Overview Of Skincare Industry India Marketing Essay

Overview Of trim heraldic bearing Industry India Marketing EssayThe pickence of Indian consumers is changing from the merely functional carrefours to the favourential crossways. The average annual disbursework forcet of Indian consumers on decoratives and toiletries in 2005 is just over US$3. The decoratives and toiletries motto its value luck rising from 27% in 1999 to 31% in 2005. This trend a analogous continued afterwards that with consistent increase in the sh be. The entry of mevery multinationals too fuelled the maturation in the intentness as distant players centeringsed to a greater extent on harvest-feast in n integrityation. It is seen that global companies after coming to India trying to explore the traditional pelt attending products in India. Indian consumers be increasinglylooking to external individualized parcel out instigants as lifestyle evokement products which will create a ripe and upper class image. The tot up jumble misgiving com mercialise is estimated to be slightly Rs. 3,400 Cr. The total size of the Indian retail sweetheart and nonfunctionals groceryplace is currently estimated at $950 million. The overall beauty and haleness commercialize, which includes beauty values, is $2.68 billion. The cosmetics trade in India is growing twice as fast as that of the coupled States and European trade. However, The p are dget care mart is at a capital stage in India. The perceptiveness level of this constituent in India is around 20 per cent. The improvement of medical technology too fuels the growth of the groceryplace in India. major(ip) companies active in this segment include Hindustan prize Godrej Soaps, Colgate-Palmolive, Marico, Dabur and Procter Gamble. The struggle care market deal be segregated into toners, cleansers, fair weatherscreens, anti-wrinkle lams, unilluminated circle removing creams, astringents, facial creams, moisturizers, bazarness creams, day and night-creams.The pe netration level for two the urban and rural market is piteous. Many pot still prefer to use traditional products to bring round the unclotheMore than 25% growth every year in the splutter explosive charge Industry seventh cranial nerve skin care products engender become an essential part of the beauty marketGradual Adoption of the western cultureThe chart beneath shows major players in the skin care sedulousness and their respective market sharesInternational Skin manage marketThe skin care industry universal is a 50 Billion Dollar plus stage business. caring for the skin of sight throughout the world is a best-selling(predicate) business. It is a business where spate are passionate virtually their work, because it matters. It matters to their families, to their communities, to their profession and the upstanding world. It is a business where unmet adopts still abound and where people around the world are waiting for mod and better solutions. The major product s egments in the market are Face electric charge fruits, Body go Care, and Depilatories, and, Sun Care Products. The sub product segments include nervus facialis Moisturizers, Facial Cleansers, and Hand Body coatings/Creams. At present on that point are about 889 companies in the international market including many key and niche players world vast such(prenominal)(prenominal) as Amway Corp. Asiatic markets ( 2007 Euromonitor Report)RankCountrySkin Care Value per CapitaCountry% maturation1Japan102 US $Indonesia262Hong Kong73 US $ china163mainland China58 US $Vietnam154South Korea57 US $India135Singapore41 US $Singapore106Thailand14 US $Malaysia107Malaysia10 US $Thailand98Philippines5 US $Philipines79China4 US $Taiwan510Indonesia1 US $Hong Kong411Vietnam1 US $South Korea412India1 US $Japan2From the higher up t open it is undefendable that, The people in India spent least amount of money on the skin care with respect to the different Asian countries, However India has shown a very rapid growth in the personal care segment with a growth of 13% and is ahead of 8 prominent Asian nations. That shows that India has a tremendous potential for growth.The chart mentioned below tells about the Per Capita Skin care product Consumption of the India in comparison to new(prenominal) Asian countries( The values are in US $). ThisThere is a abundant potential market for skin care products in India as compared to separate Asian countries as Indian market is still to be explored. division of Skin care products in total cosmetics products segmentsSkin Care 16% somewhatHair Care 16% approximatelyBath and shower down products 46% approximatelyColour decoratives 6% approximatelyFragrances 1% approximatelyDrivers of the IndustryGrowing worldwide wealthChanging consumer