Tuesday, February 19, 2008

Shampoo Market in India

Shampoo market
Market characteristics:

· Sales contribution:
o Packing:
§ Bottles: 30%
§ Sachets: 70%
o
Segregation:
§ Urban: In excess of 80%
§ Rural: Close to 20%
· Penetration:
o All India: Near about 50% only
o Urban: Urban: 70 to 80%
o Rural: 15 to 20%
Market size:
· Total shampoo market:
o 2002: Rs. 9,300 million
§ Anti-dandruff shampoo: 20% of the above
o 2003: Rs 10,300 million
o 2004: Rs. 11,000 million
§ Anti-dandruff shampoo market: Rs 2,660 million
o 2005: Rs 14,250 million
o 2006: Rs 15,500 million
§ Anti-dandruff market contribution: 15% of above
o 2007: Rs 18,000 million
§ Anti-dandruff market contribution: Rs 4,000 million
· Growth rates:
o Overall:
§ 2004:
· Shampoo market: 7%
· Anti-dandruff shampoo: 15%
§ 2007:
· Shampoo market: 18%
· Anti-dandruff shampoo: 40%
o
Rural:
§ 2004-05: 18%
§ 2005-06: 40%
o Urban:
§ 2004-05: 16%
§ 2005-06: 21%
· Major Companies’ market share:
o Hindustan Unilever: In excess of 45%
o P&G: Close to 25%
o CavinKare: Close to 20%
·
Factors driving shampoo market in India:
o Emerging middle class
o Higher disposable income
o Increasing rural awareness and penetration with sachets
o Westernized youth
o Untapped rural market
Target customers:
· Indian middle class
· Upper class rural people
· Teenagers
· Upper middle class


Anti-dandruff shampoo market (ZPTO dominated)
· Anti-dandruff shampoo market: Rs 4,000 million
· Largely an urbanized market
· Growth rate: 40% as compared to last year
· Major companies’ market share:
o P&G (Head and Shoulders): 50 to 55%

Hindustan Unilever (Clinic All Clear): 35 to 40%

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