Part- I: Consumers perception toward cosmeceuticals...

Chapter III

29

Understanding perception of consumers and dermatologists is essential part of

pharmaceutical and cosmetic business strategy. Whereas to understand perception of

pharmaceutical and cosmetic companies view toward cosmeceutical category is important

for future market growth. In this chapter perception analysis of consumers, dermatologists

and companies is analyzed toward cosmeceutical category. The detailed analysis is divided

into three parts. In Part-I consumers perception toward cosmeceuticals is studied. In Part-II

perception analysis of dermatologists toward concept of cosmeceuticals is discussed.

Whereas in Part-III views of company experts on scope, potential and hurdles faced by

cosmetic and pharmaceutical industry with respect to cosmeceuticals is discussed through a

questionnaire based survey.

Part- I: Consumers perception toward cosmeceuticals

3.1.1. Introduction

The demand for luxury cosmetic products known as cosmeceuticals, particularly in urban

population is steadily rising owing to various reasons, such as, mall culture, better

purchasing power, concern for better looking , by men and women, nature of the job,

development in advertisement technology and in general, availability of a wide range of

products [1]

.

Understanding and knowing Indian consumer behavior is never simple. Companies should

understand needs and wants of consumers, identify preferences, and accordingly customize

the business operations. Consumer skepticism is a challenge for cosmetic industry all the

time. Consumer buying decision involves complex processes [2]

. Considerate behavior of

consumers is a key to the success of business organizations. Marketing people are

constantly analyzing the perception, patterns of buying behavior and purchase decisions to

predict the future trends. Perception is a mental process, whereby a person selects data or

information from the environment, organizes it and then draws significance or meaning

from it [3]

. Consumer perception theory is useful to understand how a consumer behaves,

react or respond to a particular product or services. The process by which consumers make

purchasing decisions must be understood to develop strategic applications. Consumer

behavior can be explained as the analysis of how, when, what and why people buy [4].

3.1.1.1. Characteristics of Indian consumer behavior

For any marketers to study Indian consumer is very crucial aspect. Indian consumers are

branded as high grade of value orientation. The study of consumer behavior is the study of

how individuals make decisions to spend their available resources (money time effort) on

Chapter III

30

consummation related items. It includes the study of what they buy, why they buy it, how

they buy it, when they buy it, where they buy it and how often they buy it [5].

The way

Indian consumers are spending their money on overall cosmetic products in recent years has

changed.

Cost-conscious consumers in India are changing their mindset about luxury cosmeceutical

products. More and more consumers do not mind spending extra on beauty care and health

care products, due, largely, to an increase in income at every level of society leading to

more disposable income [6]

. In cosmetic industry study of consumer perception is having

significant importance, as it reveals why consumers make the decisions they do, and how

they influence these decisions. The present study analyzed the perception of Indian

consumers toward cosmeceuticals.

3.1.2. Objective

To analyze consumer perception toward cosmeceutical products in India. Survey was

carried out among the consumers mainly to understand the following aspects:

To assess usage of cosmeceutical products

Determine the purpose of using skin care products

To find out whether consumers consult or seek advice from dermatologist

To study spending pattern on skin care cosmeceutical products

To assess usage of natural cosmeceutical products

To know whether consumers read cosmeceutical ingredients on the label

To analyze awareness level about animal tested cosmeceutical products

Determine the factors which encourage consumers to use cosmeceuticals

Determine the place from where consumers buy cosmeceutical products

To find out the reasons for selecting places of purchase for cosmeceutical products

Whether consumers agree with the product claims made by the manufacturers

To assess how cosmetic advertisement influence and inspire purchasing decision

To find out co-relation between price and quality of product

To find out whether consumers had come across any adverse reactions

To determine satisfaction level of consumers about using cosmeceutical products

Chapter III

31

3.1.1. Research methodology

Figure 3.1.1. Research methodology.

A research design (fig. 3.1.1.) is a framework or blueprint for conducting the marketing

research project. It specifies the details of the procedures necessary for obtaining the

information needed to structure and solve marketing research problems [7]

.

Data sources

Secondary Data

Type of study:

Exploratory

Research articles

Newspapers and

Magazines

Self-administrated

questionnaire

Sampling method:

Non probability

convenience method

Sampling Unit: Consumers

Age 15-55 & above

Sample Size: 940

Review articles

Correspondence

and Views

Authentic websites

Primary Data

Analysis and Interpretation

Chapter III

32

Components of research design

Information needed – Information regarding consumer‟s perception about cosmeceuticals

was sought to know the basics involved in cosmeceuticals. Information regarding buying

pattern were explored during the study.

Type of research design – Research design type used in this work was exploratory and not

conclusive. The primary objective of exploratory research is to provide insights into, and an

understanding of the problem confronting the researcher [8]

. The primary objective of study

was to provide insights into and comprehension of the problem situation.

Data collection – Data was collected through primary research and secondary research.

Sample size – Target sample size was 1000. Final sample size which was used for

evaluation was 940. Total 60 respondents questionnaire were excluded for analysis as they

were not qualified because of some unanswered questions.

Data analysis – It was done considering the characteristics of the data. The data obtained is

edited, classified and put in as tabulated form to make it understandable and presented with help

of charts, diagrams and graphs etc. The data was analyzed by using chi-square tests.

Qualitative exploratory research

Qualitative exploratory research methodology was followed with a small sample size to

have a preliminary idea of the problem. It was direct approach (nondisguised) where the

purpose of the study was disclosed to the respondents.

Data

Primary data – Primary data were obtained with the help of structured questionnaire.

Secondary data – Secondary data were obtained from published literature in medical and

management online and print journals, newspaper, magazines, opinion articles and news

items from the internet.

Sampling design

Sample, a subgroup of the elements of the population was selected for participation in the

study. Sampling technique used for the study was nonprobability convenience sampling,

which relies on the personal judgment of the researcher rather than chance to select sample

elements. The consumers were interviewed at the leading cosmetic shops, college campus,

and shopping malls belonging to ten cities of India, out of which, eight are metro cities viz.

Bangalore, Mumbai, New Delhi, Kolkata, Ahmedabad, Pune, Nagpur, Hyderabad, Manipal,

Chapter III

33

and Mangalore. We decided arbitrarily which elements to be included in the sample. Final

sample size used for evaluation was 940 out of 1000.

Questionnaire design

A questionnaire (structured technique for data collection consisting of a series of questions,

written or verbal, to which respondents reply) which consisted of formalized set of

questions was used for obtaining information from respondents. Questions were carefully

framed to minimize the element of bias and errors. There were 15 questions in total which

answered research questions.

3.1.4. Results and Discussion

Table 3.1.1. Demographic characteristics of the respondents (%)

Variable

City

Gender Age (in years) Occupation

Male Female 15-25 25-35 35-45 ≥ 45-55 Student Professional House

wife

Busine-

ssman

Manipal 4.0

(4)

96.0

(96)

88.0

(88)

12.0

(12)

0.0 0.0 96.0

(96)

4.0

(4)

0.0 0.0

Mangalore 13.9

(11)

86.1

(68)

38.0

(30)

44.3

(35)

17.7

(14)

0.0 38.0

(30)

12.7

(10)

44.3

(35)

5.1

(04) Bangalore 10.5

(10)

89.5

(85)

50.5

(48)

37.9

(36)

8.4

(8)

3.2

(3)

43.2

(41)

26.3

(25)

18.9

(18)

11.6

(11) Mumbai 23.3

(21)

76.7

(69)

55.6

(50)

37.8

(34)

6.7

(6)

0.0 15.6

(14)

82.2

(74)

0.0 2.2

(2) Delhi 31.0

(31)

69.0

(69)

47.0

(47)

53.0

(53)

0.0 0.0 16.0

(16)

71.0

(71)

6.0

(6)

7.0

(7) Kolkata 54.0

(54)

46.0

(46)

74.0

(74)

20.0

(20)

0.0 6.0

(6)

76.0

(76)

18.0

(18)

4.0

(4)

2.0

(2) Nagpur 55.7

(54)

44.3

(43)

97.9

(95)

2.1

(2)

0.0 0.0 99.0

(96)

1.0

(1)

0.0 0.0

Hyderabad 19.1

(18)

80.9

(76)

50.0

(47)

29.8

(28)

16.0

(15)

4.3

(4)

55.3

(52)

21.3

(20)

16.0

(15)

7.4

(7) Ahmedabad 70.0

(70)

30.0

(30)

73.0

(73)

21.0

(21)

5.0

(5)

1.0

(1)

50.0

(50)

39.0

(39)

2.0

(2)

9.0

(9) Pune 25.6

(23)

74.4

(67)

50.0

(45)

35.6

(32)

8.9

(8)

5.6

(5)

51.1

(46)

17.8

(16)

22.2

(20)

8.9

(8) Total 31.3

(296)

68.7

(649)

63.2

(597)

28.9

(273)

5.9

(56)

2.0

(19)

54.7

(517)

29.4

(278)

10.6

(100)

5.3

(50) Parenthesis denotes actual response

Demographic characteristics are one of the important elements of a market research because

the buying behavior, satisfaction level and also the potential performance of consumers

depends upon this. Demographic characteristics determine what segments or subgroups

exist in the overall population. Demographic factors included for study were place, gender,

age and occupation of the respondents. The demographic characteristics of the respondents

are shown in Table 3.1.1.

Chapter III

34

68.7% of female respondents use cosmeceutical products. Percentage of female respondents

is more compared to male respondents. The majority of respondents (63.2%) belonged to

age group of 15-25 years. Majority of the respondents (54.7%) were students followed by

professionals.

Table 3.1.2. Use of cosmeceutical/derma-cosmetic products (%)

Response

City

Yes No

Manipal 100.0 (100) 0.0

Mangalore 100.0 (79) 0.0

Bangalore 98.9 (94) 1.1

Mumbai 100.0 (90) 0.0

Delhi 100.0 (100) 0.0

Kolkata 100.0 (100) 0.0

Nagpur 100.0 (97) 0.0

Hyderabad 97.9 (92) 2.1

Ahmedabad 100.0 (100) 0.0

Pune 97.8 (88) 2.2

Total 99.5 (940) 0.5

Parenthesis denotes actual response

Figure 3.1.2. Use of cosmeceutical/derma-cosmetic products.

The above data (Table 3.1.2.) revealed that 99.5% of the respondents used cosmeceutical

products and 0.5% of respondents replied that they do not use cosmeceutical products. For

0.0

20.0

40.0

60.0

80.0

100.0

120.0

% r

esp

on

se

% Yes % No

Chapter III

35

further analysis; out of 945 respondents, 940 respondents were included in study as they

preferred or used cosmeceutical products. For analysis and interpretation total percentage

was considered comprising all ten cities. The graphical presentation of the respondents is

shown in fig.3.1.2.