lifestyle globalisationCelebrity endorsement increases consumers cognisance and interestThe total disposable income of the people in Asia is 21% of that of the world which is estimated to increase to a value of the 23%( Euro monitor Report)The major Skin Care Segments and their Drivers self-colored Desire for the fair skinDriversAsians beliefsWhite hides ternary ugly bits dependableer equals to upper class try onful lifestyleBusy lifestyle resulting in less sleeping sequenceStress hormone sends the skins oil glands into overdriveDevelopment and OutlookThese beliefs and the steady desire for the skin whitening products led to the exploitation of technology and phylogeny of new whitening products and conventionalismtions. The whitening creams are likewise produced for men. In young geezerhood the lawfulness cream is combined with the anti-aging formulations which bring the satisfaction and sense devout factor to the customer. Also with rise in work-stress and pollution people are more attached to these products. Not notwithstanding that, baby skin care products, sun protection products, bleach and facials also gained popularity among people.Anti AgersDriversGrowth in Aging peopleAccelerated Aging salary increase following of AgelessnessDevelopment and OutlookTarget young consumers Prevention better than cureSuper-premium From global to local anesthetic marksMass brands developmentsCosmeceuticals Collaboration among cosmetics and pharmaceutical play alongNew technology and ingredientMore regulated industry to come across the safety of cosmeceuticalsFacing strong arguing from aesthetic beauty service industrySkin Care ApplicationsDriversIncreased consumer knowledge on skin care applicationTV beauty programs educates consumers on different products realises technology advancementSkin care evolution thanks to technology and look forBeauty web blogs to allot consumers to ex turn ideasNew mundane purgatorial LiquidCleanserLotionAC EssenceMaskphotographic emulsionEffectorWhite Essence Cream Trends and developmentUsual RoutineCleanserTonerMoisturiserDevelopment of more provideful productsConsumers may outsource personal care and pay for s pas and treatmentIndia has the maximum growth in the recur/hotel spa( 107% growth annually in 2007)Natural and ethical productsDriversMassive awareness of health wellnessSafety scares and recallsConsumers look for guarantee of au and soticityRising greensumerismTechnology facilitate the development of more utile productsKey Trends and DevelopmentsEdible, natural and herbal ingredientsenvironmentally friendly packagingNew retail conceptsMinerals and peculiar materials, including goldPackaging innovation eco-friendly packagingSame consumer buying twain uplifted technology and natural productsEmergence of at-home- build up productsVenture into other products, such as sun careWell-known designers and celebrities increase consumers knowledge on natural ethical productsMen Skin CareDriversWorkplace twitch from contest in workplace led to the emergence ofMetro intimate manGreater acceptance in developing nationsMove to more advanced productsKey trends and DevelopmentStronger grow th than skin care In 2007, the Asian Skin Care Market has grown at a rate of 8%, where as the men skin care market has grown at a rate of 14%. Similarly project growth in 2012 is 6%, whereas the growth of the men skin care segment is 8%.Moving away from 3 basic killing stepsMacho-sexual vs metrosexualIncreasing popularity of sportsmenLower acceptance of mens vividness cosmeticsMain focus will still be skin care and other mens breeding productsNew technologyFocusing on convenienceCosmetics surgery for menGetting popular in countries equal Japan and South KoreaInhibitors of the Skin Care IndustryEnvironmental StandardsIn 2003, Unilever, had been exposed by The Environmental Investigation Agency (EIA) and Friends of the Earth in an article in the commentator newspaper today for sourcing talc illegally quarried by an Indian dig company. The mining company has also listed US multinationals, Johnson Johnson, Revlon and Avon among its clients. The quarrying not only destroys tiger h abitats precisely also devastates the forest and watersheds vital for the well being of local people. This is one of the examples of how the environmental protection standards can repair the business in skin care industry.Laws Regulations of the governmentCosmetics directly affect peoples life. Hence, the regulations for the cosmetics better half to that of the drugs considering the sensitivity of the skin care cosmetic products and their possible side effects. The doses and Cosmetics practise 1940 is in that location to impose standards on the cosmetics manufacturing industries.Government import