A Study on Men’s Personal Care Industry in Dubai

A study on Men’s Personal Care Industry in DubaiCRP Group 3Viren Baid | Ameya Sonkusale | Ayush Golyan

Agenda• Why men’s personal care industry?

• Research Methodology

• Aim and Objectives

• Market Scenario

• Key Trends and Developments

• Primary Research

• Analysis and Interpretation

• Prospects

• Recommendations

2CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3

Why Men’s Personal Care Industry?• Growth of 7% in the year 2013 which amounts to AED213 million

• The value growth outperformed volume growth

• Increased contribution margin across all products in men’s personal care categories in

2013

• AED 150 million, highest value contribution for Men’s shaving products category in 2013


Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014

Research Methodology• Conduct a detailed analysis of the men’s personal care industry by reviewing journals,

case studies & papers, expert opinions, research databases and peer reviewed business

journals

• Conducting primary research by interacting with distributors and retail store managers

having in-depth interviews


Aim and Objectives


1• Identify the key drivers, trends and challenges within the industry

2

• Study the companies in the industry and their market share, pricing and product portfolios

3• To understand the impact of Expo 2020 on the men’s personal care industry

Market Scenario


World

• Positive growth and varying demand depending on region

• No longer a women dominated industry

UAE &

Dubai

• Expected CAGR 5%, value rising to AED 271 million by 2018

• Expatriates are a major reason for the boom in the industry

• Grooming is a daily ritual and a big part of everyday life for men

• Personal care expenses: AED 1,131 in 2013 to AED 1,280 AED by 2018


Why Men’s Shaving Category?


73%

27%

Men's Personal Care Industry 2012-13

Men's Shaving Men's Toiletries

72%

28%



72%

28%



72%

28%




Market Overview - 2013Men’s Grooming

Market - AED 212.7 Million

Men’s Shaving Products - AED 154.5 Million

Men’s Shaving Products

Growth - 4.6%

Men’s shaving products

category form 73% of the

market share

CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 8

Key Trends & Developments


PEST Analysis of Dubai


Increase in Disposable Income & Consumer Confidence


TRENDS

Increase in disposable income & consumer confidence

• Aftermath of global economic crises

• Highest standard of living in the world

• UAE GDP growth: 4% (2013) and 4.4%

• (2014, expected)

• Shift of focus from traditional products to

more specialized products

• Industry growth: 7% in 2013

Rising importance of having a well groomed personality


TRENDS

Increase in disposable income & consumer confidence Rising

importance of having a

well groomed

personality

• Increasing awareness of having a well groomed

personality

• Charismatic appearance and image through personal

grooming

• Potent product launches by leading international

players like Proctor & Gamble and Unilever

• Increase in efforts put in for advertisement

Massive Influx of Expatriates


TRENDS



well groomed

personality

Massive Influx of

Expatriates

• Majority of jobs undertaken by expatriates

require high standard of personal grooming

• Pre-set and a ready base of consumers which is

available to the competing brands to be exploited

• Men in the UAE are more involved with using

cosmetics and grooming products when compared

to men in other Gulf countries

Increase in Product Offerings


TRENDS



well groomed

personality

Massive Influx of

Expatriates

Increase in Product

Offerings

• Recent past the personal care products available for

men were limited

• Male-specific beauty and personal care products

by premium beauty and personal care brands

• Available in department stores, hair salons and

multi-brand beauty specialist retailers

• Beauty specialist retailers widely available in the UAE

Growth in Sub Segments


TRENDS



well groomed

personality

Massive Influx of

Expatriates

Increase in Product

Offerings

Growth in Sub

Segments

• Hair Care: From AED 507.9 million in

2012 to AED 644 million by 2017

• Urban Male Lounge, 1847 and Man/Age

• Toiletries market leader: Gillette

• Personal Care Appliances

Pricing Trends


TRENDS



well groomed

personality

Massive Influx of

Expatriates

Increase in Product

Offerings

Growth in Sub

Segments

Pricing Trends

• Cost of raw materials majorly factors affect the

final price of the products in the personal care industry

• Year: 2013, the average unit price increased

• Products offered in the men’s personal care

industry are niche

• Market leaders can raise the prices without having

to worry about the fall in demand of their products

Primary ResearchInterview by Mr. Nitin H. Nandwani, General Manager, Roophar Trading LLC

