Dabur acquired Fem Care Pharma in June this year for Rs 300 crore. Five months on, the fast moving consumer goods (FMCG) major has seen its market share in the skin care segment shoot up from a mere 1 per cent to 6.6 per cent.
Fem Care has helped Dabur, which has its own skin care brand called Uveda, the third largest player in the skincare market. It has almost closed ranks with Emami (6.8 per cent) and has taken over Loreal (6.4 per cent). Cavin Care remains a distant fifth with a 3.2 per cent market share while unorganised players comprise the rest of the market, according to Dabur’s estimates.
However, Hindustan Unilever remains the dominant leader in the segment with a 59 per cent share,
The Fem Care brand accounts for half of the skincare segment within the Dabur portfolio and 4.2 per cent of Dabur’s total revenue. And the Dabur management is clear that the brands will remain independent.
“We are looking at profitable niches in this segment, but are very clear that the Fem Care products will be independent and not have the herbal or ayurvedic tag. We are planning to increase the top line from a 4- 5 per cent growth to a healthy double digit next year,” says Kannan Sitaram, chief operating officer-consumer business.
Fem Care also has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category, and is best known for its brand ‘FEM’. The other brands in its portfolio include Oxybleach cream, Botanica anti-ageing cream, Stratum colour protecting hair conditioners and SAKA men’s bleach.
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Realising the potential of the grooming business, Dabur is going a step further with Fem Care by setting up beauty parlours. FEM products are on the shelves of around 20,000 parlours across the country and Dabur expects the number to double by next year. At present, about a fifth of the Rs 80 crore Fem Care business comes from parlours.
Fem Care is leveraging Dabur’s current sales and distribution system by being present in about 800 towns and aim at a presence in 1,000 towns in the next six months. “The aim is to separate the corporate brand from the consumer brand of Dabur”, says Sitaram.
Dabur has also decided to expand its male skin care and grooming segment, post the acquisition. Fem Care, which already had a brand called Saka, a fairness bleach for men, was not very aggressive earlier, but Dabur wants to change that now. The male skincare market is a modest Rs 4-5 crore, but it is the fastest growing skincare segment the world over.
Industry experts believe Dabur can hope to get more market share in the bleaching and hair removal market with Fem Care, which already has a market share of about 60 per cent. “Even when Dabur acquired Balsara, it changed the face of products like odomos. So, this is another strategic move on the part of Dabur to explore new territory”, says Purnendu Kumar, an analyst from Technopak.
Dabur, say analysts, also hopes to fuel its growth in South-east Asia, West Asia and European markets where Fem Care has a strong presence. By gaining access to the Fem Care range of products, Dabur aims to broaden its product portfolio and focus on emerging local and international markets.
And Dabur is ensuring that advertising and marketing leave no room for error with its consumer education workshops, including ad spends and marketing initiatives, comprising 20 per cent of the top-line of the July-September 2009.