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FMCG personal Care industry analysis

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1. EXECUTIVE SUMMARY
1.1. Beauty and personal care shows no signs of slowdown This category continued to show consistent growth in terms of value in 2012 Main drivers of growth : Acceptance of higher-priced products with new claims by urban consumers New consumers in second and third-tier cities continued to show greater interest in self-grooming. The leading companies introduced products in smaller pack-sizes and innovative pack formats to leverage consumer base in second-tier cities and stimulate their interest and desire to try out such products.

1.2. Beauty and personal care becomes more gender-specific Main drivers of growth: Urban men becoming increasingly appearance-conscious, and looking for male-specific products. Leading companies such as ITC and HUL introduced range of male-specific bath and shower products, apart from the already growing range of men’s skin care products which were available so as to capitalize on the growing opportunities in this category. 1.3. New launches and promotions intensify the competition

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International manufacturers maintained their lead in 2012 even though this category remained fragmented.

New launches in shower gel, facial cleansers, anti-agers and moisturizers encouraged consumers to try out different brands. Many manufacturers started to offer promotional offers such as conditioners free with shampoos, so as to push their products at points of sale. 1.4. Independent small grocers maintains its lead, whilst direct selling increases further As the majority of consumers still reside in second and third-tier cities, independent small grocers remained the largest channel for sales in this category The contribution of direct selling to the overall sales (value) recorded a significant rise Direct sellers like Avon continued to strengthen their presence in southern states and in second-tier cities like Meerut and Kanpur. 1.5. Beauty and personal care is expected to show consistent growth Consumers are expected to continue to spend more on personal grooming, so this category is expected to maintain consistent growth over the forecast period. Manufacturers expected to continue to launch new products at different price-points, so as to help them to gain volume sales as well as margins. The majority of growth expected to come from new consumers, as they will increasingly try out different products.

2. KEY TRENDS AND DEVELOPMENTS

2.1. Celebrity advertisements/endorsements show no signs of slowdown Manufacturers are increasingly moving towards endorsements that emerged as a common tool used to promote products- existing as well as new launches. Leading Bollywood actors were continued to be used by both International and domestic manufacturers to promote their brands as they have huge fan following and serve as inspirational icons. Current impact

This trend extended into products like colorants, depilatories and men’s grooming, a relatively new category. For instance, L’Oréal India used John Abraham to promote Garnier face-wash. Celebrity endorsements are believed to help manufacturers attract consumers’ attention and build brand recall, especially if it is a new launch. For example, HUL used Kareena Kapoor as the face of Lakmé Absolute, its newly launched range of color cosmetics. In order to make region-specific advertisements manufacturers used regional actors to promote their products. For example, Dabur India used famous South Indian actress Kajal Agarwal for the promotion of its Dabur Amla hair oil there. Future impact

More manufacturers including those of Premium Brands will use celebrity endorsements to compete against competition and build brand image. Manufacturers, especially of skin care and sun care products, might use celebrity images on the products’ packaging. 2.2. Consumers’ love for skin whitening intensifies

Skin whitening continued to increase, and also started to be become a characteristic of most skin care products like facial cleansers and moisturizers Skin whitening further strengthened its roots in men’s skin care like Vaseline Men Whitening face-wash. Current impact

Manufacturers started integrating skin whitening and other claims like dark spot removal so as to tap into the growing market for skin whitening products. Skin whitening became a popular claim in deodorants also – for example, Beiersdorf India introduced Nivea deodorants that claimed to offer underarm whitening. This trend also helped sun care products grow and strengthened perception of tan prevention Future impact

Manufacturers likely to introduce skin whitening claims in products like facial make-up, bath and shower where they have limited presence currently so as to tap into its growing demand. Skin whitening could emerge as the main crossover benefit in most categories like skin care, and bath and shower categories such as shower gel. 2.3. Online retailing takes off

Consumers increasingly moved towards buying products in this category online due lack of time and a growing demand for convenience. Increasing number of internet and Smartphone users (increased from 45 million in 2007 to 151 million in 2012) continued to facilitate growth of online retailing. Current impact

Online retailers like Flipkart.com, Jabong.com started to offer various brands in this category so as to leverage the growth in internet traffic The growth in online retailing also generated awareness of premium brands like Davidoff, which were not that well-known amongst second-tier city consumers Websites allowed consumers, even those who were previously hesitant in checking in store-based retailers, to compare brands and prices. Manufacturers like Faces Cosmetics India started to offer internet shopping facility on their own websites so as to cash-in on this growing trend. Even though consumers’ purchasing of beauty and personal care products online increased, the contribution of online retailing continued to be very small. Future impact

