PIONEER INSTITUTE OF PROFESSIONAL STUDIES

PRESENTATION ON MARKET REPORT OF COSMETICS

SUBMITTED BY:- ANKITA SINGHAI

CONTENTS
INTRODUCTION WITH TYPES DISTRIBUTION OF SALES CURRENT TRENDS SIZE OF MARKET MARKET SEGMENTS WITH GROWTH % KEY PLAYERS MARKET SHARE OF KEY PLAYERS LARGEST MARKET PLAYER MARKET STRATEGY 5 MAJOR BRANDS KEY SUCCESS FACTORS FUTURE GROWTH

INTRODUCTION WITH TYPES

Cosmetics are substances used to enhance the appearance or odour of the human body. Indian cosmetics market is valued at $950 million. The key growth drivers for the cosmetics market in India are rapid urbanization, increase in personal disposable incomes, and changes in people's tastes.

Cosmetics
The cosmetics market can be segregated into talcum powder, colour cosmetics (lip, eye, face, and nail care products), deodorants, and perfumes. The cosmetics market has been growing at the rate of 15-20% for the last few years.

 Talcum powder is one of the most popular cosmetic products in India. Its market is valued at Rs 3.5 billions and is growing at the rate of 12% per annum. Its penetration level is 45.4% and 25.2% in urban and rural areas respectively. Ponds dominates talcum powder market with a market share of 70%, followed by Johnson & Johnson with a market share of 15%. Colour cosmetics are the fastest growing segment, valued at $60 million. The major products in colour cosmetics market are foundation, compacts, eye make-up, lipsticks, nail enamels, blush-on, etc. Lipsticks and Nail Enamel account for 65% of the Color cosmetic segment. The nail polish segment is valued at Rs. 1.25 billions followed by the lipstick market at Rs 7 millions. All the categories in this segment are growing at around 25-30%.

DISTRIBUTION OF SALES
Greater access to television, increased advertisement, growing awareness of western world, and greater product choice and availability have resulted in growing demand for cosmetic products in India. However, the penetration level of cosmetics and toiletries product is still very low in India. The per capita expenditure on cosmetic products in India is approximately $0.68 cents compared to $36.65 in other Asian countries.

Cont
The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products, while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. Products that are too specialized have yet to be successful on the Indian market. Examples include toners, hand care and other value-added skin care products, bath & shower products and aftershave balm. Only the richest consumers can afford these; indeed, the average consumer may be unaware of their purpose or even existence. This also explains the relatively poor showing of perfumes, especially the premium variety

CURRENT TRENDS
THE COSMETICS market in India is valued at Rs 712 crore and is expected to reach Rs 1,514 crore by 2012. The economy is undergoing substantial changes. Global financial crisis plays spoilsport to growth story. Hindustan Unilever still leads, but comes under increasing pressure. Modern retail rises, but traditional kiranas are still leading players to focus on super-mass and super-premium products

SIZE OF MARKET
THE COSMETICS market in India is valued at Rs 712 crore and is expected to reach Rs 1,514 crore by 2012. The size of India's colour cosmetics market is Rs 250 crore. That of fragrances is Rs 85 crore while the skincare market size is larger at Rs 400 crore. While lipsticks account for nearly a third of the colour cosmetics market at Rs 90-100 crore, the market for nail enamels is estimated at around Rs 110 crore. The remainder consists of products such as mascara, eye-liners etc.

MARKET SEGMENTS WITH GROWTH IN %

The Cosmetics market is broadly categorized into Hair Care, Skin Care and Fragrances. The Indian Cosmetic market is approximately growing at a rate of 4% between 2006-2010 The leading hair care segments are the oils, shampoos, conditioners, hair colorants/dyes & others like the hair treatments. The Hair care segment is growing at a rate of 6% The major companies in this segment are the Hindustan Lever (HUL), Marico, Dabur and P&G and Cavin Care. Hindustan Lever dominates the Indian Shampoo market. Marico & Dabur are the leading companies in Oils.

Conti.

