Deodorants in India (1)

DEODORANTS IN INDIA

Euromonitor International

July 2015

D E O D O R A N T S I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 2 Prospects ..................................................................................................................................... 2 Category Data .............................................................................................................................. 3

Table 1 Sales of Deodorants by Category: Value 2009-2014 ................................... 3 Table 2 Sales of Deodorants by Category: % Value Growth 2009-2014 ................... 3 Table 3 Sales of Deodorants by Premium vs Mass: % Value 2009-2014 ................. 3 Table 4 NBO Company Shares of Deodorants: % Value 2010-2014 ........................ 3 Table 5 LBN Brand Shares of Deodorants: % Value 2011-2014............................... 4 Table 6 LBN Brand Shares of Premium Deodorants: % Value 2011-2014 ............... 5 Table 7 Forecast Sales of Deodorants by Category: Value 2014-2019 .................... 5 Table 8 Forecast Sales of Deodorants by Category: % Value Growth 2014-

2019 ............................................................................................................. 6 Table 9 Forecast Sales of Deodorants by Premium Vs Mass: % Value 2014-

2019 ............................................................................................................. 6

D E O D O R A N T S I N I N D I A P a s s p o r t 1


DEODORANTS IN INDIA

HEADLINES Deodorants sees current value growth of 23% in 2014, to reach INR24.0 billion

Deodorant pumps increases by 70% in current value terms in 2014, driving growth in

deodorants

The average price of deodorant sprays increases by 1% and deodorant pumps by 7% in

2014, which is attributed to the premiumisation of mass deodorants

Vini Cosmetics replaces Hindustan Unilever as the leader in deodorants in 2014, with a 17%

value share

Deodorants is expected to increase by a value CAGR of 14% at constant 2014 prices in the

forecast period, to reach INR45.2 billion in 2019

TRENDS Deodorant pumps displayed remarkable current value growth in 2014, and thus drove growth

in deodorants, which otherwise increased at a steady pace. As the category is driven by

impulse buying behaviour and has low brand loyalty, manufacturers are launching variants

based on fragrances to remain strong.

Although deodorants saw one of the fastest growth rates in beauty and personal care in 2014,

growth was slower than the 28% current value growth in 2013, because these products are

relatively new in India and the category is moving towards a stable growth rate.

The current value growth of deodorants was 23% in 2014. This was mainly due to rising

disposable incomes amongst consumers in the age group 20-30, who opt for deodorants over

talcum powder to tackle body odour. Growth drivers such as faster rural penetration and users

buying multiple brands or variants for different occasions also drove growth in this category.

Deodorant pumps saw the fastest growth of 70% in current value terms in 2014. This can be

attributed to the claim of pumps to deliver more sprays per can and a long-lasting fragrance

compared with aerosol-based sprays. This functional aspect, as well as value for money,

acted as a good differentiation factor in the crowded and cluttered deodorants category.

Antiperspirants had negligible sales in India in 2014, mainly because of distinct usage of

deodorants in India, i.e. spraying over clothing. Also, antiperspirants have a negative

impression amongst consumers of blocking the sweat glands, and are also believed to lead to

skin-related issues. The major launches in this category did not perform well due to these

factors.

Deodorants has one of the highest numbers of variants in beauty and personal care.

Fragrance-based variants are popular because consumers prefer deodorant as a cheaper

alternative to fragrance, and apply it over their clothing rather than for its intended use, which

is as a body spray.

The use of deodorants in India largely varies from its intended usage. Most consumers spray

deodorants over their clothing as a fragrance as opposed to its intended usage, which is as a

body spray. Some brands have identified this peculiar characteristic, and have launched

fragrances in similar packing to that of a deodorant can. Product launches in 2014 included

Layerr Shot by Adjavis Ventures and ITCs Engage cologne spray.



COMPETITIVE LANDSCAPE Vini Cosmetics held a 17% value share in deodorants and overtook Hindustan Unilever to

gain the leading position in 2014. The Fogg deodorant pump by Vini Cosmetics claims to

deliver 800-1,000 sprays per can, along with long lasting fragrance. Vini Cosmetics promoted

Fogg across various media by quantifying the number of sprays each bottle can provide to a

consumer, whereas other players continued to focus on advertising which primarily was

based on attracting the opposite gender.

Fogg deodorant from Vini Cosmetics reached a significant value share of 17% in deodorants

in 2014. Fogg was promoted across various media channels, including television, POS in

modern retail channels, and clearly cited the more spray per can functional positioning.

Axe, the leader in deodorants until 2013, lost share to other brands, including the current

brand leader Fogg. This can be attributed to Foggs unique proposition compared with Axe,

despite using celebrity endorsement.

In 2014 deodorants was led by domestic brands Fogg by Vini Cosmetics and Wild Stone by

McNroe Chemicals Pvt Ltd with shares of 17% and 11% respectively. International brands

such as Axe by Hindustan Unilever and Engage by ITC were third and fifth in deodorants in

India.

