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

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Beauty and Personal Care in India

Euromonitor International

August 2011


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Beauty and Personal Care India

Euromonitor International Page i

List of Contents and Tables

Executive Summary ................................................................................................................................................ 1Beauty and Personal Care Market Going Strong in 2010 .................. ...................... ..................... ..................... ...... 1Natural and Herbal-based Products Find Traction ..................... ...................... ..................... ..................... ............. 1Mens Grooming Takes Off ................... ...................... ..................... ..................... ...................... ..................... ......... 1Direct Sellers Make Deep Inroads ................... ..................... ...................... ..................... ..................... .................... 1Steady Growth Forecast for Beauty and Personal Care ........................................................................................... 1Key Trends and Developments .............................................................................................................................. 1Natural and Herbal-based Products Gain Traction ..................... ...................... ..................... ..................... ............. 1Direct Sellers Hit the Right Notes .................... ..................... ...................... ..................... ..................... .................... 2Higher Value-added Brands Make Headway ..................... ..................... ..................... ...................... ..................... .. 3Products With Modern Formats Increase Presence ..................... ...................... ..................... ..................... ............. 3Multinational Companies Shares Rise ................... ..................... ...................... ..................... ..................... ............. 4Territory Key Trends and Developments ............................................................................................................. 5East and Northeast India ................................. ..................... ...................... ..................... ..................... .................... 5North India .................... ..................... ..................... ..................... ...................... ..................... ..................... ............. 6South India ................................................................................................................................................................ 7West India ................................................................................................................................................................. 9Rural Vs Urban Key Trends and Developments .................................................................................................10Trends ......................................................................................................................................................................10Market Data ...........................................................................................................................................................11

Table 1 Sales of Beauty and Personal Care by Category: Value 2005-2010 .................................11Table 2 Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010 ................12Table 3 Sales of Premium Cosmetics by Category: Value 2005-2010 ..........................................12Table 4 Sales of Premium Cosmetics by Category: % Value Growth 2005-2010 .................... .....12Table 5 Sales of Beauty and Personal Care by Region: Value 2005-2010 .................................... 13Table 6 Sales of Beauty and Personal Care by Region: % Value Growth 2005-2010 ...................13Table 7 Sales of Beauty and Personal Care by Rural-Urban % Analysis 2010 .............................13Table 8 Beauty and Personal Care Company Shares by NBO 2006-2010 ...................... ...............13Table 9 Beauty and Personal Care Company Shares by GBO 2006-2010 ...................... ...............14Table 10 Beauty and Personal Care Brand Shares by GBN 2007-2010 ..........................................15Table 11 Sales of Beauty and Personal Care by Distribution Format: % Analysis 2005-

2010 ..................................................................................................................................16Table 12 Sales of Beauty and Personal Care by Category and by Distribution Format:

% Analysis 2010 ...............................................................................................................17Table 13 Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015 ...................18Table 14 Forecast Sales of Beauty and Personal Care by Category: % Value Growth

2010-2015 .........................................................................................................................19Table 15 Forecast Sales of Premium Cosmetics by Category: Value 2010-2015 .................... ........19Table 16 Forecast Sales of Premium Cosmetics by Category: % Value Growth 2010-

2015 ..................................................................................................................................19Table 17 Forecast Sales of Beauty and Personal Care by Region: Value 2010-2015 ..................... .20Table 18 Forecast Sales of Beauty and Personal Care by Region: % Value Growth

2010-2015 .........................................................................................................................20Definitions ...............................................................................................................................................................20

Summary 1 Research Sources ..............................................................................................................21


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Euromonitor International Page 1

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), whichtypically 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-fashionedplatform 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 productsincreased 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 boostoverall 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 resultof 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 practicallyevery 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 inhair 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 naturalingredients 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 theadvantage 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 andpersonal 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 store-

based 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 companieswas 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 retailas 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 beginningto 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 tobe 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 store-

based 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% invalue 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 foreignbrands. 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 womenmoving 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 previouslyseen. 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 hairconditioner, 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 togrow 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 willhelp 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 anincrease 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 reacheda 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 2009and 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 theSebastian 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 thelevel 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 domesticcompanies. 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 competingstrongly 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 regionsaw 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 fromleading 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 andfragrances. 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 playersin 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 theadvantage of a good network of distributors across urban and rural areas. Kolkata-based Emami Ltd has astrong 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 itsNeutrogena 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 othergrooming products. Premium to semi-premium brands, like Nivea, LOral and Revlon, as well as mass-

market 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, likeSiliguri, 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 thecountry, 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 areexpected 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 newlaunches 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 regionaccounted 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, despitethe base already being large. Several categories besides colour cosmetics saw strong growth. Menstoiletries 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 andmoisturisers 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.


