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Executive Summary:
The organised Hair Care products market is growing at a rapid pace throughout the
globe. The reasons are very obvious to the industry as there is rising concerns about
the quality of products being made by the unorganised sector. There is growing
consumer awareness about the hazards in harmful chemicals and its effect on the
health of consumers. This market research is a strategic analysis of hair care
products across two different geographies namely Brazil and India. The study strives
to compile together a broad view of the nature of Hair Care product market by
providing historical data from 2008 to 2013 along with detailed analysis in terms of
revenues realised across the above two mentioned geographies. The study also
mentions the various opportunities available in both the markets for further growth
in terms of market share and revenue.
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Team8
Introduction:
About Indian hair care products and markets:
Hair care products plays one of the important role in Indian market share. The
Indian hair care market, which comprises hair oil, shampoos, hair colorants,
conditioners, and styling agents, has shown strong growth over the past few years.
Various factors, such as shift in consumer behavior, gradually changing lifestyle,
and product awareness continue to augment growth in this market. Consumers
started to consider hair as an important part of their personality, and were willing to
spend on high-quality hair care products such as shampoos, and were willing to visit
salons.
HUL is the undisputed leader from the early 1990s with brands like Sunsilk, Clinic All
Clear and Clinic Plus. P & G entered India in Nov 1995, with the world's largest
selling brand - Pantene. It also launched Head &Shoulders, which is the leading
shampoo. Amongst other players are Dabur, CavinKare and Ayur.
Some of the important hair care products which share the maximum market in India
are Conditioner, Hair Colorants, hair oil, Shampoo and Styling Agents.
Market Research
Team8
Post-Chemical
Observations:
The overall market growth rate of Hair Care industry in India and Brazil are captured
in below graph:
20.00
15.00
15.10
14.74
16.72
14.07
13.13
11.48
10.00
18.32
8.88
7.95
5.00
0.00
2008-09
2009-10
2010-11
2011-12
2012-13
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Market Research
Team8
62
61.9
60
58
56
54
54
55
52.5
52
India
55.5
54.4
54.955.3
2010
2011
54.4
53.8
51.7
50
48
46
2008
2009
2012
2013
Survey Research:
Market Strategies Applied by HUL in India and Brazil: Tresemme
In this segment, we are going to compare the market entering strategies
implemented by the major players in the hair care segment. For this study, we are
choosing HULs latest hair care product line Tresemme".
Brazil:
There was a time not so long ago when the battle of the brands in South American
consumer markets was a relatively straightforward matter. On one hand, we had
long standing domestic champions stressing the virtues of tradition on the other,
international competitors emphasising the value of the new.
In Brazil, South Americas largest consumer market, over the past decade or so 40m
people have joined the so-called class C, a middle income group defined by
household income of between about $800 and $3,700 a month. More people belong
to class C than any other economic category.
Minimum wage rises and the extension of social welfare mean even the poorest
households, earning less than $800 a month, are consuming more.
"The number of high income families has also expanded quickly, so that Brazilians
are important purchasers of luxury goods ranging from fast cars to top of the range
cosmetics. The result is a market that is much more segmented than it used to be."
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Brazil
Market Research
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India:
When the countrys largest fast moving consumer goods company - Hindustan
Unilever (HUL) set its sights on the parlour-going consumer with its new range
of hair care products under the Tresemme umbrella, everybody was a sceptic
because the market was already overcrowded with the products in each and every
segment.
Major share holders were L'Oreal, PnG, Godrej, Dabur, Marico, Bajaj Corp, and also,
the various existing products f HUL itself. Some predicted that launching of Tresmme
will lead into cannibalization, especially in the market share of Dove brand.
HUL executives say that the salon-going consumer is unlikely to give up her habit of
frequenting the parlour and is most likely to go with the recommendation of her
stylist or beautician on what to use for her hair.
Nitin Paranjpe, MD & CEO, HUL, We remain optimistic about its prospects in India. It
has been a few weeks since we launched the range in India and the best part is
wherever Tresemme has been taken whether Brazil or the United Kingdom,
consumers have appreciated it.
He relies on the sustained investment, made in the quality of products, training and
development of hair dressers and stylists in the last fifteen years. They have worked
closely with the latter to transform their parlours. In turn, these people push our
products to their clients.
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Market Research
Team8
8.0
Internet Retailing
Hair Salons
6.0
4.0
2.0
0.0
2008
2009
2010
2011
2012
2013
Hair Salons
Pharma Drug Store
19.0
18.5
18.0
17.5
2008
2009
2010
2011
2012
2013
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