With the growing popularity of deodorant pumps, the market saw new launches in this

category by almost all the major players. Hindustan Unilever, ITC and McNroe Chemicals

launched pump variants to meet the growing demand for this format. Deodorant pumps are

also known as no-gas deodorants, meaning non-aerosol.

In 2014 Adjavis Venture launched a new deodorant pump under the brand name Layerr Shot

for men and Wottagirl! for women. The television campaign featured Bollywood actor Imran

Khan promoting the advertisement. These deodorants use plastic bottles rather than the

metal bottles usually used by players across deodorants in India. This characteristic is used to

differentiate it from other brands, as it was the first time that a deodorant was chosen to be

packaged in a clear transparent bottle.

Premium deodorants such as Ferrari and Hugo Boss are available in selected department

stores, such as Central and Shoppers Stop. There were no private label deodorants available

in 2014.

PROSPECTS More brands and variants are expected in womens deodorants, which currently contributes

31% of current value sales. This can be attributed to growing awareness of hygiene and

wellbeing amongst women These new launches in womens deodorants will include

secondary benefits such as skin whitening or hair growth limiters.

Deodorants is expected to increase by a value CAGR of 14% at constant 2014 prices over the

forecast period, to reach INR45.2 billion in 2019.

Deodorant pumps is expected to see the fastest CAGR of 23% at constant 2014 prices, and

will drive sales of deodorants in India. This is mainly because of its functional characteristic of

delivering more sprays per can than aerosol-based sprays. This is expected to suit

consumers requirements in the prevailing inflationary environment.

Deodorants, as a relatively new category in India, with low entry barriers and fair margins, will

attract new smaller players. From 2012, newer players such as Vini Cosmetics and ITC were

able to gain major share over a short period, which will in turn encourage competition.

The major launches in 2014 were in deodorant pumps. Major brands of deodorants ventured

into deodorant pumps to benefit from the growth of the category, and this was also evident



from the product shelf placement across modern retail channels. During the forecast period

fragrance variant-based launches are expected in pump deodorants.

CATEGORY DATA

Table 1 Sales of Deodorants by Category: Value 2009-2014

INR million 2009 2010 2011 2012 2013 2014 Deodorant Creams - - - - - - Deodorant Pumps - - - 1,203.5 2,486.1 4,212.9 Deodorant Roll-Ons 96.1 108.6 132.7 157.1 177.8 198.1 Deodorant Sprays 5,576.8 7,821.0 11,153.0 13,840.4 16,806.3 19,612.4 Deodorant Sticks - - - - - - Deodorant Wipes - - - 4.1 5.0 6.1 Deodorants 5,672.9 7,929.6 11,285.7 15,205.1 19,475.3 24,029.5

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Sales of Deodorants by Category: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total Deodorant Creams - - - Deodorant Pumps 69.5 - - Deodorant Roll-Ons 11.4 15.6 106.0 Deodorant Sprays 16.7 28.6 251.7 Deodorant Sticks - - - Deodorant Wipes 23.8 - - Deodorants 23.4 33.5 323.6


Table 3 Sales of Deodorants by Premium vs Mass: % Value 2009-2014

% retail value rsp 2009 2010 2011 2012 2013 2014 Premium 1.7 1.8 1.8 1.8 1.8 1.9 Mass 98.3 98.3 98.3 98.2 98.2 98.2 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 4 NBO Company Shares of Deodorants: % Value 2010-2014

% retail value rsp Company 2010 2011 2012 2013 2014 Vini Cosmetics Pvt Ltd - - 7.9 12.4 16.6



McNroe Chemicals Pvt Ltd 9.5 10.7 10.8 10.8 10.7 Hindustan Unilever Ltd 29.6 29.3 21.5 14.4 9.9 Helene Curtis India 1.7 1.7 2.3 3.8 7.7 Ltd, J K ITC Ltd - - - 4.5 6.6 Marico Ltd - - 7.1 6.7 5.3 TTK Healthcare Ltd 5.2 5.6 5.1 5.0 5.1 Nivea India Pvt Ltd 4.8 5.1 5.4 4.9 5.1 Nike India Pvt Ltd 3.5 3.4 3.6 3.8 3.8 Jyothy Laboratories Ltd - 5.7 5.2 4.2 3.4 CavinKare Pvt Ltd 6.2 5.4 5.1 3.4 2.7 Menezes Cosmetics Pvt Ltd 2.2 2.0 1.9 1.6 2.0 Wipro Ltd 1.6 1.6 1.6 1.5 1.4 Oriflame India Pvt Ltd 1.1 0.8 0.6 1.3 1.1 adidas India Marketing 0.6 0.7 0.8 0.8 0.9 Pvt Ltd Avon Beauty Products 1.3 1.3 1.1 0.8 0.7 India Pvt Ltd Ferrari Giovanni 0.3 0.4 0.5 0.5 0.5 Industria Casearia SpA Gillette India Ltd 0.5 0.4 0.4 0.3 0.3 Hindustan Lever Network 0.1 0.1 0.1 0.1 0.1 Modicare Ltd 0.1 0.1 0.1 0.1 0.1 Reckitt Benckiser 10.4 9.0 - - - (India) Ltd Henkel India Ltd 6.3 - - - - Hindustan Lever Ltd - - - - - Lornamead Group - - - - - Lornamead Personal Care - - - - - Pvt Ltd Others 15.0 16.7 19.0 19.2 16.1 Total 100.0 100.0 100.0 100.0 100.0