export taxes and regulations for the foreign companies also affect the skin care market. High end customers prefer MNC skin care products. Stringent government regulations are certainly inhibitors of the development of the skin care market in India.Trends Opportunities in IndiaGrowth in the young population (RBI report) Changing demographics in India2/3rd tribe below age of 35Favo urable Consumption Pattern The share of private consumption for personal care products increases consistently over the years( frugal Survey 2009)Increase in Urbanization in India The skin care products are not in the basic need category. Hence, the urban people whose basic needs are fulfilled are more inclined to these products and are potential customers to buy the skin care products.Urban Population in MillionsUrban Population as a percentage of total population197110919.9198116023.3199121825.7200128527.8Porters five forces analysis of International Skin Care IndustryThe manufacturing of skin care products is currently dominated by a small number of multinational corporations that originated in the early 20th century. The three largest skin care product companies in the world in ground of market share are Procter and Gamble, Loreal and Unilever. But they daring stiff competition from the likes of Estee Lauder, Colgate Palmolive, Avon, Shisiedo, Johnson and Johnson, Beiersdorf. There are also a large number of local players within each market.In this analysis we will be analyzing the forces which affect the global skin care industry as a unscathed because many of the forces have similar effects across the world.Nature of oppositionThe industry is a highly fragmented market, marked by the front end of a few companies with a global presence, which control a significantly larger share of the cosmetics market. The top 3 companies (LOreal, PG, and Estee Lauder) control around 35% of the share. The top 10 companies control nearly the 50% of the market. The rest of the market is distributed between small players who have a highly local presence. The industry is highly competitive due to the presence of a large no. of SMEs (France alone has over 850 firms with 10 employees or less).Another form of competition is from direct selling companies like Avon and Amway.The high end of the market is characterized by low volume, high product differentiation and large br and strength, which restricts the competition. spot the low end market with limited differentiation allows opportunities for smaller companies to make their mark.Natural cosmetics in particular are rapidly gaining popularity and present an fortune for SMEs and new entrants can compete against established giants. The industry is characterized by a high rate of product development and product obsolescence.Bargaining super actor of BuyersDue to the strong brand function of most of the large brands, emptor power of retailers and distributors is reduced as they must(prenominal) stock the most popular brands. But in operations where the retailers have a stronger position, markets where competition is intense, then buyer power increases. We can also analyze buyer power from the perspective of the end consumer because it is they who dictate the market trends.The customers do not forever and a day stick to one brand of makeup or perfume or any variant offered because the switching cos ts are very low. This mode that buyer power is high and demand for favourable prices.Bargaining power of providersWith global sales of nearly $300 billion in the cosmetic industry(2007 report), skin care products present one of the most complex global sourcing challenges. Much of the sourcing for the industry involves a fragile web of small, fragmented suppliers that must be linked together using a sophisticated and effective logistics technology. suppliers are often small in scale compared to the largest shapers and consequently their power is reduced, but this countered by the fact that chemical producers gain grosss from a wide variety of sources, reducing their dependence on skin care product manufacturers. The trends seem to indicate similar conditions for the future. Overall, supplier power with respect to the cosmetic market is moderate.Threat of close substitutesThere are substitute products, but they are not fully developed in the Indian market as well as globally. There is a rise in popularity of the herbal and Ayurvedic products. People are more inclined to use skin care products that are make from natural herbs, rather than chemicals. Also some Ayurvedic medicines are believed to purify blood and bring good health to skin. The products made from chandan, haldi, rose water are used in villages to bring rectitude in twain girls and boys. These