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 Fembleach, 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. Thesetypically 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 theforecast 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, asregions 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 inpart 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 useproducts 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. Theorganised 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, assuch, 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. FutureGroup 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.


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 brandambassador. The brand is running two TV advertising campaigns featuring Shah Rukh Khan. Oral care alsorecently 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 hasrepackaged 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 notusually 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 thisindustry 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 fromLOral, 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 advertisedheavily. 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 theirpurse 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 onnew-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 tothose 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. Thismakes 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 theindustry 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 significantproportion of many companies sales.

Skin care, hair care and colour cosmetics are rapidly growing categories in this region. With Mumbai citydrawing 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 must-

have 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 grewby 71%, from a small base.

West India is also more developed than other regions in terms of infrastructure, making market penetrationeasier 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.


Several major beauty and personal care companies are based in Mumbai. Consequently, particular attentionis 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 highprofile, 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 toa 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 economicactivity 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 forecastperiod. 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, ruralareas share grew steadily over the review period.

Due to increasing saturation and cut-throat competition in urban India, many FMCG companies aredevising 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 deepinto 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 forcolour 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 caremarket. There are numerous affluent families in the rural regions of Delhi, Punjab and Haryana withhousehold 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 areincreasingly 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 inIndia 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 growrapidly due to increasing awareness, supported by advertising campaigns and manufacturers efforts to

penetrate rural areas with their oral care products.


Historically, Hindustan Unilever Ltd, ITC Ltd, Colgate-Palmolive, Dabur India Ltd, Marico Ltd and GodrejConsumer 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 hithertountapped areas.


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Word-of-mouth is a significant driving force in rural markets, while retailers are another key influence ofthe 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 incommunity 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. Aswell 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 beingrelaunched 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 likeMumbai, Kolkata and Chennai are all expected to benefit from their proximity to the urban centres in termsof availability of products and awareness.

The Indian skin care solutions business is growing rapidly, with safe and effective procedures, advances inmedical 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 keyraw 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 Sales of Beauty and Personal Care by Category: Value 2005-2010

Rs million2005 2006 2007 2008 2009 2010

Baby Care 3,898.8 4,220.9 4,591.8 4,953.4 5,378.3 5,866.8Bath and Shower 59,395.8 65,744.3 72,714.8 84,922.0 94,790.1 104,751.7Colour Cosmetics 4,954.7 6,506.8 8,496.2 11,013.4 13,834.5 17,387.5

Deodorants 1,854.6 2,225.6 2,833.9 3,930.7 5,672.9 7,929.6Depilatories 1,300.5 1,642.4 2,051.1 2,602.9 3,208.2 4,042.3Fragrances 2,754.1 3,279.2 3,907.7 4,624.0 5,387.6 6,473.6Hair Care 42,256.3 47,167.7 52,938.8 61,025.5 70,566.6 79,768.2Men's Grooming 12,428.9 13,882.7 15,642.0 17,750.9 21,040.4 24,985.6Oral Care 29,054.7 31,151.3 34,089.5 37,752.6 41,917.8 47,265.4Oral Care excl Power 29,054.7 31,151.3 34,089.5 37,752.6 41,917.8 47,265.4

ToothbrushesSkin Care 21,122.1 23,548.7 26,659.3 30,632.6 34,760.5 40,950.4Sun Care 755.1 842.3 944.8 1,041.0 1,123.5 1,292.3Sets/Kits - - - - - -Premium Cosmetics 3,807.9 4,725.8 5,964.0 7,382.2 8,958.9 11,230.7Mass Cosmetics 133,183.7 148,809.8 167,123.4 194,760.4 222,555.1 253,189.4Beauty and Personal Care 178,152.1 197,745.2 221,603.8 255,783.5 291,134.9 331,496.3Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sourcesNote 1: 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 mensgrooming 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 growth2009/10 2005-10 CAGR 2005/10 TOTAL

