Shampoo Industry
20.11.02
Category : FMCG
Product : Shampoo
This Presentation Covers
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What is FMCG ?
Characteristics of FMCG products
Hair Care Category in India
Types of Shampoos
Hair Care Facts
Market Size
Awareness
Shampoo usage details
Penetration details
Growth in this industry
Evolution of shampoo as a product
The top brands
Ad Spends, and brands on the net
What is FMCG ?
FMCG refers to consumer non-durable
goods required for daily or frequent
use. Typically, a consumer buys these
goods at least once a month.
FMCG Products
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Detergents
Toilet soaps
Toothpaste
Shampoos
Creams
Powders
Food products
Confectioneries
Beverages
Cigarettes
Typical Characteristics of FMCG
products
• Individual products are of small value. But, all FMCG
products put together account for a significant part of the
consumer’s budget
• The consumer keeps limited inventory of these products and
prefers to purchase them frequently, as and when required
• Many of these products are perishable
• The consumer spends little time on the purchase decision.
Rarely does he / she look for technical specifications ( in
contrast to industrial goods )
• Brand loyalties or recommendations of reliable retailer /
dealer drive purchase decision
• Trial of a new product i.e brand switching is often induced by
heavy advertisement, recommendations of the retailer or
neighbors / friends.
Typical Characteristics of FMCG
products…contd.
• These products cater to necessities, comforts as well as
luxuries
• They meet the demands of the entire cross section of
population
• Price and income elasticity of demand varies across products
and consumers
Hair Care Category in India
• There are 5 main products
• Hair Oil
• Shampoo / Conditioners
• Styling products
• Herbal Remedies
• Hair Dyes / colors
Shampoos
Did you know, that the word Shampoo is derived
from the Hindi word “Champi”.
Remember Johnny Walker’s famous song - Meri
Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish Champi Teil Maalish.
The British loved the massage so much, they
started calling Champi as Shampoo
TG for Shampoos
• Hair Shampoos and Conditioners are
targeted at
• Upper middle class
• Now, also middle class and house wives
• Upper class rural consumers
• Teenagers - they are the major segment
Types of Shampoos
• Shampoo market is segmented on
benefit platforms
• Cosmetic ( shine, health, strength )
• Anti - Dandruff
• Herbal
Hair Care Facts
• The frequency of shampoo usage is very low. Most consumers
use shampoo only once or twice in a week. In many cases, these
products are used on special occasions such as weddings,
parties etc
• Some customers use shampoo only to address a specific
problem such as dandruff or when they need to condition their
hair
• Use of conditioners is not common. It is restricted to the super
premium segment or those who are very involved with their
hair care
• Some consumers use natural conditioning agents such as henna
• About 50% of consumers use ordinary toilet soaps to wash their
hair
• About 15 % of consumers use toilet soaps as well as shampoo
for cleaning their hair
Hair Care Facts…contd.
• Brand loyalties in shampoo are not very strong. Consumers
frequently look for a change, particularly in fragrance
• Consumers attribute lathering to the act of cleaning
• Major expectations from the product are improvement in
texture and manageability, giving softness and bounce to hair,
curing and avoiding damage to the hair
• An Indian needs more shampoo for a proper wash ( average 6
ml ) compared to 4 ml needed in Western countries as most
Indian women have long hair
• Most consumers do not use shampoo daily
• Regular users would need smaller quantity of shampoo per
bath. Hair tend to collect more dust due to dusty environment
and oiling habits
• Southern market is predominantly a sachet market, accounting
for 70 % of sachet volumes
Hair Care Facts…contd.
• In Contrast, shampoo bottles are more popular in the Northern
markets
• About 50 % of the shampoo bottles are sold in the Northern
region alone
• In the North, local brands such as Ayur have strong equities
and these products being low priced dilute sachet’s USP of low
price
Shampoo market Size in India
• Size of shampoo market - 930 Cr
• Anti - Dandruff Shampoo - 20 % of above
• Sachet Sales - 70 % of above
Shampoo Awareness in India
• Urban areas - 90 %, accounting for 80 % of shampoo
sold in the country
• Rural areas - 80 %, accounting for 20 % of shampoo
sold in the country
Shampoo Usage
• Per Capita consumption of Shampoo in India - 13
ml
• Per Capita consumption of Shampoo in Indonesia 160 ml
• Per Capita consumption of Shampoo in Thailand 330 ml
Shampoo Penetration in India
• All India Shampoo - 14 %
• Urban - 40 %
• Rural - 10 %
Growth in Shampoo Market
• Average Growth over the last few yrs - > 20
• Expected Average growth over the next few
yrs - 25 %
AD segment is the fastest growing segment, growing
at 10 - 12 % every year.
H & S growing at 15 - 20 % every year.
Evolution of Shampoo in India
• HLL undisputed leader from the early 90’s
• Sunsilk launched in 1964 ( General Shampoo platform )
• Clinic Plus launched in 1971 ( Family, health shampoo
platform )
• Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo )
• Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty
platform ) with Sachet SKU
• HLL Goes rural with Sachet
• Clinic Active launched in 1991 ( with Pro Vitamin B - health
platform )
• Sunsilk re-positioned and re-launched in 1994 ( Nutracare) Pink for dry hair, yellow for normal hair, green for oily hair
and black for long hair
Entry of Competition
• Why did competition Enter India
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Teeming millions
Burgeoning middle class
Westernized youth
low penetration levels
Huge untapped market
New Entrants into the Market
• P & G enters India in Nov 1995, with the world’s largest
selling brand - Pantene
• Colgate Palmolive launched Optima also in Nov 1995 ( break
through in Keratin treatment )
• Nirma launched Nirma Shampoo which went into rough
weather because it also had a detergent and soap with the
same name. The brand name also had low price connotations
Shampoo Boom in India
• In mid 1997, per capita consumption of Shampoo increased
• Of the Rs. 350 Cr. Shampoo market, the AD segment
accounted for a 20 % share
• P & G launched its Internationally acclaimed A & D shampoo
H & S in 1997 with Zinc Pyrithine ( ZPT ) - a unique antimicrobial agent. There were 2 variants - regular and menthol
• Sachet sale became 40 % of all shampoo consumption in the
country
HLL Dominance
• Clinic, Sunsilk, Organics and Lux and their various brand
extensions dominate the shampoo market
• In 1998, the company re-launched Clinic and Sunsilk brands
• Sunsilk was re-launched with Fruitamins.
• Today HLL has a 63 % market share in the shampoo market
• In South India, Clinic Plus and Clinic All Clear put together
have a market share of about 70 %
The top Shampoo brands
• Normal Shampoo’s
• Clinic Plus
• Sunsilk
• Chik
The top Shampoo brands
• Herbal Shampoos
• Ayush
• Dabur Vatika
• Nyle
The top Shampoo brands
• Anti Dandruff Shampoos
• Clinic All Clear
• Head and Shoulders
• Dabur Vatika AD
The top Shampoo brands
• Premium Products
• Shehnaz Hussain
• Revlon Flex
• L'Oreal
The way forward
• While toilet soaps have reached saturation, there is
immense potential for penetration of shampoos
into Indian households.
• According to NCAER, Shampoo penetration is
expected to grow from 314 thousand households in
1998-99, to 502 per thousand households in 2006-07.
Ad Budgets are on the rise
• The reasons are
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Lot of competition in the market
Low penetration levels
High potential
Untapped rural market to reach to
There are a few brands that are already on
the net
Brands on the Net
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Clinic All Clear
Sunsilk
Head & Shoulders
Pantene
Thank You