Increasing number of online stores likely to offer more brands so as to cater to consumers’ varying needs and preferences. Can lead to the surfacing  of beauty and personal care-specific online retailers More store-based retailers might open their own online stores. 2.4. Manufacturers continue to focus on brand extensions

Brand extensions were carried out in order to introduce new products and enter into new categories by many leading manufacturers. This allows companies to leverage the brand equity of their existing brands and to push new products that promise huge growth potential. For example, Reckitt Benckiser (India) introduced moisturizers under its well-established depilatories brand Veet. This trend was particularly visible in men’s grooming and deodorants in 2012. Current impact

This trend help new launches gain popularity more quickly owing to the brand equity of the existing brands. For instance, HUL led the trend by extending Dove from soap into hair and skin care period. This trend was also visible among domestic manufacturers who forayed into categories in which they did not have any presence previously. For example, Marico introduced body moisturizers under the Parachute brand, and continued to enjoy a good image and strong trust. Future impact

Brand extensions from the existing manufacturers are expected to present tough competition to fresh new brand launches, as the latter require more time and promotion to expand popularity. Companies are expected to continue to focus on brand extensions as advertising budgets are being squeezed. This will allow them to capitalize on existing brand power as well as save costs than if they launch completely new brands. 2.5. Innovation and new claims emerge as the new mantra

Innovations were increasingly used by leading manufacturers to push products through new claims. This trend was predominantly strong in skin care, hair care, bath and shower and deodorants. For instance, HUL introduced its Pond’s Age Miracle Cell Regen range that claimed to expedite cell renewal process. In 2012, deodorants persisted to be driven by new claims, like anti-perspirant, that impressed urban consumers leading them to try out such products. HUL in 2012 introduced its TRESemmé hair care range, that claimed to offer salon-like hair, and also the Sunsilk Keratinology hair care range, that claimed to prolong the salon treated hair look. Current impact

Such innovations helped manufacturers in differentiating their products from existing products, thus remaining competitive and pushing new products such as anti-agers. Such claims helped increase the perceived value of products thus allowing manufacturers to increase prices of their products. For example, the retail price of Nivea Pearl & Beauty Deo Spray was Rs164 for 150ml in 2013, which is cheaper than Nivea Pearl & Beauty Deo Spray anti-perspirant, priced at Rs179 for 150ml. New claims encouraged consumers in trying out products with additional benefits, and pampering themselves with the different ranges of products in this category. Future impact

This trend is expected to lead to a wide range of products and brands to choose from. Manufacturers will continue to increase the perceived value of products in this category and increase prices to gain better margins Such claims are also expected to intensify competition within established categories like skin care that are very fragmented. Manufacturers will continue to launch new products with new claims to succeed against competition and to avoid losing consumers to other brands that offer added benefits. Source: Euromonitor International

3. Product Portfolios

Source: Euromonitor International
4. COMPETITION SCENARIO
4.1. Hindustan Unilever
With a strong presence in most beauty and personal care categories. Hindustan Unilever is making efforts to increase its volume sales. The company has a wide product portfolio, from mass to masstige products, particularly in bath and shower, skin care and hair care. The company is expected to push volume sales amongst the mass segment, whilst at the same time developing sales of masstige products such as Dove, to leverage rising disposable incomes and more sophistication in grooming in the forecast period. 4.2. Colgate-Palmolive

Colgate-Palmolive India aims to drive growth through a focus on understanding the changing needs of customers, working with dental professionals and retail customers, and driving innovation throughout the business in the pursuit of efficiency, effectiveness and leadership competency. The company is expected to retain its focus on oral care over the forecast period, with the aim of increasing the frequency of usage of its oral care products in urban areas through campaigns such as “Brush twice a day”, and increasing rural penetration across India. The company ensures that it has offerings at every price point to meet the needs of every consumer group. With such a move, it is trying to reach out to consumers through extending its brand portfolio and promotional events. 4.3. Procter & Gamble

Procter & Gamble Hygiene and Health Care Limited (PGHHCL) acquired its current name in 1998, reflecting the two key segments of its business. P&G, USA has a 65 per cent stake in PGHHCL. The parent also has a 100 per cent subsidiary, Procter & Gamble Home Products (PGHP). The overall portfolio of the company includes healthcare; feminine-care; hair care and fabric care businesses. PGHH operates in just two business segments – Vicks range of cough & cold remedies and Whisper range of feminine hygiene. The detergent and shampoo business has been relocated globally to Vietnam. The company imports and markets most of the products from South East Asian countries and China, while manufacturing, marketing and export of Vicks and sanitary napkins has been retained in India. The parent company has announced its plan to explore further external collaborations in India to meet its global innovation and knowledge needs. 4.4. Dabur India Ltd.