Baby Care 9.1 8.5 50.5Bath and Shower 10.5 12.0 76.4Colour Cosmetics 25.7 28.5 250.9Deodorants 39.8 33.7 327.6Depilatories 26.0 25.5 210.8Fragrances 20.2 18.6 135.1Hair Care 13.0 13.6 88.8Men's Grooming 18.8 15.0 101.0Oral Care 12.8 10.2 62.7Oral Care excl Power Toothbrushes 12.8 10.2 62.7Skin Care 17.8 14.2 93.9Sun Care 15.0 11.3 71.1Sets/Kits - - -Premium Cosmetics 25.4 24.1 194.9Mass Cosmetics 13.8 13.7 90.1Beauty and Personal Care 13.9 13.2 86.1Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sourcesNote 1: 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.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 3 Sales of Premium Cosmetics by Category: Value 2005-2010

Rs million2005 2006 2007 2008 2009 2010

Premium Baby Care 0.0 0.0 0.0 0.0 0.0 0.0Premium Bath and Shower 475.2 526.0 654.4 721.8 853.1 995.1Premium Colour Cosmetics 79.3 143.2 271.9 440.5 622.6 973.7Premium Deodorants 26.0 33.4 48.2 64.9 96.4 138.8Premium Fragrances 1,515.9 1,887.3 2,341.9 2,863.5 3,416.9 4,248.9Premium Hair Care 882.6 1,173.2 1,475.2 1,822.8 2,249.1 2,781.5Premium Skin Care 788.2 916.6 1,119.5 1,408.3 1,654.4 2,015.1Premium Sun Care 40.8 46.3 52.9 60.4 66.3 77.5Premium Sets/Kits - - - - - -Premium Cosmetics 3,807.9 4,725.8 5,964.0 7,382.2 8,958.9 11,230.7

Source: Euromonitor International from official statistics, trade associations, trade press, company research, storechecks, trade interviews, trade sources

Note: 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 4 Sales of Premium Cosmetics by Category: % Value Growth 2005-2010


Premium Baby Care 9.1 8.5 50.5Premium Bath and Shower 16.6 15.9 109.4Premium Colour Cosmetics 56.4 65.1 1,128.3Premium Deodorants 43.9 39.8 434.5Premium Fragrances 24.4 22.9 180.3


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Premium Hair Care 23.7 25.8 215.1Premium Skin Care 21.8 20.7 155.7Premium Sun Care 17.0 13.7 90.2Premium Sets/Kits - - -Premium Cosmetics 25.4 24.1 194.9Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sourcesNote: 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 5 Sales of Beauty and Personal Care by Region: Value 2005-2010

Rs million2005 2006 2007 2008 2009 2010

East and Northeast India 31,690.0 35,297.1 39,604.5 45,613.2 52,030.7 59,255.3North India 47,441.0 52,862.3 59,393.3 68,848.0 78,325.4 89,245.0South India 48,750.5 53,962.9 60,321.0 69,810.5 79,604.2 90,590.2West India 50,270.6 55,622.8 62,284.9 71,511.8 81,174.6 92,405.8

India 178,152.1 197,745.2 221,603.8 255,783.5 291,134.9 331,496.3Source: 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


East and Northeast India 13.9 13.3 87.0North India 13.9 13.5 88.1South India 13.8 13.2 85.8

West India 13.8 12.9 83.8India 13.9 13.2 86.1Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 7 Sales of Beauty and Personal Care by Rural-Urban % Analysis 2010

Urban Rural Total

India 69.0 31.0 100.0Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 8 Beauty and Personal Care Company Shares by NBO 2006-2010

% retail value rspCompany 2006 2007 2008 2009 2010

Hindustan Unilever Ltd - 34.6 34.7 33.5 32.9Colgate-Palmolive India 6.6 6.8 6.8 6.9 6.8

LtdDabur India Ltd 4.8 4.9 5.0 5.0 4.9Godrej Consumer 4.0 4.1 4.2 4.4 4.7

Products LtdL'Oral India Pvt Ltd 2.2 2.5 2.8 3.1 3.4

Gillette India Ltd 2.8 2.8 2.7 2.8 3.2Reckitt Benckiser 1.7 1.8 2.1 2.7 2.9(India) Ltd