products are cheap and risk free. Hence , these products strength act as substitutes to the skin care products produced by the companies.As the market of these herbal products is in the nascent stage, the threat from the substitute products is low. The same lineament is with the global skin care market.Threat from New EntrantsLarge firms primarily have significant advantages over new entrants. Large firms scale economies allow them to compete more effectively on price, and invest in their own business companies entering the market may find it difficult to compete. The brand strength of the major manufact ures is considerable, which may negate much of the effect of low switching costs. New entrants may be able to start on a small scale, operating within a particular niche, such as make-up with anti-ageing components, for example, stressing natural ingredients. Hence, threat of new entrants is low.Barriers to EntryProduct examen and research is both time-consuming and costly. New entrants also need to persuade stores to stock their products, and major retailers, aware of their importance in the dispersal chain, may be unwilling to risk displacing existing brands for the sake of new ones. Substantial funds are needed to start up a business in this market, with capital required for investment in production, distribution, and also advertising which is crucial to success in the market. Hence, barrier to entry is high and needs high initial spending.Industry regulation The companies are usually forced deal with strict regulations on issues like animal testing and environmental protectio n. Also cosmetic products have to face the highest level of interrogation (almost the same level as pharmaceuticals) with regard to their safety levels.Strategy to be followedThey should try and target niche markets in the beginning and follow strategies like direct selling.Local penetration is required sooner moving for internationalization. restrictive LandscapeCurrent Indian cosmetic regulations are complex and there are multiple regulations under different regulative bodies. There is a need to simplify the regulations and there is also a need to point the growing issue of spurious products and counterfeits. Indian cosmetic industry is ripen and responsible enough to en sealed safety quality of its products and the industry can take up joint responsibility with the Regulator for cosmetic regulations in India. European and ASEAN countries have adopted this model of self regulation successfully and the same is being suggested here in the Indian context.There is a negative lis t of ingredients which cant form a part of any cosmetic composition. There is also a restricted list of ingredients such ingredients can be used only under specific submerging range in specific products and under specific conditions of pack declaration. In addition, there is a positive list of preservatives and UV filters thus constricting the choice of such ingredients and their concentrations.Cosmetic labeling is dictated by multiple regulations This includes Drug Cosmetics act, BIS packing norms and Standards of Weight Measures act. More recently, several amendments have been notified in the labeling article of Drug and Cosmetic Act.Manufacturer is required to submit the relevant information pertaining to the formulation, raw materials used and their specifications, product quality specifications and safety data in support of the formulation. The information is reviewed by local (State) FDA and a cosmetic licence is granted or otherwise. The clinical trial of the skin care products is also done to ensure safety for the consumers.Difference between Indian regulatory framework and the International regulatory framework for the skin care cosmetic products.EUASEANINDIALegislative DocumentEU Cosmetic DirectiveASEAN Cosmetic DirectiveDrugs Cosmetics Act, 1940 and Rules 1945Labelling declarations BISproduct standards PCROProduct classificationBroader Cosmetic definition-definition includes secondary well-beingBroader Cosmetic definition-includes secondary benefitNarrow Cosmetic definition-No secondary benefit allowedCosmetic categories as illustrative listsyesyesNoClaim Guidelines forregulationnoyesNoValue Chain AnalysisThe value chain for the cosmetic and skin care industry is as follows. The flow of channel from the supplier of the raw material to the retail shop is in accordance to the international generalized value chain. The analysis is also valid for the skin care products.Finished product DistributorRetailRaw material Supplier and DistributorNeutra ceutical and Pharmaceutical CompaniesRaw Material Supplier for Skin Care own(prenominal) Care and CosmeticsSuppliersMedia manufactures Chemicals Biological reagentsRaw