Table 3.1.3. Purpose of using skin care cosmeceutical products (%)

Response

City

Cleansing Smoothing Moisturizing Skin

whitening

Reduces

fine lines

and

wrinkles

Oil

controlling

Manipal 17.0 (17) 14.0 (14) 30.0 (30) 12.0 (12) 14.0 (14) 13.0 (13)

Mangalore 30.4 (24) 0.0 (0) 24.1 (19) 22.8 (18) 10.1 (8) 12.7 (10)

Bangalore 21.3 (20) 11.7 (11) 25.5 (24) 22.3 (21) 10.6 (10) 8.5 (8)

Mumbai 13.3 (12) 0.0 (0) 33.3 (30) 13.3 (12) 6.7 (6) 33.3 (30)

Delhi 39.0 (39) 14.0 (14) 2.0 (02) 15.0 (15) 14.0 (14) 16.0 (16)

Kolkata 29.0 (29) 7.0 (7) 18.0 (18) 12.0 (12) 14.0 (14) 20.0 (20)

Nagpur 14.4 (14) 9.3 (9) 20.6 (20) 18.6 (18) 24.7 (24) 12.4 (12)

Hyderabad 18.5 (17) 13.0 (12) 22.8 (21) 25.0 (23) 8.7 (8) 12.0 (11)

Ahmedabad 30.0 (30) 13.0 (13) 26.0 (26) 11.0 (11) 12.0 (12) 8.0 (8)

Pune 11.4 (10) 9.1 (8) 14.8 (13) 21.6 (19) 17.0 (15) 26.1 (23)

Total 22.6(212) 9.4 (88) 21.6 (203) 17.1(161) 13.3(125) 16.1 (151) 2= 163.9, df = 45, p0.05; Parenthesis denotes actual response

Figure 3.1.3. Purpose of using skin care cosmeceutical products.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

% r

esp

on

se

% Cleansing % Smoothing

% Moisturizing % Skin Whitening

% Reduces fine and Wrinkles % Oil controlling

Chapter III

36

Skin care cosmeceutical products aimed at specific body parts are becoming more

important. The human skin is exposed to an extraordinary hostile environment over the

course of a lifetime. Whereas there are multiple products that consumer may select to help

preserve and protect the skin, at a minimum cleansing, moisturizing, and protection against

solar ultraviolet radiation. The responses are tabulated in (Table 3.1.3.) and presented in

(Fig. 3.1.3). 22.6% of respondents used cosmeceutical product for cleansing purpose. 21.6%

of respondents used these products for moisturizing. 17.1% of respondents used skin

whitening products. Skin whitening products have 60% of share in the Indian cosmetic

market. Among Asian consumers, especially Indians are more tilted towards having fair

skin. These products lighten skin tone by reducing the concentration of melanin.

16.1% of respondents used cosmeceutical products for oil controlling. 13.3% of respondents

used cosmeceuticals for reducing fine lines and wrinkles. Use of anti-wrinkle creams is on

rise, the reason behind the growth of this category is, as these products make consumer look

young by reducing visible wrinkles, expression lines, blemishes, pigmentation changes,

discolorations and other environmentally related conditions of the skin. Respondents use

skin care products according to their needs and skin type.

Table 3.1.4. Consultation with dermatologist (%)

Response

City

Yes No

Manipal 7.0 (7) 93.0 (93)

Mangalore 7.6 (6) 92.4 (73)

Bangalore 17.0 (16) 83.0 (78)

Mumbai 20.0 (18) 80.0 (72)

Delhi 28.0 (28) 72.0 (72)

Kolkata 20.0 (20) 80.0 (80)

Nagpur 34.0 (33) 66.0 (64)

Hyderabad 20.7 (19) 79.3 (73)

Ahmedabad 10.0 (10) 90.0 (90)

Pune 17.0 (15) 83.0 (73)

Total 18.3(172) 81.7 (768)

2= 5.181, df = 9, p0.05; Parenthesis denotes actual response

Chapter III

37

Figure 3.1.4. Consultation with dermatologist.

The respondents were questioned whether they consult dermatologist for advice on

cosmeceutical products. From the above data (Table 3.1.4.) 81.7% of respondents do not

seek dermatologic consultation for use of skin care cosmeceuticals. 18.3% of respondents

seek opinion from dermatologist on skin care cosmeceuticals. The graphical presentation of

the respondents is shown in fig. 3.1.4.

Role of dermatologist in cosmeceutical care is increasing now. Most of the cosmeceutical

products are available in shopping mall, department store and drug store. Consumers

purchase products directly from these sources. Products that do not deliver what they

promise can ultimately send consumers to the dermatologists. The market is swamped with

too many cosmeceutical products, usually consumers are confused, it is dermatologists who

may help consumers or patients to select the best product.

Table 3.1.5. Monthly expenditure toward skin care cosmeceuticals (%)

Response

City

25-30

INR

50-100

INR

100-300

INR

300-500

INR

< 500

INR

Manipal 10.0 (10) 35.0 (35) 37.0 (37) 14.0 (14) 4.0 (4)

Mangalore 12.7 (10) 24.1 (19) 36.7 (29) 24.1 (19) 2.5 (2)

Bangalore 14.9 (14) 36.2 (34) 23.4 (22) 16.0 (15) 9.6 (9)

Mumbai 15.6 (14) 13.3 (12) 42.2 (38) 15.6 (14) 13.3(12)

Delhi 5.0 (5) 3.0 (3) 39.0 (39) 37.0 (37) 16.0(16)

Kolkata 16.0 (16) 30.0 (30) 44.0 (44) 8.0 (8) 2.0 (2)

Nagpur 20.6 (20) 40.2 (39) 25.8 (25) 13.4 (13) 0.0 (0)

Hyderabad 13.0 (12) 34.8 (32) 29.3 (27) 16.3 (15) 6.5 (6)

Ahmedabad 12.0 (12) 20.0 (20) 48.0 (48) 8.0 (8) 12.0(12)

Pune 19.3 (17) 14.8 (13) 39.8 (35) 17.0 (15) 9.1 (8)

Total 13.8(130) 25.2(237) 36.6 (344) 16.8 (158) 7.6 (71) 2= 155.3, df= 36, p0.05; Parenthesis denotes actual response

0.0

20.0

40.0

60.0

80.0

100.0

% r

esp

on

se

% Yes % No

Chapter III

38

Figure 3.1.5. Monthly expenditure toward skin care cosmeceuticals.

The above data (Table 3.1.5.) shows that 36.6% of respondents spend monthly between

100-300 INR on skin care cosmeceutical products. 25.2% of respondents spend between 50-

100 INR. 16.8% of respondents spend between 300-500 INR. Very less number of

respondents spends more than 500 INR on cosmeceutical products. The graphical

presentation of the respondents is shown in fig.3.1.5. Pricing has been one critical factor as

far as cosmeceutical products are concern. For instance products falling under the price

range of 45 to 200 INR are in the mass market category. The middle market price range is

from 200 to 800 INR. In the high-end market, price range is from 800 to 5000 INR. In

premium range products, price can touch up to 35, 0000 INR. Most of cosmetic companies

in India target their products to mass segment.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

% r

esp

on

se

% 25-30 % 50-100 % 100-300 % 300-500 % < 500

Chapter III

39

Table 3.1.6. Preference for natural cosmeceutical products (%)

Response

City Yes No

Manipal 79.0 (79) 26.6 (21)

Mangalore 84.8 (67) 14.1 (12)

Bangalore 89.4 (84) 11.2 (10)

Mumbai 82.2 (74) 19.5 (16)

Delhi 75.0 (75) 33.3 (25)

Kolkata 64.0 (64) 56.3 (36)

Nagpur 72.2 (70) 37.4 (27)

Hyderabad 89.1 (82) 11.2 (10)

Ahmedabad 77.0 (77) 29.9 (23)

Pune 83.0 (73) 18.1 (15)

Total 79.3 (745) 20.7 (195)

2= 69.65, df=9, p0.05; Parenthesis denotes actual response

Figure 3.1.6. Preference for natural cosmeceutical products.

The above data (Table 3.1.6.) revealed that 79.3% of respondents used natural

cosmeceutical products. Whereas 20.7% of respondents have not used natural cosmeceutical

products. The graphical presentation of the respondents is shown in fig.3.1.6. Indian herbal

cosmeceutical market had tremendous growth during last few years. However in the last 5-6

years, there has been a craze for herbal cosmeceutical products, especially in the skin care

segment with the growing belief that chemical-based products are harmful and natural

products are always safe. Herbal cosmeceuticals are first choice of many women and are

popular these days as they provide long-term benefits.

0.0

20.0

40.0

60.0

80.0

100.0

% r

esp

ose

% Yes % No

Chapter III

40

Table 3.1.7. Awareness about the cosmeceutical ingredients (%)

Response

City Yes No Sometimes

Manipal 57.0 (57) 33.0 (33) 10.0 (10)

Mangalore 69.6 (55) 20.3 (16) 10.1 (8)

Bangalore 38.3 (36) 51.1 (48) 10.6 (10)

Mumbai 44.4 (40) 22.2 (20) 33.3 (30)

Delhi 62.0 (62) 19.0 (19) 19.0 (19)

Kolkata 50.0 (50) 30.0 (30) 20.0 (20)

Nagpur 53.6 (52) 43.3 (42) 3.1 (3)

Hyderabad 39.1 (36) 50.0 (46) 10.9 (10)

Ahmedabad 52.0 (52) 17.0 (17) 31.0 (31)

Pune 42.0 (37) 46.6 (41) 11.4 (10)

Total 50.7(477) 33.2(312) 16.1 (151)


Figure 3.1.7. Awareness about the cosmeceutical ingredients.

Respondents were asked whether they read the various listed ingredients on cosmeceutical

product labeling. The above analyzed data (Table 3.1.7.) showed that 50.7% of consumers

read various cosmeceutical ingredients added to the product. On other hand 33.2% of

consumers do not read listed cosmeceutical ingredients on the label. The graphical

presentation of the respondents is shown in fig.3.1.7. The consumers should check the list of

ingredients on the label carefully. They should try to analyze purpose and functions of

various ingredients used in the product and try to understand that the natural claim on the

label is actually a hype or an advertisement or really effective.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

% r

esp

on

se

% Yes % No % Sometimes

Chapter III

41

Table 3.1.8. Awareness about animal tested cosmeceutical products (%)

Response

City Yes No

Manipal 38.0 (38) 62.0 (62)

Mangalore 40.5 (32) 59.5 (47)

Bangalore 28.7 (27) 71.3 (67)

Mumbai 33.3 (30) 66.7 (60)

Delhi 55.0 (55) 45.0 (45)

Kolkata 30.0 (30) 70.0 (70)

Nagpur 36.1 (35) 63.9 (62)

Hyderabad 27.2 (25) 72.8 (67)

Ahmedabad 31.0 (31) 69.0 (69)

Pune 47.7 (42) 52.3 (46)

Total 36.7(345) 63.3 (595) 2=30.64, df=9, p0.05; Parenthesis denotes actual response

Figure 3.1.8. Awareness about animal tested cosmeceutical products.

