Male Grooming Industry Context:

In a 1994 essay, English author / journalist, Mark Simpson coined the term ‘Metrosexual’ and predicted the male grooming industry to be the most promising consumer market of the decade. In plain words, the Metrosexual Man refers to the single young man with a high disposable income, living or working in the city. In India, the market for such male grooming products was relatively new as the Indian men are traditionally not metrosexual. However, over the review period 2009-2014 usage patterns registered a distinct change. More men have become accepting of the use of men’s hair care and skin care products. Furthermore, the availability of these products also became a lot wider across all retail channels, which further added to growth. During this period, men’s grooming registered a CAGR of 20% in current value terms. According to a Euromonitor study, the market, at 2014, is valued (Retail Value RSP) at INR 53.6bn and is expected to rise to INR 86.4bn by 2019. Sales (INR bn), 2009 - 14 2009 2010 2011 2012 2013 2014

Men's Grooming - Segment 21.3 25.2 31.2 37.9 46.5 53.6

Beauty and Personal Care - Industry 903.3 1033.2 1232.4 1452.9 1705.3 1957.5

Sales (% Value Growth), 2009 - 14 2013 – 14 2009 – 14 CAGR 2009 – 14 Total

Men's Grooming - Segment 15.3 20.3 152.1

Beauty and Personal Care - Industry 14.8 16.7 116.7

Forecast Sales (INR bn), 2014 - 19 2014 2015 2016 2017 2018 2019

Men's Grooming - Segment 53.6 58.7 64.8 71.4 78.6 86.4

Beauty and Personal Care - Industry 1957.5 2074.8 2200.4 2340.8 2487.9 2641.6

Forecast (% Value Growth), 2009 - 14 2014 – 15 2014 – 15 CAGR 2014 – 19 Total

Men's Grooming - Segment 9.8 10 61.1

Beauty and Personal Care - Industry 6 6.2 34.9

From the above forecasts, it is clear that the male grooming segment is growing at a faster rate than the over-all beauty and personal care industry. Little wonder then that brands are jostling to enter the space. Talking about this changing trend, Sanjali Giri, senior manager, product merchandising, The Body Shop India, said, “Men’s grooming has gone mainstream. Male skin care is one of the beauty industry’s fastest-growing sectors, with more

men adopting a grooming regimen, alongside exercise and eating right, as a component of healthy living.” Nilanjan Mukherjee, head of marketing, personal care products business, ITC Limited, in a recent interview, said, “The aspirations and requirements of today’s young Indian men are rapidly evolving. With a surge in disposable income, men are becoming more discerning and indulgent. In an evolving trend in India, men are beginning to look at innovative grooming and personal care products created specifically for them. The segment shows immense promise and is growing faster than the overall personal care market in India.” However, 2014 saw the beginning of a new era for the sector. Twenty years after giving birth to the term ‘metrosexual’, Simpson introduced the world to ‘spornosexuals’ — hardcore, sexed-up, body centered, second generation metrosexuals: ‘Young men who fashion their own bodies into the ultimate accessory and totally hot commodity down at the factory of the 21st century — the gym’. A similar shift in focus from ‘metrosexual friendly themes like confidence and looking good’ to a ‘more macho space’ was underway in India as well. It does not signal a new trend; it is just building up on to the strong existing sentiment. Despite the want for a more metrosexual lifestyle, Indian men demur from being identified or branded as such. And so, the layer of macho positioning becomes essential to give the entire exercise an air of guilt free indulgence. Mohan Goenka, director of Emami, in a recent interview, said that the machoisiation is well underway, "In next 10-15 years, you won't be able to find men using women's products.