With a view to increasing its share in beauty and personal care, Dabur India is venturing into new categories and strengthening its existing portfolio with new launches. In 2012 the company entered hand sanitizers with the launch of Fem Safe Handz, and also ventured into professional grooming. The company is also focusing on strengthening its international presence by setting up new units in other countries. In 2012 the company opened a subsidiary in Sri Lanka, and is also planning to set up new plants in South Africa, Egypt, Nigeria and Kenya by the end of 2012. 4.5. Godrej Group

Godrej Consumer Products is focusing on increasing its brand presence in Asia, Africa and Latin America through hair care and body wash/shower gel. The company also intends to strengthen its portfolio by extending into adjacent categories. The company also took over leading detergent brands Genteel and Swastik to extend its lead in detergents. 4.6. L’Oreal Groupe

L’Oréal India intends to place India high on the L’Oréal global map, by leveraging its global brands, customizing its marketing strategy to India, and ensuring high visibility, with a clear positioning for each of its brands. This will be supported by the expected expansion of modern retail channels, whereby the company will promote both its mass and premium brands in India over the forecast period.

5. ANALYSTS VIEW OF PRESENT AND FUTURE TRENDS AND OPPORTUNITIES 5.1. OVERALL REPORT

The current growth rate in overall FMCG segment is 16 % and has picked up by 10 % in last 5 years. The entry level barrier in this segment is very high and the competition is very high .The major reasons being presence of major National and International players and the availability of multiple options in most of the segments. So much so that a major player like ITC is struggling in this field even after 10 years. There is a high penetration in the soap, detergent and shampoo segment but the per capita consumption is still low and as a result a change in consumption pattern would provide the drive for growth. Overall growth in economy has also raised the per capita expenditure of people in FMCG PRODUCTS thus providing the impetus to demand. 5.2. HAIR CARE

Current flavor of this field is the introduction of products with dual characteristics: – Shampoo with oil and conditioners have dominated the present market. Garnier and Pantene launched these products in the market and have been quite successful. The trend has also set into the skin care segment with Fair and lovely’s 2 in 1 cream which involves moisturizing along with skin whitening. With the introduction of products with dual characteristics higher margins can be charged. Because of this trend the anti agers and facial products are going to be affected in the long run. Salon hair care is expected to increase by a CAGR of 14% in constant value terms during the forecast period. Colourants is expected to increase by a constant value CAGR of 17% during the forecast period 2012-2016, mainly due to the growing use of DIY hair colors, which are considered to be cheaper than salon colourants. Herbal and natural beauty care started to merge with premium beauty care, driven by growing acceptance amongst urban consumers in 2012. Companies such as Forest Essentials gained tremendous popularity, establishing a presence in the beauty environment. However, natural and herbal products from such companies are popular only amongst a niche group of consumers who willingly spend more to buy herbal products.

In 2012, consumers increasingly looked for natural and herbal products which were chemical-free, and hence considered harmless. To leverage this trend, manufacturers introduced products with natural ingredients such as honey, tea tree oil and cucumber, which claim to offer specific benefits. For instance, companies such as Forest Essentials focused only on natural products, which are priced 10 times higher than the average price of standard products. Although natural products constituted a very small share in terms of value sales in 2012, such products continued to gain share due to rapid acceptance amongst consumers. Economic slowdown in the near future might negatively affect consumer sentiment and threaten uptake by new consumers. However, existing consumers and consumers in the high-income group are likely to continue to purchase premium natural products. With the introduction of bottom of the pyramid approach as adopted by some players rural sales have gone up by 31 %. The desire of rural people to be similar to those in urban regions has fuelled up this sudden rise in demand. This has led to the players introducing smaller packets of lower cost to cater to these needs. Leading manufacturers including Hindustan Unilever and Procter &Gamble Home Products, with strong distribution networks due to their long-established presence in India, are likely to be in an advantageous position to gain share. 5.3. BATH AND SHOWER

