Kresge GMID - Health and Personal Care in India - Aug 2011

Beauty and Personal Care in India
Euromonitor International August 2011
Beauty and Personal Care
India
List of Contents and Tables

Executive Summary ................................................................................................................................................ 1 Beauty and Personal Care Market Going Strong in 2010 ........................................................................................ 1 Natural and Herbal-based Products Find Traction .................................................................................................. 1 Mens Grooming Takes Off ....................................................................................................................................... 1 Direct Sellers Make Deep Inroads ............................................................................................................................ 1 Steady Growth Forecast for Beauty and Personal Care ........................................................................................... 1 Key Trends and Developments .............................................................................................................................. 1 Natural and Herbal-based Products Gain Traction.................................................................................................. 1 Direct Sellers Hit the Right Notes ............................................................................................................................. 2 Higher Value-added Brands Make Headway ............................................................................................................ 3 Products With Modern Formats Increase Presence.................................................................................................. 3 Multinational Companies Shares Rise ..................................................................................................................... 4 Territory Key Trends and Developments ............................................................................................................. 5 East and Northeast India .......................................................................................................................................... 5 North India................................................................................................................................................................ 6 South India ................................................................................................................................................................ 7 West India ................................................................................................................................................................. 9 Rural Vs Urban Key Trends and Developments .................................................................................................10 Trends ......................................................................................................................................................................10 Market Data ...........................................................................................................................................................11 Table 1 Sales of Beauty and Personal Care by Category: Value 2005-2010 .................................11 Table 2 Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010 ................12 Table 3 Sales of Premium Cosmetics by Category: Value 2005-2010 ..........................................12 Table 4 Sales of Premium Cosmetics by Category: % Value Growth 2005-2010 .........................12 Table 5 Sales of Beauty and Personal Care by Region: Value 2005-2010 ....................................13 Table 6 Sales of Beauty and Personal Care by Region: % Value Growth 2005-2010 ...................13 Table 7 Sales of Beauty and Personal Care by Rural-Urban % Analysis 2010 .............................13 Table 8 Beauty and Personal Care Company Shares by NBO 2006-2010.....................................13 Table 9 Beauty and Personal Care Company Shares by GBO 2006-2010.....................................14 Table 10 Beauty and Personal Care Brand Shares by GBN 2007-2010 ..........................................15 Table 11 Sales of Beauty and Personal Care by Distribution Format: % Analysis 20052010 ..................................................................................................................................16 Table 12 Sales of Beauty and Personal Care by Category and by Distribution Format: % Analysis 2010 ...............................................................................................................17 Table 13 Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015 ...................18 Table 14 Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2010-2015.........................................................................................................................19 Table 15 Forecast Sales of Premium Cosmetics by Category: Value 2010-2015 ............................19 Table 16 Forecast Sales of Premium Cosmetics by Category: % Value Growth 20102015 ..................................................................................................................................19 Table 17 Forecast Sales of Beauty and Personal Care by Region: Value 2010-2015 ......................20 Table 18 Forecast Sales of Beauty and Personal Care by Region: % Value Growth 2010-2015.........................................................................................................................20 Definitions ...............................................................................................................................................................20 Summary 1 Research Sources 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Euromonitor International
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BEAUTY AND PERSONAL CARE IN INDIA

EXECUTIVE SUMMARY
Beauty and Personal Care Market Going Strong in 2010
Beauty and personal care still showed double digit value growth in 2010, driven by economic growth, greater focus on innovative ingredients to create interest, and sustained advertising campaigns through the year. The shift to smaller cities of booming knowledge-based industries, like business process outsourcing (BPO), which typically employ well-paid young people, put more money into the hands of consumers, who have no guilt regarding conspicuous consumption.
Natural and Herbal-based Products Find Traction

During 2010, companies quickly ramped up the introduction of herbal, traditional ayurvedic and mineral ingredients in cosmetics, as a means to monetise the current desire of consumers to use natural-based products. The positioning of these ingredients was also subtly changed from a rather traditional and old-fashioned platform to modern healthy practice, leading to greater social acceptance and higher sales through the year.
Mens Grooming Takes Off

With men becoming more comfortable with the notion of looking good, awareness of mens grooming products increased further in 2010. Apart from the usual categories of pre-shave and razors, mens skin care, which promised fair and blemish-free skin, performed well. Every major brand used Hindi movie stars for instant recall and acceptance. In addition to looking good, smelling good is another important factor for men, which has driven growth in mens deodorants.
Direct Sellers Make Deep Inroads

The market share of direct sellers, both multinational, for example Amway and Oriflame, and domestic, for example Modicare, rose in 2010, as a result of concerted efforts to bring in new products in colour cosmetics and skin care to create interest and excitement, as well as the expansion of networks to reach more consumers in smaller cities. Major players like Amway and Oriflame also started advertising, as they judged that they had reached critical mass in terms of their networks, which would create pull if they advertised.
Steady Growth Forecast for Beauty and Personal Care

All the factors that support good growth in the forecast period are in place a modern retailing landscape providing the right ambience and target audiences, higher education, sustained branding and good economic growth giving consumers more money to spend. Premium products are projected to grow faster, as an increasing middle class consumer base aspires to use more expensive products. In addition, sales of value-added products in the mass segment are expected to increase, driven by convenience and efficacy, which will help to boost overall value growth in the forecast period.
KEY TRENDS AND DEVELOPMENTS

Natural and Herbal-based Products Gain Traction
Demand for natural ingredient-based and herbal products rose substantially during the review period, as a result of greater awareness and companies attempts to push such products. Brands like Lotus Herbals Safe Sun, Colgate Herbal toothpaste and mineral-based skin care products like Modicares mineral lipstick, were able effectively to combine the safety aspects of natural-based products with the cosmetic aspect of looking good. This shift in positioning of ingredients from traditional to modern opened up new opportunities in practically every category in 2010.
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Current Impact The focus on natural and herbal showed up clearly in 2010 value sales. Perhaps the greatest impact was seen in hair care, where there has long been a fear of damage to the hair through using synthetic chemicals to colour it. In 2010, Garnier Color Naturals was promoted duct based on ease of application and no side effects. Marico Ltd saw good gains for its Shanti Badam Amla hair oil, while Parachute, also from Marico Ltd, continued to hold top of mind recall for safe natural hair oil. One of the best indicators of booming demand is the host of local and regional players which are increasing their offer of herbal products, riding the wave created by better known brands. Outlook Herbal and natural-based products are expected to do well going forward, as a result of consumer choice veering towards more natural and herbal products in general, and companies attempts to create differentiation. A significant marketing insight has been to tap into existing cultural knowledge regarding several natural ingredients and their favourable impact on personal care, for example henna for hair colour, amla for hair cleaning, and aloe vera for skin care. Future Impact The increasing focus on herbal and natural ingredients holds a lot of promise for companies. They have the advantage of consumers familiarity with, and favourable impression of ayurveda, making the process of encouraging trial and consumption far easier. Consumers are likely to be willing to pay more for safety and for being seen as promoting social responsibility by using more natural and herbal ingredients. Nonetheless, efficacy and convenience is expected still to be of prime importance, thus natural and herbal beauty and personal care products will need to prove themselves to be as effective as their synthetic counterparts. Should the efficacy of natural and herbal products be below expectations, consumers are likely to go back to standard brands.
Direct Sellers Hit the Right Notes

