New launches help HUL gain share in shampoo market

Fast-moving consumer goods company Hindustan Unilever (HUL) has increased its share in the shampoo market even as rivals Procter & Gamble (P&G) and CavinKare have suffered erosion.

According to retail measurement figures released by AC Nielsen, market leader HUL's share grew from 46.9 per cent in January-March last year to 47.8 per cent in the October-December quarter.

In the same period, P&G's market share fell from 25 per cent to 23.7 per cent and third-placed CavinKare's from 12.6 per cent to 12 per cent.

The shampoo market, estimated to be worth Rs 2,141 crore and growing at 14.5 per cent a year, has been reordered in recent times what with the entry of ITC and Garnier.

P&G, however, denies losing market share. Its spokesperson said, "P&G India's hair care business has consistently grown in market share every single year between 2004-05 and 2006-07. In the last three years, P&G has been among the top-two fastest-growing hair care companies in India. While our company policy does not allow us to share individual market shares, we are pleased to share that Head & Shoulders is India's number one anti-dandruff shampoo brand. Collectively, we own close to one-fourth of the market share in the hair care."

HUL this month undertook a global rebranding exercise of its Sunsilk shampoo range, which involved a new formulation, packaging and marketing campaign. Experts attribute the rise in market share to the launch of the Dove range of shampoos.

When asked if Dove could cannibalise into the share of its other brands, N Rajaram, the company's head of the hair care category, said, "The market is growing and there is space for each and every one of our brands."

P&G has three main brands - Pantene, Head & Shoulders and Rejoice. CavinKare dominates the rural pockets with Chik and Nyle. HUL has brands at several price points. Clinic is a mass market brand, Sunsilk is in the mid-price segment and Dove falls in the premium bracket.

"New users are being added especially at the lower end of the income pyramid, thanks to the continued promotion of single-use, convenient and affordable sachets. In urban areas, consumers are moving away from one shampoo for the whole family to one shampoo for each family member. The differentiation in use is a strong driver of growth," said Umesh Madhavan, senior research analyst with market research firm Euromonitor International.

The competition is poised to increase, with Godrej and Marico also looking to enter the market.

The chief determining factor, say analysts, will be the consumer connect that companies establish.

This will require high expenditure on advertising and promotions, similar to those undertaken by HUL for Sunsilk.