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Rediff News  All News  » Business » Beauty, wellness sector spur FMCG growth

Beauty, wellness sector spur FMCG growth

September 20, 2007 10:32 IST
The 'feel-good' category will play a big role in promoting high double-digit growth for FMCG companies, if recent figures are anything to go by.

Market research company, AC Nielsen, in its monthly retail sales audit of consumer goods, has identified 24 categories in the personal grooming space that are growing at an average rate of 13 per cent.

These range from after-shave lotions and shampoos to lipsticks and sanitary-wear.

Among these, the 'feel-good' category, which includes perfumes, body washes and hair colours, is experiencing high double-digit growth. The boom will be fuelled by a surge in consumption levels and changes in consumption patterns, according to Amita Shetye, director, client services.

 Companies from Dabur to Emami and Godrej are ensuring that they do not lose out on the trend. Dabur India is planning to enter the skin care category this year.

Sunil Duggal, CEO, Dabur, said, "We are in the process of fine-tuning options in terms of product offering in this category."

Dabur plans to expand the Gulabari brand into various basic skin care offerings. "We are looking at 3-4 different types of products in this category, such as moisturisers and talcum powders. We are also planning to introduce a new skin care range towards the fag end of the current year," Duggal added.

The company will also invest Rs 140 crore (Rs 1.4 billion) in its Health and Beauty (H&B) stores, which are expected to start generating profits by the fourth year of operations.

The company is expecting revenues of more than Rs 1,000 crore (Rs 10 billion) from the venture.

The H&B stores will target women without alienating non-core men customers, as the personal grooming category for men is expanding rapidly.

In the 1990s, only women were targeted for grooming and wellness products. However, with the recent launch of fairness cream for men, Fair and Handsome by Emami, more players are targeting male consumers.

Emami's Fair and Handsome is expected to rake in Rs 206 crore (Rs 2.06 billion) and contribute significantly to the top line, says the company.

Similarly, Hindustan Unilever launched Fair and Lovely Menz Active after it found out that 30 per cent of Fair and Lovely skin cream consumers were men.

Taking the "feel-good" factor forward, Marico, which offers the Kaya Skin services, has worked on the idea of wellness services through Kaya Life Clinic that provides weight control solutions to its customers.

Ruchita Saxena in Mumbai