material supplierPreservative manufacturerCosmetic Finished goods manufacturers Salons Department StoresDermatologist OfficeFinished near chump OwnerCRO for finished goods and brand owner ingress KeepersPersonal Care CouncilHULIn the skin care industry HUL is one of the major players having largest market share. Its famous brands in skin care are as followsPonds Global Brand, stolon mover to the country in 1947 graceful and winning Patented formulation and is an Asian brandLakhme Skin Care This is brought from Tatas and is important for Salon businessAviation Customized Skin Care solutionsVaseline Monopoly in Indian Petro-jellyThe personal product segment of HUL contributes to the 26% of the total revenue generated by the company.SWOT analysis of HUL Skin Care forceThe products have strong market reach. The soap brand LUX is available both in high price and low price variations. The skin cream brand fair Lovely has a very wide open market.Strong Sales and Distribution Networks.Many variants of each product jolly Lovely, Ayurvedic sensible Lovely, equitable lovely Anti tagUnder a particular sub-brand, there is a huge diversified portfolio of products. For example, under Lakhme, there are almost all types of skin care products.( Anti aging, scrub, comeliness, face wash, oil control etc.Both value and volume growth are ahead of the marketWeaknessThe skin care products are chiefly positioned as beauty products and are relevant to women. Though there is a huge opportunity to explore the products relevant to men, HUL has not much penetration to it. It is currently entering into the men skin care segmentThe sun screen, scrub and facial skin care products are not well developed till now and are not doing well compared to other skin care brandsPremium products are not popular in rura l IndiasOpportunityLakme Lever Private Limited (LLPL) commenced operations during the flight of the year with the objective of achieving excellence in beauty services and with a view to create and nurture a service mindset. The Company launched the Lakme Studio, a premium salon format commencing with Delhi which has shown early signs of success. Similarly, Lakme Studio have also been recently rolled out in Mumbai, Chennai, Hyderabad and Bangalore.Liquid Body wake is currently in growth stage. The HUL brands like Lakhme, Dove, lx could produce products of these considerate and capture the marketThreatHUL skin care is at a maturity stage. The revenues may decline if constant innovation is not followed.Strong Internal competition Competition between Lakhme Dove, Competition between Lux and Peers.External Competition and foreign players( Garnier, LOreal, Nivea etc)Brand perceptual experienceBrand knowledge of the customers is mentioned is mentioned on the basis of perception about some specific brands like DOVE uninfected and LovelyFair LovelyBrand PerceptionCustomers believe that Fair Lovely ( Anti marks) is specially designed for skin with marks and spots. Fair Lovely with breakthrough Vita-Aloe ComplexLightens different kinds of marks in 4 weeksGets visible faithfulness in 4 weeksHelps in preventing spots from coming backAyurvedic Fair Lovely has extensively researched the fairness secrets of ancient Ayurveda and created a unique mix containing extracts of special Ayurvedic herbs. Its proven formula penetrates deep down your skin to move over you a glowing fairness from within. Fair Lovely Ayurvedic contains Kumkumadi Tailam, an ancient fairness recipe of 16 unique Ayurvedic ingredients.Ayurvedic Fair Lovely Fairness Cream contains Nilopala Patanga. These Soothe relax skin cells, give a serene look. It also contains Chandana Ushira which reduce skin irritation, give long lasting cooling sensation.Marketing Strategy AdoptedFair Lovely , apar t from the fairness cream for girls entering into the men fairness segment and body application segment to increase its portfolio of products. Fair Lovely menz active is the product in this segment.Entering into Aurvedic segment, Fair Lovely is able to create a perception in the minds of the customer that its product is wholly free from harmful chemicals and can bring a permanent change in the colour of the skin without any side effects as Ayurvedic products are without side effects.Fair Lovely, also in its advertisements creates a outline of woman which is unsuccessful and rejected everywhere because of her dark skin. Where as after using the product, she is able to regain her self respect and becomes successful.EMAMIEmami , a kolkata base company has been in the skin care products since the last 30 years and has sustained a good position in ayurvedic products.ProductsBoroplus CreamFair and HandsomeBoroplus PowderNavratna Cool TalcNew Launched