Cosmetic Industries in India

PREPARED BY: ANAM KHURSHEED BBA 3 (A)

INTRODUCTION


cosmetics: are substances used to enhance or protect the appearance or odor of the human body. A subset of cosmetics is called "make-up", "makewhich refers primarily to colored products intended to alter the users appearance. appearance. The U.S. FDA defines cosmetics as: "intended to be applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the body's structure or functions."

COSMETIC PREPARATIONS
Cosmetics were made for personal use and religious ceremonies. Historical records show that many different materials were used for body adornment.

Makeup Ingredients:

Plant Life Bark Leaves

Food Items Nuts Herbs Berries

Other Items Minerals Insects

SEGMENTSEGMENT-WISE BREAK UP OF THE FMCG SECTOR IN INDIA

SEGMENT PRODUCTS
HOUSEHOLD CARE

MAJOR PLAYER
HUL,Nirma,Godrej Consumer products,ITC,P&G,Dabur Reckett & Coleman.

Fabric wash; household cleaners (dish/utensil cleaners,floor cleaners,air fresheners,insecticides and mosquito repellents,metal polish and furniture polish). Oral care, Hair care,Skin care,Personal wash (soaps),cosmetics & toiletries,deodorants,perf umes, umes, female hygiene products.

PERSONAL CARE

, Godrej Consumer produColgate Palmolive,HUL, Amway,LOreal,Lakme,M arico,Cavin Care,Fem Care,Emami,P&G,Himal aya,ITCcts.

SEGMENT

PRODUCTS
FOOD : Staples, cereals, bakery products (biscuits, breads, cakes, snack foods, chocolates, icecreams, icecreams, branded flour, branded rice, ready-toready-to-eat packaged foods etc. BEVERAGE : Health beverages,Tea,Coffee,Bottled Water,Juices,Liquor etc.

MAJOR PLAYERS
Parle Agro, Brittania, Brittania, Nestle, Cadbury, Pepsi Co., CocaCola etc.

FOOD &BEVERAGES

United Breweries,GlaxoSmith Kline,PEPSICO,Coca Cola,Radico,Dabur,Real etc

INDIAN MARKET FOR PERSONAL CARE PRODUCTS

PROJECTED GROWTH


Subject to sustained overall GDP growth rates of ~8-9% p.a., the overall Indian ~8personal care market has the potential to grow at 15%-16% p.a. (much higher rates 15%for select segments like colour cosmetics, skin care and deodorants) and thereby double to ~$8-bn by 2012-13. ~$82012-

REASONS FOR GROWTH IN THE SKIN CARE INDUSTRY IN INDIA



 

Concerns about hygiene and personal grooming drive sales. Discounts boost growth in the face of economic uncertainty. Domestic players expand their presence. Chained retailers create opportunities for point-ofpoint-of-sale marketing. Rising affluence and sophistication to drive future growth.

ABOUT THE COSMETIC INDUSTRY



The cosmetic industry is a profitable business for most of the manufacturers of cosmetic products. cosmetic industry worldwide seems to be continuously developing,
now more than ever with the advent of the internet companies.

Many famous companies sell their cosmetic products online also in countries in which they do not have representatives. The cosmetic industry is a profitable business for most of the manufacturers of cosmetic products. Given the technological development and the improvement of the manufacturing process of cosmetics and not least due to the constantly increasing demand of such products, this industry reported an important growth in terms of profit.

THE ART OF COSMETICS CAN BE TRACED BACK TO PREHISTORIC TIMES.

Greeks called it Kosmetikos, which means skilled in adornment. Egyptians Drawings by ancient Egyptians show face and body decoration. Romans Roman culture further refined the art of make-up.

INDIA BECOMING MORE IMAGE CONSCIOUS

The reason behind this growth is down to as people becoming more beauty conscious in India, due to changing lifestyles and increasing consumer awareness. This has given market players lucrative opportunities due to increased awareness about personal care and the influence of western culture, which will also drive further growth in the cosmetic market, alongside the increase in disposable income of middle class families. . The Indian Cosmetic Sector Analysis also provides an insight into key trends and behaviour in the industry. The report takes a look in depth at the Indian cosmetics market, focusing on areas such as skin care, hair care, color cosmetic, fragrances and oral care.

INDIAN COSMETIC SECTOR ANALYSIS (2009(2009-2012)



Indian cosmetics industry has witnessed strong growth during the past few years and has emerged as one of the industries holding immense future growth potential. The cosmetics industry registered impressive sales worth Rs 422.3 Billion (US$ 9.3 Billion) in 2010. The sector has mainly been driven by improving purchasing power and rising fashion consciousness of the Indian population. Moreover, the industry players are readily spending on the promotional activities to increase consumer awareness.