Driven by increasing health and hygiene concerns, consumers continued to move towards liquid soap, including hand sanitizers, in 2012. Most of the leading companies, including Reckitt Benckiser and Dabur India, continued to cash-in on this growing trend by running campaigns to promote the germicidal properties of liquid soap. For instance, in 2012 Dabur India launched Fem Safe Handz, an instant hand Sanitizer which offers protection against bacteria and viruses. In 2012, current value growth in bath and shower was 16%, which was comparatively faster than the review period CAGR. This faster growth was mainly due to booming sales of liquid soap, which is still at a nascent stage in the country. Body wash/shower gel is also catching up rapidly; however, it contributes only a small share to overall value sales. In 2012, manufacturers focused on combination products to position their products as better-value offerings. However, this trend remained restricted to the addition of whitening and Moisturizing ingredients to offer extra benefits. For instance, extra moisturizing bar soaps such as Dove continued to perform well, and hand sanitizers with moisturizer, such as Lifebuoy, picked up well in 2012. Natural and organic ingredients continued to have a limited presence in bath and shower in 2012. Hindustan Unilever continued to dominate bath and shower in 2012 with its brands Lux and Lifebuoy. The company accounted for a value share of 50%, mainly due to the brand equity that Lux and Lifebuoy have enjoyed for years.

In addition, Lux enjoys a strong presence in bar soap and body wash/shower gel, and Lifebuoy has an established presence in bar soap and liquid soap. Reckitt Benckiser (India) witnessed the biggest increase in value share in 2012, to reach a 9% share of value sales in bath and shower. The increase was mainly due to the growth in Dettol’s share, attributed to the launch of new Dettol soap variants, and awareness campaigns including the “Proper Hand washing Campaign” to create awareness about best hygiene practice amongst consumers. Multinationals such as Hindustan Unilever continued to dominate bath and shower in 2012, and other international brands, such as Park Avenue, continued to have a very small presence. Growing grooming needs and increasing health-consciousness are likely to continuously push sales of bath and shower products during the forecast period. Consumers are likely to continue to pamper themselves by switching to shower gels with different fragrances and rejuvenating properties. Bath and shower is expected to increase by a constant value CAGR of 4% during the forecast period, compared with a review period CAGR 3% in constant value terms. The faster growth in the forecast period was mainly due to the tremendous growth in bar soap, which is the largest contributor to bath and shower.

5.4. MEN’S GROOMING PRODUCT

“Rough and tough” stopped being in vogue, and urban men continued to shift towards a fresh look in 2012. The growing desire amongst urban men to look good and fresh was used to the advantage of the leading companies, which launched a plethora of products targeted towards men. For instance, ITC launched FiamaDiWills Aqua Pulse Shower Gel, and Nivea introduced Nivea moisturizing lotion for men in 2012. In 2012 men’s grooming saw current value growth of 24%, which was much higher than the review period CAGR. Growth was driven mainly by the strong increase in men’s toiletries. Growth in skin care and deodorants propelled growth in 2012, due to growing looks consciousness amongst men. Men’s deodorants surpassed men’s skin care, growing by 45% in current value terms in 2012. The faster growth was mainly due to significant media promotions and brand campaigns by leading brands such as Garnier and Axe to promote the use of deodorants amongst men. Urban men who used to be limited to razors and blades are increasingly spending on deodorants and skin care products, which were previously considered to be feminine. The growing desire to look metro-sexual will continue to drive men’s grooming during the forecast period. Urban men who are increasingly looking for male-specific grooming products are likely to push sales in men’s grooming even further. To cash-in on the trend, Lakmé launched the first unisex salon in 2012 under the name Lakmé Ivana. Furthermore, the increasing uptake of male-specific products by men in second-tier and third-tier cities will bring further growth. Men’s grooming is expected to increase by a constant value CAGR of 11% during the forecast period. This growth is slightly faster than the growth in the review period mainly due to the growing contribution of deodorants and skin care. Men’s grooming does not have any significant threats to growth, and is likely to grow significantly during the forecast period. 5.5. ORAL CARE