The review period saw the increasing presence of direct sellers as significant stake holders in the beauty and personal care business. The many years of ground level penetration, creating multi-level marketing networks, and sustained, if low-key product promotion appears to have reached critical mass. One important development in 2010 was the increase in advertising undertaken by Oriflame and Amway in order to create pull, having decided that their networks were viable enough now to push more through them. While value market shares for direct selling remain below double digits in most categories, there is a definite upward trend. Direct sellers are also increasing their footprint in smaller cities, in order to tap the growing aspirant Indian population who are looking for extra income. Current Impact In several beauty and personal care categories, direct sellers have seen gains at the expense of traditional storebased brands, particularly in colour cosmetics and skin care, where direct selling companies account for more than 10% of total value sales. The highest growth for beauty and personal care through direct selling companies was seen in mens toiletries, leveraging rising awareness of such products among men, although this growth was from a low base. Colour cosmetics, deodorants and skin care also saw robust growth for direct sellers in 2010. For example, in acne treatments, Avon Clearskin gained two percentage points, to a 5% value share. In bar soaps, Amway Persona gained share, to 1%, as did Oriflame in bath and shower. In mens grooming, direct sellers accounted for a 3% share by value in 2010. In colour cosmetics, a fiercely competitive category in retail as well, Amways Artistry almost doubled its share, while the company Modicare saw an increase in value share to 2%. In skin care, all the direct sellers at least maintained their shares in a growing category. Outlook Direct sellers invested heavily in their networks during the review period, and as consumers are now beginning to open up to using many more beauty and personal care products, the major companies are bringing their international ranges into India as well. The outlook for direct sellers is bright, especially as they are expected to be able to tap the huge Indian population. Companies have also ramped up their attempts to use on-line portals
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as a marketing channel, with products, referrals and purchases being routed through these sites. For Amway Enterprises India, at least, the strategy has paid off, as network expansion was boosted. Future Impact Direct sellers are expected to gain steadily in the forecast period, aided by greater consumer acceptance combined with a wider range of products backed by brand promotion and deeper penetration. Consumers in smaller cities are expected to appreciate the benefit of purchasing high quality beauty and personal care from direct seller companies, as well as, in some case, joining such companies to gain extra income. Nonetheless, store-based brands are expected to continue to dominate beauty and personal care, as the strength of the storebased distribution channel is well established in India.
Higher Value-added Brands Make Headway

While there was not a significant recession in India during the 2008-2009 period, there was a significant rebound in 2010 in sales of premium products and of higher value-added products in several categories. Several factors fell into place for this gain, such as better consumer sentiment, higher disposable incomes, more product launches and store based retailing that expanded across India. Overall, however, premium value sales as a share of the total beauty and personal care market remained small in 2010. Premium cosmetics growth was 25% in value sales in 2010. Masstige brands in skin care, colour cosmetics and fragrances also did well, filling the gap between mass and premium. Current Impact Within several categories there was good growth for premium and masstige products in 2010. For example, Hindustan Unilever Ltds masstige brand Dove grew strongly. In fragrances, premium holds a 66% market share by value. This category has been considerably boosted by the arrival in India of most of the well-known foreign brands. Amway India Enterprises Artistry continues to hold a significant share in skin care, and is among the top 10 skin care brands. A notable development has been the introduction of smaller sized packs, including in premium fragrances, to stimulate trial. Companies have leveraged the increase in consumer confidence to tap aspirant consumers who are looking to increase their status, and have push higher value-added brands in order to achieve better margins, particularly as raw materials prices increased significantly in 2010. Outlook Premium and high value-added products will continue to grow, given Indias steady economic growth overall and a more dispersed distribution of wealth, because of industries like knowledge process outsourcing (KPO) and business process outsourcing (BPO) moving to smaller cities, coupled with a young population willing to move up the value chain. Within the defined target group, the focus has clearly been on young men and women moving into higher earning professions with aspirations to purchase more sophisticated products. However, because India still has a large rural population on low incomes, premium and high value-added products share of the overall market will remain limited. Future Impact The introduction of more premium and higher value-added brands in India in the forecast period will contribute to value growth in the overall beauty and personal care market. Rising demand will encourage manufacturers to improve the quality and sophistication of their products in a variety of ways, from branding to packaging to the ingredients. Premium and higher value-added brands are set to be the one of the largest beneficiaries of Indias sustained economic growth.
Products With Modern Formats Increase Presence

During the review period, a notable trend was the increasing presence of more modern product formats, more seen in developed Western markets than in India so far. Most Indian consumers still use older format types of beauty and personal care products, such as talcum powder, bar soap, double edged razor blades and hair oils, as these products are cheaper and more widely available across India.
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Current Impact These new format products are more evolved in their usage and handling than the Indian market has previously seen. For instance, new depilatory formats emerged in 2010 as consumers became more aware of alternatives to wax strips. Body shower gels, like Gillette Indias Hair and Body 2-in-1 gel, were also promoted in 2010, as an alternative to bar soap. Mouthwashes/dental rinses also saw a higher profile in this year, with Plax and Listerine seeking to educate consumers on their use as distinct from toothpastes. In mens razors, disposable systems still dominate, particularly with the advent of three blade disposable razors. Gillette has tried to stimulate the category with price cuts for its Mach 3. There has been increasing usage of more modern types of hair conditioner, such as Dove, instead of hair oil. There has also been a shift towards the use of foundations and deodorants as opposed to talcum powder, while hand sanitiser products have entered to compete with liquid soap. Products with modern formats have grown strongly as consumers are shifting to them for reasons of convenience, efficacy and hygiene. Outlook The newer formats attempt to differentiate products and move consumers up the value chain, and the outlook for growth remains good, not least as these start from a small base. With the expected increase in Indian consumers sophistication in terms of discerning the benefits of product with modern formats, such products are projected to grow strongly in the forecast period, despite the fact that they are typically more expensive, as the disposable incomes of India consumers are also expected to increase, in line with the growth of the countrys economy. Future Impact Many of the companies that currently have no product offerings with more modern formats are expected to modernise their ranges, as there are opportunities for companies to modernise their brand images and improve profit margins. Product formats which are expected to perform well are more sophisticated hair conditioners, three blade disposable razors, hand sanitisers, deodorants and mouthwashes/dental rinses, as these products offer efficacy and convenience to consumers. The main barrier to such modern format product types is limitations on the availability of the products in retailers, as well as their affordability, as these modern formats are more expensive than the longer established ones. Therefore, companies are expected to aim to promote sales of modern formats in the forecast period by minimising price differentials and using pricing strategies which will help to induce trial.
Multinational Companies Shares Rise

During the review period, global brands in beauty and personal care continued to stream into India. The country is at the inflection point in terms of the interplay of demographics, ambience for retailing high-end products, purchasing power and economic growth, leading to trial and demand for premium products at one end, and an increase in mass-market consumption at the other. This, in turn, has created the right entry parameters for a host of categories, such as skin care, deodorants, fragrances and hair care. Not only are these brands stocked in supermarkets/hypermarkets and department stores, leading to better opportunities for comparison and increased awareness, but they are also setting up their own stores, which is a clear indication that they now judge the market able to bear significant investment. This led to the expansion of multinational company shares in 2010. Current Impact The increase in multinational company shares in 2010 was most evident in fragrances, which is dominated by multinational companies. For instance, premium womens fragrances grew by 24% in 2010, led by brands like Dior Addict, with the share of the Dior brand rising to 6%, and Red Door from Elizabeth Arden, which reached a 4% share. Mass womens fragrances grew by 10% in 2010, with growth led by Oriflame India Pvt Ltd. The company introduced a whole portfolio in 2010, including Kajal, a traditional eye mascara which is very widely used in India, and Triple Core Lipstick, which was first launched in India. Elca Cosmetics developed a whole new line of skin care in India, its first such portfolio developed in the country, for its brand Mac, in collaboration with Mickey Contractor, a well known make-up artist for Hindi films. It also opened up Mac stores in Mumbai and Kolkata in 2010. Yardley of London and Oil of Olay both entered strongly in late 2009 and early 2010, with celebrity endorsements by movie stars. These are brands already well known in India, but have rather faded out of the public eye and are now being revived. Wella launched Kolestint for retail and the Sebastian range of hair colourants for salons in 2010. These brands are well known in their home markets.
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LOral Homme was launched in late 2010 for men. The Body Shop is now widely seen in several cities, as are salons with Wella or LOral branding. Outlook The current outlook for multinational companies in India is strong and steady. In particular, wealthy younger Indians are willing to buy into global brand stories. This is projected to be further supported in the forecast period as the median age in the country by the end of 2016 is expected to be just over 26 years old, with the bulk of the population being in the workforce, which will lead to an increase in disposable incomes, as well as in the level of consumption. Increasing awareness of global brands through multiple media channels, such as television and the internet, will help to boost sales for multinational companies. Furthermore, the financial muscle of these companies and their resources for innovation will help them to gain more attention from Indian consumers in the forecast period. Future Impact The multinational companies are expected to increase their value shares further in the forecast period by pushing their global brands in India, as Indian consumers are expected to be increasingly open to such products. Product innovation will be key in the forecast period in order to differentiate product offerings from those of domestic companies. A major reason for this is the need for multinational companies to avoid price wars with domestic companies. However, domestic companies are expected to pursue similar innovations with the aim of competing strongly with international brands, while at the same time focusing on local tastes and preferences in India in order to offer locally oriented and familiar products.
TERRITORY KEY TRENDS AND DEVELOPMENTS