New research report incorporates an extensive research and rational analysis of the cosmetics industry in India. It provides segment level analysis of the industry along with the emerging trends that may shape up with the betterment of economic conditions. The research will help consultants, industry analysts, and vendors to get in-depth inknowledge of the current, past, and future performance of the industry. The report also provides information regarding consumer behavior, particularly men and rural population, with regard to cosmetic products


According to our new research report Indian Cosmetic Sector Analysis (2009-2012), Indian cosmetics sector is expected to (2009witness noteworthy growth rate in near future, owing to the rising beauty concerns of both men and women. The industry holds promising growth prospects for both existing and new players. To support this evidence, we have done an extensive analysis of various segments of the cosmetics industry, keeping in view both the services and products sector.

we have also added the competitive landscape section that incorporate valuable information about the leading cosmetic players, their marketing strategies, and swot analysis




STRENGTH
During the three decades, from 1970 to 1990, the cosmetics industry gained momentum in its extensive development through per capita consumption. Even some segments may vary; the cosmetic industry is near maturity. The current annual retail sales of the industry totaled up to $14.5 billion. The first quarter of this current year has seen a demand beginning to revivE revivE a nd trend is expected to continue well into the following year




. WEAKNESSES
Accounting to the past developments, the cosmetics industry has never been always in such a case. The industry is no longer recession-proof and is recessionnow bound for depressions and declinations. Actually, the sales in the past year are slow moving because of downed consumer spending. Consumers that time then tend to settle for the less expensive lines. Another setback of the industry is the demand-price ratio. Within the demandpast five years, the prices were invariable and steady but promotion budgets were growing and getting greater than ever.

OPPORTUNITIES


In keeping away from a potential head-on competition, a headstrategy of focusing on special niches proved to be effective especially in the struggle with the industry leaders. This has leaders. been a great line of attack adopted by smaller companies in their contest with the market leaders. They survive and exist leaders. through specializing in niches, differentiating the product lines, and focusing on market segment. segment. A potential huge market has been spotted on men as they account for 50% of adult population that consume one50% onefifth of cosmetic sales. The failure of the market leaders in sales. such opportunity provides hint to smaller companies as to what would be the proper and better approach to the market. market. Furthermore, the senior citizen population is a large growing market segment which should be given focus as the populations needs were not being met. met.

THREATS


Notwithstanding the apparent growth of the cosmetic industry during the past four decades, there are currently more than 700 growing cosmetic companies competing in the market. Additionally, there are also market leaders that dominate the cosmetic industry. Consequently, it creates stiff and intensifying competition especially to those smaller companies as market leaders are putting pressure on these smaller cosmetic companies.

MAJOR PLAYERS OF COSMETIC INDUSTRY

MARKET SHARE (%) OF SKIN CARE COMPANIES (BASIS RETAIL VALUE RSP. 09) RSP.

21.8%

3.9%

3.4%
2.5 %

Cavin Care

HUL

53.0%

3.4% 12.0%

Hindustan Unilever Godrej Revlon Others

CavinKare Emami L'Oreal

HINDUSTAN UNILEVER LTD.



Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. Beverages. The companys Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010).

Major skin care products are: > Fair and Lovely, Lakme, Ponds and Vaseline Lakme, > Breeze, Dove, Hamam, Lifebuoy, Liril, Lux, Hamam, Liril, Lux, Rexona and Pears.


CAVINKARE LTD.


In 1983 with a single product, CavinKare started out as a small partnership firm. The Company that began its journey as Chik India Ltd was renamed as CavinKare Pvt. Ltd (CKPL) in 1998. 1998. Smart marketing and clear product positioning not only ensured CavinKare's growth but also helped the company broaden its product portfolio extensively.

Major skin care productsproducts> Fairever, Fairever Fruit, Spinz Talc, Spinz Fairever, Deodrants,Hi5 Deodrant and Nyle Cold Cream and Lotion.


GODREJ CONSUMER PRODUCTS

Godrej Consumer Products (GCPL) is a leader among India's Fast Moving Consumer Goods companies, with Personal and Home Care Products.  GCPL is driven by the mission to continuously enhance the quality of life of consumers in highhighgrowth markets with its products.  Major skin care products are : > Fair Glow, Cinthol (soaps, deodorants and talcum powder),Vigil & Godrej No.1.


EMAMI LIMITED
Emami Limited is a coveted Rs 1000 crore business entity, a leading player in the personal and healthcare consumer products industry in India engaged in manufacturing and marketing of health, beauty and personal care products that are based entirely on ayurvedic formulation.  Major skin care products of the company are as follows : > Boroplus antiseptic cream, Boroplus prickly heat powder, Fair & Handsome, Malai Kesar Cold Cream & Navratna cool talc.


CONCLUSION
 

Multinational players with international brands have a strong presence in the Indian personal care segment. Local brands too are gaining a foot-holding the market footby innovatively developing value offerings to meet the unique needs of the Indian consumer. Going ahead, it will be important to develop R&D capabilities to further customize products for Indian consumers, create greater awareness among the burgeoning middle class and ensure effective distribution reach to service them. The companies that are able to develop a judicious mix of the above will be the eventual winners. The time is ripe to review ones strategy and come up with innovative approaches to help realize the full potential of the Indian skin care sector.