From the data (Table 3.1.8.) it is revealed that 63.3% of respondents were not aware of

animal tested cosmeceutical products. 36.7% of respondents were aware of animal tested

cosmeceutical products. The graphical presentation of the respondents is shown in fig.3.1.8.

Some of cosmetic manufactures label their products with claims like “cruelty free”, “not

tested on animals”, “against animal testing”. Many consumers mistakenly believe that all

these claims mean the same thing. According to USFDA there are no legal definitions for

these terms. Beauty industry is working to use alternative methods for animal testing such

as computer models, in vitro cell culture tests, advanced chemistry methods, published

scientific studies. European Union has already banned the animal tested cosmetic products.

0.0

20.0

40.0

60.0

80.0

% r

esp

on

se

% Yes % No

Chapter III

42

Table 3.1.9. Factors which encourages consumers to use cosmeceutical products (%)

Response

City

Ap

pea

ran

ce

Ad

ver

tising

Sa

fety

Lo

ya

lty to

bra

nd

New

s gro

up

on

intern

et

Wo

rd o

f mo

uth

ad

ver

tising

Qu

ality

Cele

brity

end

orsem

en

t

New

tech

no

log

y o

f

the p

rod

uct

Ad

vice o

f

bea

uticia

n

Price

Manipal 5.0

(5)

27.0

(27)

12.0

(12)

4.0

(4) 0.0 (0) 3.0 (3)

40.0

(40)

1.0

(1) 1.0 (1)

6.0

(6)

1.0

(1)

Mangalore 5.1

(4)

15.2

(12)

13.9

(11)

2.5

(2) 1.3 (1) 2.5 (2)

46.8

(37)

0.0

(0) 3.8 (3)

6.3

(5)

2.5

(2)

Bangalore 3.2

(3)

30.9

(29)

16.0

(15)

8.5

(8) 0.0 (0) 3.2 (3)

31.

(30)

0.0

(0) 2.1 (2)

4.3

(4)

0.0

(0)

Mumbai 4.4

(4)

14.4

(13)

12.2

(11)

6.7

(6) 0.0 (0) 2.2 (2)

53.3

(48)

0.0

(0) 4.4 (4)

2.2

(2)

0.0

(0)

Delhi 2.0

(2)

18.0

(18)

22.0

(22)

9.0

(9) 0.0 (0)

10.0

(10)

31.0

(31)

0.0

(0) 0.0 (0)

6.0

(6)

2.0

(2)

Kolkata 0.0

(0)

18.0

(18)

32.0

(32)

10.0

(10) 0.0 (0) 4.0 (4)

28.0

(28)

0.0

(0) 6.0 (6)

0.0

(0)

2.0

(2)

Nagpur 7.2

(7)

24.7

(24)

9.3

(9)

1.0

(1) 1.0 (1) 9.3 (9)

21.6

(21)

4.1

(4) 4.1 (4)

12.4

(12)

5.2

(5)

Hyderabad 2.2

(2)

28.3

(26)

14.1

(13)

7.6

(7) 2.2 (2) 8.7 (8)

26.1

(24)

0.0

(0) 5.4 (5)

3.3

(3)

2.2

(2)

Ahmedabad 6.0

(6)

33.0

(33)

16.0

(16)

2.0

(2) 1.0 (1) 2.0 (2)

35.0

(35)

1.0

(1) 2.0 (2)

2.0

(2)

0.0

(0)

Pune 5.7

(5)

27.3

(24)

11.4

(10)

4.5

(4) 1.1 (1) 2.3 (2)

36.4

(32)

1.1

(1) 4.5 (4)

2.3

(2)

3.4

(3)

Total 4.0

(38)

23.8

(224)

16.1

(151)

5.6

(53) 0.6 (6)

4.8

(45)

34.7

(326)

0.7

(7) 3.3 (31)

4.5

(42)

1.8

(17)

2= 189.31, df=90,p0.05; Parenthesis denotes actual response

The above data (Table 3.1.9.) revealed that 34.7% of respondents considered quality as

major criterion for selection of cosmeceutical products. Cosmetic companies have to deliver

quality product to consumers to sustain in competitive market. A company that satisfies

most of its customers‟ needs usually is called as Quality Company.

23.8% of respondents said that cosmetic advertisement in various media encouraged them to

use cosmeceutical products. Advertising has more influence on purchase decision. Cosmetic

advertising has the maximum impact in creating brand awareness and important factor to

influence brand decision.

16.1% of respondents preferred product safety as important factor before selecting

cosmeceutical products. By using the latest scientific advances and good manufacturing

practices, cosmetic manufacturers have to efforts to maximize safety product.

5.6% of respondents were loyal toward the cosmeceutical brands. 4.8% of respondents

relied on word of mouth advertising, as it is important in marketing of cosmeceutical

product. With highly effective skin care product, the consumers were not only satisfied with

Chapter III

43

the product, but they also “talk” about the products to their friends, colleagues and family

and recommend them to use it.

4.5% of respondents seek advice of beautician before purchasing cosmeceutical products.

3.3% of respondents looked for new innovative products like nanotechnology based

products. Use of nanotechnology in cosmeceutical preparations is aimed to make fragrances

last longer, sunscreens more effective and anti-ageing creams fight back the years. 1.8% of

respondents looked for price factor, as it is considered to be one of important factor for

selecting the cosmeceutical products. The overall graphical presentation of the respondents

is shown in fig.3.1.9.

Figure 3.1.9. Encouraging factors for using cosmeceutical products.

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Manipal

Mangalore

Bangalore

Mumbai

Delhi

Kolkata

Nagpur

Hyderabad

Ahmedabad

Pune

Total % Price

% Advice of beautician

% New technology of the product

% Celebrity endorsement

% Quality

% Word of mouth advertising

% News group on internet

% Loyalty to brand

% Safety

% Advertising

% Apperance

Chapter III

44

Table 3.1.10. Store type to purchase cosmeceutical products (%)

Response

City

Department

store

Cosmetic

specialty

store

Online order Drug store

Manipal 42.0 (42) 16.0 (16) 6.0 (6) 36.0 (36)

Mangalore 46.8 (37) 17.7 (14) 3.8 (3) 31.6 (25)

Bangalore 47.9 (45) 12.8 (12) 5.3 (5) 34.0 (32)

Mumbai 37.8 (34) 22.2 (20) 6.7 (6) 33.3 (30)

Delhi 58.0 (58) 12.0 (12) 1.0 (1) 29.0 (29)

Kolkata 58.0 (58) 4.0 (4) 4.0 (4) 34.0 (34)

Nagpur 56.7 (55) 22.7 (22) 5.2 (5) 15.5 (15)

Hyderabad 55.4 (51) 16.3 (15) 5.4 (5) 22.8 (21)

Ahmedabad 51.0 (51) 6.0 (6) 8.0 (8) 35.0 (35)

Pune 46.6 (41) 14.8 (13) 4.5 (4) 34.1 (30)

Total 50.2 (472) 14.3 (134) 5.0 (47) 30.5 (287)

2= 51.87, df= 27, p0.05; Parenthesis denotes actual response

Figure 3.1.10. Store type to purchase cosmeceutical products.

Result of this question indicated that 50.2% of respondents said that have brought

cosmeceutical products from department stores. It is the main distribution channel for

branded cosmeceutical products. In general, department stores in India can be divided into

three classes the high, mid and low, based on the product they are sold, stored and type of

management. 30.5% of respondents said that they have purchased cosmeceutical products

0.0

20.0

40.0

60.0

% r

esp

on

se

% Department store % Cosmetic specialty store % Online Order % Drug store

Chapter III

45

from pharmacy stores or drug stores. In India pharmacy chain shops are becoming popular

for multifunction, medicated and herbal cosmeceutical product.

14.3% of respondents said that they have purchased cosmeceuticals from specialty stores.

The professional services and the full range of goods provided by the special stores appeal

too many consumers. There are two sub-types of specialty stores: Own-brand specialty and

cross-brands professional stores. Specialty store are not only favored by the direct selling

companies, but also by selling premium brands. In India International companies have

started their own specialty stores like Farmasi from Turkey, Herme‟s store from France and

the Body shop of L‟Oreal from France. 5.0% of respondents said that they purchased

cosmeceutical products through online source. The graphical presentation of the

respondents is shown in fig.3.1.10. Online shopping is increasingly popular among young

people. There are many online sources selling different kinds of branded cosmeceutical

products. Premium and imported products are usually sold at lower prices through this

channel (Table 3.1.10).

Table 3.1.11. Reasons for selecting places of purchase (%)

Response

City

Convenience

in access

Store

reputation

Good

service

Variety of

products

available

Low

price &

effective

display

Advice

from close

associates

Manipal 42.0 (42) 16.0 (16) 6.0 (6) 30.0 (30) 3.0 (3) 3.0 (3)

Mangalore 40.5 (32) 17.7 (14) 5.1 (4) 31.6 (25) 2.5 (2) 2.5 (2)

Bangalore 41.5 (39) 17.0 (16) 7.4 (7) 24.5 (23) 4.3 (4) 5.3 (5)

Mumbai 40.0 (36) 8.9 (8) 4.4 (4) 42.2 (38) 2.2 (2) 2.2 (2)

Delhi 40.0 (40) 33.0 (33) 9.0 (9) 16.0 (16) 0.0 (0) 2.0 (2)

Kolkata 56.0 (56) 12.0 (12) 14.0 (14) 8.0 (8) 8.0 (8) 2.0 (2)

Nagpur 33.0 (32) 9.3 (9) 25.8 (25) 12.4 (12) 10.3(10) 9.3 (9)

Hyderabad 39.1 (36) 19.6 (18) 8.7 (8) 22.8 (21) 5.4 (5) 4.3 (4)

Ahmedabad 44.0 (44) 29.0 (29) 6.0 (6) 12.0 (12) 2.0 (2) 7.0 (7)

Pune 42.0 (37) 6.8 (6) 2.3 (2) 42.0 (37) 1.1 (1) 5.7 (5)

Total 41.9(394) 17.1 (161) 9.0 (85) 23.6(222) 3.9 (37) 4.4 (41)


The above data (Table 3.1.11.) revealed that 41.9% of respondents preferred the places for

cosmeceutical purchases which are convenient for them preferably near to home or office.

Choosing the right cosmeceutical product is an entirely individual decision based on

personal preferences. Most of consumers looked for convenience. The consumers responded

that department and discount stores are good choice to purchase cosmeceutical as they

determine what types of cosmeceutical work best for them through a process of trial and

error.

