The hair color market in India is driven by growth in the need to not only cover grey hairs and look presentable but also look stylish and feel better. Rise in disposable income and media penetration has only added to increasing fashion consciousness among not just women but also men across India. Aided with the availability of products and with foreign brands being within the reach of consumers, this sector has witnessed major growth in recent years. The report begins with an overview of the hair care market in India including market size and growth. A clear indication in terms of penetration and segmentation has also been highlighted. This is followed by an overview of the hair color market in India. The section talks of the market size and growth of the sector and provides a distinction of the various types of hair color present in the sector. Information regarding the different types of hair coloring techniques is also included. The various distribution channels adopted by the major manufacturing companies are highlighted. The section on EXIM provides an overview to the imports and exports with specification in terms of value and volume. The section based on social media insights provides information based on consumer usage segregated across the source distribution, distribution by tonality, topics of discussion and sentiment analysis. Posts on various social media platforms have been analyzed towards providing an overview of the market driven by consumer perception. An analysis of the drivers explains the factors for growth of the market including rise in disposable income, growth in fashion conscious consumers, increase in awareness among population across the nation, growth in percentage of male using grooming products and rise in organized retail. India is an emerging economy and with a rising GDP. People today are equipped with more disposable income allowing them to spend on FMCG products. Furthermore, with increased penetration of media, consumers are becoming more aware regarding fashion trends and also about the characteristics and benefits of the products available in the arena. Thus, it has been witnessed that consumers are becoming extremely fashion conscious and are willing to go the extra mile to buy products that deliver quality. It is also seen that there is an increase in percentage of males opting for grooming products. Thus, beauty no longer remains a domain restricted to women only, it has gone beyond and encompassed males who are spending more and has led to a thriving hair color market as a whole. However, the key challenge faced by this sector is the presence of harmful chemicals in hair colorants. Presence of certain chemicals in hair color products which can result in dangerous reactions pose act as a barrier for growth. The major trends indentified in the market include usage of herbal products, tie-up with salons, 3D color service and brands seeking to be natural products. The competition section begins with

1. Hair Color Market – India
Hair Color Market India
August 2011

2. Executive Summary
 Indian hair care market is valued at INR XX bn and is expected to see strong growth in the future
 Hair color is a part of the cosmetics industry and has been growing at a CAGR of a%
Market
 Hair color can be segregated into – Segment 1, Segment 2 and Segment 3
Drivers Challenges
– Increasing disposable income – Usage of harmful chemicals
Drivers & – Growth in fashion conscious
Challenges consumers
– Rise in organized retail
– Increase in awareness
– Increase in male grooming
 Usage of herbal products
 Tie‐ up with salons
Trends
 3D color service
 Brands seek to be natural
Brands seek to be natural
Major Players
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
HAIR COLOR MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
k
•Social Media Insights
•Import‐Export
•Drivers & Challenges
•Drivers & Challenges
•Trends
•Competition
C ii
•Strategic Recommendations
HAIR COLOR MARKET IN INDIA 2011.PPT 3

4. Market for hair care is becoming a dominant segment in the
personal care market and is expected to grow further
Hair Care ‐ Overview Market Size and Growth
• It comprises of Y of the fast moving consumer goods INR R
market 150 a%
X2
• The market has seen the entry of new domestic and X1
100
international players who are looking to capitalize on
the growing market 50
• St
Strong opportunity exists in Segment 3 and Segment
t it it i S t3 dS t 0
4 due to low penetration levels 20-- - --- 20-- - --e
Hair Care – Penetration (20‐‐) Hair Care – Segmentation (20‐‐)
O1
Segment 4
9%
Segment 3 1%
Segment 1 R1%
12%
Segment 2
Segment 2 R2%
50% Segment 1
Segment 3 R3%
Segment 4 R4% 28%
Segment 5 R5% Segment 2
Source:
HAIR COLOR MARKET IN INDIA 2011.PPT 4