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Wipro Ltd 2.3 2.5 2.5 2.7 2.9Marico Ltd 2.6 2.5 2.3 2.3 2.3Johnson & Johnson 2.3 2.2 2.1 2.1 2.1

(India) LtdProcter & Gamble Home 1.7 1.9 2.0 2.1 2.1

Products Ltd

CavinKare Pvt Ltd 1.8 1.9 1.9 1.9 1.8Amway India Enterprises 1.5 1.5 1.5 1.6 1.7

Pvt LtdEmami Ltd 1.1 1.3 1.3 1.4 1.5ITC Ltd - - 0.7 1.2 1.4Nirma Ltd 2.4 2.2 1.9 1.7 1.4Modi Revlon Pvt Ltd 0.9 1.0 1.1 1.1 1.2Oriflame India Pvt Ltd 0.5 0.7 0.8 1.0 1.1Anchor Health & Beauty 0.5 0.4 0.6 0.8 0.9

Care Pvt LtdHenkel India Ltd 0.9 0.9 0.8 0.7 0.7Hygienic Research 0.5 0.6 0.6 0.6 0.6

InstituteBajaj Consumer Care Ltd 0.8 0.7 0.7 0.6 0.6Vidyut Metallics Ltd 0.8 0.7 0.7 0.6 0.6Malhotra Shaving 0.8 0.8 0.7 0.6 0.5

Products LtdParas Pharmaceuticals Ltd 0.2 0.2 0.2 0.4 0.5Cholayil 0.9 0.9 0.9 0.6 0.5

Pharmaceuticals Pvt LtdNivea India Pvt Ltd 0.2 0.3 0.3 0.4 0.4Avon Beauty Products 0.3 0.3 0.3 0.3 0.4

India Pvt LtdHimalaya Drug Co, The 0.3 0.3 0.3 0.3 0.3Zydus Wellness Ltd - - - 0.3 0.3Dey's Medical Stores 0.5 0.4 0.4 0.3 0.3

Mfg LtdColorbar Cosmetics Pvt 0.1 0.1 0.2 0.2 0.2

Ltd

Wyeth Ltd 0.2 0.2 0.2 0.2 0.2McNroe Chemicals Pvt Ltd - - 0.0 0.1 0.2Elca Cosmetics Pvt Ltd 0.0 0.1 0.1 0.2 0.2Modicare Ltd 0.1 0.1 0.2 0.2 0.2Quest Retail Pvt Ltd 0.0 0.1 0.2 0.2 0.2Menezes Cosmetics Pvt Ltd 0.2 0.2 0.2 0.2 0.2Hindustan Lever Network 0.2 0.2 0.2 0.2 0.2Lotus Herbals Ltd 0.2 0.2 0.2 0.2 0.2Cadila Healthcare Ltd 0.3 0.3 0.3 - -Fem Care Pharma Ltd 0.3 0.3 - - -Hindustan Lever Ltd 35.1 - - - -Others 17.2 16.5 15.3 14.4 13.4Total 100.0 100.0 100.0 100.0 100.0Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 9 Beauty and Personal Care Company Shares by GBO 2006-2010

% retail value rspCompany 2006 2007 2008 2009 2010

Unilever Group 35.4 34.9 34.9 33.7 33.1Colgate-Palmolive Co 6.6 6.8 6.8 6.9 6.8Procter & Gamble Co, The 4.5 4.7 4.8 5.0 5.4Dabur India Ltd 4.8 4.9 5.0 5.0 4.9Godrej Group 4.0 4.1 4.2 4.4 4.7L'Oral Groupe 2.2 2.6 3.0 3.3 3.6

Reckitt Benckiser Plc 1.7 1.8 2.1 2.7 2.9Wipro Ltd 2.3 2.5 2.5 2.7 2.9


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Marico Ltd 2.6 2.5 2.3 2.3 2.3Johnson & Johnson Inc 2.4 2.3 2.1 2.1 2.1CavinKare Pvt Ltd 1.8 1.9 1.9 1.9 1.8Amway Corp 1.5 1.5 1.5 1.6 1.7Emami Ltd 1.1 1.3 1.3 1.4 1.5ITC Ltd - - 0.7 1.2 1.4