Chapter III

46

Figure 3.1.11. Reasons for selecting places of purchase.

23.6% of respondents preferred purchasing cosmeceutical products from places where wide

range of products are available. 17.1% of respondents purchased cosmeceutical products

from the stores which are reputed and stands for quality service provider. 9% of respondents

preferred for good service provided by stores. The graphical presentation of the respondents

is shown in fig.3.1.11.

Table 3.1.12. Degree of satisfaction over product claims made by cosmetic

manufacturers (%)

Response

City

Strongly

agree

Agree

Neutral

Disagree

Strongly disagree

Manipal 2.0 (2) 55.0 (55) 18.0 (18) 24.0 (24) 1.0 (1)

Mangalore 0.0 (0) 60.8 (48) 13.9 (11) 22.8 (18) 2.5 (2)

Bangalore 0.0 (0) 56.4 (53) 12.8 (12) 29.8 (28) 1.1 (1)

Mumbai 0.0 (0) 51.1 (46) 28.9 (26) 20.0 (18) 0.0 (0)

Delhi 2.0 (2) 48.0 (48) 35.0 (35) 15.0 (15) 0.0 (0)

Kolkata 2.0 (2) 52.0 (52) 24.0 (24) 18.0 (18) 4.0 (4)

Nagpur 21.6(21) 53.6 (52) 7.2 (7) 15.5 (15) 2.1 (2)

Hyderabad 2.2 (2) 48.9 (45) 21.7 (20) 27.2 (25) 0.0 (0)

Ahmedabad 4.0 (4) 55.0 (55) 28.0 (28) 13.0 (13) 0.0 (0)

Pune 2.3 (2) 55.7 (49) 26.1 (23) 13.6 (12) 2.3 (2)

Total 3.7 (35) 53.5(503) 21.7(204) 19.8(186) 1.3 (12) 2= 164.6, df=36, p0.05; Parenthesis denotes actual response

0.0

10.0

20.0

30.0

40.0

50.0

60.0

% re

spo

nse

% Convenience in access % Store reputation

% Good service % Variety of products available

% Low price and effective display of product % Advice from close associates

Chapter III

47

Figure 3.1.12. Degree of satisfaction over product claims made by cosmetic companies.

Respondents were asked about whether they were satisfied and convinced over product

claims made by cosmetic companies. From above data (Table 3.1.12.) 53.5% of respondents

said that they satisfied with product claims made by cosmetic manufacturers. 21.7% of

respondents were undecided on the matter. On the other hand 19.8% of respondents were

not pleased with the product claims made by cosmetic manufactures. The graphical

presentation of the respondents is shown in fig.3.1.12. Consumers are most wary of

manufacturers' claims about the effectiveness of cosmeceuticals. There are many outrageous

claims made by cosmetic companies when their products are available in the market.

Usually all claims are not true. There are so many falsified claims just to attract the

consumers. Some consumers have doubts about the benefits of cosmeceuticals, which leads

to lack of trust and that will be a significant barrier to beauty cosmeceuticals market.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

% r

esp

on

se

% Strongly agree % Agree % Neutral % Disagree % Strongly disagree

Chapter III

48

Table 3.1.13. Major impact of cosmeceutical advertising (%)

Response

City

Rising

consciousness

about your look

Influence your

idea of a

perfect beauty

Want to have

cosmetic

surgery

Make more

purchase on

cosmeceuticals

Manipal 60.0 (60) 24.0 (24) 1.0 (1) 15.0 (15)

Mangalore 73.4 (58) 19.0 (15) 0.0 (0) 7.6 (6)

Bangalore 71.3 (67) 18.1 (17) 0.0 (0) 10.6 (10)

Mumbai 68.9 (62) 17.8 (16) 0.0 (0) 13.3 (12)

Delhi 65.0 (65) 24.0 (24) 0.0 (0) 11.0 (11)

Kolkata 54.0 (54) 30.0 (30) 0.0 (0) 16.0 (16)

Nagpur 46.4 (45) 15.5 (15) 9.3 (9) 28.9 (28)

Hyderabad 58.7 (54) 22.8 (21) 0.0 (0) 18.5 (17)

Ahmedabad 50.0 (50) 39.0 (39) 1.0 (1) 10.0 (10)

Pune 54.5 (48) 29.5 (26) 0.0 (0) 15.9 (14)

Total 59.9 (563) 24.1 (227) 1.2 (11) 14.8 (139)

2= 119.4, df= 27, p0.05; Parenthesis denotes actual response

Figure 3.1.13 Major impact of cosmeceutical advertising.

From the above data (Table 3.1.13.) 59.9% of respondents said that by viewing at

cosmeceutical product advertising they become more conscious about their looks. 24.1% of

respondents said that they get influenced by the advertisement. 14.8% of respondents said

that they may purchase more cosmeceutical products by watching at advertisement. The

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

% r

esp

on

se

% Rising consciousness about your look % Influence your idea of a perfect beauty

% Want to have cosmetic surgery % Make more purchase on cosmeceuticals

Chapter III

49

graphical presentation of the respondents is shown in fig.3.1.13. Cosmetic advertising plays

very important role in selection process of cosmeceutical products. The cosmetic

advertising works by using different techniques that encourage its target market. Cosmetic

advertising is very crucial element for companies to make sure that advertising message

reaches the consumers. The effectiveness of cosmetic advertising typically depends on

persuading people, that the product being advertised actually can deliver the results.

Table 3.1.14. Correlation between product quality and price (%)

Response

City

Strongly

agree Agree Neutral Disagree

Strongly

disagree

Manipal 5.0 (5) 49.0 (49) 7.0 (7) 36.0 (36) 3.0 (3)

Mangalore 3.8 (3) 49.4 (39) 3.8 (3) 39.2 (31) 3.8 (3)

Bangalore 4.3 (4) 45.7 (43) 13.8 (13) 34.0 (32) 2.1 (2)

Mumbai 0.0 (0) 44.4 (40) 20.0(18) 35.6 (32) 0.0 (0)

Delhi 3.0 (3) 39.0 (39) 12.0 (12) 40.0 (40) 6.0 (6)

Kolkata 6.0 (6) 46.0 (46) 8.0(8) 30.0 (30) 10.0 (10)

Nagpur 10.3(10) 57.7 (56) 8.2(8) 16.5 (16) 7.2 (7)

Hyderabad 5.4 (5) 34.8 (32) 16.3 (15) 37.0 (34) 6.5 (6)

Ahmedabad 14.0(14) 28.0 (28) 18.0 (18) 37.0 (37) 3.0 (3)

Pune 13.6(12) 35.2 (31) 17.0 (15) 29.5 (26) 4.5 (4)

Total 6.6 (62) 42.9 (403) 12.4 (117) 33.4 (314) 4.7 (44) 2= 98.59, df =36, p0.05; Parenthesis denotes actual response

Figure 3.1.14. Correlation between product quality and price.

A popular belief is: „You get what you pay for.‟ Therefore, consumers tend to believe that

high price is an indicator of better quality. Thus, buyers believe that the higher price of

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

% r

esp

on

se


Chapter III

50

cosmeceutical product, the superior will be its quality. They believe that cosmeceutical

products will give the greatest value for their money.

The respondents were asked whether product quality is good if price of product is high.

Table 3.1.14. showed that 42.9% of respondents believed that product is superior if price is

high. 12.4% of respondents were undecided on the said matter. On the other hand 33.4% do

not believe that product quality is good if price is high. The graphical presentation of the

respondents is shown in fig.3.1.14.

Table 3.1.15. Adverse reaction of cosmeceutical products (%)

Response

City Yes No

Manipal 10.0 (10) 90.0 (90)

Mangalore 19.0 (15) 81.0 (64)

Bangalore 18.1 (17) 81.9 (77)

Mumbai 15.6 (14) 84.4 (76)

Delhi 26.0 (26) 74.0 (74)

Kolkata 14.0 (14) 86.0 (86)

Nagpur 5.2 (5) 94.8 (92)

Hyderabad 19.6 (18) 80.4 (74)

Ahmedabad 16.0 (16) 84.0 (84)

Pune 12.5 (11) 87.5 (77)

Total 15.5 (146) 84.5 (794)


Figure 3.1.15. Adverse reactions of cosmeceutical products.

0.0

20.0

40.0

60.0

80.0

100.0

% r

esp

on

se

% Yes % No

Chapter III

51

From the above data (Table 3.1.15.) 84.5% of respondents said that they have not

experienced any adverse reactions by using cosmeceutical products.15.5% of respondents

experienced adverse reactions like skin rashes, skin redness, increase in pimples, and

scaling of skin. The graphical presentation of the respondents is shown in fig 3.1.15.

Usually numbers of reported adverse reactions are very low. This may be due to absence of

formal cosmetovigilance system in India.

Table 3.1.16. Degree of satisfaction with cosmeceutical products available in the

market (%)

Response

City

Strongly

agree Agree Neutral Disagree

Strongly

disagree

Manipal 12.0 (12) 59.0 (59) 10.0 (10) 19.0 (19) 0.0 (0)

Mangalore 12.7 (10) 65.8 (52) 11.4 (9) 10.1 (8) 0.0 (0)

Bangalore 16.0 (15) 52.1 (49) 12.8 (12) 19.1 (18) 0.0 (0)

Mumbai 2.2 (2) 55.6 (50) 31.1 (28) 11.1 (10) 0.0 (0)

Delhi 1.0 (1) 58.0 (58) 27.0 (27) 13.0 (13) 1.0 (1)

Kolkata 4.0 (4) 54.0 (54) 16.0 (16) 26.0 (26) 0.0 (0)

Nagpur 9.3 (9) 45.4 (44) 15.5 (15) 23.7 (23) 6.2 (6)

Hyderabad 8.7 (8) 51.1 (47) 19.6 (18) 20.7 (19) 0.0 (0)

Ahmedabad 10.0 (10) 47.0 (47) 24.0 (24) 15.0 (15) 4.0 (4)

Pune 2.3 (2) 52.3 (46) 26.1 (23) 19.3 (17) 0.0 (0)

Total 7.8 (73) 53.8(506) 19.4(182) 17.9(168) 1.2 (11) 2= 114.1, df= 36, p0.05; Parenthesis denotes actual response

Figure 3.1.16. Degree of satisfaction with cosmeceutical products available in the

market.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

%re

spon

se


Chapter III

52

It is no longer enough to satisfy consumers. Companies have to delight them. Satisfaction is

a function of perceived performance and expectations. If the performance matches the

expectations, the consumers are satisfied. If the performance exceeds expectations, the

consumers are highly satisfied or delighted. From the above analysis (Table 3.1.16) 53.8%

of respondents were satisfied with cosmeceutical products available in the market. 19.4% of

respondents were undecided on the matter. Whereas 17.9% respondents were not satisfied

with available range of cosmeceutical products. The graphical presentation of the

respondents is shown in fig.3.1.16. This provides cosmetic manufacturer an opportunity to

gain market share by serving unhappy consumers.

