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For the complete report, get in touch with us at : [email protected] Indian FMCG industry constitutes the largest segment in India with considerable contribution to the GDP. It can be categorized into primarily personal care, health care, home care and food and beverage. In India, personal care products traditionally only comprised of toothpaste, soaps and shampoos. However, cosmetics such as beauty creams and lotions or even oral care products such as mouthwash are fast gaining popularity in the personal care market. Expenditure on these emerging products has shown exponential growth. Media penetration and rising consciousness to global fashion and trends have sculpted the course of consumer spending. Acted upon by the availability of international products and aided with rising disposable income, the sector is poised for further growth. The report begins with an overview of the FMCG industry in India providing the market size and growth as well as information regarding its contribution to GDP in India. This is followed by a primary segmentation of the industry. An overview of the personal care market provides an introduction to the sector and covers the market size and growth in India. An analysis of the value chain has been included which is followed by a snapshot of the various distribution channels players opt for in the personal care market. An EXIM trend over a period of five years is included which precedes a Porter’s Five Forces analysis that concludes the section. The next section deals with the segmentation of the personal care market. Each of the six sub-segments that the sector comprises of is discussed and includes skin care, hair care, oral care, color cosmetics, bath and shower as well as fragrances. An analysis of the drivers explains the factors for growth of the market and includes increase in disposable income, growth in men’s grooming segment, increase in awareness, growth in rural segment and rise in organized retail. Personal care products do not really fall within the purview of necessities barring a few. Due to international products making a beeline in the Indian market, some are more often being termed as luxury products. Intensive research and development has allowed players to improvise on existing products towards catering to customized needs of consumers. An increase in disposable income at the hands of people acts as the primary driving force in this sector as people have the capacity to spend on such products. Another reason for growth is the emergence of the male grooming sector. Women category has always been a driving force, but the added percentage in terms of male segment has only furthered growth in this sector. As men pay more attention to their appearance and image, this category has attracted a host of products delineated strictly for their needs. Media penetration acts a chief stimulant in this aspect as it results in heightened awareness among the masses. Players continue to advert
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Personal Care Market IndiaPersonal Care Market – India
February 2012
Executive Summary
Market Indian FMCG sector is considered to be growing at a1% annually
Personal Care market, a sub‐segment of the FMCG sector, is expected to grow at a2% CAGR over 20‐‐‐‐‐
Drivers &
Drivers– Increase in disposable income–Growth in men’s grooming segment
Challenges–Harmful effects of chemicals
–Depreciation of rupeeChallenges – Increase in awareness
–Rise in organized retail–Growth in rural segment
–Rise in packaging cost
Innovation
Personal care appliances
Improved marketing strategiesTrends
Products with dual benefits
Rise in organic products
Teens market
Competition
Major Players
Company 1 Company 2 Company 3
2PERSONAL CARE MARKET IN INDIA 2012.PPT
Company 4 Company 5 Company 6
•Introduction
•Market Overview
•Segments
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
•Appendix
3
pp
PERSONAL CARE MARKET IN INDIA 2012.PPT
Personal care market is expected to grow strongly due to rising awareness among consumers
• Personal Care industry has experienced steady growth over the last few years
Personal Care Industry – Overview Market Size and Growth
T
• It continued to expand even during the economic recession when other sectors were negatively affected
• Chief stimulants for the growth of this sector are s1
p1% S
R
Q• Chief stimulants for the growth of this sector are s1 and s2
• The sector is abound with strong presence of multinationals, both domestic and foreign concerns
P
• This sector is aided with a strong distribution network wherein k1 and k2 plays a key role
• C1has affected the sector by increasing the cost of imports both of products as well as raw materials 20--20--20--20--20--
• Players are increasingly focusing on f1 as there is minimal product differentiation in this sector
4
Source:
PERSONAL CARE MARKET IN INDIA 2012.PPT
Distribution Channel – Summary
Rural enterprises Distributors
Key Channels
Stores Retailers
5PERSONAL CARE MARKET IN INDIA 2012.PPT
Increased awareness has resulted in higher demand for international luxury products, especially cosmetics
• India has witnessed a rise in imports owing to the
demand for international cosmetics
Imports Imports (Value)
15,000Y Axis
Ydemand for international cosmetics
•Has a cenvat duty of g1% with an excise cess of g2%