Nirma Ltd 2.4 2.2 1.9 1.7 1.4Revlon Inc 0.9 1.0 1.1 1.1 1.2Oriflame Cosmetics SA 0.5 0.7 0.8 1.0 1.1Anchor Health & Beauty 0.5 0.4 0.6 0.8 0.9

Care Pvt LtdHenkel AG & Co KGaA 0.9 0.9 0.8 0.7 0.7Hygienic Research 0.5 0.6 0.6 0.6 0.6

InstituteBajaj Sevashram Ltd 0.8 0.7 0.7 0.6 0.6SuperMax Corp 0.8 0.7 0.7 0.6 0.6Malhotra Shaving 0.8 0.8 0.7 0.6 0.5

Products LtdParas Pharmaceuticals Ltd 0.2 0.2 0.2 0.4 0.5Cholayil 0.9 0.9 0.9 0.6 0.5

Pharmaceuticals Pvt LtdBeiersdorf AG 0.2 0.3 0.3 0.4 0.4Avon Products Inc 0.3 0.3 0.3 0.3 0.4Himalaya Drug Co, The 0.3 0.3 0.3 0.3 0.3Zydus Wellness Ltd - - - 0.3 0.3Energizer Holdings Inc 0.4 0.4 0.3 0.3 0.3Dey's Medical Stores 0.5 0.4 0.4 0.3 0.3

Mfg LtdColorbar Cosmetics Pvt 0.1 0.1 0.2 0.2 0.2

LtdPfizer Inc - - - 0.2 0.2McNroe Chemicals Pvt Ltd - - 0.0 0.1 0.2Este Lauder Cos Inc 0.0 0.1 0.1 0.2 0.2KK Modi Group, The 0.1 0.1 0.2 0.2 0.2Lotus Herbals Ltd 0.2 0.2 0.2 0.2 0.2

Three-N-Products Pvt Ltd 0.3 0.2 0.2 0.2 0.1Coty Inc 0.1 0.1 0.1 0.1 0.1VI John Group 0.2 0.2 0.1 0.1 0.1Others 17.3 16.6 15.1 13.7 12.7Total 100.0 100.0 100.0 100.0 100.0Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 10 Beauty and Personal Care Brand Shares by GBN 2007-2010

% retail value rspBrand Company 2007 2008 2009 2010

Fair & Lovely Hindustan Unilever Ltd 5.5 5.4 5.3 5.3Lux Hindustan Unilever Ltd 4.9 5.1 4.5 4.3Lifebuoy Hindustan Unilever Ltd 4.2 4.4 4.1 3.7Colgate Colgate-Palmolive India 3.2 3.3 3.6 3.6

LtdSantoor Wipro Ltd 2.3 2.3 2.6 2.7Dettol Reckitt Benckiser 1.6 1.9 2.4 2.6

(India) LtdClinic Plus Hindustan Unilever Ltd 2.3 2.3 2.2 2.1Dove Hindustan Unilever Ltd 0.6 0.8 1.5 2.0Godrej No 1 Godrej Consumer 1.7 1.8 1.9 1.9

Products LtdLakm Hindustan Unilever Ltd 1.6 1.6 1.7 1.8Pond's Hindustan Unilever Ltd 2.0 2.0 1.9 1.8

Johnson's Baby Johnson & Johnson 2.1 1.9 1.8 1.7(India) Ltd


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Pepsodent Hindustan Unilever Ltd 1.9 1.8 1.7 1.6Dabur Dabur India Ltd 1.3 1.4 1.4 1.4Cinthol Godrej Consumer 1.2 1.2 1.3 1.3

Products LtdParachute Marico Ltd 1.3 1.2 1.2 1.2Hamam Hindustan Unilever Ltd 1.2 1.2 1.3 1.2

Close-Up Hindustan Unilever Ltd 1.6 1.4 1.3 1.2Breeze Hindustan Unilever Ltd 2.0 1.8 1.3 1.1Head & Shoulders Procter & Gamble Home 1.1 1.2 1.2 1.1

Products LtdSunsilk Hindustan Unilever Ltd 1.1 1.1 1.1 1.1Pears Hindustan Unilever Ltd 0.8 0.9 1.0 1.0Godrej Hair Dye Godrej Consumer 0.9 0.8 0.9 0.9