Competitor:

The below table shows the competitor analysis. The main competitors are :

1. Gillete - Shaving We can see that majority of them are into shaving industry.

2. Unilever – Deodrant/Hair/Skin

3. Marico – Hair

4. Malhotra Shaving Products - Shaving

5. Vidyut Metallics - Shave

Company Breakdown Total (%)

Gillette India Ltd Shave 16.6

Hindustan Unilever Ltd Deodrant 4.4

Hair 3.1

Skin 1.2

Malhotra Shaving Products Pvt Ltd Shave 5.6

Vidyut Metallics Ltd Shave 5.3

Marico Ltd Hair 5

1. Excluding the shaving industry, the top 5 are :

Company Breakdown Total (%) Products

Hindustan Unilever Ltd Deodrant 4.4 Axe

Hair 3.1 Brylcream/Clear

Skin 1.2 Fair & Lovely

Marico Ltd Hair 5 Parachute/Set Wet

McNroe Chemicals Pvt Ltd Deodrant 4.8 Wild Stone

Emami Ltd Skin 3.8 Fair & Handsome

Vini Cosmetics Pvt Ltd Deodrant 3.9 Fogg

0

50

100

150

200

250

300

Men's Shaving Men's Toiletries

Male Grooming Overall

% change (’13-14)

% change (’09-’14)

0

50

100

150

200

250

300

350

- Men'sBath andShower

- Men'sDeodorants

- Men'sHair Care

- Men'sSkin Care

Bath/Deo/Hair/Skin

% change (’13-14)

% change (’09-’14)

Hair Products Market Share

Marico Ltd

Hindustan Unilever Ltd

Godrej Consumer ProductsLtd

Mandom Corp

My suggestion – Don’t think we should explore the deodorant market. We should try to go and explore

the hair market or skin market

Bath/Skin Market Share

Emami Fair & Handsome

Nike Sport Performance

Fair & Lovely

Dettol

Nivea for Men

Garnier Men

Creame market share

Emami Fair &Handsome

Fair & Lovely

Interview Transcripts:

Name- Nipun Dhingra

Profile- PGP Student IIM Bangalore

Age- 27

1. What’s the first thing that strikes your mind when you hear ‘Grooming Products’?

Male grooming is misunderstood and lot of men think that grooming products are only for women, they are too afraid to even try it or admit that they use it. A lot of men in India are shy about it even though it is changing a little bit now. As you can see, the guys in big cities and younger people are ready to experiment with grooming. It is absolutely necessary. We spend so much money on clothes and everything. This is equally important to groom your body or face or skin or hair.

1. Are grooming products a ladies-only thing?

No

2. What do you think of ‘Male’ grooming products? Do Indian Men / Boys need grooming products?

Men also need to spend time on grooming. They have started taking care of what they wear and they have started going to gym. So grooming is equally important.

3. Have you ever used any grooming product? Yes - then which products?

Yes I do. I use Shampoo, face wash of Himalaya, conditioner, body lotion, basic foundation of Mac, compact powder of Mac and Shower gels.

I also use basic Moisturizer of Body Shop and bath and body works. Most of these products are unisex though some have ”for men” products also. I have not yet tried that range. I have tried Dove Men.

Another new thing, which is very convenient, is all in one product that can be used as Shampoo, face wash, and shower gel.

1. No – Why? Would you like to use in future?

4. Do you buy the products yourself? If yes then how much is your purchasing decision

influenced by family/ friends? If no, then who buys?

Yes, I buy the products myself. I am influenced by friends at times but not influenced by family.

5. How did you start using these products - did you buy it or somebody gifted you?

I bought the products myself.

6. Do you consider brand names important when buying grooming products?

Yes, brand name is very important as it gives certain guarantee for quality. I do not want to take the risk of using something on my face which is not of high quality.

7. Since how long have you been using these products?

Basic products I have been using all my life, but specific products I have been using since last 3 or 4 years.

8. How frequently do you use grooming products?

I use them daily.

9. Do you visit salon? If yes, then how often?

Yes, I visit salon for hair cut once a month. For face clean-up, I visit once in 4 months.

10. Would you prefer a mobile hair dresser/beauty technician or would you prefer to visit a salon?

It would be little inconvenient to call them to my house for hair cut as it will create a mess. I can call them for facial, clean-up and all.

11. In your opinion, how important is man’s appearance in the workplace?

These days there is definitely a pressure to look good for both men and women in corporate world. So people are willing to spend much more on grooming and visit professional salons for haircut.

