking to capitalize on

the growing market

St t it i t i S t 3 d S t

50

100X2

X1

• Strong opportunity exists in Segment 3 and Segment

4 due to low penetration levels

Hair Care – Segmentation (20‐‐)

020-- - --e20-- - ---

Hair Care – Penetration (20‐‐)

9%

O1Segment 4

1%Segment 312%

Segment 2 R2%

Segment 1 R1%

28%Segment 2

Segment 150%

Segment 4 R4%

Segment 3 R3%

Segment 2 R2%


Source:

Segment 2Segment 5 R5%

Growing emphasis on personal grooming will lead to the growth in hair color market in India

Hair Color Market – Overview

•Hair color was traditionally used to cover grey hairs

but now its usage has increased more for cosmetic

Market Size and Growth

15INR P A%

V

purposes

•Hair colorants are available in a variety of delivery

formats – d1, d2, d3 and d4

D1 comprises of the biggest segment controlling nearly a

5

10

15 U

T f H i C l

D1 comprises of the biggest segment controlling nearly a

third by value

•Only g% of Indian women use hair colour as

compared to w% in developed markets

020-- - --e20-- - --

S1 S3

Types of Hair Color

S2

This indicates huge H market to with strong I potential

•Hair color products have largely been aimed at L‐M

age female segment; however, with time, there has

been a growing population of male consumers as well S1 S3

• Does not contain peroxide or ammonia

• Lasts t1‐t2

• Contains both peroxide and ammonia

• Touch‐ups i d

• Low peroxide level, no ammonia

• Lasts upto t3

S2• Consumers today are more willing to spend large

sums on these products primarily due to growing

awareness about recent fashion trends


• Lasts t1 t2 shampoos

required every t4‐t5 weeks

pshampoos

Source:

Drivers & Challenges – Summary

Drivers

I i di bl iIncrease in disposable income

Growth in fashion conscious consumers Challenges

Rise in organized retail

Increase in awareness

Usage of harmful chemicals

Increase in male grooming


Trends – Summary

Brands seek to be natural Usage of Herbal products

Key Trends

3D Color service Tie‐up with salons


SAMPLE Few major players account for a large share of the market with Player 1 being the market leader

• An FMCG major in India• Hair color products range includes Brand 1, Brand 2, Brand 3

Player 1Player 2

Player 4Player 1 Player 3

Player 5

Hair Color ‐Market Share (20‐‐)

Player 2• Provides products P1, P2 and P3 brands

Y%

X%

Player 3• Is a cosmetic giant • Hair color products include C1, C2, C3 and C4

U%W%

• Provides hair fashion products worldwide

• G constitutes a premium productPlayer 4 V%G constitutes a premium product under its wing

• Certain other players like E and local players constitute the rest of Player 5

f% of the market is dominated by the top four players


oca p aye s co s u e e es omarket

Source:

top four players

M1 is the market leader, but M4 leads in the Social Media Platform

•G had maximum social media share :

“T Campaign”, in which it provided Y to C was the major

Share of Voice : Social Media Share of Voice : Social Media

P4P3P2P1

topic of discussion

Nf its hair color was appreciated by many

Customers also showed their willingness to purchase DF

Hair color

A1%A2%

People were disappointed by the fact that certain hair

colors were NM for the Indian S, but was still promoted by

G

• P2 and P3 were the other most talked about brandsA3%

Mixed response in case of P1

E hair color was appreciated

T1 and t2 of the hair color were the demotivating factors

U had the most customer complaints regarding its product

A4%

A3%

p g g p

quality

Top three players account for U% of the market based on social media presence


Source:

market based on social media presence

Players in the Market (1/9)

Company Snapshot: Company 1Corporate Information Financial Performance

INR bnINR bn RevenueHeadquarters City 1, Country 1

Founded 19‐‐

ProductsCosmetics, Health and Personal Care 5

10

15

1

2

3INR bnINR bn

I4I3

I2I1

Profit / LossRevenue

ProductsProducts

Key People Person 1– Executive Chairman

Business Highlights

0

5

0

1

2011201020092008

• ABC reaches consumers across nearly T countries, with Country 2 and Region 1 being key growth market

• In 20‐‐, Company 2 , the erstwhile marketing company of the Company 3 merged with Company 1

With this total turnover of Company 1 including sales in domestic and export market stood at INR RR bn in FY ‐‐ ‐ ‐‐

Business Highlights

With this, total turnover of Company 1 including sales in domestic and export market stood at INR RR bn in FY ‐‐ ‐ ‐‐

• In 20‐‐, it launched its hair color Product A both for men and women, both in cream and powder based forms

Product was created through Company 1’s exclusive technology developed by Institution 1


Source:

Thank you for the attentionHair Color Market ‐ India report is a part of Research on India’s Manufacturing Industry Series.For more detailed information or customized research requirements please contact:

Gaurav Kumar Gagan Uppal

Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick

Gaurav KumarPhone: +91 33 4064 6214Email: [email protected]

Gagan UppalTel: +91 22 4098 7530Email: [email protected]

Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt Ltd or “Netscribes” is not responsible for any loss or damage arising from use of this document This document is the


Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.

Hair Color Market in India 2011 Sample 110830074456 Phpapp01

Documents

Transcript of Hair Color Market in India 2011 Sample 110830074456 Phpapp01