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Hair Color Industry India

Submitted By: Vaibhav Wadhwa PGDM-A Roll No 55



1. Introduction
Should I color my hair? is a Rs 1200 crore question. Its the size of the Indian hair color market. Just imagine how many individuals ponder over this question every day. Looks like a lot of them decide in favor of it.

In 1990s came the entry of LOreal and other hair colors in India and the hair color market became one of the fastest growing segments in 1998.Today if we see lot many brands in the Indian market it is because of the huge demand for the product.

When these brands first came to India the demand was only to cover grey hair and the products largely targeted women in the age group of 15-45. But with the increase in youth population in India it has become popular especially amongst the young and the trendy. Men in the age group of 15-45 have largely patronized the hair color trend in a big way. The chief reason behind this is the corporate culture which emphasizes that young male employees look smart and trendy.

This is the chief reason why we have many market players in this category targeting different stream of customers based on age groups, geography etc. They are launching new products, modifying and improving existing ones just to make sure they reach each segment of customers.

There are many companies who are competing in the hair color market. The major ones are LOreal, Godrej, Revlon, Wella , Indica and Streax.

Godrej is the highest market holder with a share of 30% plus in the hair and dye market followed by LOreal.

2. Company Details
2.1. 2.1.1. LOreal Introduction

LOreal is the worlds largest cosmetics company. Its present in over 125 countries with 66000 plus employees worldwide. The company had a turnover of 19.5 billion Euros in the year ending 2010. It has been present in India for more than 20 years now and 2009 in celebrated its global centenary. LOreal India is one of LOreals fastest growing subsidiaries and employees over 1000 employees across six cities. LOreal in India operates through four main divisions: professional products, active cosmetics , consumer products and luxury products. The biggest revenue generator in India is the products division led by its brand Garnier.


Consumer Products

Professional Products

Luxury Products

Active Cosmetics

Consumer Products

Garnier fructice

LOreal Paris


Professional Products

LOreal Professional Keraskin



Luxury Product

Giorgio Armani Active Cosmetics



Ralph Laurel


La Roche-Posay


Its factory location is in Pune and headquarters location in Mumbai. It also has four regional offices in India.

LOreal leadership is achieved through cutting edge technology with portfolio of well known brands that answers all beauty needs and are distributed in all the channels. Each brand is benefitted by considerable investments in research made by the LOreal group. The groups research efforts permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present. Some Facts about LOreal India LOreal formed a joint venture with MJ Group to launch the Ultra Doux range of hair care products. Encouraged by the response it received in India its seized the opportunity to break the joint venture and launch its own subsidiary in 1994. LOreal expanded rapidly since launch of its product LOreal Excellence Line of Hair Color in 1997- the first time a company introduces a hair color other than black in the country.


History of LOreal

In 1907, Eugene Schueller, a young French Chemist developed a hair dye formula called Aurale. Schueller formulated and manufactured his own products, which were at that time sold to Parisian hairdressers. On July 30, 1909, Schueller registered his company, the Socit Franaise de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Tinctures for Hair"), the original LOreal. The guiding principles of the company were innovation and research in the field of beauty. In 1920, a small company that employed 3 chemists, In 1950 had the research team of 100 strong and that number reached 1,000 by 1984 and which is nearly 2,000 today. LOreal began only in the hair-color business, but the company soon ventured into beauty and cleansing products. LOreal currently has a market of over 500 brands and thousands of individual products in almost all sectors of the hair care and beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. LOreal has five worldwide research and development centers: two in France, one in the U.S. , one in Japan, one in China. On 17 March 2006, L'Oreal purchased cosmetics company The Body Shop for 652 million.



L'Oreal's famous advertising slogan was "Because I'm worth it" which was used for quite long time. In the mid 2000s, this was changes to "Because you're worth it" to make it more appealing to the consumers. In 2009, the slogan was again changed to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made so that it will create stronger consumer involvement in L'Oreal lifestyle and philosophy and provide more consumer satisfaction for people using L'Oreal products. L'Oreal also has a Hair and Body products range for kids called L'Oreal Kids, the slogan for which goes like "Because we're worth it too". 2.1.4. Main Hair Color Products and Shades

In India LOreal have two hair color brands by the name of Casting Crme Gloss and Excellence Crme. Casting Crme Gloss comes in 11 shades and is ammonia free while Excellence Crme has 9 shades and is enriched with Pro-Keratin that strengthens your hair while you color.