East and Northeast India
Trends The East and Northeast India market size for beauty and personal care was Rs59 billion in 2010. The region saw good growth in several important categories in 2010. Eye make-up and deodorants, for instance, grew strongly in the review period. The region is catching up with the rest of the country, as most states participated in the overall economic growth of India in the review period. This rise in demand is translating into a stronger focus on the region by companies. Umbrella brands from leading manufacturers like Hindustan Unilever Ltd, Procter & Gamble and Emami saw more innovations and extensions in 2010. Brands like Dove, Pantene and Boro Plus saw more product categories added, as well as major packaging and formulation changes. As such, new product developments dominated much of the activity in the beauty and personal care industry, with an average of almost 15 new launches and relaunches a month. Imported brands have increased in availability as well as affordability. Previously, imported brands, especially fragrances, were available largely in smuggled format via the grey market. However, the review period saw the entry of a large number of global brands through legitimate channels, especially fragrances, colour cosmetics and skin care. Demand for these is concentrated in major cities like Kolkata, Patna, Siliguri, Ranchi and Guwahati. The grey market still attracts customers due to lower prices, and counterfeit goods are also prevalent. Direct sellers have expanded their presence and have introduced premium offerings in colour cosmetics and fragrances. From their base in the cities, they have made inroads into the rural areas as well, especially in the northeast. The distributor base for the direct selling companies has increased significantly. Though, overall, Amway Enterprises remains the leading player amongst direct sellers, within beauty and personal care products it is Avon Beauty Products India Pvt Ltd and Oriflame India Pvt Ltd which lead, with wider and more successful portfolios. Mary Kay, Hindustan Unilever Ltd and Modicare are other notable players in this channel. Leading players are looking to introduce global brands across product categories such as colour cosmetics, fragrances and skin care. Many premium brands like The Nature Co have also entered the market.
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Competitive landscape Hindustan Unilever Ltd leads in the region, through a wide range of products and brands. It has the advantage of a good network of distributors across urban and rural areas. Kolkata-based Emami Ltd has a strong network of direct distributors in rural areas, especially parts of West Bengal, which helps it sell its products in an innovative manner. Johnson & Johnson dominates in baby care, and has also gained substantially from the success of its Neutrogena brand in the premium skin care segment, which is growing at encouraging double digit rates in value terms. The mens grooming products category is growing rapidly, aided by whitening products, as well as other grooming products. Premium to semi-premium brands, like Nivea, LOral and Revlon, as well as massmarket brands like Emami have expanded the category. As well as skin care, there has been a surge in demand for other male grooming products, especially deodorants and hair care, as the well-groomed look is considered a prerequisite for corporate success, as well as in boosting personal confidence.
Prospects Retail development is likely to act as growth driver across the region in the forecast period. High-end malls are being established not only in major cities, like Kolkata and other leading cities in the region, like Siliguri, Guwahati, Patna and Bhubaneswar, but also in second tier cities and towns, like Durgapur, Asansol, Darjeeling, Cuttack and Ranchi. The Kolkata-based malls especially South City Mall, the Forum Courtyard and City Centre Malls, are likely to see an increased presence of global premium brands in beauty and personal care. Being a largely trade-focused city with a high concentration of wealthy individuals, there is a niche clientele who use imported cosmetics and would readily purchase these if they were available locally through a trusted retailer. Whitening will remain the leading functional benefit offered across product categories. Like the rest of the country, whitening will continue to be much in demand in East and Northeast India. Such products perform well not only do in the eastern region but also in the northeast, a region where the average complexion is fair. However, there is a substantial demand in the neighbouring countries of Bangladesh and Burma (Myanmar) which is met by traders in the region, and thus sales remain high. Manufacturers are likely to continue with two-pronged strategies for growth. In the rural areas they are expected to focus on smaller SKUs, typically priced at Rs1-10, to drive growth through expanding the consumer base. In the urban areas, product innovation with new functional benefits, as well as new launches will dominate strategies. ITC Ltd, with its strong base in the region in terms of distribution, will continue to expand its presence in skin care, fragrances, hair care and bath and shower products.
North India
Trends North Indias beauty and personal care market grew by 14% in 2010, to over Rs89 billion. The region accounted for 27% of national sales in 2010. The region, which includes the National Capital Region of Delhi, has several fast growing cities, fuelled by the countrys overall economic growth and buoyed by new knowledge industries employing young people, who are driving consumption. Colour cosmetics is one of the largest categories and saw strong growth in 2010, of 25% in value, despite the base already being large. Several categories besides colour cosmetics saw strong growth. Mens toiletries grew by 41%, within which mens deodorants saw an increase of 42%. The regions consumers have clearly responded well to advertising and new launches. Historically, consumers in North India have been quick to adopt new products. Many companies found penetration of rural areas easier in 2010, aided by increasing demand from large states like Bihar, one of the most populous states in North India, which grew strongly in the review period, lifting more people out of poverty. In oral care, mouthwashes/dental rinses performed well, growing by 70% in value. Facial cleansers and moisturisers also saw healthy growth, as the region is subject to long and severe winters. For most companies, North India remains a cradle of growth. Gillette India, for instance, derived 30% of its sales of razors and blades from the region in 2010. The number of chained supermarkets/hypermarkets is larger than in other regions, led by entrenched players like Future Group and REI Agro, as well as government
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supermarkets. This helped push sales of high-end cosmetics and products specifically launched via chained supermarkets/hypermarkets, like Elder Pharmaceuticals Biyu range of skin care. Competitive landscape Dabur India Ltd remains a strong competitor in North India, which is its home territory. Its brands Dabur Lal Tail and Dabur Dant Manjan are well established in the region. In 2010, the company relaunched Fem bleach, positioned as an alternative to cosmetic skin whitening. Dabur India Ltd held a 5% value market share nationally in 2010. Hindustan Unilever Ltd, Godrej Consumer Products Ltd, Colgate-Palmolive India Ltd and Procter & Gamble India Ltd have all made significant inroads into the burgeoning North India market for creams, gels and skin care. The region is host to a large number of local players in the beauty and personal care industry. These typically offer ranges including herbal and natural ingredients, riding the wave created by the major national players. Many have also tied up with international brands to achieve national scale rapidly, as the cost of creating and supporting brands can be prohibitive. For instance, Los Angeles-based Jordana Cosmetics tied up with Glanor Pvt Ltd in late 2009 to launch first in Kanpur, a large city in North India, which is Glanors home city. Lotus Herbals, which holds a 20% national share in sun care, is also strong in the region, as its home city is Ludhiana in Punjab.
Prospects The region is expected to remain the growth engine of the beauty and personal care market in India in the forecast period, with a CAGR of 8% in constant value terms. The prospects for the region are very bright, as a mass of smaller cities are racing up the development curve, fuelled by good industrial growth in the automotive, agriculture and garments industries, which are prime movers for the region. This in turn is expected to lift millions into the middle class and drive consumption. Categories like skin whitening facial care, deodorants and colour cosmetics are forecast to grow strongly, as regions like Delhi and Punjab are typically more showy and conscious of living standards. While many products used in North India are season specific, reflecting severe winters and hot summers, attempts by brands to spread usage across the year are bearing fruit, especially where the angle is a cosmetic benefit, such as anti-ageing. The North Indian region is expected to see intense competition among manufacturers in the market. Discounts on prices, free additional quantities with certain weights/units, mother and child SKU promotions, free gifts, coupons, etc are expected to be more frequent. Products with faster and more effective results, with new attributes like fragrances, softness, shine, glitter and long-lasting effects are expected to be rolled out by players. Innovative products with attractive packaging and/or value-added benefits will get space in the market.
South India
Trends Value sales of beauty and personal care in South India were Rs91 billion in 2010, up by 14% on 2009. Deodorants in South India is a highly under-penetrated but rapidly growing category value sales grew by 41% in 2010. Companies are working on creating greater awareness, with sales supported by rising disposable incomes and a growing young population, Western influences and modern retailing are driving forces in this category. It is notable that premium priced deodorants grew by 45%, while the mass-market segment grew by 41%. The tropical climate in South India has contributed to increased sales of deodorants and talcum powder.. demand for soaps with glycerine also increases in the summer. South India is no different from other regions when it comes to the growing need to look good. Driven in part by sustained advertising, consumers are purchasing more branded products, leading to a shift from the unorganised channel to the organised one. The increasing availability of domestic and international brands, and greater product availability at affordable prices has led consumers to move away from using products from the unorganised channel.
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Traditionally a southern leader, Santoor soap is very popular in South India. South Indians like to use products which are perceived not to have any synthetic chemicals. Santoor is a leader in the soap category in India, deriving more than 40% of its sales from this region, according to trade sources. As in other regions, companies are resorting to advertising campaigns to increase their market shares. The organised market is concentrated in the major cities, though more lower tier cities are seeing consumers enter the channel. Modern retail is driving the market for beauty and personal care. South India was early in India in seeing the development of chained supermarkets/hypermarkets and, as such, is more advanced in terms of private label than certain other regions. Private label is growing strongly in beauty and personal care categories. The deodorant category is set to see increased competition. Future Group has rolled out a deodorant range for men under its private label John Miller. The success of deodorants in the urban market has encouraged the leading players in the category to launch more deodorant-related products. Future Group has also launched toothpaste and toothbrushes under the brand Sach.
Competitive landscape 2010 was a year of relaunches for CavinKare, one of the best known South India-based companies. Attempts were made to differentiate products, for example, Fairever, the fairness cream, now comes with a fairness meter (like Garniers fairness cream), Chik Shampoo now has vitamin H for soft hair, Indica Hair Color now promises hair colour in 10 minutes, and Meera Shampoo is gearing up to take on the major brands in the masstige segment, such as Procter & Gambles Pantene and Unilevers Dove. Young people in India, who are typically wealthier and much more aspirational than previous generations, are increasing their presence in the hair colourants category in urban areas, pushing demand for higher end brands and prompting new players, such as Procter & Gamble, CavinKare, Dabur India Ltd and Wipro Consumer, to enter. In 2010, Pepsodent brand made a significant investment in making the film actor Shah Rukh Khan its brand ambassador. The brand is running two TV advertising campaigns featuring Shah Rukh Khan. Oral care also recently saw the entry of Kishore Biyani-led Future Group, with toothpaste and toothbrushes under the brand Sach. GlaxoSmithKline Consumer Healthcare forayed into the category by launching Sensodyne (which was previously available as an import), a toothpaste brand for sensitive teeth. CavinKare has repackaged and relaunched the Fairness Cream brand. The actress Asin will be its brand ambassador across all markets, instead of just the South. GR Fragrances India has launched Conquer, a fragrant natural spray for men, with a combination not usually seen for mens fragrances. It is a blend of bergamot, lemon and rosemary, with hints of basil, amber and patchouli. It ends with notes of cedar wood, leather and sandalwood. The company has also launched a new fragrance for men called Victory. It contains coriander, rosemary and sage, and is accented with amber, oak mass and sandalwood. Lifestyle launched the fragrance Love & Luck by Ed Hardy. The Indian baby care category is dominated by a few big players that have established themselves in this industry over a long period. Players like Dabur India Ltd, Johnson & Johnson and Procter & Gamble dominate in different product segments.
Prospects Colourants, in hair care, is expected to be a rapidly growing category in the forecast period. Apart from LOral, other brands in the category include Godrej Consumer Products Renew and Revlon. Value sales in South India are predicted to grow by a CAGR of 14% in constant value terms over the forecast period, as the regions changes are much in line with those seen in West and North India. ITC Ltd has been pushing its Vivel skin care range, while its Fiama shampoos are also being advertised heavily. The company is projected to focus on the bar soap, skin care and shampoo in order to leverage on the economic of scale as well distribution strength of the company in the forecast period. Indians have long been perceived to be more savers than spenders, but are increasingly loosening their purse strings and starting to live for today. This changing mindset has led to consumers pampering themselves and spending more on beauty and personal care. The modernisation of the country has led to changing aspirations, and the need to be considered good looking, well-groomed and stylish has taken on new-found importance. Urban men have become more aware of personal grooming and are seeking out
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relevant products. An increase in the number of women joining the workforce has also given impetus to the beauty and personal care market. The economic downturn affected the beauty and personal care market to some extent, but all trends point to those dark days being firmly in the past. In 2010, many South Indians shifted to premium segments from the economy segment. This was visible in fragrances for instance, where in South India premium fragrances grew by 27%, the highest growth of any region in India, while mass fragrances grew by less than 14%.
West India
Trends Value sales of beauty and personal care in West India were Rs92 billion in 2010, up by 14% on 2009. This makes West India the largest region in India, just ahead of South India. West India accounted for 28% of national sales in 2010. This region has historically been vital to the industry as it is home to two of the most industrialised states in the country Maharashtra and Gujarat. Consequently, consumer spending power tends to be high. Mumbai city alone accounts for a significant proportion of many companies sales. Skin care, hair care and colour cosmetics are rapidly growing categories in this region. With Mumbai city drawing aspirants for business and movie glamour from all over the country, there is a strong emphasis on style, the use of premium products, and looking good in general. Bath and shower is the single largest category in value terms, valued at almost Rs25 billion in 2010, corresponding to 26% of regional sales. Within bath and shower, bath soaps hold near total dominance. Another other major category is hair conditioners, which companies have successfully positioned as a musthave product for glamorous hair. Oral care notably toothpastes was also a significant category for the region in 2010. Colgate-Palmolive, which is the leader in this category, undertook massive programmes promoting oral care in 2010, focusing on dentists and schools. Given the higher level of education and awareness in this region, the market responded well to these initiatives. Oral care grew by 12% and within that mouthwashes/dental rinses grew by 71%, from a small base. West India is also more developed than other regions in terms of infrastructure, making market penetration easier and faster. The expressway linking Ahmedabad, the largest city in Gujarat, to Mumbai runs through the industrial belt of south Gujarat and the rich agricultural area of central Gujarat, opening up the market significantly.
Competitive landscape Several major beauty and personal care companies are based in Mumbai. Consequently, particular attention is paid to the city and to West India as a whole, as the region has large and prosperous urban and rural markets. Hindustan Unilever Ltd leads in the region, with its strategy of straddling all price points and deploying its full portfolio being well implemented in the region. The rural market is well penetrated, with not just by national companies but also by a host of regional players, which have a strong presence. Nirma Ltd, with its detergents and soap range, still has a high profile, but in 2010 it announced a scaling back of its consumer products, which may eventually result in the company exiting the industry entirely. Paras Pharmaceuticals and Zydus Wellness Pvt Ltd are two regional players which are rapidly scaling up to a national presence. While Paras Pharmaceuticals was present in the market throughout the review period, Zydus Wellness Pvt Ltd first appeared in the market in 2009, and 2010 saw it consolidate its market share in several categories, mainly skin care-related, where it has decided to focus.
Prospects West Indias prospects are very bright, given that this region is the cradle of industrial growth and economic activity in the country. With Indias economy projected to grow strongly during the forecast period, the purchasing power of this region is expected to drive healthy growth in sales of beauty and personal care. The market is expected to grow at a CAGR of 8% in constant value terms over the forecast period.
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The region is expected to maintain its lead in terms of beauty and personal care sales during the forecast period. Increasing urbanisation in West India, and the move of BPO/KPO companies into smaller cities like Gandhinagar in Gujarat and Pune in Maharashtra is driving demand for a whole range of discretionary products.
RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS

Trends
69% of beauty and personal care sales value in 2010 was accounted for by urban areas. However, rural areas share grew steadily over the review period. Due to increasing saturation and cut-throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers. Many companies are focusing on expanding their distribution networks so as gradually to penetrate rural areas, contributing to the rise in share of beauty and personal care accounted for by rural areas over the review period. In the coming years, innovation in products and marketing strategies will be the key focus areas for most of the companies operating in the Indian baby care category. It is also expected that in future, penetrating deep into the urban market in conjunction with the rural market will provide growth opportunities for industry players. A key industry trend is the move towards natural products containing herbs, vitamins and minerals. Traditional materials, such as neem and tobacco, are popular for cleaning, particularly in the rural areas. Companies like Dabur India Ltd and Himalaya are launching toothpastes with natural ingredients to cater to such demand. Toilet soap, which was once only available in urban areas, has now penetrated practically all areas, including remote rural areas. Growth has been driven by population increases and a rise in usage, aided by a greater concern for hygiene. There is scope for product differentiation from region to region, and even within regions. For example, the states of Bihar, Jharkhand, Orissa are largely dominated by rural consumers, and the favoured colours for colour cosmetics tend to be very bright, such as red and orange. Conversely, the consumers of the northeast, as well as Sikkim and northern Bengal districts like Darjeeling and Siliguri, are much more modernised and westernised compared to the rest of the region and tend to follow the latest global trends. Hence there is room for different product categories and price points in the region. Rural North India provides a lucrative pool of consumers for companies in the beauty and personal care market. There are numerous affluent families in the rural regions of Delhi, Punjab and Haryana with household incomes which are on a par with their urban counterparts. Rural Uttar Pradesh, Jammu and Kashmir, and Rajasthan are emerging areas where consumers are increasingly well aware of the latest developments in the beauty and personal care market, due to increased penetration of cable TV and other media coverage. With increasing exposure to print and electronic media, and rising literacy levels, rural consumers expectations are changing as their living standards are rising. In addition, rural younger generations are increasingly travelling to and staying in urban areas and are influencing the development of product demand in the rural markets. Penetration of modern oral care products is low in India. Average per capita consumption of toothpaste in India is very low, at approximately 110g, and many people in rural India still clean their teeth with traditional products like twigs of the neem tree, salt or ash. However, the category is forecast to grow rapidly due to increasing awareness, supported by advertising campaigns and manufacturers efforts to penetrate rural areas with their oral care products.
Competitive landscape Historically, Hindustan Unilever Ltd, ITC Ltd, Colgate-Palmolive, Dabur India Ltd, Marico Ltd and Godrej Consumer Products have had a significant presence in the semi-urban and rural markets. Improving economic conditions and more developed infrastructure, such as road networks, has helped open up hitherto untapped areas.
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Word-of-mouth is a significant driving force in rural markets, while retailers are another key influence of the buying decisions of rural consumers. Rural consumers are very conscious of getting value for money, thus if a product is marketed with an emphasis on low price, high quality and multiple uses, this will form a strong base for healthy sales of the product in the rural market. The major challenge for companies is to create effective communication using local language, and to help rural consumers recognise brands and logos. Focused brand-building activities, like participation in community events such as village fairs, local and weekly markets, street theatre, etc, are being adopted by companies to reach out to rural consumers.
Prospects There remain substantial opportunities in most beauty and personal care categories in the rural market. As well as road and rail connectivity improving, television and mobile penetration have increased dramatically, making penetration of rural markets easier for manufacturers. While the soaps category in India is mature in urban markets and seeing a degree of saturation in rural markets, other categories, like lip care, sun care, baby care and hair care, have significant scope for further penetration of rural areas. Indian manufacturers are looking at ways to push their products. Well-established products are being relaunched with new packaging. Companies are coming up with 1+1 offers, in both the premium and mass segments. Such strategies will be critical importance in rural markets. In the forecast period, the rural areas abutting the National Capital Region in the North and large cities like Mumbai, Kolkata and Chennai are all expected to benefit from their proximity to the urban centres in terms of availability of products and awareness. The Indian skin care solutions business is growing rapidly, with safe and effective procedures, advances in medical technology and an increase in awareness. Sales of skin care have grown in rural areas at a more rapid rate than in urban areas. The unit prices of skin care products in India rose in 2010. This was mainly due to increasing prices of key raw materials, such as palm oil and petroleum-linked inputs. Maintaining affordability for rural consumers is crucial, and offering smaller sized packs with low unit prices will thus remain a path to sales growth in rural markets.
MARKET DATA
Table 1 Rs million 2005 Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care
Source: Note 1:
Sales of Beauty and Personal Care by Category: Value 2005-2010
2006 4,220.9 65,744.3 6,506.8 2,225.6 1,642.4 3,279.2 47,167.7 13,882.7 31,151.3 31,151.3 23,548.7 842.3 4,725.8 148,809.8 197,745.2
2007 4,591.8 72,714.8 8,496.2 2,833.9 2,051.1 3,907.7 52,938.8 15,642.0 34,089.5 34,089.5 26,659.3 944.8 5,964.0 167,123.4 221,603.8
2008 4,953.4 84,922.0 11,013.4 3,930.7 2,602.9 4,624.0 61,025.5 17,750.9 37,752.6 37,752.6 30,632.6 1,041.0 7,382.2 194,760.4 255,783.5
2009 5,378.3 94,790.1 13,834.5 5,672.9 3,208.2 5,387.6 70,566.6 21,040.4 41,917.8 41,917.8 34,760.5 1,123.5 8,958.9 222,555.1 291,134.9
2010 5,866.8 104,751.7 17,387.5 7,929.6 4,042.3 6,473.6 79,768.2 24,985.6 47,265.4 47,265.4 40,950.4 1,292.3 11,230.7 253,189.4 331,496.3
3,898.8 59,395.8 4,954.7 1,854.6 1,300.5 2,754.1 42,256.3 12,428.9 29,054.7 29,054.7 21,122.1 755.1 3,807.9 133,183.7 178,152.1
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.
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Note 2:
Sum of categories is greater than market size because the four mens toiletries categories are included in mens grooming as well as in bath and shower, deodorants, hair care and skin care.
Table 2
Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010
