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Rediff.com  » Business » FMCG firms brace up for shampoo war

FMCG firms brace up for shampoo war

May 29, 2007 11:56 IST
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After toilet soaps, which saw a slew of new launches in 2006, shampoos are the next category that fast moving consumer goods companies are betting big on.

With companies introducing more and more specialised products, the shampoo segment is expected to grow over 20 per cent. Godrej Consumer (GCPL), which is the second-biggest soap marketer in the country, will be extending its No 1 soap brand into shampoos by the month-end.

Anchor Health and Beauty Care, which has a sizeable presence in toothpastes too, is firming up its plans to enter the segment. Earlier this month, Hindustan Unilever (HUL), which already has shampoo brands such as Sunsilk, Clinic and Lakme, expanded skincare brand Dove to launch hair-care products.

While Godrej is planning to tap the value segment with its shampoos, HUL, the market leader with about 46 per cent share, is gunning for the top end of the Rs 1,800 crore shampoo segment.

N Rajaram, GM & category head, haircare, HUL said, "There is an emerging segment that consumes premium products that deliver exceptional product experience and benefits. This applies to the hair care portfolio as well. The new range from Dove recognises this trend in India."

Analysts point out that with a chunk of growth coming through sachets and lower-priced packs in urban and rural areas, value-added products are the way forward to post significant growth in the category.

Dove is targeting the upmarket segment with its new range. Rather than catering to the mass market, the Dove range specifically targets damage control and repair segment. Till now, there has been no clear segmentation of products in the hair-care category, apart from anti-dandruff and herbal shampoos.

GCPL, meanwhile, will be catering to the mass market with its No 1 shampoos, building on the existing brand equity of the Rs 400 crore soap brand.

Adi Godrej, chairman, GCPL, said that there were synergies in extending the brand from soaps and talcs into shampoos and perhaps even other personal care categories.

At present, apart from HUL, the other dominant players in the category are CavinKare with brands such as Chik and Nyle, Procter & Gamble (Pantene, Head & Shoulders) and Dabur with its Vatika brand.

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