HAIR COLOUR MARKET IN INDIA

The hair colour market in India has shown a robust growth of 21% in the year 2009 over the previous year. It is important to note that the main growth has come from the mid-level powder brands that have from Rs 118 crores in 2008 to Rs 202 crores in 209. This is a whopping 71% growth. Size of Hair Colour market in India(2009) : Rs 1200 crores ( $ 267 Million)Growth of the total market over last year : 21% Size of the mid-level powder brands : Rs 202 crores ( $ 45 Million) Leading Players Godrej Comsumer : 33 % of the hair dye market LOreal & Garnier : 60% of the hair cream market Color Mate : 38% of the hair powder market BL030410

Should I color my hair? This is a Rs 1200 crore question. That's the size of the Indian hair dye market. Just imagine how many individuals like me ponder over this question every day. Looks like a lot of people decide in favour.

All this started yesterday with a debate at home whether I should color my hair. I put up a bold front and ducked under the line, "I do not want an artificial look". Well, the debate raised many questions in my mind. A quick google search on Indian hair dye market threw up some interesting information. In 2006 the hair dye (or more broadly hair care) market was close to Rs 300 crore, according to a Business Standard story (Nov 2006). In two years it jumped to Rs 580 crore, according to another story in Business Standard on August 22, 2008. A recent blog entry puts the hair dye market at Rs 1200 crore.

It struck me later that there is another industry that doubles almost 2 years once (actually doubles every 18 months). It's the microprocessor industry (remember Moore's law?) I am now diving into some reading on what makes hair gray faster. Any suggestions? http://www.dare.co.in/blog-entries/ideas/hair-dye-market-in-india.htm

Godrej to develop more hair colour products

Ruchita Saxena / Mumbai August 22, 2008, 5:28 IST

Godrej Consumer Products (GCPL) is focusing on expanding its product portfolio in the mid-priced hair colour segment as part of strategy to cement its lead in the category instead of competiting with French cosmetic major LOrals super premium brands like Garnier and Excellence. Godrej doesnt plan to enter the segment for now. The company is lining up its research and development investments towards developing newer technologies in mid-price hair colour segment. Hoshedar Press, executive director and president, GCPL said, The number of consumers using powder hair dye is still very huge as powder hair dyes are much cheaper. Hence we will continue to develop products in the popular, subpopular and premium categories. For GCPL, hair colour is the second biggest business for the company making up 23 per cent of its net sales in the last financial year. Also being one of the most inflation-resistant categories in the fast moving consumer goods sector, GCPL plans to launch more products periodically in this space in the coming months, said Press. The powder hair dyes, make up 50 per cent of the Rs 580 crore hair colour market in India. However, in terms of volumes it makes up an even greater share of 75 per cent of the total market, said GCPL. The rest of the market is made up of cream based hair colourants, which are catching up fast among the affluent consumers. GCPL is still the market leader in the overall category with a share of 35.2 per cent. Although its share has gone down in the last six years from 43.9 per cent in 2002 as many players both global and local have entered the Indian market since then like Schwarzkopf and Cavin Kare. LOral, which entered the Indian personal care market in 1994 has already garnered a share of nearly 20 per cent from local hair dye brands with its cream based colourant Garnier.

Whereas powder hair dye satches are available at a price as low as Rs 9 per sachet, cream based colours are priced in the range of Rs 80 to Rs 100 and super premium brands like LOrals Excellence cost about Rs 500 per pack. GCPLs focus on powder hair dyes also resulted in the relaunch of its largest selling powder hair dye Godrej Expert. Witnessing higher growth rates in the premium colour segment the company also launched the powder hair dye extension of its cream based colourant Renew this year. Matching up with competitor LOrals aggressive marketing strategy, GCPL then roped in bollywood celebrity Katrina Kaif as the brand ambassador for Renew. GCPLs other hair colour brands include Anoop, Kesh Kala oil, permanent liquid hair dye, Kali Mehndi and Colour Soft. Industry experts say that only 20 per cent of Indian women use hair colour in India compared to 90 per cent in developed markets. In value terms as well, the hair colour market is just one-tenth of the soap market in India, which is in sharp contrast to world over where hair colour market is double the size of the soap market. This makes hair colour category much under penetrated one in the country.

Hair colour market booms India

Posted on May 27, 2005 Filed Under Uncategorized Fast growing hair colour market booms India with different National and International brands. Chocolate, almond, honey, caramel these all not only flavours of ice-cream on a dessert menu? Maybe, but they also represent the new, funky shades of hair colour that have entered the Indian market in the past few years. After LOreal, Godrej and Revlon, the new player to enter the Indian retail market is German major Henkel-Schwarzkopf. Making its India debut in 2003, Schwa-rzkopf was a salon brand. Now, the retail brand Henkel has made its way to shop shelves. For the moment, its products are imported. Today, the total hair colour industry in India is around Rs 650 crore. This is further divided into two segments. The Rs 450 crore retail segment, which is growing at a 20 per cent clip annually . According to market research Godrejs market share at 40 per cent, followed by LOreal at 15 per cent and Revlon at 8 per cent. Rest of the brands make up the remaining 37 per cent. The two big brands in the salon category are multinationals LOreal and Schwarzkopf.

The professional segment encompasses not only the selling of hair colour products but also the training of stylists at high-end salons. Industry sources peg Schwarzkopfs share at 24 per cent with LOreal dominating at 76 per cent. Today, while Godrej is largely mass-based, selling its Colour Soft and Renew brands at Rs 99 and Rs 65 respectively, both LOreal and Schwarzkopf straddle different price segments. While LOreals sub-brand Garnier Colour Naturals carries a tag of Rs 99, its Excellence is priced at Rs 399. Today, if there are more brands in the Indian market, its largely due to demand. When hair colours first came to India, more than a decade ago, it was largely to cover grey hair. But with the increasing number of youth in the country, it has become a fashion statement, especially with the young and trendy. Hair colours were traditionally aimed at the 15-45 age female segment. But market research shows that there was a growing population of 15-45 males which patronized the category in a big way. This is because of the corporate culture that places an emphasis on young male employees looking smart and trendy. Thats why all the players have plans to modify existing products, launch new products and target different geographic segments and age-groups. Godrej is in the process of developing additional colours in its Colour Soft range. There are plans to launch an advertising campaign reassuring the public about concerns about the safety of hair colour. This, say industry sources, is largely to quell the controversies surrounding the after-effects of Godrej products. The newly launched Henkel is now testing the waters. After gauging the initial response, there are plans to launch new variants in the coming months. Meanwhile, it is strengthening its Schwarzkopf salon brand. It plans to launch Indola at 30 per cent lower than its premium brand Igora Royale. And the target audience? Lower-end salons in smaller cities. They will also train salon stylists in smaller cities. Theres also the new Igora Action Paint, a weekend product aimed at teens. Even LOreal, which is constantly revamping its retail colour palette, is now concentrating on the high value salon business. Having entered this category in 1997 with the premium Majirel (priced at Rs 210), LOreal is now tapping the mass-based middle segment. In February, it launched Matrix (Rs 119), the brand aquired from Bristol Myers five years ago. It is positioned as fun and lively compared to its sophisticated counterpart. There are plans to penetrate every salon in Mumbai and Delhi before taking Matrix to second-tier towns. Now a days several National and international brands in hair colour market are available in India. Many more making their way, well the market is vast.