Haircare segment- the shampoo bubble

Segment Market Overview
 Trend Analysis
 Drivers and Inhibitors
 Key Players and BCG matrix
 Unmet Needs
 The Ultimate Product
 The Best Price
 The Right Place
 The Awesome Promotion Strategy!


1.2

Overview of the haircare segment •Value of shampoo segment - Rs 4,000
Crore
• Growth rate -18 per cent annually.
Estimate for 20134700 crores
• Market penetration –
85%

0.4

12.8

Shampoo

38.7

46.9

•Categorized into 3 segments – Economy,
Popular & Premium
• Bottles contribute to 54% of sales value while sachets contribute 46%

Conditioner
Hair colourants
Styling agents
Perms & relaxers

Market Share in shampoo segment 14.00%

1.00%
4%

43%

9%
29%

HUL (Dove, Sunsilk,
Clear, Clinic Plus)
P&G (Pantene, Wella,
Head & Shoulders)
Cavin Kare (Nile, Chik)
L'oreal (L'oreal range,
Garnier)
ITC (Vivel)
Others

Market increasing at a constant rate of 18% year on year basis
Highest penetration (80-85%) across all product categories in India
Innovation a must to stay ahead in the industry „Small is beautiful‟, greater market penetration through small packs and sachetsespecially as a trial format.

Market Size(Rs.crore)
5000
4000

4000

3000

2000

1987

2248

2629

3024

3478
Market
Size(Rs.crore)

1000
0
Jan'07 Jan'08 Jan'09 Jan'10 Jan'11 Jan'12

Porter’s Five Forces
Supplier Power
(moderate)
Buyer Power
(moderate)
Degree of rivalry
(strong)
Threat of new entrants (weak)
Threat of substitutes
(very weak)

•Several alternatives for each ingredient
•Hair care ingredients constitute an insignificant part of the operations of chemical companies
•Major buyers- independent retailers, convenience stores
•Retailers cannot switch against customers‟ wishes; retailers stock products from different manufacturers
•Rivalry is strong- somewhat fragmented industry; high fixed costs; margins are important
•Diverse product range from each player (for