% current value growth 2009/10 Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care
Source: Note 1: Note 2:
2005-10 CAGR 8.5 12.0 28.5 33.7 25.5 18.6 13.6 15.0 10.2 10.2 14.2 11.3 24.1 13.7 13.2
2005/10 TOTAL 50.5 76.4 250.9 327.6 210.8 135.1 88.8 101.0 62.7 62.7 93.9 71.1 194.9 90.1 86.1
9.1 10.5 25.7 39.8 26.0 20.2 13.0 18.8 12.8 12.8 17.8 15.0 25.4 13.8 13.9
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater than market size because the four mens toiletries categories are included in mens grooming as well as in bath and shower, deodorants, hair care and skin care.
Table 3 Rs million
Sales of Premium Cosmetics by Category: Value 2005-2010
2005 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:
2006 0.0 526.0 143.2 33.4 1,887.3 1,173.2 916.6 46.3 4,725.8
2007 0.0 654.4 271.9 48.2 2,341.9 1,475.2 1,119.5 52.9 5,964.0
2008 0.0 721.8 440.5 64.9 2,863.5 1,822.8 1,408.3 60.4 7,382.2
2009 0.0 853.1 622.6 96.4 3,416.9 2,249.1 1,654.4 66.3 8,958.9
2010 0.0 995.1 973.7 138.8 4,248.9 2,781.5 2,015.1 77.5 11,230.7
0.0 475.2 79.3 26.0 1,515.9 882.6 788.2 40.8 3,807.9
Table 4
Sales of Premium Cosmetics by Category: % Value Growth 2005-2010
% current value growth 2009/10 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances 9.1 16.6 56.4 43.9 24.4 2005-10 CAGR 8.5 15.9 65.1 39.8 22.9 2005/10 TOTAL 50.5 109.4 1,128.3 434.5 180.3
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Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:
23.7 21.8 17.0 25.4
25.8 20.7 13.7 24.1
215.1 155.7 90.2 194.9
Table 5 Rs million
Sales of Beauty and Personal Care by Region: Value 2005-2010
2005 East and Northeast India North India South India West India India
Source:
2006 35,297.1 52,862.3 53,962.9 55,622.8 197,745.2
2007 39,604.5 59,393.3 60,321.0 62,284.9 221,603.8
2008 45,613.2 68,848.0 69,810.5 71,511.8 255,783.5
2009 52,030.7 78,325.4 79,604.2 81,174.6 291,134.9
2010 59,255.3 89,245.0 90,590.2 92,405.8 331,496.3
31,690.0 47,441.0 48,750.5 50,270.6 178,152.1
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 6
Sales of Beauty and Personal Care by Region: % Value Growth 2005-2010
% current value growth 2009/10 East and Northeast India North India South India West India India
Source:
2005-10 CAGR 13.3 13.5 13.2 12.9 13.2
2005/10 TOTAL 87.0 88.1 85.8 83.8 86.1
13.9 13.9 13.8 13.8 13.9
Table 7
Sales of Beauty and Personal Care by Rural-Urban % Analysis 2010 Urban Rural 31.0 Total 100.0
India
Source:
69.0
Table 8 % retail value rsp Company
Beauty and Personal Care Company Shares by NBO 2006-2010
2006 6.6 4.8 4.0 2.2 2.8 1.7
2007 34.6 6.8 4.9 4.1 2.5 2.8 1.8
2008 34.7 6.8 5.0 4.2 2.8 2.7 2.1
2009 33.5 6.9 5.0 4.4 3.1 2.8 2.7
2010 32.9 6.8 4.9 4.7 3.4 3.2 2.9
Hindustan Unilever Ltd Colgate-Palmolive India Ltd Dabur India Ltd Godrej Consumer Products Ltd L'Oral India Pvt Ltd Gillette India Ltd Reckitt Benckiser (India) Ltd
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Wipro Ltd Marico Ltd Johnson & Johnson (India) Ltd Procter & Gamble Home Products Ltd CavinKare Pvt Ltd Amway India Enterprises Pvt Ltd Emami Ltd ITC Ltd Nirma Ltd Modi Revlon Pvt Ltd Oriflame India Pvt Ltd Anchor Health & Beauty Care Pvt Ltd Henkel India Ltd Hygienic Research Institute Bajaj Consumer Care Ltd Vidyut Metallics Ltd Malhotra Shaving Products Ltd Paras Pharmaceuticals Ltd Cholayil Pharmaceuticals Pvt Ltd Nivea India Pvt Ltd Avon Beauty Products India Pvt Ltd Himalaya Drug Co, The Zydus Wellness Ltd Dey's Medical Stores Mfg Ltd Colorbar Cosmetics Pvt Ltd Wyeth Ltd McNroe Chemicals Pvt Ltd Elca Cosmetics Pvt Ltd Modicare Ltd Quest Retail Pvt Ltd Menezes Cosmetics Pvt Ltd Hindustan Lever Network Lotus Herbals Ltd Cadila Healthcare Ltd Fem Care Pharma Ltd Hindustan Lever Ltd Others Total
Source:
2.3 2.6 2.3 1.7 1.8 1.5 1.1 2.4 0.9 0.5 0.5 0.9 0.5 0.8 0.8 0.8 0.2 0.9 0.2 0.3 0.3 0.5 0.1 0.2 0.0 0.1 0.0 0.2 0.2 0.2 0.3 0.3 35.1 17.2 100.0
2.5 2.5 2.2 1.9 1.9 1.5 1.3 2.2 1.0 0.7 0.4 0.9 0.6 0.7 0.7 0.8 0.2 0.9 0.3 0.3 0.3 0.4 0.1 0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.3 0.3 16.5 100.0
2.5 2.3 2.1 2.0 1.9 1.5 1.3 0.7 1.9 1.1 0.8 0.6 0.8 0.6 0.7 0.7 0.7 0.2 0.9 0.3 0.3 0.3 0.4 0.2 0.2 0.0 0.1 0.2 0.2 0.2 0.2 0.2 0.3 15.3 100.0
2.7 2.3 2.1 2.1 1.9 1.6 1.4 1.2 1.7 1.1 1.0 0.8 0.7 0.6 0.6 0.6 0.6 0.4 0.6 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 14.4 100.0
2.9 2.3 2.1 2.1 1.8 1.7 1.5 1.4 1.4 1.2 1.1 0.9 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 13.4 100.0
Table 9 % retail value rsp Company
Beauty and Personal Care Company Shares by GBO 2006-2010
2006 35.4 6.6 4.5 4.8 4.0 2.2 1.7 2.3
2007 34.9 6.8 4.7 4.9 4.1 2.6 1.8 2.5
2008 34.9 6.8 4.8 5.0 4.2 3.0 2.1 2.5
2009 33.7 6.9 5.0 5.0 4.4 3.3 2.7 2.7
2010 33.1 6.8 5.4 4.9 4.7 3.6 2.9 2.9
Unilever Group Colgate-Palmolive Co Procter & Gamble Co, The Dabur India Ltd Godrej Group L'Oral Groupe Reckitt Benckiser Plc Wipro Ltd
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Marico Ltd Johnson & Johnson Inc CavinKare Pvt Ltd Amway Corp Emami Ltd ITC Ltd Nirma Ltd Revlon Inc Oriflame Cosmetics SA Anchor Health & Beauty Care Pvt Ltd Henkel AG & Co KGaA Hygienic Research Institute Bajaj Sevashram Ltd SuperMax Corp Malhotra Shaving Products Ltd Paras Pharmaceuticals Ltd Cholayil Pharmaceuticals Pvt Ltd Beiersdorf AG Avon Products Inc Himalaya Drug Co, The Zydus Wellness Ltd Energizer Holdings Inc Dey's Medical Stores Mfg Ltd Colorbar Cosmetics Pvt Ltd Pfizer Inc McNroe Chemicals Pvt Ltd Este Lauder Cos Inc KK Modi Group, The Lotus Herbals Ltd Three-N-Products Pvt Ltd Coty Inc VI John Group Others Total
Source:
2.6 2.4 1.8 1.5 1.1 2.4 0.9 0.5 0.5 0.9 0.5 0.8 0.8 0.8 0.2 0.9 0.2 0.3 0.3 0.4 0.5 0.1 0.0 0.1 0.2 0.3 0.1 0.2 17.3 100.0
2.5 2.3 1.9 1.5 1.3 2.2 1.0 0.7 0.4 0.9 0.6 0.7 0.7 0.8 0.2 0.9 0.3 0.3 0.3 0.4 0.4 0.1 0.1 0.1 0.2 0.2 0.1 0.2 16.6 100.0
2.3 2.1 1.9 1.5 1.3 0.7 1.9 1.1 0.8 0.6 0.8 0.6 0.7 0.7 0.7 0.2 0.9 0.3 0.3 0.3 0.3 0.4 0.2 0.0 0.1 0.2 0.2 0.2 0.1 0.1 15.1 100.0
2.3 2.1 1.9 1.6 1.4 1.2 1.7 1.1 1.0 0.8 0.7 0.6 0.6 0.6 0.6 0.4 0.6 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.1 0.1 13.7 100.0
2.3 2.1 1.8 1.7 1.5 1.4 1.4 1.2 1.1 0.9 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 12.7 100.0
Table 10 % retail value rsp Brand Fair & Lovely Lux Lifebuoy Colgate Santoor Dettol Clinic Plus Dove Godrej No 1 Lakm Pond's Johnson's Baby
Beauty and Personal Care Brand Shares by GBN 2007-2010
Company Hindustan Unilever Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Colgate-Palmolive India Ltd Wipro Ltd Reckitt Benckiser (India) Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Godrej Consumer Products Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Johnson & Johnson (India) Ltd
2007 5.5 4.9 4.2 3.2 2.3 1.6 2.3 0.6 1.7 1.6 2.0 2.1
2008 5.4 5.1 4.4 3.3 2.3 1.9 2.3 0.8 1.8 1.6 2.0 1.9
2009 5.3 4.5 4.1 3.6 2.6 2.4 2.2 1.5 1.9 1.7 1.9 1.8
2010 5.3 4.3 3.7 3.6 2.7 2.6 2.1 2.0 1.9 1.8 1.8 1.7
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Pepsodent Dabur Cinthol Parachute Hamam Close-Up Breeze Head & Shoulders Sunsilk Pears Godrej Hair Dye Pantene Oral-B Colgate Total Colgate Tooth Powder Nima Dabur Vatika Chik Garnier Skin Naturals Vivel Nirma Clear Axe Bajaj Babool Nihar Super-Max Maybelline Clinic All Clear Others Total
Source:
Hindustan Unilever Ltd Dabur India Ltd Godrej Consumer Products Ltd Marico Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Procter & Gamble Home Products Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Godrej Consumer Products Ltd Procter & Gamble Home Products Ltd Gillette India Ltd Colgate-Palmolive India Ltd Colgate-Palmolive India Ltd Nirma Ltd Dabur India Ltd CavinKare Pvt Ltd L'Oral India Pvt Ltd ITC Ltd Nirma Ltd Hindustan Unilever Ltd Hindustan Unilever Ltd Bajaj Consumer Care Ltd Dabur India Ltd Marico Ltd Vidyut Metallics Ltd L'Oral India Pvt Ltd Hindustan Unilever Ltd
1.9 1.3 1.2 1.3 1.2 1.6 2.0 1.1 1.1 0.8 0.9 0.7 0.4 0.7 1.2 1.0 0.9 0.8 0.5 1.2 0.3 0.7 0.6 0.8 0.7 0.4 0.8 41.9 100.0
1.8 1.4 1.2 1.2 1.2 1.4 1.8 1.2 1.1 0.9 0.8 0.8 0.5 0.8 1.1 0.9 0.8 0.8 0.5 0.3 1.0 0.4 0.7 0.5 0.7 0.7 0.5 0.7 41.4 100.0
1.7 1.4 1.3 1.2 1.3 1.3 1.3 1.2 1.1 1.0 0.9 0.9 0.5 0.8 0.9 0.9 0.8 0.8 0.6 0.5 0.8 0.4 0.5 0.6 0.6 0.6 0.6 0.5 0.3 41.4 100.0
1.6 1.4 1.3 1.2 1.2 1.2 1.1 1.1 1.1 1.0 0.9 0.9 0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 41.8 100.0
Table 11 % retail value rsp
Sales of Beauty and Personal Care by Distribution Format: % Analysis 2005-2010
2005 Store-Based Retailing - Grocery Retailers - - Discounters - - Small Grocery Retailers - - - Convenience Stores - - - Forecourt Retailers - - - Independent Small Grocers - - Supermarkets/ Hypermarkets - - Other Grocery Retailers - Non-Grocery Retailers - - Health and Beauty Retailers - - - Beauty Specialist Retailers - - - Chemists/Pharmacies 97.1 68.9 0.0 48.1 0.9 0.0 47.2 12.9 7.9 28.2 16.1 2.9 12.7
2006 96.9 68.6 0.0 47.1 0.9 0.0 46.2 13.8 7.7 28.3 16.0 3.0 12.4
2007 96.6 68.2 0.0 46.0 1.0 0.0 45.1 14.6 7.6 28.4 16.1 3.0 12.4
2008 96.4 68.1 0.0 45.7 1.0 0.0 44.7 15.4 7.0 28.4 16.1 3.0 12.4
2009 96.3 68.1 0.0 45.6 1.0 0.0 44.6 15.5 7.0 28.2 15.7 2.7 12.2
2010 95.9 67.4 0.0 44.7 1.0 0.0 43.7 16.1 6.6 28.6 15.8 2.7 12.3
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- - - Parapharmacies/ Drugstores - - - Other Health and Beauty Retailers - - Mixed Retailers - - - Department Stores - - - Mass Merchandisers - - - Variety Stores - - - Warehouse Clubs - - Outdoor Markets - - Other Non-Grocery Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing - Vending Total
Source:
0.0 0.5 9.8 9.8 0.0 0.0 0.0 2.3 0.0 2.9 2.9 0.0 0.0 0.0 100.0
0.0 0.6 10.2 10.2 0.0 0.0 0.0 2.2 0.0 3.1 3.1 0.0 0.0 0.0 100.0
0.0 0.7 10.4 10.4 0.0 0.0 0.0 1.9 0.0 3.4 3.4 0.0 0.0 0.0 100.0
0.0 0.7 10.5 10.5 0.0 0.0 0.0 1.8 0.0 3.6 3.6 0.0 0.0 0.0 100.0
0.0 0.8 10.9 10.9 0.0 0.0 0.0 1.6 0.0 3.7 3.7 0.0 0.0 0.0 100.0
0.0 0.8 11.3 11.3 0.0 0.0 0.0 1.5 0.0 4.1 4.1 0.0 0.0 0.0 100.0
Table 12
Sales of Beauty and Personal Care by Category and by Distribution Format: % Analysis 2010
% retail value rsp BC Store-Based Retailing Grocery Retailers Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Supermarkets/Hypermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Outdoor Markets Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 99.6 52.1 0.0 35.5 0.0 0.0 35.5 14.5 2.1 47.5 46.1 0.3 45.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.4 0.0 0.4 0.4 0.0 0.0 0.0 100.0 HC Store-Based Retailing Grocery Retailers 97.9 73.4 BS 98.5 85.2 0.0 56.0 0.8 0.0 55.3 17.3 11.9 13.3 9.6 1.0 8.6 0.0 0.0 1.4 1.4 0.0 0.0 0.0 2.3 0.0 1.5 1.5 0.0 0.0 0.0 100.0 MG 97.0 63.8 CC 84.5 29.5 0.0 14.5 0.0 0.0 14.5 15.0 0.0 55.0 18.5 14.5 4.0 0.0 0.0 35.5 35.5 0.0 0.0 0.0 1.0 0.0 15.5 15.5 0.0 0.0 0.0 100.0 OC 96.4 72.9 D 96.0 42.7 0.0 17.2 1.2 0.0 16.0 18.0 7.5 53.3 29.5 8.0 21.5 0.0 0.0 22.5 22.5 0.0 0.0 0.0 1.3 0.0 4.0 4.0 0.0 0.0 0.0 100.0 SC 88.6 33.5 DP 100.0 56.0 0.0 42.0 0.0 0.0 42.0 14.0 0.0 44.0 43.8 3.0 40.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SU 91.1 40.6 F 93.5 21.5 0.0 10.0 0.0 0.0 10.0 11.5 0.0 72.0 14.5 11.0 3.5 0.0 0.0 56.0 56.0 0.0 0.0 0.0 1.5 0.0 6.5 6.5 0.0 0.0 0.0 100.0 SK 0.0 0.0
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Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Supermarkets/Hypermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Outdoor Markets Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total
Source: Key:
0.0 53.5 1.5 0.0 52.0 17.3 2.6 24.5 12.7 2.8 6.5 0.0 3.4 11.0 11.0 0.0 0.0 0.0 0.8 0.0 2.1 2.1 0.0 0.0 0.0 100.0
0.0 37.8 1.5 0.0 36.2 14.9 11.2 33.2 15.7 2.6 12.9 0.0 0.2 15.8 15.8 0.0 0.0 0.0 1.7 0.0 3.0 3.0 0.0 0.0 0.0 100.0
0.0 54.3 0.8 0.0 53.5 16.0 2.6 23.5 12.7 0.0 12.7 0.0 0.0 10.7 10.7 0.0 0.0 0.0 0.1 0.0 3.6 3.6 0.0 0.0 0.0 100.0
0.0 12.6 1.6 0.0 11.0 13.0 7.9 55.1 32.5 3.5 29.0 0.0 0.0 20.0 20.0 0.0 0.0 0.0 2.6 0.0 11.4 11.4 0.0 0.0 0.0 100.0
0.0 28.0 0.0 0.0 28.0 12.6 0.0 50.5 26.0 4.0 22.0 0.0 0.0 23.0 23.0 0.0 0.0 0.0 1.5 0.0 8.9 8.9 0.0 0.0 0.0 100.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BC = baby care; BS = bath and shower; CC = colour cosmetics; D = deodorants; DP = depilatories; F = fragrances; HC = hair care; MG = mens grooming; OC = oral care; SC = skin care; SU = sun care; SK = sets/kits
Table 13 Rs million
Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015
2010 Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care
2011 6,108.0 109,127.4 20,809.5 9,993.5 4,836.3 7,381.4 85,497.4 27,551.7 49,925.7 49,925.7 45,635.4 1,408.7 13,028.1 272,933.2 356,873.8
2012 6,368.2 113,782.3 24,955.5 12,149.7 5,817.8 8,512.2 92,418.5 30,789.6 52,614.4 52,614.4 50,750.3 1,538.1 15,253.9 295,221.0 385,604.0
2013 6,661.4 118,386.2 29,611.1 14,174.4 6,924.1 9,745.6 100,613.7 34,346.5 55,365.6 55,365.6 55,966.6 1,664.5 17,815.1 319,008.2 416,516.0
2014 6,975.9 122,924.3 34,786.2 16,125.9 8,152.4 11,082.5 110,192.4 38,223.3 58,158.0 58,158.0 61,263.3 1,785.0 20,670.3 344,465.2 449,674.4
2015 7,320.6 127,253.3 40,514.5 17,950.4 9,518.2 12,515.6 121,253.0 42,416.5 60,949.7 60,949.7 66,564.6 1,897.0 24,124.1 371,145.0 484,925.4
5,866.8 104,751.7 17,387.5 7,929.6 4,042.3 6,473.6 79,768.2 24,985.6 47,265.4 47,265.4 40,950.4 1,292.3 11,230.7 253,189.4 331,496.3
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour cosmetics, hair care, fragrances, skin care and sun care Sum of categories is greater than market size because the four mens toiletries categories are included in mens grooming as well as in bath and shower, deodorants, hair care and skin care.
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Table 14
Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care
2010/15 TOTAL 24.8 21.5 133.0 126.4 135.5 93.3 52.0 69.8 29.0 29.0 62.5 46.8 114.8 46.6 46.3
4.5 4.0 18.4 17.8 18.7 14.1 8.7 11.2 5.2 5.2 10.2 8.0 16.5 7.9 7.9
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour cosmetics, hair care, fragrances, skin care and sun care Sum of categories is greater than market size because the four mens toiletries categories are included in mens grooming as well as in bath and shower, deodorants, hair care and skin care.
Table 15 Rs million
Forecast Sales of Premium Cosmetics by Category: Value 2010-2015
2010 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:
2011 0.0 1,091.3 1,206.9 174.9 4,998.3 3,152.4 2,318.3 85.9 13,028.1
2012 0.0 1,137.8 1,497.3 218.7 5,906.4 3,684.7 2,715.2 93.8 15,253.9
2013 0.0 1,243.1 1,835.9 255.1 6,915.3 4,313.3 3,149.2 103.2 17,815.1
2014 0.0 1,290.7 2,261.1 298.3 8,029.6 5,054.7 3,625.2 110.7 20,670.3
2015 0.0 1,399.8 2,836.0 332.1 9,245.5 6,047.2 4,140.2 123.3 24,124.1
0.0 995.1 973.7 138.8 4,248.9 2,781.5 2,015.1 77.5 11,230.7
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.
Table 16
Forecast Sales of Premium Cosmetics by Category: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care 4.5 7.1 23.8 19.1 16.8 16.8 15.5 2010/15 TOTAL 24.8 40.7 191.3 139.3 117.6 117.4 105.5
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Premium Sun Care Premium Sets/Kits Premium Cosmetics