Increasing consciousness of oral hygiene amongst consumers propelled significant growth in oral care in 2012. Increasing educational campaigns by companies such as Colgate-Palmolive India helped to increase awareness amongst rural consumers, and fuelled growth in rural areas of the country in 2012. Other 2-in-1 and multi-benefit toothpastes, such as whitening toothpaste, also witnessed huge acceptance country-wide. Manufacturers also leveraged the trend by launching a range of new toothpastes focused on providing different benefits. Driven by increasing hygiene concerns, urban consumers are likely to increase the uptake of products such as mouthwashes/dental rinses. However, the bulk of growth is likely to come from increasing penetration in rural areas and second-tier and third-tier cities, which offer huge potential. Oral care is expected to witness a rise in value growth during the forecast period. This is likely to be contributed by new growth from rural areas and growing uptake of newer products such as mouthwashes/dental rinses by consumers. Rural consumers could stick with home-made oral care products such as dental powders and neem-sticks, and this might threaten the growth of oral care during the forecast period. Mouthwashes/dental rinses is expected to see the fastest growth rate during the forecast period, mainly due growing hygiene concerns and advertising. 5.6. SKIN CARE

Manufacturers are likely to launch innovations and new offerings focused on providing other benefits, such as brighter skin, in addition to skin whitening. Skin whitening products will continue to evolve and offer enhanced benefits over the forecast period. In addition, the launch of male-specific skin care products, including facial moisturisers, face washes and anti-agers is likely. There are no major threats to growth in skin care; however, an economic slowdown is likely to negatively affect consumer sentiment and impact the growth of premium skin care, which remains niche. Firming/anti-cellulite body care is expected to increase by a constant value CAGR of 23% during the forecast period. This higher growth is likely due to the growing desire amongst consumers to look slim.

6. MAJOR FMCG MERGERS AND ACQUISITIONS:

6.1. 2010 – The boom year for FMCG in terms of M&A:
The boom in M&A in the FMCG sector started quite late in India. It was in 2010, that M&A really looked up in India. Quoting from an article titled “2010 was M&A year for FMCG” in the respected Business Standard website[1]: “Data from advisory firm Grant Thornton shows the growth in M&A deals this year was 16 times more in comparison to last year. The total value of deals last year was $47.9 million. In 2008, the value of these deals was even lower, at $34 mn, so when compared with 2010, the growth is over 23 times, says Grant Thornton. Compared to 2007, a boom year, the growth in value of transactions this year was 34 per cent, says Grant Thornton. The value of deals in 2007 was $596.6 mn versus $797.8 mn (Rs 3,630 crore) this year. However, the growth in volume of deals was marginal this year over 2007, at 34 registered to 32 then. In contrast, 2009 saw 12 M&A deals and 2008 saw 10 deals.” This was the year that the major FMCG Brands in India were looking for acquisitions abroad. Most mid-tier FMCG companies such as Dabur, Marico, Emami and Godrej Consumer were acquiring companies or brands to extend their sphere of activity. They were mostly keen on expanding their operations in Asia, Africa and Latin America. 6.2. Major Mergers and Acquisitions during this 2010-12:

GCPL acquired Mumbai-based Priya Kothari group’s Swastik and Genteel brands for under Rs 50 crore[1] GCPL also made a number of acquisitions in Indonesia, Africa and Argentina[2] Wipro Ltd acquired Singapore based LD Waxon, which sells skincare products[2] Wellness and beauty company VLCC acquired Malaysia’s Wyann International in November, 2012. [2] Reckitt Benckiser acquired Ahmedabad-based FMCG firm Paras Pharmaceuticals in 2011. [2] It also sold part of its homegrown firm, Marico Industries. [2] In 2011, Jyothi Laboratories acquired 50.97% stake in Henkel India Ltd in 2011. [2] 6.3. 2013 – Recent Merger& Acquisition activity:

The government decided to raise FDI in multi brand retail to 51% and single brand retail to 100% with 30% local funding in September 2012[3], after a prolonged battle between opposing parties. This bought about an upbeat mood in the FMCG sector. FMCG companies saw this as a positive step towards improving consumption, employment and supply chain, while reducing wastage.[4] The past 2 months have seen a plethora of small to mid-sized acquisitions in the FMCG sector. Some of the prominent ones have been listed below: Bajaj Corp today acquired NOMARKS brand from Ozone Ayurvedics for an undisclosed sum. [5] Asian Paints has announced voluntary unconditional cash offer to acquire about 24% shareholding in Berger International Limited (BIL)[6] Sequoia Capital has acquired 9% stake in Ahmedabad-based personal care company Vini Cosmetics Pvt. Ltd for R100 Cr, of which R35 Cr was used to purchase the stake of an unnamed investor[7] General Atlantic close to buying Future Ventures’ stake in designer apparel firm AND Designs[8] Warburg Pincus, Norwest in final lap for picking stake in fashion apparel firm Biba for over $60M[9] Everstone Capital has started early stages of discussions for acquiring 25-30 per cent stake in leading designer, Ritu Kumar’s business[10] 6.4. Future of M&A in FMCG