Products LtdPantene Procter & Gamble Home 0.7 0.8 0.9 0.9

Products LtdOral-B Gillette India Ltd 0.4 0.5 0.5 0.8Colgate Total Colgate-Palmolive India 0.7 0.8 0.8 0.8

LtdColgate Tooth Powder Colgate-Palmolive India 1.2 1.1 0.9 0.8

LtdNima Nirma Ltd 1.0 0.9 0.9 0.7Dabur Vatika Dabur India Ltd 0.9 0.8 0.8 0.7Chik CavinKare Pvt Ltd 0.8 0.8 0.8 0.7Garnier Skin Naturals L'Oral India Pvt Ltd 0.5 0.5 0.6 0.7Vivel ITC Ltd - 0.3 0.5 0.7Nirma Nirma Ltd 1.2 1.0 0.8 0.6Clear Hindustan Unilever Ltd - - 0.4 0.6Axe Hindustan Unilever Ltd 0.3 0.4 0.5 0.6Bajaj Bajaj Consumer Care Ltd 0.7 0.7 0.6 0.6Babool Dabur India Ltd 0.6 0.5 0.6 0.6Nihar Marico Ltd 0.8 0.7 0.6 0.6Super-Max Vidyut Metallics Ltd 0.7 0.7 0.6 0.6Maybelline L'Oral India Pvt Ltd 0.4 0.5 0.5 0.6Clinic All Clear Hindustan Unilever Ltd 0.8 0.7 0.3 -

Others 41.9 41.4 41.4 41.8Total 100.0 100.0 100.0 100.0Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 11 Sales of Beauty and Personal Care by Distribution Format: % Analysis 2005-2010

% retail value rsp2005 2006 2007 2008 2009 2010

Store-Based Retailing 97.1 96.9 96.6 96.4 96.3 95.9- Grocery Retailers 68.9 68.6 68.2 68.1 68.1 67.4

- - Discounters 0.0 0.0 0.0 0.0 0.0 0.0- - Small Grocery 48.1 47.1 46.0 45.7 45.6 44.7Retailers

- - - Convenience Stores 0.9 0.9 1.0 1.0 1.0 1.0- - - Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0- - - Independent Small 47.2 46.2 45.1 44.7 44.6 43.7

Grocers- - Supermarkets/ 12.9 13.8 14.6 15.4 15.5 16.1

Hypermarkets- - Other Grocery 7.9 7.7 7.6 7.0 7.0 6.6

Retailers- Non-Grocery Retailers 28.2 28.3 28.4 28.4 28.2 28.6- - Health and Beauty 16.1 16.0 16.1 16.1 15.7 15.8

Retailers- - - Beauty Specialist 2.9 3.0 3.0 3.0 2.7 2.7

Retailers- - - Chemists/Pharmacies 12.7 12.4 12.4 12.4 12.2 12.3


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- - - Parapharmacies/ 0.0 0.0 0.0 0.0 0.0 0.0Drugstores

- - - Other Health and 0.5 0.6 0.7 0.7 0.8 0.8Beauty Retailers

- - Mixed Retailers 9.8 10.2 10.4 10.5 10.9 11.3- - - Department Stores 9.8 10.2 10.4 10.5 10.9 11.3

- - - Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0- - - Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0- - - Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0- - Outdoor Markets 2.3 2.2 1.9 1.8 1.6 1.5- - Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.0

RetailersNon-Store Retailing 2.9 3.1 3.4 3.6 3.7 4.1- Direct Selling 2.9 3.1 3.4 3.6 3.7 4.1- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0- Vending 0.0 0.0 0.0 0.0 0.0 0.0Total 100.0 100.0 100.0 100.0 100.0 100.0Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 12 Sales of Beauty and Personal Care by Category and by Distribution Format: % Analysis2010

% retail value rspBC BS CC D DP F

Store-Based Retailing 99.6 98.5 84.5 96.0 100.0 93.5Grocery Retailers 52.1 85.2 29.5 42.7 56.0 21.5Discounters 0.0 0.0 0.0 0.0 0.0 0.0Small Grocery Retailers 35.5 56.0 14.5 17.2 42.0 10.0Convenience Stores 0.0 0.8 0.0 1.2 0.0 0.0Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0