•However, i1 can have a negative impact on the
overall imports0
5,000
10,000
,
Z
YXW
Segmentation 2011‐12 (Apr‐Jun)
020-----20-----20----20-----
Segmentation 2010 ‐11
f2%b2%
a2%
Country 10Country 9Country 8Country 7
f1% c1%
b1%
a1%
Country 4Country 3Country 2Country 1
e2%d2%
c2%Country 12Country 11Country 10f1%
e1%
d1%Country 6Country 5Country 4
6PERSONAL CARE MARKET IN INDIA 2012.PPT
Source:
Primary segments in the personal care market in India
Skin Care
Hair Care
`
Oral CareSegments
Color Cosmetics
Bath and Shower
7
Fragrance
PERSONAL CARE MARKET IN INDIA 2012.PPT
Drivers & Challenges – Summary
Drivers
I i di bl i
Challenges
Increase in disposable income
Growth in men’s grooming segment
Harmful effects of chemicals
Depreciation of rupee
Increase in awareness
Growth in rural segment
Rise in packaging cost
Rise in organized retail
8PERSONAL CARE MARKET IN INDIA 2012.PPT
Government Participation – Summary
Drugs and Cosmetics Act 19401940
InitiativesInitiatives
Drug and Cosmetic Rules 2010
Bureau of Indian Standards2010
u eau o d a Sta da ds
9PERSONAL CARE MARKET IN INDIA 2012.PPT
Trends – Summary
innovation
Personal Care appliances
`
Improved marketing strategiesKey trends
Products with dual benefits
Rise in organic products
10
Teens’ market
PERSONAL CARE MARKET IN INDIA 2012.PPT
SAMPLE Public: Domestic Company – Player 1 (1/4)SCompany Information Offices and Centres – India
Corporate Address Place 1
Tel No. +123456
Fax No. +123456
Website www.abc.com
Year of Incorporation 18‐‐
Place
Products and Services
Ticker Symbol ‐‐
Stock Exchange ‐‐
Key People
Products and Services
Category Products/Services
C1 P1, p2,p3
N D i ti
Head Office
C2 P4, p5, p6
C3 P7, p8, p9
C4 P10, p11, p13
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3
11
Person 4 D4
PERSONAL CARE MARKET IN INDIA 2012.PPT
Source:
i i l S h K i
Public: Domestic Company – Player 1 (2/4)
Financial Snapshot Key Ratios
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin
Profit / Loss
Total Income
6,000 600
ProfitINR mn
Total IncomeINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
0
2,000
4,000
0
200
400
20‐‐
H
20‐‐
G
20‐‐
F
20‐‐
E
Financial Summary
• The company incurred a net profit of INR ‐‐mn in FY 20‐‐, as compared to net profit of INR ‐‐mn in FY 20‐‐
• The company reported total Income of INR ‐‐mn in FY 20‐‐, registering an increase of x1% over FY 20
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase of x1% over FY 20‐‐
• The company earned an operating margin of x2% in FY 20– an increase/decrease of ‐‐ percentage points over FY 20‐‐
• The company reported debt to equity ratio of ‐‐ in FY 20‐‐, an increase/decrease of x3% over FY 20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iPerformance Indicators
Indicators Value (22/02/2012)Market Capitalization (INR) ATotal Enterprise Value (INR) B
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
12
EPS (INR) CPE Ratio (Absolute) D
Working Capital TurnoverCapital Employed Turnover
Improved Decline
PERSONAL CARE MARKET IN INDIA 2012.PPT
Source:
Public: Domestic Company – Player 1 (3/4)
Key Business Segments Key Geographic Segments
80%100%
CountrySegment 2
Segment 3
Segment 4
Segment 5
Segment 1
0%20%40%60%80%
100%
2%3%3%2%0%0%0%0%8%8%9%7%50%
100%
78%
D
12%
78%
C
12%
77%
B
12%
77%
A
12%
Business Highlights (1/2)
0%20‐‐
2%3%3%2%0%
20‐‐
12%
20‐‐
12%
20‐‐
12%
20‐‐
12%
Description News
Performance
• The xth largest FMCG concern in India posting revenues of INR ‐‐ bn
• Considered as the world’s largest T1 companyPerformance
• The brand has over ‐‐ products in its portfolio in the Natural and Herbal space
•Has posted continuous growth year‐on‐year in sales and profits over the last ‐‐ quarters
Expansion •Has plans of investing INR ‐‐mn in t2 which is slated to be a t3% export unit
13
Source:
PERSONAL CARE MARKET IN INDIA 2012.PPT
Public: Domestic Company – Player 1 (4/4)
Business Highlights (2/2)
Description News
• In 20‐‐ it acquired t4 which markets specialized t5 range to the t6 peopleAcquisition
• In 20‐‐, it acquired t4 which markets specialized t5 range to the t6 people
• Prior to this, it has acquired t7, a leading t8‐based personal care concern
Media Planning
• It has roped in t9 for its media planning mandate
• T9 will look into media planning specific to particular range of products including skinT9 will look into media planning specific to particular range of products including skin care, hair oils and home care products
Corporate Social R ibilit
• The period 20‐‐‐‐‐ witnessed t10 launching t11 in rural parts of Uttar Pradesh and Bihar which covered 6 districts of rural Bihar and 2 districts of rural UP
•Has developed t12 which reaches out to the vulnerable sections of the society including Responsibility
p y gwomen and children, illiterate and unemployed towards sustainable development in 3 key areas namely environment, economy and community
14
Source:
PERSONAL CARE MARKET IN INDIA 2012.PPT
Thank you for the attentionThe Personal Care Market ‐ India report is part of Consumer Goods Industry Series. For more detailed information or customized research requirements please contact:
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Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India
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Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
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