Source: Note:
9.7 16.5
59.0 114.8
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.
Table 17 Rs million
Forecast Sales of Beauty and Personal Care by Region: Value 2010-2015
2010 East and Northeast India North India South India West India India
Source:
2011 63,844.9 96,494.0 96,907.6 99,627.3 356,873.8
2012 69,164.6 104,525.7 104,051.9 107,861.9 385,604.0
2013 74,943.3 113,092.7 111,671.2 116,808.8 416,516.0
2014 81,218.8 122,187.6 119,862.8 126,405.2 449,674.4
2015 87,969.0 131,814.8 128,508.1 136,633.5 484,925.4
59,255.3 89,245.0 90,590.2 92,405.8 331,496.3
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
Table 18
Forecast Sales of Beauty and Personal Care by Region: % Value Growth 2010-2015
% constant value growth 2010-15 CAGR East and Northeast India North India South India West India India
Source:
2010/15 TOTAL 48.5 47.7 41.9 47.9 46.3
8.2 8.1 7.2 8.1 7.9
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
DEFINITIONS
This report analyses the market for Beauty and Personal Care in India. For the purposes of the study, the market has been defined as follows: Baby care Bath and shower Colour cosmetics Deodorants Depilatories Fragrances Hair care Mens grooming Oral hygiene Skin care Sun care Sets/kits
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Explanations of words and/or terminology used in this report are as follows: Kajal/kohl: traditional black eyeliner
Sources used during the research included the following:

Summary 1 Official Sources Research Sources National Council for Applied Economic Research National Information Centre Trade Associations All India Small Scale Cosmetics Manufacturers Association FICCI Fragrances & Flavours Association of India Indian Direct Selling Association Indian Soaps & Toiletries Makers Association Indian Society of Cosmetics & Chemists Trade Press Advertising & Marketing Asian Age, The Beauty Business News Brand Equity Broker Research Business Standard Business Today Capital Market Cosmade.com Cosmetique News Daily News & Analysis E Strategic Marketing Website Economic Times, The Equity Master ET Intelligence Group European Cosmetic Markets Femina Magazine Financial Express, The Financial Times Forbes Happi Magazine Hindu Business Line, The Hindu, The Hindustan Times ICN India South Asia India Infoline India Today
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Indian Express International Cosmetique News Livemint Mag India nfibeam.com Outlook Magazine Pitch Responservice slideshare.net Soap Perfumery & Cosmetics The Hindu Times of India watblog.com
Source: Euromonitor International
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Beauty and Personal Care in India

Euromonitor International August 2011

Beauty and Personal Care

List of Contents and Tables

Beauty and Personal Care

BEAUTY AND PERSONAL CARE IN INDIA

Natural and Herbal-based Products Find Traction

Mens Grooming Takes Off

Direct Sellers Make Deep Inroads

Steady Growth Forecast for Beauty and Personal Care

KEY TRENDS AND DEVELOPMENTS

Beauty and Personal Care

Direct Sellers Hit the Right Notes

Beauty and Personal Care

Higher Value-added Brands Make Headway

Products With Modern Formats Increase Presence

Beauty and Personal Care

Multinational Companies Shares Rise

Beauty and Personal Care

TERRITORY KEY TRENDS AND DEVELOPMENTS

Beauty and Personal Care

Beauty and Personal Care

Beauty and Personal Care

Beauty and Personal Care

Beauty and Personal Care

RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS

Beauty and Personal Care

Sales of Beauty and Personal Care by Category: Value 2005-2010

Beauty and Personal Care

Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010

Sales of Premium Cosmetics by Category: Value 2005-2010

0.0 475.2 79.3 26.0 1,515.9 882.6 788.2 40.8 3,807.9

Sales of Premium Cosmetics by Category: % Value Growth 2005-2010

Beauty and Personal Care

23.7 21.8 17.0 25.4

25.8 20.7 13.7 24.1

215.1 155.7 90.2 194.9

Sales of Beauty and Personal Care by Region: Value 2005-2010

2006 35,297.1 52,862.3 53,962.9 55,622.8 197,745.2

2007 39,604.5 59,393.3 60,321.0 62,284.9 221,603.8

2008 45,613.2 68,848.0 69,810.5 71,511.8 255,783.5

2009 52,030.7 78,325.4 79,604.2 81,174.6 291,134.9

2010 59,255.3 89,245.0 90,590.2 92,405.8 331,496.3

31,690.0 47,441.0 48,750.5 50,270.6 178,152.1

Sales of Beauty and Personal Care by Region: % Value Growth 2005-2010

2005-10 CAGR 13.3 13.5 13.2 12.9 13.2

2005/10 TOTAL 87.0 88.1 85.8 83.8 86.1

13.9 13.9 13.8 13.8 13.9

Table 8 % retail value rsp Company

Beauty and Personal Care Company Shares by NBO 2006-2010

2006 6.6 4.8 4.0 2.2 2.8 1.7

2007 34.6 6.8 4.9 4.1 2.5 2.8 1.8

2008 34.7 6.8 5.0 4.2 2.8 2.7 2.1

2009 33.5 6.9 5.0 4.4 3.1 2.8 2.7

2010 32.9 6.8 4.9 4.7 3.4 3.2 2.9

Beauty and Personal Care

Table 9 % retail value rsp Company

Beauty and Personal Care Company Shares by GBO 2006-2010

2006 35.4 6.6 4.5 4.8 4.0 2.2 1.7 2.3

2007 34.9 6.8 4.7 4.9 4.1 2.6 1.8 2.5

2008 34.9 6.8 4.8 5.0 4.2 3.0 2.1 2.5

2009 33.7 6.9 5.0 5.0 4.4 3.3 2.7 2.7

2010 33.1 6.8 5.4 4.9 4.7 3.6 2.9 2.9