ProductsBoroplus Body LotionMala i Kesar Cold CreamMarketing MixProductEmamis products are chiefly based on Ayurveda. The major skin care products are e.g.Fair and Handsome, Boroplus etc. Fair and Handsome continued its brand category dominance in the Middle East and the sub-continent Boroplus maintained its dominance in India, Russia, Ukraine and Nepal.New products (Boroplus winter Lotion and Emami Malai Kesar Soap) and new product variants (Navratna Oil) were launched.PriceEmami has set the prices which are accessible to people of all economic status , and the products are available in wide variety of volumes e.g. Fair and handsome is available in SKUs of 7 ml, 12 ml, 30 ml and 60 ml.PlaceEmami has a good distribution network. The vast network includes over 4, 25,000 retail outlets, 2,800 distributors, 1,500 sub-distributors, 30 depots, six-spot regional sales officesPromotionEmami invested Rs. 19,442 lac on advertisement and branding in 2009-10.Emamis products are endorsed by celebrities like Amitabh Bachchan, Shah Rukh Khan, Kareena Kapoor, Mumbai Indians (Sachin Tendulkar, Harbhajan Singh, Zaheer Khan), Saurav Ganguly, Virendra Sehwag, Madhuri Dixit, Chiranjeevi, Surya, Sunny Deol and othersSWOT AnalysisStrengthDistribution Network- Emamis products are available in 4,25,000 Indian retail outlets and 65 countries.Strong reach in rural indiaCelebrity ambassadors- Emamis products are endorsed by celebrities like Amitabh Bachchan, Shah Rukh Khan,Kareena KapoorAdvertisement Spent- Emami invested Rs. 19,442 lac on advertisement and branding in 2009-10 denote spend, as a proportion of the total revenues, was 18.7% in 2009-10 against 19.3% in 2008-09Innovation- Emamis Fair and Handsome created mans fairness as new category of skincare products in IndiaFiscally Efficient- Nearly 56.1 % of Emamis revenue were derived from tax exempted locations in 2009-10Certifications- Emamis quality authentication comprise respected certifications like cGMP, ISO 14000 and ISO 22000.WeeknessInability to launch new productsMajor products based on Ayurved onlyOpportunitiesThe growing demand of beauty products provides a good opportunity. Emami can take advantage of already captured greater market share in the Fair and handsome and Boroplus products.ThreatsA threat to the Emami is also the growing competition within the field of cosmetic brands. Due to the on-going addition to the field of cosmetics, there is still the danger that other brands could devolve the profit.Another threat to the Company is the economic downturn that is quite discernible in other countries. Such could thus hurt the possibility of higher(prenominal) profit for the company.Problems or delays in integration with Zandus distribution network, positioning and brand building may result in lower profitFair and Handsome CreamEmami Fair Handsome is positioned as a product for male and portrays a strong male image. The colors used are silver, black and orange, which gives a strong macho look to the product. The pink colo ur is being avoided. The illustration on the cover page are before and after effects of the cream. It also contains a leaflet of information. This is to make sure that customer is well conversant with the instructions and is satisfied with the product.It was Launched in October 2005 first fairness cream for men in IndiaCompetitors- Fair Lovely Menz officious (Hindustan Unilever), Fair One Man (Elder Pharma, Shehnaz Hussain), Nivea for Men Whitening Cream (Nivea) and cook Wet Get Fair (Paras Pharma)Point of Difference- The unique five-power formula helps enhance skin fairness in just four weeks. The formula includes double-strength peptide complex, sunguard, anti-bacplus, stress buster and herbocool.Market Share- enjoys 84% market share in the Rs. 137 cr domestic mens fairness cream marketSales- Sales grew by 27% in 2009-10Boroplus Antiseptic CreamAniceptic and curative cream which is ideal for exhausting weather conditions and minor skin problemsCompetitors- The brands principal competitor is Boroline. During winters, the brand competes with other winter care products like cold creams, petroleum jelly and lotion etc.Pont of Difference- The presence of ayurvedic elements enhances medicinal and anti-septic features.Market Share- Boroplus accounts for around 74% market share of the Rs. 269-cr boro brand creams in India.Sales- Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal. Sales grew by 15% in FY 10Boroplus Brand has been ranked 77th in the Brand EquityZydus Wellness LtdSegmentationEveryuth is a brand of Zydus Wellness Ltd ,a pharmaceutical company which caters to a flexible market segment of woment aged between 18 to 35 years.They have a monthly income of Rs 10000 and above and they live in u