Independent Small Grocers 35.5 55.3 14.5 16.0 42.0 10.0Supermarkets/Hypermarkets 14.5 17.3 15.0 18.0 14.0 11.5Other Grocery Retailers 2.1 11.9 0.0 7.5 0.0 0.0Non-Grocery Retailers 47.5 13.3 55.0 53.3 44.0 72.0Health and Beauty 46.1 9.6 18.5 29.5 43.8 14.5

RetailersBeauty Specialist 0.3 1.0 14.5 8.0 3.0 11.0

RetailersChemists/Pharmacies 45.8 8.6 4.0 21.5 40.8 3.5Parapharmacies/Drugstores 0.0 0.0 0.0 0.0 0.0 0.0Other Health and Beauty 0.0 0.0 0.0 0.0 0.0 0.0

RetailersMixed Retailers 0.0 1.4 35.5 22.5 0.0 56.0Department Stores 0.0 1.4 35.5 22.5 0.0 56.0

Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0Outdoor Markets 1.4 2.3 1.0 1.3 0.2 1.5Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.0

RetailersNon-Store Retailing 0.4 1.5 15.5 4.0 0.0 6.5Direct Selling 0.4 1.5 15.5 4.0 0.0 6.5Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0Vending 0.0 0.0 0.0 0.0 0.0 0.0Total 100.0 100.0 100.0 100.0 100.0 100.0

HC MG OC SC SU SK

Store-Based Retailing 97.9 97.0 96.4 88.6 91.1 0.0Grocery Retailers 73.4 63.8 72.9 33.5 40.6 0.0


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Discounters 0.0 0.0 0.0 0.0 0.0 0.0Small Grocery Retailers 53.5 37.8 54.3 12.6 28.0 0.0Convenience Stores 1.5 1.5 0.8 1.6 0.0 0.0Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0Independent Small Grocers 52.0 36.2 53.5 11.0 28.0 0.0Supermarkets/Hypermarkets 17.3 14.9 16.0 13.0 12.6 0.0

Other Grocery Retailers 2.6 11.2 2.6 7.9 0.0 0.0Non-Grocery Retailers 24.5 33.2 23.5 55.1 50.5 0.0Health and Beauty 12.7 15.7 12.7 32.5 26.0 0.0

RetailersBeauty Specialist 2.8 2.6 0.0 3.5 4.0 0.0

RetailersChemists/Pharmacies 6.5 12.9 12.7 29.0 22.0 0.0Parapharmacies/Drugstores 0.0 0.0 0.0 0.0 0.0 0.0Other Health and Beauty 3.4 0.2 0.0 0.0 0.0 0.0

RetailersMixed Retailers 11.0 15.8 10.7 20.0 23.0 0.0Department Stores 11.0 15.8 10.7 20.0 23.0 0.0Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0Outdoor Markets 0.8 1.7 0.1 2.6 1.5 0.0Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.0

RetailersNon-Store Retailing 2.1 3.0 3.6 11.4 8.9 0.0Direct Selling 2.1 3.0 3.6 11.4 8.9 0.0Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0Vending 0.0 0.0 0.0 0.0 0.0 0.0Total 100.0 100.0 100.0 100.0 100.0 0.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, storechecks, trade interviews, trade sources

Key: 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 Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015

Rs million2010 2011 2012 2013 2014 2015

Baby Care 5,866.8 6,108.0 6,368.2 6,661.4 6,975.9 7,320.6Bath and Shower 104,751.7 109,127.4 113,782.3 118,386.2 122,924.3 127,253.3Colour Cosmetics 17,387.5 20,809.5 24,955.5 29,611.1 34,786.2 40,514.5Deodorants 7,929.6 9,993.5 12,149.7 14,174.4 16,125.9 17,950.4Depilatories 4,042.3 4,836.3 5,817.8 6,924.1 8,152.4 9,518.2Fragrances 6,473.6 7,381.4 8,512.2 9,745.6 11,082.5 12,515.6

Hair Care 79,768.2 85,497.4 92,418.5 100,613.7 110,192.4 121,253.0Men's Grooming 24,985.6 27,551.7 30,789.6 34,346.5 38,223.3 42,416.5Oral Care 47,265.4 49,925.7 52,614.4 55,365.6 58,158.0 60,949.7Oral Care excl Power 47,265.4 49,925.7 52,614.4 55,365.6 58,158.0 60,949.7

