The premium brand banks on them to boost market share. Till a few months back, Hindustan Unilever was banking on renowned Indian hair stylists to co-create Sunsilk, its premium shampoo brand. The fast-moving consumer goods major has now set its sights higher and has just requisitioned the services of seven global hair experts to give consumers salon-quality products.
The idea is to give hair beauty solutions backed by cutting-edge science and technology. Narayanan Rajaram, Vice President - Hair Care, HUL, says the experts will use consumer insights from across the world to give consumers the salon expertise for beautiful hair.
They will introduce new fragrances, ingredients and new formulations.Of the seven experts, four have co-created products in India and all of them have impeccable credentials with the world’s who’s who as their clients. Together with Sunsilk’s technical team, they have created formulations like Lusciously Thick and Long, Hair Fall Solution and Anti-Dandruff Solution, Stunning Black Shine, Damage Repair Reconstruction, and Dream Soft and Smooth for specific hair types.
Rajaram says the move was necessary as the company’s research showed that even small-town India now aspires for salon treatment. “We are aiming to serve those aspirations through new innovations,” he says.
HUL anyway had very few options left as smaller players like Dabur and CavinKare have started chipping away share from HUL in the hair care market in both volume and value terms over the past few quarters. While HUL’s volume share in the shampoo market has dropped below 50 per cent, Procter & Gamble with Head & Shoulders and Pantene has increased share marginally.
The overall shampoo market has been growing at double digits, but most of the growth is on account of smaller companies such as Dabur which has increased market share due to targeted marketing push and launch of new variants. The smaller players have also grown due to the growing shift in consumer preference towards natural products. Experts say the shampoo market was mainly driven by Re 1 small packs, with over 90 per cent of the rural market dominated by sachets.
HUL also faces threat from premium players like ITC, which has brands such as Vivel and Fiama Di Wills.
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Rajaram, however, says Sunsilk has been growing consistently on the back of numerous innovations. It was the first brand to offer variants for different kinds of hair, to have launched a pro-conditioner and a range of shampoos specially formulated for care of coloured hair. Its web portal, Sunsilk Gang of Girls (www.sunsilkgangofgirls.com) is, today, the largest all-girl online community in India.
HUL is trying other routes too to attract attention. For example, the popular serial Big Boss 3 showed a contest in the house in which women had to dress up their hair with Sunsilk products and do catwalk. The winner won a nice hamper of Sunsilk products.
Besides, HUL has also launched the Sunsilk “Life Can't Wait” campaign (with film star Priyanka Chopra as brand ambassador) which encourages girls to live for today and make life happen. Harish Bijoor, CEO, Harish Bijoor Consults Inc, says, “Such activities give brands a first-mover-advantage in a post-recession market. It will make consumers sit up and take notice.”
Naimish Dave, Director, OC&C Strategy Consultants, says, “Not only recessionary pressure, HUL is facing heat from competitors like P&G, Garnier etc which are putting a lot more money in visibility. And these activities seem to be a part of an overall gameplan to increase market share to tackle competition.”
HUL’s shampoo portfolio includes Clinic Plus, Sunsilk and Dove. While Clinic is a mid-market product, Sunsilk and Dove operate in the premium range.