Although there has been a spate of M&A activity in the FMCG sector, the main cause of concern in these activities is the fate of the brands being acquired. There is a growing number of examples where newly acquired brands that were acquired due to high sales and profitability that have been dragged down to the level of the existing brands of the acquiring company due to inadequate supply chain and Route-To-Market operations. [11] 7. MARKET DATA

Table 1 Sales of Beauty and Personal Care by Category: Value 2007-2012 Rs bn
2007
2008
2009
2010
2011
2012

Baby and Child-specific Products
4.6
5.0
5.4
5.9
6.7
7.6
Bath and Shower
72.7
84.9
94.8
104.7
121.2
139.1
Colour Cosmetics
8.5
11.0
13.8
17.4
22.5
28.5
Deodorants
2.8
3.9
5.7
7.9
11.3
15.2
Depilatories
2.1
2.6
3.2
4.0
5.3
6.8
Fragrances
3.9
4.6
5.4
6.5
8.4
10.6
Hair Care
55.9
64.0
73.4
81.9
97.9
115.8
Men’s Grooming
15.6
17.8
21.0
25.0
31.2
37.9
Oral Care
35.1
39.0
43.2
48.5
56.9
66.1
Oral Care Excl Power Toothbrushes
35.1
39.0
43.2
48.5
56.9
66.1
Skin Care
26.7
30.6
34.8
41.0
51.0
62.0
Sun Care
0.9
1.0
1.1
1.3
1.6
1.9
Premium Cosmetics
6.0
7.4
9.0
11.2
14.6
18.4
Mass Cosmetics
170.1
197.8
225.4
255.3
306.2
362.4
Beauty and Personal Care
225.7
260.0
295.4
334.9
400.9
474.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 2 Sales of Beauty and Personal Care by Category: % Value Growth 2007-2012 % current value growth

2011/12
2007-12 CAGR
2007/12 Total

Baby and Child-specific Products
13.3
10.7
65.9
Bath and Shower
14.8
13.9
91.4
Colour Cosmetics
26.9
27.4
235.8
Deodorants
34.8
39.9
436.7
Depilatories
28.6
26.9
229.3
Fragrances
25.2
22.0
170.1
Hair Care
18.3
15.7
107.1
Men’s Grooming
21.5
19.3
142.0
Oral Care
16.2
13.5
88.2
Oral Care Excl Power Toothbrushes
16.2
13.5
88.2
Skin Care
21.5
18.4
132.5
Sun Care
16.4
14.7
98.3
Premium Cosmetics
25.8
25.2
207.3
Mass Cosmetics
18.4
16.3
113.0
Beauty and Personal Care
18.3
16.0
110.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 5 Sales of Beauty and Personal Care by Region: Value 2007-2012 Rs million

2007
2008
2009
2010
2011
2012

East and Northeast India
42,837.0
48,870.3
55,216.3
61,610.8
73,640.0
86,716.2
North India
59,637.5
69,122.9
78,639.2
89,600.9
107,551.6
127,295.9
South India
60,707.9
70,236.9
80,082.8
91,088.6
108,871.5
129,087.7
West India
62,491.8
71,766.6
81,433.1
92,603.7
110,812.3
131,066.3
India
225,674.3
259,996.6
295,371.5
334,904.0
400,875.4
474,166.1
Source: Euromonitor International from official statistics, trade
associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Sales of Beauty and Personal Care by Region: % Value Growth 2007-2012 % current value growth

2011/12
2007-12 CAGR
2007/12 Total

East and Northeast India
17.8
15.1
102.4
North India
18.4
16.4
113.4
South India
18.6
16.3
112.6
West India
18.3
16.0
109.7
India
18.3
16.0
110.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 7 Sales of Beauty and Personal Care by Rural-Urban % Analysis 2012

Urban
Rural
Total

India
71.5
32.2
103.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 8 Beauty and Personal Care GBO Company Shares by Value 2008-2012 % retail value rsp