Godrej & LOreal (Garnier) are the major players in the Hair colorants. The major skin care sub-segments are Skin Creams & Toners, Color cosmetics (make-up) and talcum powders. Fairness creams are gaining wide popularity especially among the teens. Brands like Fair & lovely, Fairever and Fair & Handsome are highly popular ones among the teens. The skincare segment is growing at a rate of 4%. Hindustan Lever dominates the skin care segment. Other major players include Colgate-Palmolive, Godrej, P&G, and Dabur. Fragrances are mainly dominated by the multinationals & foreign brands like Givaudan. The Fragrances market is growing at a faster pace of 14-15%; Deodorants at rate of 11.5%. Major brands in the deodorant segment are Axe, Fa, Nivea, Old spice, Park Avenue and Cinthol

KEY PLAYERS
In the entire range of products that fall within the territory of the Indian cosmetic and toiletries market, the most popular items are color cosmetics, of which nail varnish, lipsticks and lip glosses account for the most sales. In this area, popular local brand names include Lakme and Revlon. Skin-care cosmetics have experienced a slower growth and products such as anti-wrinkle creams, cleansers and toners, for instance are not as popular as facial creams, moisturizers and fairness creams in this genre. Companies like Ponds and Fair and Lovely rule the roost in this segment. Unilever and Procter & Gamble are major players in the Indian cosmetic sector of shampoos and hair products.

CONTI
However, the Indian hair-care cosmetic sector now has a few foreign brands to compete with these giants as well. Finally, one of the most popular cosmetic produced in India are herbal cosmetics which have gained popularity internationally in recent years. Shahnaz Husain, Emami and Biotique products are the most well-known in this area.

MAJOR PLAYERS WITH FINANCIAL INFORMATION

Hindustan Unilever Limited Financial Information Gross Sales of Rs 21649.51 crores for the period 2008-09 (Company considered 15 months period) Segment-wise sales Soaps, Detergents & Household Care49%, Personal products 29% Major Brands - Personal Wash Lux, Breeze, Lifebuoy, Dove, Liril, Pears, Hamam, Rexona Skin Care - Fair & Lovely, Ponds, Vaseline, and Aviance Haircare Sunsilk Naturals, Clinic Oralcare- Pepsodent, Closeup Deodorants Axe, Rexona Color Cosmetics- Lakme Ayurvedic Ayush

Conti.
Colgate-Palmolive India Limited Major Brands- Oral Care - Colgate Dental Cream, Colgate Active Salt, Colgate Max Fresh, Colgate Total 12,Colgate Extra Clean Gum Care, Colgate Sensitive Toothbrush, Colgate 360 Toothbrush Personal Care - Palmolive Thermal Spa, Palmolive Aroma Shower Gel - Relaxing, Palmolive Naturals Liquid Hand Wash Family Health, Palmolive Naturals Moisturizing Body Wash - Milk and Honey Godrej Consumer Products Limited Segment-Wise Sales Toilet Soaps Rs. 705.6 Cr Hair Colors Rs.230.5 Cr Toiletries Rs. 62.0 Cr

Conti
Major Brands Soaps Cinthol, No.1, Vigil, Evita, Shikakai, Fair & Glow Toiletries Cinthol, Godrej Shaving cream Hair Care- Anoop, Renew, Colour Soft, Nupur Procter & Gamble Hygiene & Health Care Ltd Financial Information Net Sales Rs.540.38 Cr in 2006-07 Major Brands - Hair Care Pantene Pro V, Head & Shoulders, Rejoice Oral care Oral-B

Conti
Dabur India Ltd Major Brands - Hair Care - Hair Oils, Dabur Amla, Dabur Amla Flower Magic, Vatika Enriched Coconut Hair Oil, Vatika Enriched Almond Hair Oil. Shampoo - Vatika range of Smooth & Silky, Root Strengthening and Black Shine, Vatika Dandruff Control, Dabur Total Protect Shampoo. Conditioner - Vatika Smooth & Silky Conditioner, Vatika Root Strengthening Conditioner Skin Care - Uveda Range: Complete Fairness Cream, Moisturizing Face Wash, Clarifying Face Wash,2-in-1 Moisturizer , Dabur Gulabari Moisturizing Cream & Lotion Emami Ltd Financial Information - Net sales for FY08-09 is RS 65101 lacs (Standalone) and Rs75565 Lac (Consolidated)

