As of now totally unorganized 92% of all outlets are smaller than 250 sq.ft. in size
Oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care.
Only 15% of the outlets are in metros out of the 1.8 million organized outlets. Greater market share comes from super markets, departmental stores and large grocers – constituting only 8% of organized retailers
Personal Care Current Trends
Major Players
30% of all outlets generate a daily turnover of less than Rs.300. Only 2% of the outlets are able to generate daily revenues of more than Rs.5000. Household care Sales up by 35%
Industry Segments
HLL
PAT up by 9% Sales up by 38%
Dabur
PAT up by 15%
back on growth path Packaged Food
Godrej Consumer
Sales up by 42% PAT up by 21%
Increasing Demand Reduction in Price
Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major Players
Reasons
Hindustan Lever, Nirma and Reckitt Benckiser
Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc Major Players
Spirits and Tobacco
Boom in FMCG
Fast economic Growth
Hindustan Lever; Colgate-Palmolive, Marico, Dabur and Procter & Gamble.
Hindustan Lever, Nestle, Cadbury and Dabur
ITC, Godfrey Philips, UB and Shaw Wallace
Shaving cream (20 %)
FMCG Sector
Deodorant (40 %)
Changing Lifestyles
Branded coconut oil (10 %)
High Growth
Fuelled by reduction in excise duty
Anti dandruff shampoos (15 %)
Thinly explored Rural markets an opportunity
Hair dyes (25 %) Cleaners & repellents (20 %).
Market size Rs 60,000 Cr
Fourth Largest sector in indian economy
Key products
Personal health care (-3 %) Laundry soaps (-5 %)
Used at least once a month Used directly by end customer
Negative Growth
comprises of Consumer Non Durable Products
Dish wash (-3 %) Toilet soap (-4.5%)
Sold in packaged form
Tooth paste (-5 %)
Generally Branded
Tooth powder (-8 %). Cos Devote Considerable effort and money on branding Heavy dependence on DN as the market is fragmented and problems on infras
Branding
Whats FMCG?
Contract Manufacturing
Characterised by large Unorganised Sector
FMCG Sector.mmap - 8/27/2006 -
Personal Credit has increase from Rs 50,000 cr in 2000 to 1,60,000 Cr in 2003
Industry Characteristics
Industry Characterised by contract Manufacturing As the main focus is in Brand building, product development and DN
Credit no more a fear
Distribution Network
Consumer Behaviour
Consumer Spending pattern
Increased in the Consumer Durable sector