Table 5 LBN Brand Shares of Deodorants: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Fogg Vini Cosmetics Pvt Ltd - 7.9 12.4 16.6 Wild Stone McNroe Chemicals Pvt Ltd 10.7 10.8 10.8 10.7 Park Avenue Helene Curtis India 1.7 2.3 3.8 7.7 Ltd, J K Axe Hindustan Unilever Ltd 25.1 17.8 11.4 7.1 Engage ITC Ltd - - 4.5 6.6 Set Wet Marico Ltd - 7.1 6.7 5.3 Eva TTK Healthcare Ltd 5.6 5.1 5.0 5.1 Nike Sport Nike India Pvt Ltd 3.4 3.6 3.8 3.8 Performance Spinz CavinKare Pvt Ltd 5.4 5.1 3.4 2.7 Nivea Deodorant Nivea India Pvt Ltd 2.7 2.7 2.5 2.6 Dove Hindustan Unilever Ltd 3.0 2.7 2.5 2.5 Nivea Deodorant for Nivea India Pvt Ltd 2.2 2.4 2.2 2.2 Men Old Spice Menezes Cosmetics Pvt Ltd 2.0 1.9 1.6 2.0 Fa Jyothy Laboratories Ltd 3.5 3.2 2.5 2.0 Fa Men Jyothy Laboratories Ltd 2.1 2.0 1.7 1.4 Yardley of London Wipro Ltd 1.6 1.6 1.5 1.4



adidas adidas India Marketing 0.7 0.8 0.8 0.9 Pvt Ltd Ferrari Ferrari Giovanni 0.4 0.5 0.5 0.5 Industria Casearia SpA Oriflame Glacier Oriflame India Pvt Ltd 0.2 0.2 0.4 0.3 Gillette Series Gillette India Ltd 0.4 0.4 0.3 0.3 Nivea Roll-on Nivea India Pvt Ltd 0.2 0.3 0.3 0.3 Avon Little Black Avon Beauty Products 0.3 0.2 0.2 0.2 Dress India Pvt Ltd Denim Deo Spray Hindustan Unilever Ltd 0.3 0.3 0.2 0.1 Avon Senses Avon Beauty Products 0.4 0.3 0.1 0.1 India Pvt Ltd Avon Styx Avon Beauty Products 0.3 0.3 0.2 0.1 India Pvt Ltd Oriflame 24H Active Oriflame India Pvt Ltd 0.1 0.1 0.1 0.1 Protection DIY Hindustan Lever Network 0.1 0.1 0.1 0.1 Avon Feelin' Fresh Avon Beauty Products 0.2 0.1 0.1 0.1 India Pvt Ltd Essensual Modicare Ltd 0.1 0.1 0.0 0.0 Rexona Hindustan Unilever Ltd 0.9 0.6 0.2 0.0 Set Wet Reckitt Benckiser 9.0 - - - (India) Ltd Others 17.6 19.6 20.3 17.1 Total 100.0 100.0 100.0 100.0


Table 6 LBN Brand Shares of Premium Deodorants: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Ferrari Ferrari Giovanni 20.4 28.8 29.1 27.1 Industria Casearia SpA Others 79.6 71.2 70.9 72.9 Total 100.0 100.0 100.0 100.0


Table 7 Forecast Sales of Deodorants by Category: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 Deodorant Creams - - - - - - Deodorant Pumps 4,212.9 5,575.4 7,105.2 8,652.7 10,213.7 11,784.6 Deodorant Roll-Ons 198.1 206.8 217.9 230.3 243.6 257.5 Deodorant Sprays 19,612.4 22,216.2 24,476.9 27,324.1 29,828.3 33,110.7 Deodorant Sticks - - - - - - Deodorant Wipes 6.1 7.0 7.9 8.8 9.6 10.6 Deodorants 24,029.5 28,005.3 31,807.9 36,215.9 40,295.2 45,163.4

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources



Table 8 Forecast Sales of Deodorants by Category: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL Deodorant Creams - - - Deodorant Pumps 15.4 22.8 179.7 Deodorant Roll-Ons 5.7 5.4 30.0 Deodorant Sprays 11.0 11.0 68.8 Deodorant Sticks - - - Deodorant Wipes 9.4 11.5 72.2 Deodorants 12.1 13.5 87.9


Table 9 Forecast Sales of Deodorants by Premium Vs Mass: % Value 2014-2019

% retail value rsp 2014 2015 2016 2017 2018 2019 Premium 1.9 1.9 1.9 1.9 1.9 1.9 Mass 98.2 98.2 98.1 98.1 98.1 98.1 Total 100.0 100.0 100.0 100.0 100.0 100.0


Deodorants in India (1)

Documents

Transcript of Deodorants in India (1)