2008
2009
2010
2011
2012

Unilever Group
34.4
33.2
32.8
32.1
32.0
Colgate-Palmolive Co
6.7
6.9
6.8
6.6
6.6
Procter & Gamble Co, The
4.7
5.0
5.2
5.2
5.2
Dabur India Ltd
5.0
4.9
4.9
4.9
4.8
Godrej Group
4.1
4.4
4.6
4.6
4.4
L’Oréal Groupe
3.0
3.2
3.6
3.8
4.1
Reckitt Benckiser Plc
2.3
2.9
3.3
3.7
4.0
Wipro Ltd
2.5
2.7
2.9
2.7
2.7
Marico Ltd
2.3
2.3
2.3
2.4
2.4
Johnson & Johnson Inc
2.1
2.1
2.1
2.0
1.9
Amway Corp
1.5
1.5
1.6
1.7
1.7
CavinKare Pvt Ltd
1.8
1.8
1.8
1.7
1.6
Emami Ltd
1.3
1.4
1.5
1.5
1.5
ITC Ltd
0.6
1.1
1.4
1.4
1.5
Anchor Health & Beauty Care Pvt Ltd
0.6
0.8
0.9
1.1
1.1
Nirma Ltd
1.8
1.6
1.4
1.2
1.1
Oriflame Cosmetics SA
0.8
1.0
1.1
1.0
1.0
Hygienic Research Institute
0.6
0.6
0.6
0.7
0.7
Revlon Inc
0.7
0.7
0.7
0.7
0.7
Henkel AG & Co KGaA
0.8
0.7
0.7
0.6
0.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

References
1. Viveat Susan Pinto, “2010 was M&A year for FMCG”, Business Standard, December 2010; http://www.business-standard.com/article/companies/2010-was-m-a-year-for-fmcg-110122100115_1.html (as on Sep 11, 2013) 2. “India to witness merger and acquisitions activities in FMCG space: PwC”, The Economic Times, Jul 2013; http://articles.economictimes.indiatimes.com/2013-07-21/news/40709209_1_indian-fmcg-acquisitions-fmcg-space (as on Sep 11, 2013) 3. “Government allows up to 51% FDI in multi-brand retail, 100% in single brand”, The Economic Times, Jul 2013; http://articles.economictimes.indiatimes.com/2012-09-14/news/33844347_1_multi-brand-single-brand-fdi (as on Sep 11, 2013) 4. Lalitha Srinivasan, “FDI in retail will give brands better visibility: FMCG cos”, The Financial Express, October 11, 2012; http://www.financialexpress.com/news/fdi-in-retail-will-give-brands-better-visibility-fmcg-cos/1015107 (as on Sep 11, 2013) 5. Krishna Pophale, “Bajaj Corp acquires NOMARKS brand”, Business Standard, August 2013; http://www.business-standard.com/article/companies/bajaj-corp-acquires-nomarks-brand-113082200385_1.html (as on Sep 11, 2013) 6. Krishna Pophale, “Asian Paints open offer to acquire Berger International Limited”, Business Standard, August 2013; http://www.business-standard.com/article/companies/bajaj-corp-acquires-nomarks-brand-113082200385_1.html (as on Sep 11, 2013) 7. Pranali Shah, “Update: Sequoia Acquires Minority Stake In Vini Cosmetics”, Business Standard, August 2013; http://www.dealcurry.com/20130816-Update-Sequoia-Acquires-Minority-Stake-In-Vini-Cosmetics.htm (as on Sep 11, 2013) 8. “General Atlantic close to buying Future Ventures’ stake in designer apparel firm AND Designs”, VCCircle August 2013; http://www.vccircle.com/news/retail/2013/08/22/general-atlantic-close-buying-future-ventures-stake-designer-apparel-firm-and (as on Sep 11, 2013) 9. Diksha Dutta, “Warburg Pincus, Norwest in final lap for picking stake in fashion apparel firm Biba for over $60M”, VCCircle August 2013; http://www.vccircle.com/news/retail/2013/08/23/warburg-pincus-norwest-final-lap-picking-stake-fashion-apparel-firm-biba-over (as on Sep 11, 2013) 10. Reghu Balakrishnan, “Everstone eyes stake in designer wear Ritu Kumar”,

Cite this FMCG personal Care industry analysis

FMCG personal Care industry analysis. (2016, Jul 02). Retrieved from https://graduateway.com/fmcg-personal-care-industry-analysis/

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