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PERSONAL
CARE PRODUCTS
Chennaibest.com speaks to Ivan Joseph, General Manager
- Marketing, CavinKare Ltd - which markets a range of innovative
Personal Care products.
What has been the reason for the phenomenal
growth rate that CavinKare showed last year?
 We
were successful in launching Fairever-fairness cream, which
was a significant contributor to growth of the Company. In addition
to that, we were able to increase our market share in shampoos.
The two key categories where we are strong are shampoos and fairness
creams. In shampoos we have a market share of 18% and are next to
HLL. In fairness creams we have garnered 15% market share
and occupy the second slot in the fairness cream market. Last year
our growth rate was 100% because of the increase in our market share
in hair-care and we were remarkably successful in skin-care; specifically
Fairever.
Has this rate of growth been reflected in
the industry itself?
We have outperformed the industry. Last year the FMCG industry
was growing at about 7 to 8% and we grew by close to 100%. In the
fairness cream category, there was only one predominant brand for
the past 25 years holding market share of close to 95%. We have
garnered a 15% market share in that business now. This has been
a significant contributor to our growth. The market share in fairness
creams roughly looks like this:
CavinKare for Fairever - 15%
Hindustan Lever Limited for Fair and Lovely - 76%
Godrej's Fairglow, Emami Naturally Fair and Vicco
Turmeric make up the rest.
When do you think the personal care products
market really took off?
 In
India, post liberalisation, many more companies were allowed to
come in. We had several multinational FMCG companies that set up
operation in the country. Kellogs came in, Coke came
in and L'Oreal came in. As part of the FMCGs, personal care
products have also come in. Earlier there were lot of barriers.
Post-liberalisation, in 92', a lot of these barriers to entry have
been removed. People wanted to come in and they were permitted to
come in. And once they came in the consumer had more choice. Earlier
they wanted to purchase, but there was no choice. Today with choice
there are better deals. Yeah I think, post 92' the trend started
and it is continuing.
How big is the personal care products market?
Each category is very big. The all India market for the various
categories is something like:
- Soaps - Rs 5,000 crore
- Detergents - Rs 5,000 crore
- Hair oil - Rs 2,000 crore
- Perfumes - Rs 110 crore
- Deodorants - Rs 160 crore
- Talcum Powder - Rs 570 crore
- Shampoo - Rs 700 crore
- Fairness creams - Rs 400 crore
If you add up all these, it comes to a total market of Rs 13,000
to Rs 14,000 crore. 30% of this is in the south. Tamil Nadu has
about 8% of this and Chennai would account for about 2% of this
market, which works out to Rs 280 crore. But these are back of the
envelop calculations. By its nature, the FMCG market means a wide
customer base. We can't get such a wide customer base in just one
city. We have to be larger in scope. Our brands are all national.
For planning purposes we wouldn't look at Chennai itself as a strategic
unit. We still look at Tamil Nadu certainly, but we would seldom
look at Chennai in isolation. But its a big market. Its one of the
four metros and one of the big markets in the country.
When it comes to personal care products, how
different are Chennai customers from other cities?
Chennai customers are a lot more conservative. Very traditional
in outlook. We have a hair wash powder called Meera which
sells to a significant extent in Chennai. Its not something that
you will find in other parts of the country. In that respect Chennai
is the microcosm of Tamil Nadu. All the culture and traditions of
Tamil Nadu find their reflection in Chennai. This is also a market
where people seek value for their money. Its an interesting mix
actually. On the one hand you have customer base that places a lot
of value on the money they spend and on the other hand Chennai is
a leader in retailing.
So, then isn't there a conflict arising out
of this situation?
No, there is no conflict. The retail scene has changed the very
nature of competition. Because of retail there is a great deal of
choice and variety. And the customer gets a better deal at competitive
prices.
Who are the other major players in this industry
in Chennai?
Henkel, Amrutanjan, TTK Saralee, Parry's Confectionery
are some of the major players based in Chennai.
The concept of herbal components in personal
care products. How well is it being received?
 This
concept is embraced well in the Indian market. Nyle Shampoo
is the leading Herbal Shampoo for the last five years. In hair wash
powders, we are the market leaders. In India, people identify with
herbal products. They rely on several traditional remedies. One
more thing is only 18% of Indians use Shampoos. Many use soaps and
others go in for traditional remedies. And then there is this Friday
ritual unique to Tamil Nadu. So the market potential for herbal
products is huge in India. In the Shampoos segment, multinational
brands appeal only to the upmarket segment. These brands are not
made for India. They have been made with European/ American consumers
in mind. And consequently these brands will be expensive. That in
itself will restrict acceptance. They cannot become large volume
players.
The increased number of beauty pageants. What
has been the impact on the industry?
Beauty pageants have touched only a miniscule section of our society.
70% of India is still rural. So we can't say that it has made any
major impact.
With so many imported products flooding the
market, how are Indian brands holding their own?
Indian manufacturers have been made to compete with these companies.
And without a doubt, CavinKare has gained its market share at the
expense of MNCs. In this market, its most important to understand
the consumer. As I said earlier, these products have not been made
with Indian consumers in mind and most of the MNCs have found, to
their grief, that consumers are not the same everywhere. Also brands
have their own role to play and Indian Brands will not go away,
as they have been around for a long time.
Considering the fact that there is a niche'
for herbal products overseas, how big is the export market?
 Indian
brands will find favor with the NRIs. They have to be marketed properly
for a wider appeal. Our concept of beauty, tradition and customs
have to marketed along with the product.
What is the percentage of sales attributed
to men?
Soaps bring in 50%, Shampoos about 30%, Moisturisers about 10%.
Deodorants make up 4 to 5%. So for essential products, like soaps,
the percentage will be 50 - 50. But for beauty enhancers, a significant
percentage is attributed to women as these products are advertised
to target women. There are exceptions to this rule, Fairever that
is targeted at women has 30 % men as its customers.
There are so many protests about animal testing
in the cosmetic industry. As a member of the industry, what is your
response to it?
A clear understanding of the subject has to be there, before any
decision is taken. The subject has to be dealt with seriously. It
would be a good idea to have an industry-wide agreement on the issue.
When it comes to advertising, what media types
do you prefer?
About 70% of ad spends goes to television. The rest goes to outdoors,
merchandising like danglers, posters, wall painting, print and radio.
Radio is again a very important medium. We are looking at it with
FM emerging, there is an opportunity for marketers to use it as
an advertising medium. Right now we are watching how the Internet
evolves as a medium.
Which section in the media types - vernacular
or English?
We use mainly Hindi and language edits in Bengali, Malayalam, Tamil,
Telugu and Kannada while for upmarket products it would be in English.
What role does packaging play in this type
of industry?
End of the day, when the consumer goes into a shop, packaging plays
an important role in the buying decision. The packaging has to be
good enough for at least, that first time trial. Its very important
for the product to be a commercial success. Velvette was
the first shampoo to come in sachets, but Chik from CavinKare
really revolutionised the whole industry. Not only the FMCGs, but
also products like lubricant oil are being sold in sachets now.
Yes, the founders of this company can rightfully take credit for
this revolution.
Chennai being the retail capital, what conditions
apply specifically to this industry, when it comes to retailing?
Shopping is becoming a really exciting experience in Chennai and
Chennai being the retail hub the challenges of merchandising are
much greater.
- Anuradha Sriraman
Photographs : Leslee Lazar |
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