3.1.6. Conclusion

The above survey provides insight into consumers buying behavior toward the purchase and

consumption of cosmeceutical products in selected cities of India. Value growth of

cosmeceutical products is driven by changing consumer perception, whereby most of

cosmeceuticals are increasingly deemed as essential items for daily use, rather than luxury

products. The expenditure on cosmeceutical products is increasing, as purchasing power has

increased between middle class consumers. Consumers prefer natural cosmeceutical

products compared to synthetic products. Nowadays consumers are aware and read various

cosmeceutical ingredients added to the product. Majority of consumers are not aware of

animal tested cosmeceutical products available in the market. Advertising, quality and

safety are the major factors which encourage consumers to use cosmeceutical products.

With increasingly availability of domestic and international brands and greater product

availability at affordable prices, consumers also started to move away from using products

from unorganized to organized channel. Consumers think that quality of product is better if

the price of the product is high. Majority of the surveyed consumers were satisfied with

claims and products available in the market.

Chapter III

53

3.1.7. References

1. Cosmetics and Consumers. [cited 2009 September 25]. Available from:

http//www.consumereducation.incosmeticeng.pdf

2. Choi Ju Y, Hee Kim K, Kim M. „Cosmetics Buying Patterns and Satisfaction among

Female University Students in China, Japan and Korea‟. Journal of the Korean Society

of Clothing and Textiles.2007; 12:1772-1783.

3. Vani G, Ganesh Babu M, Panchanatham N. Toothpaste Brands –A Study of consumer

behavior in Bangalore city. Journal of Economics and Behavioral Studies.2010; 1:27-39.

4. Vinith Kumar N, Prakash P. „A Study on Purchase Pattern of Cosmetics among

Consumers in Kerala‟. International Marketing Conference on Marketing & Society;

2007 April 8-10; IIMK 2007.p.581-595.

5. An introduction to the study of consumer behavior. [cited 2009 April 20]. Available

from:http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplecha

pter/0273736957.pdf

6. Indian consumers go premium. [cited 2011 June 11]. Available from:

http://www.gcimagazine.com/marketstrends/regions/bric/128016893.html

7. Malhotra N K. Marketing Research – An Applied Orientation, Third Edition, Pearson

Education, First Indian Reprint, 2001, 83-85.

8. Thomas T. S. “Marketing Research Needs Basic Research”, Marketing News (April 14,

1997), 34.

Chapter III

54

Part-II : Perception analysis of dermatologists toward concept of cosmeceuticals

3.2.1. Introduction

Cosmeceuticals represent the fastest growing area in dermatology. Cosmeceuticals are today

an increasing part of the dermatologist's therapeutic armamentarium. The biggest shift to

impact dermatology practices in recent years has been the high demand for cosmetic

services.

Cosmeceuticals play an important role in management of common dermatological

conditions both as a first line treatment for mild/moderate disorders or as adjuvant when

more invasive or clinical therapy is required [1]

. The field of cosmeceuticals is an important

for the dermatologists to understand. Understanding dermatologist‟s perception about

cosmeceuticals is an essential part of cosmetic and pharmaceutical business strategies. With

safe and effective procedures, advancement in medical technology, increase in awareness,

the Indian skin care solutions business is growing very fast. Topical treatments account for

27.9% of the OTC medicated skincare. In chronic therapies dermatologists tend to prescribe

almost 50% systemic treatment and 50% topical treatment [2]

. Patients apply several

cosmetic products to the hair, face and body each day. These patients may consult their

physician for suggestions on specific products or brands, particularly if they have an

underlying skin disease.

From the literature search the major challenge facing the practicing dermatologists is how to

employ this ever growing array of products to improve patient care [3]

. As cosmeceuticals

are promise of the future skin care, they are continuing intellectual challenge for research

dermatologists [4]

. The dermatologists should play mediocoscientific role that is have an in-

depth knowledge of the physiology and the pathology of the skin and medico social role as

define skin diseases their treatment and quality of life of consumers in near future [5]

.

Moreover there is rapid increase in number of specialized dermatologists which are more

oriented towards cosmetics. The increase in number of skin care clinics shows progressing

market and high demand.

The growth of cosmeceuticals is at nascent stage in India. The role of dermatologists toward

cosmeceuticals as to be ascertain with respect to India. With this aspect following objectives

were framed.

Chapter III

55

3.2.2. Objective

To study dermatologists perception toward cosmeceutical products in India. Survey was

carried out among the dermatologists to understand mainly the following aspects:

Awareness of cosmeceutical products

Source of information about cosmeceuticals

Whether concept of cosmeceuticals in India is popularized

Whether dermatologists should be allowed to dispense cosmeceutical products

To find out whether dermatologists prescribe cosmeceutical products to their patients

Diseases conditions for which cosmeceuticals were usually preferred

Whether dermatologists believe that product available in the markets are backed by

science

Availability of cosmeceutical products

To know dermatologists opinion about present regulatory status for cosmeceuticals

View on forming separate category other than drug, cosmetic and OTC products

Opinion on future of cosmetic products

To find out potential cosmeceutical products in future

Factors considered by dermatologists while prescribing a cosmeceutical brand

3.2.3. Research Methodology

Research Design

A research design (fig.3.2.1) is a framework or blueprint for conducting the marketing


information needed to structure and solve marketing research problems.

Components of Research Design

Information Needed - Information regarding to dermatologist‟s perception and experiences

about cosmeceuticals was sought to know the difficulties involved in cosmeceuticals.



understanding of the problem confronting the researcher. The primary objective of study


Scale of measurement – Nominal scale was followed for the study. The statistics applied

were descriptive percentages.

Chapter III

56

Figure 3.2.1. Research Methodology.

Data sources

Secondary Data

Type of study:

Exploratory

Research articles

Online articles

Newspapers and

Magazines

Self-administrated

questionnaire

Sampling method:

Non probability

convenience method

Sampling Unit: Dermatologists,

Cosmetologists

Sample Size: 48

Review articles

Leave Behind

Literature

Authentic websites

Primary Data


Chapter III

57

Data Collection – Data was collected through primary research and secondary research.

Sample size – Target sample size was 50. Final sample size which was used for evaluation

was 48. Two respondents questionnaire were excluded for analysis as they were not

qualified because of some unanswered questions.

Data Analysis – It was done considering the characteristics of the data. The data obtained is

edited, classified and put in as tabulated form to make it understandable and presented with help

of charts, diagrams and graphs etc.

Qualitative Exploratory Research

Qualitative exploratory research methodology was followed with a small sample size to

have a preliminary idea of the problem. It was direct approach (nondisguised) where the

purpose of the study was disclosed to the respondents.

Data


Secondary data – Secondary data were obtained from authentic websites. Information with

regard to research objectives was collected from published literature in medical online and

print journals, leave behind literature, opinion articles and news items from the internet.

Sampling design

Sample, a subgroup of the elements of the population was selected for participation in the

study.

Sampling technique used for the study was nonprobability convenience sampling, which

relies on the personal judgment of the researcher rather than chance to select sample

elements. The dermatologists and cosmetologists were interviewed at hospitals and private

clinics. The survey was carried in Manipal, Mangalore, Bangalore, Mumbai and Kolkata.

We decided arbitrarily which elements to be included in the sample. Final sample size used

for evaluation was 48 out of 50.


A questionnaire (Structured technique for data collection consisting of a series of questions,



framed to minimize the element of bias and errors. There were 13 questions in total which

answered research questions.

Chapter III

58

3.2.4. Results and discussion

Table 3.2.1. Demographic characteristics of the respondents

Variable Percentage of respondents

Gender

Male 62

Female 38

Age group

30-40 yr 58

≥ 40 yr 42

Experience

1-10 yr 64

11-20 yr 16

21-30 yr 20

Demographic characteristics are one of the important elements of a market research. The

demographic characteristics are shown in Table 3.2.1. 62% of respondents were from male

category and 38% of respondents were from female category. 58% of respondents were

between age group 30-40 years. 64% of respondents were having professional experience

between 1-10 years.

Table 3.2.2. Awareness of cosmeceutical products

Response Percentage of respondents

Yes 96

No 04

Figure 3.2.2. Awareness of cosmeceutical products.

Yes No

0

20

40

60

80

100

% r

esp

on

se

Chapter III

59

The data (Table 3.2.2.) revealed that 96% of dermatologists were aware of the

cosmeceutical products available in Indian cosmetic market. Whereas 4% of dermatologists

were not aware of cosmeceutical products. The graphical presentation of the respondents is

shown in fig 3.2.2. For further analysis; out of 50 dermatologists, responses of 48 were

included in the study as they were aware of cosmeceutical products.

Table 3.2.3. Source of information about cosmeceuticals


Newspaper 04

TV commercial -

Magazine 02

Conference 54

Medical representative 40

Any other -

Figure 3.2.3. Source of information about cosmeceuticals.

The responses and graphical presentation of the respondents are shown in table 3.2.3. and

fig.3.2.3. 54% of the respondents got the latest information on cosmeceuticals through

national and International conference. Most of the conferences on cosmeceuticals are

organized in Europe and USA. 40% respondents were of opinion that medical

representatives of companies are major information provider on cosmeceuticals.

0 10 20 30 40 50 60

Newspaper

Magazine

Conference

Medical Representative

% response

Chapter III

60

Table 3.2.4. Is concept of cosmeceutical popularized in India


Yes 56

No 29

Can‟t say 15

Figure 3.2.4. Is concept of cosmeceutical popularized in India.

From the above data (Table 3.2.4.) 56% of respondents said that concept of cosmeceuticals

is becoming more popular in India because consumers are giving significant attention to

health and wellness as the concept of beauty and health are becoming increasingly

interlinked. 29% of respondents said that cosmeceutical products are not popularized in

India, However more popular and widely used in western countries. The graphical

presentation of the respondents is shown in fig.3.2.4.

Table 3.2.5. Whether dermatologists should be allowed to dispense cosmeceutical

products


Strongly agree -

Agree 62

Neutral 25

Disagree 13

Strongly disagree -

56% 29%

15%

Yes

No

Can‟t say

Chapter III

61

Figure 3.2.5. Whether dermatologists should be allowed to dispense cosmeceutical

products.

Table 3.2.5. shows that 62% of respondents were of opinion that they should be allowed to

dispense cosmeceutical products. 25% of respondents were undecided on said matter. The

graphical presentation of the respondents is shown in fig.3.2.5. In India doctors are not

allowed to sell the products directly to consumers or patients. However if a cosmeceutical

has to be sold as an over-the-counter product in India it would need approval from the office

of the drug controller general of India under the ministry of health. In USA, it is estimated

that as many as 40-70% of dermatologists dispense products from their offices, and doctors

of every other specialty is increasingly involved as well. Moreover, there has been a

significant growth in dispensing of cosmeceutical products, driven by consumer demand,

which has taken the place of dispensing of prescription products as the mainstay of the

dermatologist's dispensing practice.