ToothbrushesSkin Care 40,950.4 45,635.4 50,750.3 55,966.6 61,263.3 66,564.6Sun Care 1,292.3 1,408.7 1,538.1 1,664.5 1,785.0 1,897.0Sets/Kits - - - - - -Premium Cosmetics 11,230.7 13,028.1 15,253.9 17,815.1 20,670.3 24,124.1Mass Cosmetics 253,189.4 272,933.2 295,221.0 319,008.2 344,465.2 371,145.0Beauty and Personal Care 331,496.3 356,873.8 385,604.0 416,516.0 449,674.4 484,925.4Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sourcesNote 1: Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour

cosmetics, hair care, fragrances, skin care and sun careNote 2: Sum of categories is greater than market size because the four mens toiletries categories are included in mensgrooming 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 2010/15 TOTAL

Baby Care 4.5 24.8Bath and Shower 4.0 21.5Colour Cosmetics 18.4 133.0Deodorants 17.8 126.4Depilatories 18.7 135.5Fragrances 14.1 93.3Hair Care 8.7 52.0Men's Grooming 11.2 69.8Oral Care 5.2 29.0Oral Care excl Power Toothbrushes 5.2 29.0Skin Care 10.2 62.5Sun Care 8.0 46.8Sets/Kits - -Premium Cosmetics 16.5 114.8Mass Cosmetics 7.9 46.6Beauty and Personal Care 7.9 46.3Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sourcesNote 1: Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour

cosmetics, hair care, fragrances, skin care and sun careNote 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 15 Forecast Sales of Premium Cosmetics by Category: Value 2010-2015

Rs million 2010 2011 2012 2013 2014 2015

Premium Baby Care 0.0 0.0 0.0 0.0 0.0 0.0Premium Bath and Shower 995.1 1,091.3 1,137.8 1,243.1 1,290.7 1,399.8Premium Colour Cosmetics 973.7 1,206.9 1,497.3 1,835.9 2,261.1 2,836.0Premium Deodorants 138.8 174.9 218.7 255.1 298.3 332.1Premium Fragrances 4,248.9 4,998.3 5,906.4 6,915.3 8,029.6 9,245.5Premium Hair Care 2,781.5 3,152.4 3,684.7 4,313.3 5,054.7 6,047.2Premium Skin Care 2,015.1 2,318.3 2,715.2 3,149.2 3,625.2 4,140.2Premium Sun Care 77.5 85.9 93.8 103.2 110.7 123.3Premium Sets/Kits - - - - - -Premium Cosmetics 11,230.7 13,028.1 15,253.9 17,815.1 20,670.3 24,124.1Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sources

Note: 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 growth2010-15 CAGR 2010/15 TOTAL

Premium Baby Care 4.5 24.8Premium Bath and Shower 7.1 40.7Premium Colour Cosmetics 23.8 191.3Premium Deodorants 19.1 139.3

Premium Fragrances 16.8 117.6Premium Hair Care 16.8 117.4Premium Skin Care 15.5 105.5


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Premium Sun Care 9.7 59.0Premium Sets/Kits - -Premium Cosmetics 16.5 114.8Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sourcesNote: 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 Forecast Sales of Beauty and Personal Care by Region: Value 2010-2015

Rs million2010 2011 2012 2013 2014 2015

East and Northeast India 59,255.3 63,844.9 69,164.6 74,943.3 81,218.8 87,969.0North India 89,245.0 96,494.0 104,525.7 113,092.7 122,187.6 131,814.8South India 90,590.2 96,907.6 104,051.9 111,671.2 119,862.8 128,508.1West India 92,405.8 99,627.3 107,861.9 116,808.8 126,405.2 136,633.5India 331,496.3 356,873.8 385,604.0 416,516.0 449,674.4 484,925.4Source: 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 growth2010-15 CAGR 2010/15 TOTAL

East and Northeast India 8.2 48.5North India 8.1 47.7South India 7.2 41.9West India 8.1 47.9India 7.9 46.3

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, tradesources

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 Research Sources

Official Sources National Council for Applied Economic Research

National Information Centre

Trade Associations All India Small Scale Cosmetics ManufacturersAssociation

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

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

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