5. Growing emphasis on personal grooming will lead to the
growth in hair color market in India
Hair Color Market – Overview Market Size and Growth
• Hair color was traditionally used to cover grey hairs
INR P A%
but now its usage has increased more for cosmetic V
15
purposes U
10
• Hair colorants are available in a variety of delivery
formats – d1, d2, d3 and d4 5
 D1 comprises of the biggest segment controlling nearly a
D1 comprises of the biggest segment controlling nearly a 0
third by value 20-- - -- 20-- - --e
• Only g% of Indian women use hair colour as
compared to w% in developed markets
 This indicates huge H market to with strong I potential Types of Hair Color
T fH i C l
• Hair color products have largely been aimed at L‐M
age female segment; however, with time, there has
been a growing population of male consumers as well
S1 S2 S3
• Consumers today are more willing to spend large
sums on these products primarily due to growing • Contains both
• Does not contain • Low peroxide
peroxide and
peroxide or level, no
awareness about recent fashion trends ammonia
ammonia
ammonia • Touch‐ups
• Lasts t1‐t2
Lasts t1 t2 • Lasts upto t3
p
required every
i d
shampoos shampoos
t4‐t5 weeks
Source:
HAIR COLOR MARKET IN INDIA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers
Increase in disposable income
I i di bl i
Growth in fashion conscious
consumers
Challenges
Rise in organized retail
Usage of harmful chemicals
Increase in awareness
Increase in male grooming
HAIR COLOR MARKET IN INDIA 2011.PPT 6

7. Trends – Summary
Brands seek to be natural Usage of Herbal products
Key
Trends
3D Color service Tie‐up with salons
HAIR COLOR MARKET IN INDIA 2011.PPT 7

8. Few major players account for a large share of the market
with Player 1 being the market leader
• An FMCG major in India
SAMPLE
Hair Color ‐ Market Share (20‐‐)
Player 1 • Hair color products range includes
Brand 1, Brand 2, Brand 3 Player 1 Player 2 Player 3
Player 4 Player 5
• Provides products P1, P2 and P3 Y%
Player 2 brands
X%
• Is a cosmetic giant U%
W%
Player 3 • Hair color products include C1, C2,
C3 and C4
• Provides hair fashion products
worldwide V%
Player 4
• G constitutes a premium product
G constitutes a premium product
under its wing
• Certain other players like E and f% of the market is dominated by the
Player 5 local players constitute the rest of
oca p aye s co s u e e es o top four players
top four players
market
Source:
HAIR COLOR MARKET IN INDIA 2011.PPT 8

9. M1 is the market leader, but M4 leads in the Social Media
Platform
Share of Voice : Social Media Share of Voice : Social Media
• G had maximum social media share :
P1 P2 P3 P4
 “T Campaign”, in which it provided Y to C was the major
topic of discussion
 Nf its hair color was appreciated by many A1%
 Customers also showed their willingness to purchase DF A2%
Hair color
 People were disappointed by the fact that certain hair
colors were NM for the Indian S, but was still promoted by
G
• P2 and P3 were the other most talked about brands
A3%
 Mixed response in case of P1
 E hair color was appreciated A4%
 T1 and t2 of the hair color were the demotivating factors
 U had the most customer complaints regarding its product
p g g p
quality
Top three players account for U% of the
market based on social media presence
market based on social media presence
Source:
HAIR COLOR MARKET IN INDIA 2011.PPT 9

10. Players in the Market (1/9)
Company Snapshot: Company 1
Corporate Information Financial Performance
INR bn Revenue INR bn
Headquarters City 1, Country 1
15 Profit / Loss I4 3
Founded 19‐‐ I3
10 I2 2
I1
Cosmetics, Health and Personal Care
Products 5 1
Products
0 0
Key People Person 1– Executive Chairman 2008 2009 2010 2011
Business Highlights
Business Highlights
• ABC reaches consumers across nearly T countries, with Country 2 and Region 1 being key growth market
• In 20‐‐, Company 2 , the erstwhile marketing company of the Company 3 merged with Company 1
 With this total turnover of Company 1 including sales in domestic and export market stood at INR RR bn in FY ‐‐ ‐ ‐‐
With this, total turnover of Company 1 including sales in domestic and export market stood at INR RR bn in FY ‐‐
• In 20‐‐, it launched its hair color Product A both for men and women, both in cream and powder based forms
 Product was created through Company 1’s exclusive technology developed by Institution 1
Source:
HAIR COLOR MARKET IN INDIA 2011.PPT 10

11. Thank you for the attention
Hair Color Market ‐ India report is a part of Research on India’s Manufacturing Industry Series.
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