Emami to launch shampoo soon

Personal care major Emami is planning to enter the shampoo category in the haircare segment early in the next financial year.

At present, the company has oil and powder-based hairdyes and Navratna cool hairoil in the haircare category.

According to Emami, launch of newer categories ensures overall growth for the company as well as makes consumers feel that there is a lot for them under the same roof.

"As we expand our market and consumer reach, it is important to launch newer categories within the established skincare, haircare and wellness segment. Moreover, it is important to offer consumers as much variety as possible under the same roof to build loyalists," said company sources.

Emami is planning to roll out 4-5 shampoo variants by early next fiscal.

Segmenting the market according to specific needs has always been the growth strategy for Emami and this time too the company is planning to strike a chord among consumers using the same approach, the source added.

"Segmenting the shampoo market on the basis of oily or dry hair is passé," said the source. The Emami shampoo range would also come with value-additions that would make hair more manageable or one that would control hair breakage or even a variant that could ensure more hair growth.

According to company officials, entering the shampoo category was important as it has scope for a lot of product differentiation.

Also, the Rs 1,700 crore Indian shampoo market is registering a growth of at least 10 per cent year on year, making it one of the most assuring haircare category for Emami to explore. "This would again be a mass brand, targeted at consumers of all age groups and all regions and therefore also appropriately priced," informed the source.

The company is looking at test-launching the shampoos in certain regions first before rolling it out nationally. Post the national rollout, Emami is targeting at least 15 per cent market share by 2010 in the Indian shampoo category.

The company also expects 60 per cent of the turnover to come from rural markets.

Other than van promotions for rural markets where a van would go round places distributing literature and promoting the category, the company would also collaborate with local bodies like the panchayats, to create awareness for its shampoos in rural markets.

Emami's rural marketing strategy at present is routed through over 2,00 mobile traders and 130 small village shops covering states like West Bengal , Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Orissa and Karnataka.

It also sells goods in collaboration with ITC using its e-choupals, and the postal circle of Maharashtra.