Top Face Wash Brands in India

One of the most essential personal care products in the market today Face washes have become an inseparable part of human existence. Since waking up in the morning and washing our faces is a part of our daily routine having a good quality face wash is of prime importance. Face washes were unheard off since a few decades back. But today it has become part and parcel of our lives. The benefits of face washes are innumerable and ever since it has been proved that soaps can be harmful for the facial skin most of the top face wash companies are on a roll. Face washes are just not restricted to cleaning properties, if you have the right kind of face wash that suits your skin type then you can bid goodbye to all kinds of skin rashes acne etc. The damage caused by the rays of the sun is also tremendous hence there is a constant need to take care of your face which is undoubtedly one of the most important parts of your body.

India is home to some of the best face wash brands in the world. Starting from clean and clear to Himalaya to Pears and Lakme and Ponds the face wash market in India is fully saturated. These brands have their own target audience and have managed to capture a significant market share. Since people do not like to experiment too much with different products on their skin these top face wash companies rule the personal care or rather face wash market in India. With the increasing desire to look good especially among women these companies keep launching better products with additional benefits which in turn only benefits the users. The face wash market in India can be broadly categorized into herbal or natural and cosmetic. Among the top herbal face wash brands in India Himalaya gives a tough competition to the other brands like Joy and Ayur. As far as the top cosmetic face wash brands in India are concerned Ponds and Lakme have a huge customer base.

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With the growing levels of pollutions it is becoming immensely necessary for one to cleanse their face at regular intervals. Face washes provide innumerable benefits, some of the advantages of using a top brand face are as follows;

Nourishes skin Unclogs pores Removes pollutants Cleanse the skin due to their anti microbial properties Controls excessive oil Rejuvenates the skin Anti inflammatory properties sooth the skin Removes dead cells Prevents outbreaks and the recurrence of acne Avoid wrinkles

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1. 2. INDIAN MARKET FOR PERSONAL CARE PRODUCTS PROJECTED GROWTH o Subject to sustained overall GDP growth rates of ~8-9% p.a., the overall Indian personal care market has the potential to grow at 15%-16% p.a. (much higher rates for select segments like colour cosmetics, skin care and deodorants) and thereby double to ~$8-bn by 2012-13. 3. SKIN CARE INDUSTRY OF INDIA

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The skin care market belongs to the Personal Care segment of the FMCG sector in India and is valued at $180 million in India (Approx. Rs.72,000 Cr.) With safe and effective procedures, advancement in medical technology, increase in awareness, the Indian Skin care solutions business is growing very fast. The skin care market can be segregated into toners, cleansers, sunscreens, anti-wrinkle creams, dark circle removing creams, astringents, facial creams, moisturizers, fairness creams, day and night creams, etc. NEED SATISTACTION : - Personal hygiene - Soft & Smooth skin - (to look beautiful)

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The skin care market is at a primary stage in India. The penetration level for the rural market is relatively low. However, within a period of five-six years, the use of skin care products has increased significantly in India. New players such as Avon and Oriflame have entered the market with the natural ingredient benefit platform, which could further spur growth. 6. REASONS FOR GROWTH IN THE SKIN CARE INDUSTRY IN INDIA o Concerns about hygiene and personal grooming drive sales. o Discounts boost growth in the face of economic uncertainty. o Domestic players expand their presence. o Chained retailers create opportunities for point-of-sale marketing. o Rising affluence and sophistication to drive future growth. 7. VALUE CHAIN ANALYSIS 8. INBOUND LOGISTICS o Indian skin care industry typically uses specialty chemicals, such as surfactants, fragrance compounds, polymer compounds and UV filters as active ingredients. o Specialty chemical manufacturers supplying to skin care are adopting green chemistry principles to better meet consumer demand for natural and safer products and increasingly stringent regulatory requirements. o Advances in the area of nanotechnology are helping researchers create breakthroughs in biotechnology. 9. OPERATIONS o High R&D expenditure and a large no. of innovations (green chemistry) by the Indian skin care product formulation companies. o Some companies are now backwardly integrated in the skin care ingredients space. o The recent market developments and changed competitive landscape with the advent of large corporations have contributed to changing the scenario. 10. OUTBOUND LOGISTICS o Large scale retail establishments- Department stores ( Big Bazaar, Visual Mega Mart, Reliance Retail stores .) o Supermarkets or self service stores - Large scale retail shops operating at lower costs, selling at lower price. (HyperCITY, ApnaBazar, Spencer's, Subhiksha.) o Convenience stores or General stores or Variety stores. o Multiple Shops or chain stores. o Specialized stores- These are the shops that deal in only one or two special types of goods. Shoppers' Stop & Globus . 11. MARKETING/AFTER SALES SERVICES o Advertising is done through print, electronic & television media. o No after sales services as sucho (money-back offer available for certain product brands) 12. FIVE FORCE MODEL 13. BARRIERS TO ENTRY o Low import duty has enabled many international brands to enter into the domestic market. o Competition amongst domestic players to enter the rural market. o (Distribution networks being beefed up) 14. BARGAINING POWER OF SUPPLIERS o Some of the companies are integrated backwards, which reduces the supplier's importance. o Manufacturing is largely outsourced due to globalization, the skin care product distributors in the developing countries are struggling to capture and retain their market share from the multinational companies. 15. BARGAINING POWER OF BUYERS o In case of branded products, there is little that the consumer can influence, but intense competition within the skin care companies results in value for money deals for consumers o -(e.g. buy one, get one free concept). 16. RIVALRY BETWEEN EXISTING FIRMS

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Competition is faced from both domestic, MNCs and also from cheaper imports, which are increasingly visible in urban markets. o Price wars are a common phenomenon. o Highly scattered market and poor transport infrastructure limits the ability of MNCs and national players to reach out to remote rural areas and small towns. o Low brand awareness enables local players to market their spurious look-alike brands. 17. PRESSURE FROM SUBSTITUTE PRODUCTS o The best part in skincare sector is that the substitutes here are found within the sector itself so if the customers change their consumption pattern then too the effect will be on the company but the whole sector remains unaffected. 18. CONSUMER PERSPECTIVE o With rising education levels and increased brand promotion by the personal care manufacturers, the aspirations of the younger generation have been turning to the branded personal care products. o Brand awareness is extremely high in the urban markets but brand loyalty is very low. In rural markets, the opposite is true. o Smaller product packs to attract the consumers (those who are open to experiments and those who have lower buying capacity). 19. MARKET PLAYERS PERSPECTIVE o Pricing, brand equity and distribution network are the key differentiating factors in the skin care market. o India, being a big country, has different demands from different regions. o Price wars are forcing many players to offer discounts and this has reached a stage today where some companies are launching new products with discounts. 20. MAJOR PLAYERS OF THE SKIN CARE INDUSTRY OF INDIA 21. MARKET SHARE (%) OF SKIN CARE COMPANIES (Basis retail value rsp. 09)

Indian market For Personal Care products

hair care - 31% skin care-16% Bath & shower products -46% colour cosmetics-6% fragrances-1%