Table 3.2.6. Whether dermatologists prescribe cosmeceuticals


Frequently 58

Hardly ever 38

Never 04

62%

25%

13%

Agree

Neutral

Disagree

Chapter III

62

Figure 3.2.6. Whether dermatologists prescribe cosmeceuticals.

From the above analyzed data (Table 3.2.6.) 58% of respondents prescribe cosmeceutical

products to their patients. Respondents said that people are more concern about their

personal care than ever before. Patients are seeking advice from dermatologist on particular

type of cosmeceutical products available in the markets like sunscreens, anti-acne creams,

anti-aging and skin whitening products. 38% of respondents barely prescribe cosmeceutical

products to their patients. The graphical presentation of the respondents is shown in

fig.3.2.6.

Table 3.2.7. Conditions for which cosmeceuticals were usually preferred


Anti-acne 52

Aging/ Photo damage 26

Hair loss 08

Fungal infections -

Cleansing 14

Moisturizing 20

Sunscreen 50

A/D shampoos 14

Baby care -

Any other -

58%

38%

4%

Frequently

Hardly ever

Never

Chapter III

63

Figure 3.2.7. Conditions for which cosmeceuticals were usually preferred.

Cosmeceuticals are employed to carry out many functions, such as preventing UV damage,

reducing free radical formation, improving the skin lipid barrier, brightening and unifying

skin tone, smoothing texture and reducing pore size. Majority of respondents were of

opinion that cosmeceutical should be used in the treatment of minor skin disorders or mild

skin abnormalities. Table 3.2.7. shows that 52% of respondents prescribe anti-acne

products. Different types of anti-acne are used for different treatment purposes, depending

on the severity of the condition. 50% of respondents prescribe sunscreen products to their

patients, as there is increasing awareness about UV rays exposure and the signs of aging,

including wrinkling and depigmentation.

26% of respondents prescribe cosmeceutical products for aging skin. 20% of respondents

prescribe moisturizers for dry and chapped skin, as it is very common problem both in

healthy individuals and in patients with skin diseases. According to respondents the future

for hair growth is also lucrative. The overall graphical presentation of the respondents is

shown in fig.3.2.7.

Table 3.2.8. Whether products available in the market are backed by science


Strongly agree -

Agree 48

Neutral 23

Disagree 21

Strongly Disagree 08

52%

26%

8% 14%

20%

50%

14%

Antiacne

Aging/ Photodamage

Hair loss

Cleansing

Moisturizing

Sunscreen

A/D shampoos

Chapter III

64

Figure 3.2.8. Whether products available in the market are backed by science.

The above data (Table 3.2.8.) shows that 48% of respondents were satisfied with the

products available in the market. 23% of respondents were undecided on the matter. 21% of

respondents were not convinced with products available in the market. The graphical

presentation of the respondents is shown in fig. 3.2.8. To gain the confidence of respondents

cosmetic companies have to deliver the results what they claim for their products. To

establish a new product in market, sampling and literature is utmost important. Especially in

cosmeceuticals, providing clinical studies and elaborated description of the products

ingredients, mechanism of action is very important to win confidence of respondents. Most

of the respondents believe that products available in the market are backed by evidenced

based science. Some of the respondents said that today cosmetic companies are more

science focused than ever and products deliver the results what they promise and what they

promote. In future dermatologists may play a role of expert in cosmeceutical research and

development.

Table 3.2.9. Availability of cosmeceutical products

Response Percentage of

respondents

Prescription only products 77

OTC products 21

FMCG products 02

0

10

20

30

40

50

Agree Neutral Disagree Strongly

Disagree

% r

esp

on

se

Chapter III

65

Figure 3.2.9. Availability of cosmeceutical products.

From the above data (Table 3.2.9) 77% of respondents said that cosmeceutical products

should be available through prescription only. 21% of respondents said that they should be

available as over the counter (OTC) products. The graphical presentation of the respondents

is shown in fig.3.2.9. As cosmeceuticals act functionally; help of dermatologists for use of

these products are advisable because it can be difficult for consumer with respect to

choosing the right regimen from the plethora of over the counter choices as well as being

informed about potential risks and side effects.

Table 3.2.10. Cosmeceutical products are equally regulated by regulatory authorities.


Strongly agree 02

Agree 28

Neutral 24

Disagree 30


0

20

40

60

80

% r

esp

on

se

Chapter III

66

Figure 3.2.10. Cosmeceutical products are equally regulated by regulatory authorities.

From the above data (Table 3.2.10.) 30% of respondents were of opinion that cosmeceutical

products available in the market are not regulated as like drugs or OTC products. Whereas

28% of respondents said that cosmeceutical products are equally regulated as like drugs.

24% were undecided on this matter. The graphical presentation of the respondents is shown

in fig.3.2.10. Respondents were aware of various regulatory guidelines applicable for drug

and cosmetic products.

Table 3.2.11. View on forming new category for cosmeceutical products


Strongly agree -

Agree 36

Neutral 31

Disagree 31


0

5

10

15

20

25

30

Strongly

agree Agree

Neutral

Disagree

Strongly

disagree

% re

spo

nse

Chapter III

67

Figure 3.2.11. View on forming new category for cosmeceutical products.

The above data (Table 3.2.11.) shows that 36% of respondents were of opinion that there

should be new category for cosmeceuticals. 31% of respondents were undecided on this

question. While 31% of respondents were of opinion that it is not essential to separate

category or modification of the classification of products in the drugs and cosmetics, there is

a need for better consideration of the outcomes of these products, from the patients‟ point of

view. The graphical presentation of the respondents is shown in fig.3.2.11.

Table 3.2.12. Opinion on future of cosmetic products


Strongly agree -

Agree 69

Neutral 15

Disagree 16

Strongly Disagree -

Agree

Neutral

Disagree

Strongly Disagree

0 5 10 15 20 25 30 35 40

% response

Chapter III

68

Figure 3.2.12. Opinion on future of cosmetic products.

The above analyzed data (Table 3.2.12.) shows that 69% of respondents were of opinion

that cosmeceutical products have bright prospect in India. They may replace conventional

cosmetic products in near future.16% of respondents said that cosmeceuticals are marketing

gimmick. The graphical presentation of the respondents is shown in fig.3.2.12.

Table 3.2.13. Cosmeceuticals that would become popular over the next five years


Sunscreens 32

Anti-aging 48

Antidandruff shampoos 22

Whitening creams 34

Skin repair creams 20

Fillers 06

Anti-acne 20

69%

15%

16%

Agree

Neutral

Disagree

Chapter III

69

Figure 3.2.13. Cosmeceuticals that would become popular over the next five years.

From the above data (Table 3.2.13.) 48% of respondents said that anti-aging products have

high demand and would be popular among all cosmeceuticals. Euro monitor international

estimates global market for anti-aging products approached US$ 15 billion last year and

predicts sales US$ 21.3 billion in 2012. 34% of respondents were of opinion that skin

whitening products are in more demand. Skin whitening is widespread phenomena in Asia.

India has the highest penetration with over 60% of skin care sales from products with

whitening benefits. 32% of respondents said that sunscreens would become more popular in

India and may have impressive growth rate in future. The graphical presentation of the

respondents is shown in fig.3.2.13.

Table 3.2.14. Factors considered by dermatologists while prescribing a cosmeceutical

brand


Company image 06

Brand price 23

Brand experience 27

Brand safety 44

0

10

20

30

40

50

% re

spo

nse

Chapter III

70

Figure 3.2.14. Factors considered by dermatologists while prescribing a cosmeceutical

brand.

When it comes to prescribe a particular cosmeceutical brand, 44% of respondents preferred

brand safety as important criteria. Brand safety is all about safety, effectiveness, healthiness

and convenience, which are three most important attributes of the 'best of its kind' in

cosmeceutical products. 27% of respondents said that experience with a particular brand is

the key driver to prescribe a particular brand. 23% of respondents said that brand price is

important factor which is considered before prescribing a cosmeceutical brand. The data and

graphical presentation of the respondents is shown in table 3.2.14 and fig. 3.2.14.

3.2.5. Conclusion

Dermatologists have a unique and significant role in the development of cosmeceutical field

in India. Dermatologists can advise their patient what should be avoided and personalize a

skin care regimen for them to keep up healthy-looking skin.

It was observed that majority of Indian dermatologists were of opinion that government

should allow doctors to dispense cosmeceutical products from their clinics. The future of

cosmeceutical field is very impressive according to dermatologists. Anti-aging products

have better prospects compared to other category of products. The dermatologists are

persuaded with cosmeceutical products available in the market and they are of opinion that

they are backed by science. Brand experience and brand price are important factors

considered before prescribing cosmeceutical brand. The cosmeceutical category has better

prospects in future which may move the dermatology field forward.

0

10

20

30

40

50

Company image Brand price Brand experience Brand safety

% r

esp

on

se

Chapter III

71

3.2.6. References

1. Cosmeceuticals: Practical Solutions for Common Problems. [cited 2010 November 15].

Available from: http://www.pgbeautygroomingscience.com/wcd/forum3.php

2. Anti-Acne Cosmeceutical Products: Dermatologists Perspective.[cited 2011 February

11]. Available from: http://www.kppub.com/articles/nov2010/anti_acne_

cosmeceutical_products_dermatologists_perspective.htm

3. Sadick NS. Their role in dermatology practice (Focus On: Cosmeceuticals). Journal of

Drugs in Dermatology 2003. [cited 2007 December 20]. Available from:

http://www.accessmylibrary.com/coms2/summary-0286-286-2351396_ITM.

4. Draelos ZD. Searching for the Cosmeceutical Connection. [cited 2011 March 4].

Available from: http://www.cosmeticsandtoiletries.com/research/techtransfer/

2078912.html

5. Wallach. D. The field of cosmetic dermatology: the need for a patient-centred approach.

Journal of Cosmetic Dermatology 2002; 1:137–141.

6. Malhotra N K. Marketing Research – An Applied Orientation, Third Edition, Pearson

Education,First Indian Reprint, 2001, 83-85.

7. Thomas T S. “Marketing Research Needs Basic Research”, Marketing News (April 14,

1997), 34.

http://www.pgbeautygroomingscience.com/wcd/forum3.php

Chapter III

72

Part-III : Companies view on cosmeceuticals in Indian context

3.3.1. Introduction

The cosmetic industry is a massive industry, and is rapidly growing. As it expands and

evolves in tandem with society, the industry creates higher and higher profit margins and

gleans more and more prominence power in Indian consumerism and popular culture [1]

.

