Emami targets Rs 1,000 crore revenue from Smart & Handsome in 3-4 years

Home-grown FMCG major Emami is planning to expand its play in the fast-growing male grooming market with new brand identity 'Smart and Handsome', and is setting sights on Rs 1,000-crore revenue in the next 3-4 years, the company's Vice-Chairman Mohan Goenka said on Thursday.

The Kolkata-based firm has rebranded its 'Fair And Handsome' as 'Smart And Handsome' to expand appeal among millennials and GenZ, and has roped in Bollywood actor Kartik Aaryan as the new brand ambassador.

The country's male grooming market is estimated at Rs 18,000 crore.

Emami is planning to launch new products and several ranges under its 'Smart And Handsome' portfolio, making it a complete male grooming brand.

 

According to Goenka, though the FMCG space is facing slow consumption growth, segments such as male grooming are on the fast lane, with men looking for products that address multiple concerns such as hydration, oil control, and overall skin health.

Till now, Emami, with its over two-decade-old brand 'Fair And Handsome', has limited itself to a skincare market, which is around Rs 250 crore and also has a play in Rs 500-crore facewash market.

"There is a far bigger opportunity in the male grooming space, rather than just sticking to the brightening-space," Goenka said, adding that the male grooming market is "presently at Rs 18,000 crore and in the next five years it is going to be Rs 32,000 crore".

Though Fair And Handsome has a brand awareness level of 80-85 per cent, male grooming is evolving and needs have become wider, as today an average consumer uses five such products on a daily basis, Goenka added.

"We were limiting ourselves... So we wanted to participate as pioneers in the male grooming in a much larger space, rather than sticking to a very small niche segment," he said in a virtual media briefing.

On revenue expectations, he said, "By capitalising on its existing strengths and expanding its product range to address the broader male grooming market, Emami is confident of achieving the targeted Rs 1,000 crore market size for 'Smart and Handsome' in the next 3-4 years."  The company, which also owns The Man Company, a D2C-based platform operating in the similar male grooming segment, will continue to cater to the premium segment while Smart And Handsome will cater to the opportunities in the masstige segment.

"There are several brands but most of them are in the luxury segment. There is hardly anyone in the masstige segment," he said.

Currently the contribution of male grooming to Emami's total sales is "10 per cent and in the next two years it will be 15 per cent", Goenka added.

Emami will leverage the strength of its existing distribution network spread across the country for Smart And Handsome, which will be manufactured by third parties.

Goenka said Emami will launch new products in most categories by the end of April this year and use the same distribution channels.

"In the entire personal care, male grooming is the growing fastest with a 7.5 per cent growth. The overall FMCG market is not growing aggressively, it is slow," he said.

Emami will launch a 360-degree rebranding campaign, featuring Aaryan in mid-January, which will include television, digital, and social media activations.