Conti.
Major Brands skincare - Fair and Handsome, Boroplus Antiseptic Cream, Boroplus prickly heat powder, Navratna Cool Talc, Malai Kesar Cold Cream. Hair care - Emami Hairlife, Navratna Oil Lite, Navratna Oil. CavinKare Pvt Ltd Major Brands - Hair Care - Chik Shampoo, Chik Satin Shampoo, Nyle Herbal Shampoo, Meera Badam Shampoo, Indica Hair Colorant Ethnic Care - Meera Hair Wash Powder, Karthika Hair Wash Powder, Meera Aritha Ras Skin Care - Fairever, Fairever Fruit, Spinz Talc, Spinz Deodorants, Nyle Cold cream and lotion

Conti
Other major players include Amway India, Vicco laboratories, Nirma, Modicare, Johnson & Johnson, Oriflame, VLCC & Shanaz Herbals

MAJOR BRANDS
LAKME The name of the Indian cosmetic brand "Lakme" has its origins in Leo Delibes' opera of the same name. However, the French name "Lakme" has its origins in the Indian name "Lakshmi." Lakme was inaugurated in the year 1952 by Pandit Jawaharlal Nehru. The idea of the Indian cosmetic brand Lakme was conceived by the Indian industrialist J.R.D. Tata. At present, Lakme is a part of Hindustan Unilever Limited (HUL). Lakme produces cosmetics as well as skin and hair care products. This leading Indian cosmetic brand has its own, Lakme Beauty Salons and exclusive Lakme product outlets all over the country.

CONTI..
Lakme's share stands at 34 % Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices, both. Lakme leads the market with sales of Rs 100 crore. Lakme, has recently joined forces with Hindustan Lever Limited (HLL) and calls itself Lakme-Lever.

MARKETING STRATEGY
Lakme has always advertised in various mass media available. It has very good distribution network. Like chamber for its premium product orchid is placed only in large and reputed retail stores.

OTHER MAJOR BRANDS

EMAMI
The Emami Group was launched back in the mid seventies. Besides being one of the major companies in India, Emami Limited has also maintained its global presence over the years. Emami is a great fusion of modernism, advanced technology, product efficiency and smart pricing. Since they have been able to understand the pulse of Indian consumers, brands like Boroplus, Navratna, Fast Relief have become popular.

PONDS
Pond's has a remarkable track record and took shape way back in the middle of the 19th century. The idea was introduced by Theron T. Pond, a pharmacist from Utica New York who launched 'Pond's Golden Treasure' in 1846, a wonder product containing witch-hazel.
It was again re-launched in the following years as Pond's Extract and Pond's Cold Cream. The Pond's vanishing cream was the turning point of the company from where the company evolved to become one of the greatest beauty icons. PONDS BRANDS Pond's age miracle creams Pond's flawless white Pond's white beauty Pond's perfect results Pond's moisturizing cold cream

NIVEA
Considered one of the largest skin and body care brand globally, Nivea is owned by Beiersdorf, a German company. It had its beginning in 1911. Globalization during the 1980s catapulted Nivea brand to greater fame and recognition. Nivea product line: Face care NIVEA Soft NIVEA Crme Body care

KEY SUCCESS FACTORS

Brand image and high degree of consumer acceptability need to be established in the personal products sector, and call for heavy promotional investments in awareness building, besides tie-ups with good FMCG companies to leverage their distribution strengths. The growth of direct marketing as an alternative channel without incurring high promotional and developmental costs needs to be evaluated by new entrants in the sector, in order to formulate the most appropriate market development strategy for their products. Fired with the zeal of changing the complexion of the cosmetics market, they are fuelling the change using satellite television, women's magazines and beauty pageants.

FUTURE GROWTH
Latest forecasts and market developments indicate that the Indian cosmetics market is set to resist the recession and continue on a high growth path. Indian market researchers have published a report on the cosmetics market in the country, predicting annual growth of nearly 7% between 2009 and 2012.

CONCLUSION
The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products, while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. Products that are too specialized have yet to be successful on the Indian market. Examples include toners, hand care and other value-added skin care products, bath & shower products and aftershave balm. Only the richest consumers can afford these; indeed, the average consumer may be unaware of their purpose or even existence. This also explains the relatively poor showing of perfumes, especially the premium variety.

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