Companies are taking the opportunity to manufacture more of cosmeceutical products,

which typically generate more profits. The cosmetic industry is more oriented towards

producing cosmetic products with developing „medicinally‟ active cosmetics and

pharmaceutical industry is more oriented towards developing „cosmeceutically‟ oriented

medicinal products [2]

.

The manufacturing of cosmeceutical products is dominated by a small number of

multinational corporations. The three largest cosmetic companies in the world in terms of

market shares are Procter and Gamble, L'oreal and Unilver. However they face stiff

competition from other companies like Estee Lauder, Colgate Palmolive, Avon, Shisiedo,

Johnson and Johnson and Beiersdorf. There are also many domestic players within the

market. Nowadays pharmaceutical companies are entering this lucrative market. Fig 3.3.1.

gives glimpses why cosmeceuticals provides a huge opportunity for the pharmaceutical

industry.

With the boundary between cosmetics and pharmaceuticals blurring a few global

pharmaceutical and cosmetic giants, including Pfizer and L‟Oreal are embarking on

research to fill this niche segment [4]

. With same pace Indian Pharmaceutical companies are

now contemplating to enter this lucrative area. The probable reasons are: cosmeceuticals

doesn‟t require premarket approval in some countries. Efficacy testing is not mandatory

compared to drugs. Products should be safe but there is no definition of safety for

cosmeceuticals. Labeling requirements are less complex compared with drugs. Average

time for breakthrough technology in cosmeceuticals is about 3-5 years. Cost of creating and

developing a breakthrough cosmetic technology is US$ 2-3 million compared to cost of

R&D for new drug is US$ 800million. By looking at favorable conditions pharmaceutical

companies are more fascinated towards cosmeceuticals segments. Companies like Piramal

Healthcare have already done by joining hands with Pierre Fabre, even drug maker Dr.

Reddy‟s Laboratories recently entered into licensing and distribution agreement with a US-

based dermatology and aesthetic medicine company „Cosmederm Technologies‟ for

distribution of proprietary skin care products in the country. Other Indian pharmaceutical

Chapter III

73

companies who have entered into the dermo-cosmetics area include Elder Pharma, USV,

Ozone pharmaceuticals and Himalaya herbal healthcare [5]

.

Figure 3.3.1. Cosmeceuticals: Huge opportunity for the Pharmaceutical industry [3]

Pharmaceutical

drug

Cosmetic

Product

Premarket application

Efficacy determined

by specified end point

Safety studies: Animal

studies, toxicology,

pharmacokinetics,

pharmacology, drug-

drug interaction.

Complex labeling

requirements

GMP regulations

apply

Change in

formulation must be

reviewed by the FDA

No preapproval

application

No predetermined

endpoint is necessary.

Must be safe, but

there is no definition

of safety

Labeling requirements

are well defined by

regulation, but are far

less complex

GMP regulations

apply,

Change in

formulation is not

reviewed by FDA.

Marketing claims

closely monitored by

FDA

Average time for drug

development is from

7-15 years

Cost of R&D for a

new drug is US$ 800

million

Marketing claims are

seldom monitored,

Average time for

breakthrough technology

3-5 years

Cost of creating and

developing a

breakthrough cosmetic

technology is US $2-3

million

Drug

Vs

Cosmetic

Chapter III

74

3.3.2. Objective

To analyze cosmetic and pharmaceutical companies view toward cosmeceuticals in India.

The survey was carried out mainly to understand:

Number of cosmetic and pharmaceutical companies involved in manufacturing and

marketing of cosmeceutical products

Types of cosmeceutical products manufactured and marketed by companies

To determine regulatory guidelines followed for identifying efficacy of cosmeceuticals

To know which regulatory guidelines companies follow for ensuring safety of

cosmeceuticals

To determine regulatory guidelines companies follow for labeling the cosmeceutical

products

To find out the factors that would encourage consumers to use cosmeceutical products

To find out which cosmeceutical products that would become popular over the next five

years

To find out future market potential for cosmeceutical products

To know the interest of companies whether in future they continue to manufacture

cosmeceuticals once the guidelines are established by the regulatory authorities

To find out the reasons why regulatory authorities have not established guidelines for

cosmeceuticals

To determine factors that may impede growth of Indian cosmeceutical market in future

3.3.3. Research Methodology

Research Design

A research design (fig. 3.3.2) is a framework or blueprint for conducting the marketing


information needed to structure and solve marketing research problems [6]

.

Components of Research Design

Information Needed – Information regarding to companies opinion on cosmeceuticals was

sought to know the intricacies involved in cosmeceutical manufacturing and marketing

business.

Chapter III

75

Figure 3.3.2.Research Methodology.



understanding of the problem confronting the researcher [7]

. The primary objective of study


Data sources

Secondary Data

Type of study:

Exploratory

Research articles

Online articles

Newspapers and

Magazines

Self-administrated

questionnaire

Sampling method:

Non probability

convenience

method

Sampling Unit:

Cosmetic &

Pharmaceutical

companies

Sample Size: 10

Review articles

Market reports

Authentic websites

Primary Data


Chapter III

76

Scale of measurement – Nominal scale was followed for the study. The statistics applied

were descriptive percentages.

Data Collection

Data was collected through primary research and secondary research.

Sample size – Target sample size was ten. Final sample size which was used for evaluation

was ten. All respondents questionnaire were included for analysis as they were qualified and

answered all questions.

E-mail survey method was followed where the respondents were sent questionnaire as an

attachment in the mail. Respondents typed their responses to open ended questions and

highlighted or marked closed ended questions and sent the answered questionnaire through

mail.

Data


Secondary data – Secondary data were obtained from authentic websites. Information with

regard to research objectives was collected from published literature in medical online and

print journals, market reports and news items from the internet.

Sampling design

There was no specific sampling frame (A representation of the elements of the target

population. For example telephone directory, an association directory etc.) from which the

company personnel were contacted. It was possible to gather the mail addresses of the

respondents through web pages of the companies and the network of people researcher had.

Sampling technique used for the study was nonprobability convenience sampling, which

relies on the personal judgment of the researcher rather than chance to select sample

elements. We decided arbitrarily which elements to be included in the sample. Final sample

size used for evaluation was ten.


A questionnaire (structured technique for data collection consisting of a series of questions,



framed to minimize the element of bias and errors. There were twelve questions in total

which answered research questions.

Chapter III

77

Data Analysis and Interpretation: It was done taking into consideration the characteristics

of the data. The data obtained is edited, classified and put in as tabulated form to make it

understandable and presented with help of charts, diagrams and graphs etc.

3.3.4.1. Results and discussion

Table 3.3.1. Whether companies involved in manufacturing and marketing of

cosmeceutical products

Figure 3.3.3. Whether companies involved in manufacturing and marketing of

cosmeceutical products.

The above data (Table 3.3.1.) shows that 80% of companies were involved in

manufacturing and marketing of cosmeceutical products. Companies not involved in

manufacturing and marketing cosmeceuticals were contemplating to enter this lucrative

area. The global market is predicted to be US$ 8,240 million by 2012. The graphical

presentation of companies response is shown in fig. 3.3.3.

Table 3.3.2. To know whether the company is a large scale, small scale and medium

scale

Category Percentage of respondents

Large Scale 30

Medium scale 40

Small scale 30

0

10

20

30

40

50

60

70

80

90

Yes No

% r

esp

on

se

Responses Percentage of respondents

Yes 80

No 20

Chapter III

78

Figure 3.3.4. To know whether the company is a large scale, small scale and medium

scale.

The data (Table 3.3.2.) revealed that 40% of companies are medium scale, 30% of

companies were large scale and 30% of companies were small scale. The graphical

presentation of companies response is shown in fig.3.3.4. Ratios of domestic companies

were more compared to multinational companies as study was focused on Indian context.

Table 3.3.3. Cosmeceutical products manufactured by companies

Product category Percentage of respondents

Sunscreens 40

Moisturizers 40

Bleaching agents 20

Anti-aging products 50

Conditioning agents 50

Hair growth stimulants 40

Antidandruff shampoos 30

0

5

10

15

20

25

30

35

40

45

Large Scale Medium scale Small scale

% r

esp

on

se

Chapter III

79

Figure 3.3.5. Cosmeceutical products manufactured by companies

The above data (Table 3.3.3.) revealed that 50% of companies manufactured anti-aging

products. 40% of companies manufactured sunscreen products. 40% of companies are

manufacturing moisturizers, from skin care segment followed by hair care segment. The

graphical presentation of companies response is shown in fig. 3.3.5. According company

experts growth of anti-agers in all channel looks set to continue for some time to come.

Table 3.3.4. Regulatory guidelines followed for safety of cosmeceutical products

Regulatory guidelines Percentage of respondents

OTC products 50

Drugs -

Cosmetics 30

Figure 3.3.6. Regulatory guidelines followed for safety of cosmeceutical products.

40%

40%

20%

50%

30%

40%

30% Sunscreens

Moisturizers

Bleaching agents

Anti aging

Conditioning agents

Hair growth stimulants

Antidandruff shampoos

0

10

20

30

40

50

60

OTC Products Cosmetics

% r

esp

on

se

Chapter III

80

In present scenario due to lack of cosmeceutical regulations for safety aspects, 30% of

companies followed existing cosmetic regulation for testing safety of cosmeceutical

products. 50% of companies get their product approved as OTC product and hence they

follow the guidelines specified for OTC product by regulatory authorities. The data is

shown in table 3.3.4 and presented graphically in fig.3.3.6.

Table 3.3.5. Regulatory guidelines followed for efficacy of cosmeceutical products


OTC products 30

Drugs -

Cosmetics 50

Figure 3.3.7. Regulatory guidelines followed for efficacy of cosmeceutical products.

From the above data (Table 3.3.5.) 50% of companies have acknowledged that for efficacy

testing of cosmeceutical products they followed the regulatory guidelines as specified for

existing cosmetic products. According to USFDA it is not mandatory to conduct efficacy

test. It is up to the manufactures to conduct the efficacy tests. 30% of companies followed

efficacy guidelines as specified for OTC products. The graphical presentation of companies

response is shown in fig.3.3.7.

0

10

20

30

40

50

60

OTC products Cosmetics

% r

esp

on

se

Chapter III

81

Table 3.3.6. Regulatory guidelines followed for labeling of cosmeceutical products


Drugs 10

Cosmetics 70

Figure 3.3.8. Regulatory guidelines followed for labeling of cosmeceutical products.

From the above data (Table 3.3.6.) shows that due to lack of cosmeceutical labeling

guidelines, 70% of companies follow labeling conditions as specified for cosmetic products.

Labeling requirements are well defined by regulation, but are far less complex compared to

drugs. The graphical presentation of companies response is shown in fig.3.3.8.