12. Who do you think should endorse these grooming products (preferably Indian celebrities)?

The celebrities do have some effect. But I think it mostly depends on the culture. I don’t think a celebrity endorsing a product will change the perception of men much. It is more about the family background and social circle they come from. A lot of people believe that men should behave in certain way and do certain things and that effects their decisions.

13. Suggest us a few alternative areas to focus - like those that are different from the female grooming products segment? (Example. maybe majority of Indian men don’t need fairness)

Not much is done for male cosmetics. The good brands like MAC don’t have specific “for men” products. That’s something they could look into.

The clubbed offers in salon, for e.g. hair cut with hair spa will be quite effective. People will start opting for such services.

Name- Sai Prasanth

Profile- PGP student IIM Bangalore

Age- 22

1. What’s the first thing that strikes your mind when you hear ‘Grooming Products’? What are the names of the companies that you encounter most frequently?

Sai: Shaving cream, trimmers, deodorants. Ponds Face wash, clean and clear face wash, Phillips trimmer, Vaseline body lotion, Axe deo, HE deo

2. Are grooming products a ladies-only thing?

Sai: No, everyone needs grooming. It’s a basic necessity for everyone. But, in India the male grooming industry is nascent and is catching up.

3. Have you ever used any grooming product? 1. Yes - then which products? 2. No – Why? Would you like to use in future?

Sai: Yes, I do. Phillips trimmer, clean and clear face wash, Vaseline body lotion, Park Avenue deodorant

4. Do you buy the products yourself? If yes then how much is you purchasing decision influenced by family/ friends? If no, then who buys?

Sai: Yes, I do buy the products myself. Initially my purchasing decisions were influenced by peers.

5. Do you consider brand names important when buying grooming products?

Sai: I’m very particular about brand of the products I use. And, brand is very important of course because it indicated reliability. A product under a reliable brand name sells more. So a new product under a known brand name is likely to get sold faster than a new brand’s product.

6. Since how long have you been using these products?

Sai: Deodorants- Since time immemorial. Trimmer- second year of college

7. How frequently do you use grooming products?

Sai: Lotions, Deodorants, Face Wash- everyday; Trimmer- once a week

8. Do you visit salon? If yes, then how often? In a combined hair and beauty salon, would you use both the hair and beauty services provided?

Sai: Yes, I visit salons. Both regular and professionals. I visit a regular salon (for haircut and shaving) once in 1.5-2 months. On special occasions I go for professional treatments.

9. Would you prefer a mobile hair dresser/beauty technician or would you prefer to visit a salon? Sai: No. I prefer going to the salon. It’s about the whole experience that you get in the process that is important. The salon is more comfortable than mobile hair dresser.

10. In your opinion, how important is man’s appearance in the workplace? Sai: At workplace, especially in a corporate culture looking presentable has become very important. Men feel a little conscious because of well-groomed female co-workers.

11. Do grooming products make men less macho?

Sai: No, it doesn’t make men less macho. I don’t relate being macho to grooming products.

12. If we have to launch grooming products for men, what are the products we should target? Who do you think should endorse these grooming products (preferably Indian celebrities)?

Sai: As the usage of deodorants are very common these days, a new venture should start with the same market.

Although endorsements by celebrities doesn’t matter much, still the companies can go for an endorsement by one particular celebrity only. For example, Tresseme is recognised with Diana Penty whereas Kareena Kapoor is associated with many brands.

13. What, according to you, is the scope for this product in rural India?

Sai: Rural or Tier-3 areas are the laggards of the innovation curve. The main focus should be on the innovators and early adopters that are Tier-1 and Tier-2 cities. These, in return, can become the inspirations for the lower tiers.

14. Suggest us a few alternative areas to focus - like those that are different from the female grooming products segment? (Example. maybe majority of Indian men don’t need fairness)

Sai: In my opinion, fairness is not an attribute which men look for in the grooming products. We generally look for freshness and something which would not make our face look oily

15. Why do you think this male grooming products are growing in importance these days?

Sai: It has become very important these days to look presentable and attractive. Even in workplaces, we have to interact with the clients, customers, stakeholders. The idea of being well groomed boosts your confidence.