• Current trends and scenario in the men’s personal care industry

• Government regulations

• Competition

• Challenges

• Role of regional culture

• Marketing strategies

• Product Packaging


Analysis & Interpretation


Company Shares of Men’s Grooming: % Value 2012-2013


36%

15%10%

7%

5%

5%

2%

1%1%

18%

Company Shares of Men’s Grooming: % Value 2013

Procter & Gamble Gulf FZE

SuperMax Corp

Beiersdorf Middle East

Malhotra Shaving Products PvtLtdUnilever Gulf FZE

Coty Inc

Sté Bic SA

L'Oréal Middle East FZE

Unilever Middle East

Others

36%

15%10%

7%

4%

5%

2%

1%1%

19%

Company Shares of Men’s Grooming: % Value 2012Procter & Gamble Gulf FZE

SuperMax Corp

Beiersdorf Middle East

Malhotra Shaving Products PvtLtdUnilever Gulf FZE

Coty Inc

Sté Bic SA

L'Oréal Middle East FZE

Unilever Middle East

Others


Sales of Men’s Grooming by Category: Value (AED million) 2008-2013


0

50

100

150

200

250

Men's Shaving Men's Post-Shave

Men's Pre-Shave Men's Razorsand Blades

Men's Toiletries Men's Bath andShower

Men'sDeodorants

Men's Hair Care Men's Skin Care Men's Grooming

2008

2009

2010

2011

2012

2013


Forecast Sales of Men’s Grooming by Category: Value (AED Million) 2013-2018


0

50

100

150

200

250

300

Men's Shaving Men's Post-Shave

Men's Pre-Shave

Men's Razorsand Blades

Men'sToiletries

Men's Bathand Shower

Men'sDeodorants

Men's HairCare

Men's SkinCare

Men'sGrooming

2013

2014

2015

2015

2016

2017


Brand Shares of Men’s Grooming: % Value 2010-2013



0

5

10

15

20

25

30

2010

2011

2012

2013

Prospects


Compounded Annual Growth Rate


4.6

6

0

1

2

3

4

5

6

7


CAGR - Product Segments

CAGR - ProductSegments

4.6

5.7 5.8

3.9

0

1

2

3

4

5

6

7

Men'sShaving

Men's Post-Shave

Men's Pre-Shave

Men's Razorsand Blades

CAGR - Men's Shaving

CAGR

6

7.3

5.4

7.4 7.5

0

1

2

3

4

5

6

7

8

CAGR - Men's Toiletries

CAGR - Men's Toiletries


Recommendations• Companies like Malhotra Shaving Products LTD, Beiersdorf Middle East need to strengthen

their distribution network in order to spread their reach in the market and be easily

accessible to the customers.

• In order to increase the popularity of their products and increase the awareness of their

brands they can have tie-ups with MNCs set up in Dubai to provide grooming solutions to

their employees at a discounted rates.

• They can also have tie-ups with international gyms as well as local reputed gyms frequented

by the locals and the expats all over Dubai in order to increase their brand awareness and

sales.


Recommendations• They can collaborate with various professional apparels’ brands for men like Boggi, Brioni,

Andrew’s Ties etc. and give the customers trial offers and trial products

• There are many sporting events like Gulf Cup (football), BWF Destination Dubai World Series,

FIT Awards and so on. In order to gain brad awareness and recognition these companies can

go ahead and be the title sponsors of such sporting events


Recommendations• Companies can target the labour class in Dubai by setting up small kiosks near their

residential areas as well as near their work locations and make the lower price segment

products easily accessible to them.

• Dubai Expo 2020 will give a tremendous surge to the revenues from the sale of personal care

products for a short period of time, all the companies need to have a proper demand forecast

for the period to avoid the ‘Bull Whip Effect’ and accordingly stack up their inventories


Thank You!CRP Group 3Viren Baid | Ameya Sonkusale | Ayush Golyan

A Study on Men’s Personal Care Industry in Dubai

Lifestyle

Transcript of A Study on Men’s Personal Care Industry in Dubai