Table 3.3.7. Factors that may encourages consumers to use cosmeceutical products

Encouraging factors Percentage of respondents

Appearance/Packing 50

Newsgroup on internet -

Word of mouth (friends) 40

Advertising 80

Quality 60

Safety 40

Price 60

0 10 20 30 40 50 60 70 80

Drugs

Cosmetics

% response

Chapter III

82

Figure 3.3.9. Factors that may encourage consumers to use cosmeceutical products.

A major factor which may encourage the consumers to use cosmeceutical product is

cosmetic advertising. The above data (Table 3.3.7.) shows that 80% of company expert said

that cosmetic advertising is very crucial element for companies to make ensure that

advertising message reaches the consumers. 60% of experts were of opinion that quality

product is another important factor where consumers may consider before purchasing

cosmeceutical products. Next important factor is price of products, 60% of experts said that

most of the cosmeceuticals are expensive and price tag is associated with status symbol in

India. Indian consumers are increasingly looking for international cosmeceutical products

brands as use of these brands confer one with sophisticated and upper class image. 50% of

experts were of opinion that packaging of cosmeceutical products is another important

factor which may encourage consumers to use these products. 40% of experts said that safe

and result oriented products will have bright prospect ahead. The graphical presentation of

companies response is shown in fig.3.3.9.

Table 3.3.8. Cosmeceuticals that would become popular over next five years

Product category Percentage of respondents

Sunscreens 40

Anti-aging 80

Shampoos 10

Wrinkle reducers 70

Skin firming agents 50

Skin repair creams 50

50%

40%

80% 60%

40%

60%

Appearnace and Packaging

Word of Mouth

Advertising

Quality

Safety

Price

Chapter III

83

Figure 3.3.10. Cosmeceuticals that would become popular over next five years.

From the above data (Table 3.3.8.) 80% of experts said that age-defying products will

achieve the fastest gains, driven by a highly expanding group of graying baby boomers who

want to redress visible damage to the skin caused by aging. Indian anti-aging market is 60

crore and is growing at a rate of 30%. At the same time wrinkle reducers and skin firming

agents have major demand in the market. Moisturizing products with SPF also have the

high demand in the market. The graphical presentation is shown in fig.3.3.10.

Table 3.3.9. Potential cosmeceutical products in future


Strongly agree 60

Agree 40

Neutral -

Disagree -

Strongly Disagree -

0 20 40 60 80 100

Sunscreens

Anti aging

Shampoos

Wrinkle reducers

Skin firming agents

Skin repair creams

% of reponse

Chapter III

84

Figure 3.3.11. Potential cosmeceutical products in future.

According Freedonia market research group by year 2017 the demand for overall skin care

cosmeceuticals is predicated around US$ 11,520 million. There are more cosmeceutical

products introduced in the market place on a monthly basis than pharmaceuticals. All

experts were of opinion that cosmeceutical market will flourish in next five years. Looking

at the lucrative cosmeceutical market, majority of companies are very much interested to

manufacture more cosmeceutical products in near future. The data is shown in table 3.3.9.

and graphical presentation of companies is shown in fig.3.3.11.

Table 3.3.10. Future of cosmeceuticals, once regulatory guidelines are established


Strongly agree -

Agree 40

Neutral 30

Disagree 30

Strongly Disagree -

0

10

20

30

40

50

60

70

Strongly agree Agree

% o

f re

spon

se

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Figure 3.3.12. Future of cosmeceuticals, once regulatory guidelines are established.

The company experts were asked whether it would become difficult to manufacture

cosmeceutical products if once guidelines are established, there were different opinion

regarding the same. From above data (Table 3.3.10.) 40% of experts were of opinion that if

guidelines are established there may be rigorous procedure to get the marketing approval for

cosmeceutical products. While 30% of experts were undecided are on this question. 30% of

experts disagree with the same, they were of opinion that if guidelines are established,

consumers may get superior product and may be safe. This may restrict entry of substandard

and spurious cosmeceutical products. The graphical presentation of companies response is

shown in fig.3.3.12.

Table 3.3.11. Reasons for not establishing the regulatory guidelines

Responses Percentage of respondents

May not feel the need 10

Financial Incapability -

Procedural difficulties 70

Lack of infrastructure and manpower 20

40%

30%

30%

Agree

Neutral

Disagree

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Figure 3.313. Reasons for not establishing the regulatory guidelines.

This question was posed to know from companies point of view whether government is

serious about framing regulatory guidelines in near future and what are probable reasons for

not framing the cosmeceutical guidelines compared to other countries. From analyzed data

(Table 3.3.11.) 70% of experts said that there are some procedural difficulties because of

which they are unable to classify cosmeceuticals. Experts said that there is multiple and

complex regulations under different bodies and non-uniform licensing approvals across

various states and there is inconsistent approach across authorities in interpretation of a

particular issue. 20% of experts said that lack of infrastructure and knowledge regarding

cosmeceuticals among regulatory authorities is not encouraging.10% of respondents were of

opinion that government did not feel the need to have a separate category for

cosmeceuticals in India. The graphical presentation of companies response is shown in

fig.3.3.13.

3.3.4.2. To know from respondent’s point of view, factors that may impede the growth of

Indian cosmeceutical market.

According to company experts following are factors which may hinder the growth of Indian

cosmetic Industry with regard to cosmeceutical products.

Focused approach by the industry

According to some experts the industry needs focused approach towards cosmeceuticals.

The cosmeceutical market in India is not fully organized as compared to the western

countries. The cosmeceutical market is focused only on particular segment and in metros

cities only. The industry need to focus on mass market rather than particular segment.

0

10

20

30

40

50

60

70

80

May not feel the need Procedural difficulties Lack of infrastructure and

manpower

% o

f re

spon

se

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Need more domestic entrants in the market

As per company professionals, the cosmeceutical market is dominated by international

players like L‟Oreal, Estaee lauder. The Indian origin cosmetic companies still have to

make their presence in cosmeceutical market.

Advertising for awareness e.g. Campaigns

The awareness for cosmeceuticals among consumers needs more consideration. Most

consumers are baffled between cosmetic and cosmeceuticals products. So campaigns are

needed from industry side to make aware that cosmetic product improve superficial

appearance while, modern cosmeceuticals act functionally.

Expansion to rural market

The concept of cosmeceuticals is especially focused in metros and tier II cities which

constitute 70% of cosmetics sales in the overall cosmetic revenue. According to company

experts the rural market holds a huge potential for the cosmeceutical segment as more than

65% of India‟s population still lives in villages. India‟s vast rural market will be the key

driver as the market penetration is still around one third of country‟s urban areas.

Money invested for research and development is limited in India

The amount of money invested on cosmeceutical research look particularly small compared

to pharmaceuticals. Major companies consistently spend on average between 2.0 and 2.5

percent of total revenue. If cosmeceutical products are to compare on their scientific and

technical prowess, cosmetic companies will need to reassess their R& D spending.

Rationale pricing

Sunscreens, anti-wrinkle creams, serums, or moisturizers are typically expensive products

available in the market which may hamper the cosmeceutical market in future. Cosmetic

companies experts say that the high cost is due to expensive special ingredients, unique

manufacturing procedures, and research and development costs. Even sometimes there is

monopoly, so there is price rise of cosmeceuticals by multinational companies which are

difficult for survival of small and medium companies in case of competition.

Specific regulations for cosmeceuticals which exist in other developed markets

Some countries have the classes of products that fall between the two categories of

cosmetics and drugs, for example, Japan has „Quasi drugs‟, Thailand has „Cosmetic type

drugs‟. Korea Food and Drug Administration (KFDA) have classified borderline products

as “functional cosmetics”. New Zealand law provides a third category called “related

products”. USA has listed some specialized topical preparations as over-the-counter (OTC)

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drugs on the basis of review of the safety and efficacy of the drug constituents, for example,

anti-acne products, antidandruff shampoos, antiperspirants, oral care products, sunscreen

products, anti-wrinkle creams, fluoridated toothpastes, etc. In India, clearer and specific

guidelines are required for cosmeceuticals.

Grey area/ Interpretation issues differences from State Vs. Centre FDA

Health and beauty categories are overlapping, with cosmeceuticals lying somewhere in the

middle. The cosmeceutical products straddle the divide between pharmaceuticals and

cosmetics. According to company experts there is lack of implementation guidelines of the

Drug & Cosmetic Act, 1940 for regulators for issues related to these grey products such as,

non-uniform licensing approvals across various states and inconsistent approach across

authorities in interpretation of a particular issue between state and centre FDA which affects

the product launch in the market.

3.3.5 Conclusion Indian cosmetic industry has emerged as one industry holding huge potential for future

growth. Increasingly, there is a noticeable effort on the part of larger pharmaceutical

manufacturers contemplating entering lucrative area of cosmeceutical business. The

companies are aware of absence of regulatory guidelines for cosmeceuticals. Absence of

regulatory guidelines is a major hurdle for the trade of cosmeceutical market in India and

abroad. Some cosmetic companies follow the existing guidelines for safety, efficacy, and

labeling and some companies follow guidelines as specified for OTC products. Innovative

and persuading cosmetic advertising play important role in purchasing decision of

cosmeceutical products. Quality product is another important encouraging factor for

consumers to select best cosmeceutical products from the market.

The future market may be dominated by anti-aging, wrinkle reducer‟s cream, skin repair

creams according to company experts. The companies are looking optimistic about the

growth of cosmeceutical market and are interested in producing more number of

cosmeceutical products in near future. According company experts the cosmeceutical

market is more focused in metro cities and looking for Indian rural market as potential in

future. Further investment on R&D cosmeceutical products is less compared with foreign

origin multinational cosmetic companies. Majority of company experts say that regulatory

authority are facing problem with product classification for cosmeceuticals.

Company experts call for clearer government policy on cosmeceutical products so that

everyone will be benefited from these regulations including the consumers.

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3.3.6 References

1. Cosmetics industry self-regulation. [cited 2008 March 12]. Available from:

leda.law.harvard.edu/leda/data/764/Daum06.html

2. Dureja H, Kaushik D,Gupta M, Kumar V, Lather V. „Cosmeceuticals: An Emerging

Concept‟. Indian Journal of Pharmacology.2004; 37:155-159.

3. Draelos, Z.D. Cosmeceuticals: undefined, unclassified, and unregulated. Clinics in

Dermatology. 2009; 27: 431-34.

4. Drugs are for beauty too. Nature. 2003; 424:6952.

5. Iyer S. Cosmeceuticals Presents a Huge Opportunity for the Pharma Industry.[cited

2011 January 25]. Available from: http://www.pharmaquest.biz/News/Top-

Business-News/Cosmeceuticals-Presents-a-Huge-Opportunity-for-the-Pharma-

Industry.html

6. Malhotra N K. Marketing Research – An Applied Orientation, Third Edition,

Pearson Education, First Indian Reprint, 2001;83-85.

7. Thomas T S. “Marketing Research Needs Basic Research”, Marketing News (April

14, 1997), 34.

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