39347451 Cosmetic Industry

8/8/2019 39347451 Cosmetic Industry

1/22


2/22

` Earliest documented use of cosmetics was around 4000BC

way back in ancient Egypt

` "Cosmetics" is "Makeup"

` Cosmetic market place is a huge global economy worth

approximately $40 billion

` Mostly generated in the western countries


3/22

` Brands are now represented by key celebrities around the

world in a bid to increase the market share

` Cosmetics range includes: Skincare, Lotions, Powders,Perfumes, Lip Color, Nail polishes, Eye Makeup, Face

Makeup, Hair Color, Hair Care, Baby products, Bath Products

etc

` FDA is a government Department of Health and Human

Services and is responsible for the safety regulation of many

things including Cosmetics


4/22

` Worlds popular cosmetics brands entered the Indian market inthe 1990s

` Cosmetics and personal care industry has been growing at an

average rate of 15-20%

` Growth has come mainly from the low and medium-pricedcategories, which account for 90% of the cosmetics market interms of volume

` Urban population - main force that drives the demand forvarious cosmetic products


5/22

` Greater access to television - created a growing awarenessof the western world

` A boom in the Indian fashion world has contributed to therise in demand for professional beauty care products

` Market penetration of cosmetics and toiletries products inIndia is very low

` Can be viewed as an opportunity for more significantgrowth down the road


6/22

Source: Morgan Stanley Report

Tata Strategic Management Group


7/22

` Personal Care products are one of the key constituents of the

Fast Moving Consumer Goods (FMCG) sector

` The brand wars for increasing mind share is intense in thissector - recent years have also seen price wars

` With increase in income levels, penetration of mass media, the

personal care sector has witnessed strong growth in the recent

years


8/22

` The Indian cosmetic industry registered a growth of US$ 2.47 billion in 2008

` Fourth largest cosmetic market in Asia Pacific

` Expected to grow at a CAGR of 7-8%

` Colour cosmetics and spas to grow at a CAGR of 20-30%

` The cosmetics segment is broadly classified as :Skin care

Colour cosmetics

Hair care

Perfumes & Deodorants

` Based on the price factor, the market can further be classified as :Popular Brands

Premium Brands


9/22

SHAMPOOS

` Most astounding growth rates compared to other FMCG categoriesin Rural India

` 13% point growth in 2000

` Was expected that half of the population will use shampoos by 2010

` 31% growth in the category (2000-2008)

SKIN/FACE CREAMS

`

Overall penetration rose to 25%` Orissa (14% to 29%)

` Assam (32% to 45%)

` Karnataka (15% - 25%)


10/22

Source: IRS, conducted

jointly by MRUC and HansaResearch


11/22

Source: IRS, conducted

jointly by MRUC and HansaResearch


12/22

Higher Income urban consumers Niche products

Fragrances

Skin Care

Colour Cosmetics

Lower income and rural consumers Basic products Oral Hygiene

Bath & Shower

Hair Care

The total Skin Care market is estimated to be around Rs. 3,400 Cr Fairness segment is stagnant in terms of penetration

Major players in this segment are HUL with a market share of 54% followed by

CavinKare with a market share of 12% and Godrej with a market share of 3%

Fair & Lovely drives the category trend

Source: CMIE, IBEFJan 28, 2009


13/22

TheHair Care market in India is estimated at around Rs. 3,800Cr

hair oils, shampoos, hair colorants & conditioners, and hair gels

Marico is the leader in Hair Oil segment with market share of33% and Dabur occupies second position at 17%

The Indian Shampoo market is estimated to be around Rs.2,700 Cr

Shampoo market Cosmetic and Antidandruff

Sachet makes up to 40% of the total shampoo sale

Antidandruff segment constitutes around 15% of the totalshampoo market

Market is dominated by HUL with around 47% market share;P&G occupies second position with market share of around23%

Source: CMIE, IBEFJan 28, 2009


14/22

Market is expected to record a CAGR of around 21% (2009-2012)

Lipstick and nail enamel sub-segments will be the key drivers

Rising incomes major growth driver for sales

Source: RNCOS


15/22

` P2: 2008 Oct 2009 Sep

` Universe (000s) - 67714

Source: IMRB International


16/22

` P2: 2008 Oct 2009 Sep

` Universe (000s) - 147750



17/22

` P2: 2008 Oct 2009 Sep

` Universe (000s) - 203805



18/22

` P2: 2008 Oct 2009 Sep` Universe (000s) - 147750



19/22

` Indian fashion is fueling growth in the industry by making Indians to realizethe importance of having good looks and appearances

` Indian cosmetic industry has an even greater potential for growth in future

` Indian cosmetic manufactures have received orders from overseas markets; forexample - Indian herbal cosmetic products have a tremendous demand in theinternational market

` The penetration rate is higher in the skincare segment compared to lipsticks

` Great demand for herbal cosmetic products, away from synthetics, this so,because these herbal and natural cosmetics are safe to use and do not have anyside effects


20/22

` Neem is increasingly being used by leading herbal cosmetic manufacturers

right from body lotions to face packs, from skin cleansers to fairness

creams

`

Herbal cosmetics are the current rage not only in Asian countries like India,but also countries like US, UK and Australia

` Cosmetic industry, herbal industry, agricultural industry are benefiting from

neem and its products

` Micro-Segmentation: The Future of Cosmetics


21/22

Aahna Vaswani

Amal Parkar

Chirag SurtiDhruvesh Morjaria

Geetanjali Thorbole


22/22

39347451 Cosmetic Industry

Documents