13-09-2012, 01:10 PM
India Hair Oil Market Growing Strongly – List of Suppliers,Brands and Categories
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Indian Hair Care Industry
The hair care industry has grown a lot in the recent years. The reason can be attributed to the fact that a large portion of our Indian population is using higher quality branded products. Of the estimated Rs.1, 611 billion FMCG market in India, hair care products make up approximately Rs.91.5 billion, or 8%, of the total according the Nielsen Retail Audit Report. The 14% growth rate in the hair care industry is also slightly higher than the overall industry average of 13.4%. Shampoo and hair oils, including coconut oils, continue to be the key components of this segment. The marketing startegy of rural distribution campaigns adopted by the hair oil manufacturers and dealers have helped to greatly expand the geographic coverage of hair oil products into the rural parts of the country. In addition, average prices for hair oil products have risen from Rs. 22.25 per 100 ml in 2008 to Rs.23.74 per 100 ml in 2009 according to the Nielsen Retail Audit Report.
Major Hair Oil Manufacturers in India
Marico - is a leading FMCG Indian Manufacturer providing consumer products and services in the areas of Health and Beauty. During 2009-10, the company generated a Turnover of about Rs.26.6 billion, in respect of its food, hair care and skin care related activities. The organisation holds a number of brands viz. Parachute, Saffola, Sweekar, Hair&Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya Skin Clinic, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic. The major brands of Marico holding significant market share are Parachute and Saffola. Parachute is essentially coconut oil. The other sub brands of Parachute are Nihar, Uttam and Oil of Malabar which are also coconut oils. It established a plant at Kanjikode, Palghat to manufacture ‘ Parachute Coconut Oil’. It also manufactures hair care products such as Coconut Oil, Hair Oils & Anti Lice Treatment solution, which are marketed under the brand names of Parachute, Hair and Care & Oil of Malabar.Among all the products offered by Marico, the most popular item is perhaps ‘Parachute coconut oil’. This unique product is manufactured from high grade coconuts and helps users in all their hair related ailments.
Segmentation
It is very important to segment the target market before selling or marketing your product. This will make the job of the marketer easier and simpler, as he will be aware and very clear as to what he has to actually do and decide the strategies thereby.
The major positioning platforms for hair oil are purity, hair nourishing and more recently, non-greasy look. Coconut oil and perfumed oil accounts for about 65% and 35% of market in volume terms.
Consumer Awareness and Penetration
Hair oil is an everyday habit with about 50% of the population.
Hair oiling, a peculiarly Indian habit, is extremely popular in urban as well as rural India. Penetration of hair oil is 87% at all India level and is almost evenly distributed in urban and rural areas. While penetration in urban areas is marginally higher at 90.2%, the same closely follows at 85.8% in rural areas.
In urban areas, penetration is higher in small towns (0.1-0.5m population) at 91.8% compared to medium and large town where it is 89.5-89.9%. Awareness about hair oil is over 90% in rural as well as urban areas.