Color shades Color Mahogany Plum Medium Brown Dark Brown Praline Chocolate Darkest Brown Dark Chocolate Black Cherry Ebony Black Iced Chocolate Code 550 316 500 400 530 535 300 323 360 200 415

2.2. Garnier


Introduction and History

Garnier is a brand of LOreal that produces hair care and skin care products. The company started as Laboratories Garnier in 1906 and was acquired by LOreal in 1970s. Its current product line includes shampoos and conditioner by the name Fructis which uses some natural extracts and hair color by the name of 'Nutrisse which is sold in many countries worldwide with specific product lines targeted for different skin types and cultures. In India the hair color is sold by the name of Garnier Color Naturals. It also has a wide variety of skin care products like face wash, fairness creams etc. and has recently ventured into the field of deodorants. In 2011, Garnier partnered with TerraCycle to promote up cycling of product containers and introduction of biodegradable products. 2.2.2. Slogans

The English slogan for Garnier is "Take Care. For hair that shines with all its strength" is used for its Fructis range. It also has a slogan for skincare products which goes like "Great skin from the inside out". 2.2.3. Hair color Product and shades( INDIA)

In India Garnier color comes by the name of Garnier Color Naturals and for men it comes by the name of Garnier Color Naturals MEN . Its available in the following shades in the Indian market.

Women Color Natural Black Darkest Brown Natural Brown Natural Light Brown Burgundy Code 001 003 004 005 316

Men Color Natural Black Darkest Brown Burgundy Code 001 003 316

2.3.1. Introduction

Godrej manufactures a wide variety of hair color and dye products in India. Each one of them is designed to bridge a need-gap. It stamped it authority with its easy to use hair dye variant Godrej Powder Hair Dye. This product was responsible for putting Godrej brand right on top for long. The slogan Kaato, Gholo, Lagaalo (cut, dissolve, apply) that helped it establish leadership which was unquestioned. It manufactures a lot of other hair color variants along with dyes and has a lot of delivery formats. In colors it offers four shades: natural brown, gentle black, burgundy and dark brown. Godrej Renew a sub brand was also launched recently. It a cream based die very easy to apply, gives a uniform, natural color to hair from root to tip and does not drip. Renew confronts to the highest standards as it has been introduced after extensive research. This gentle hair color available in trendy shades is enriched with aloe vera and protein extracts. . The product is available for a single-use in packing of 20ml for the convenience of those who need only a small amount for touch ups or have short hair.



Godrej was one of the early pioneers in the hair colorants category. It launched its first hair color brand Godrej Liquid Hair Dye in the 1970s. In those days it was used with some degree of hesitation, but when people started using the product Godrej became the category leader and laid the foundation basis for the market to come. To keep with the market developments, Godrej added to its portfolio a hair dye in powder form in 1981. While this gave consumers a choice to select from and strengthened the relationship with the brand, it was also a strategic step in countering competition. Following the stupendous success of the sachet product Godrej moved to advanced level of convenience by offering a shampoo based permanent hair dye. In the meanwhile, hair coloring trends evolved and the demand for colors, other than black, began to rise. Godrej conducted researches and introduced many henna-based herbal products and a range of in demand color shades in burgundy and brown color families.


Brand Values

Godrej is a symbol of uncompromising quality, trust and time honored values. Its hair dye brand is focused on delivering hair coloring solutions at affordable prices to masses. In this quest Godrej did a lot of research in developing products and delivery formats which are specially suited for Indian hair. It has been very successful is demonstrated in its leadership status. It has been at this position for more than 20 years. Godrej Powder Hair Dye is the largest selling hair dye in the world. 8 sachets of Godrej Expert Hair Dye are purchased every second in the world. If all the sachets of Godrej Expert sold in 2008 were collected and lined up together they would make a stretch of 14,000 kilometers which is enough to go around Indias sea and land borders. Godrej Expert Powder Hair Dye outsells its nearest competitor, two to one Three out of every four outlet in India stocking any hair color sell Godrej Expert Powder Hair Dye.




Revlon was founded in 1932, by Charles Revson and his brother Joseph, and a chemist, Charles Lachman, whose contribution to Revlon name was the character L. Starting with a single product a new type of nail enamel the three founders pooled their resources and developed a unique manufacturing process. They used pigments instead of dyes and Revlon developed a variety of new shades of opaque nail enamel. In 1937, Revlon started selling the polishes in department stores and drug stores. In six years, the company became a multimillion dollar organization. By 1940, Revlon offered an entire manicure line, and added lipstick to the collection. During World War II, Revlon created makeup and related products for the U.S. Army, which was honored in 1944 with the Army-Navy "E" Award for Excellence. In November 1955, Revlon went public. The IPO price was $12 per share, but it reached $30 per share within 8 weeks. In the 1960s, Revson segmented Revlon Inc into different divisions, each focusing on a different market. He borrowed this strategy from General Motors. Each division had its own target customer:

Revlon, the largest and most popular-priced brand Princess Marcella Borghese, upscale/international Ultima II, premium Natural Wonder, juniors Moon Drops, dry skin Etherea, hypo-allergenic

The company began to market its products overseas at the end of the 1950s. By 1962, when Revlon debuted in Japan, there were subsidiaries in France, Italy, Argentina, Mexico, and Asia. In 1970, Revlon acquired the Mitchum line of deodorants. In the mid-1980s, Revlon lost ground to Este Lauder. Revlon's share dropped from 20 percent to 10 percent of department store cosmetics sales. Sales at the drugstore also declined as Revlon lost shares to Noxell's Cover Girl brand. Revlon compensated with more acquisitions; Max Factor, Ellen Betrix, Charles of the Ritz, Germaine Monteil, Almay, Fermodyl, Lancaster, Aziza, and Halston. In 1983 the company attempted an unsuccessful hostile takeover of Gillette. In 1989, Revlon became one of the first companies to replace animal tests with alternative safety testing methods. On November 5, 1985, at a price of $58 per share, totaling $2.7 billion, Revlon was sold to Pantry Pride (later renamed to Revlon Group, Inc.), a subsidiary of Ronald Perelman's MacAndrews & Forbes Holdings. Additional make-up lines were purchased for Revlon: Max Factor in 1987 and Betrix in 1989, later sold to Procter & Gamble in 1991. Also in 1991, Revlon sold the Clean & Clear brand to Johnson & Johnson In March 2011, Revlon acquired Mirage Cosmetics, makers of Sinful Colors nail products. Modi-Revlon Pvt. Ltd. Revlon was the first International Color Cosmetics brand to be launched in India in the year 1995. It started in the year 1994, with the formation of Modi-Revlon Pvt. Ltd., collaboration between Modi-Mundipharma Pvt.Ltd. a joint business venture between the Umesh Modi Group( India) and Mundipharma Group (Switzerland) and Revlon group of USA. Today, Revlon has made its special mark in the beauty industry in India. The company offers range of quality products in different categories namely hair care, color cosmetics, fragrances, hair colors and skincare. Revlon in India enjoys immense consumer franchise with its world famous brands like Revlon Super Lustrous, Revlon Nail Enamel, ColorStay, Street Wear, Revlon Absolute C, Flex, Charlie, Fire & Ice, ColorSilk and many more. Modi-Revlon has two state of art manufacturing facilities one in India and one in Srilanka for its Color Cosmetics & Personal Care products under the licensing agreement with Revlon INC. It also has a Research & Development Centre at Modi Nagar, India. Modi-Revlon believes in the spirit of innovation and will continue to introduce new innovative products in future to make women look and feel beautiful

3. Market Share and Price comparison

Hair colors form an important product category in the hair care segment of beauty products. The Indian hair care market grew by 14.1% in 2010 to reach a value of $2,157.8 million. The compound annual growth rate of the market in the period 2006-10 was 15.4%. Hair Colors occupied 9.7% of the market value pie chart of different segments in this industry. The Hair Color segment is estimated to grow at an annual rate of 21%.There are different physical forms of hair colors available in India namely, powders, creams, oils and gels. They are available in different color variants and target different consumer segments on the basis of price and other functional attributes. Godrej currently leads the race with a market share of 33%.

Garnier Color naturals is has been effectively price at 139 Rs to give stiff competition to Godrej Color Soft which has been priced at 120 Rs and Revlon Color and Care. Revlon has two more products ColorSilk and Top Speed priced at Rs 320 and Rs 550 repectively which gives competition to LOreal Excellence Crme priced at Rs 449 and LOreal Casting Crme priced at Rs. 499. Godrej has two more hair color products Godrej Renew priced at Rs. 65 and Godrej Expert Hair Dye priced at Rs 17 and Rs 9 to target the people who want to spend less. As it can be seen that godrej has the highest share in hair color market with its dye aquiring 26% of the market share and Colorsoft aqquring 4 % of the market share due its quality and pricing strategy taregting the lower middle and middle class. LOreals Excellence Crme has 11% share in the market with Garnier Color Naturals acquiring 5% of the market share and it has other products which are also making a mark for themselves like Garnier for men Color and LOreal Casting Crme.

4. Marketing, Promotion and Unique Selling proposition

4.1. Godrej

Hair dying was not very popular in India. Coloring of hair was considered to be a risk and advertising regarding this was also minimal. Godrej was the first one off the blocks when hair dye advertising was deregulates in the 1990s. the first Godrej commercial was based on the Aunty concept that no lady likes to be called as an Aunty so after applying the dye you will be called Didi. The commercial made an instant connect with the targeted group and powered its way into advertising memorabilia. The tagline that was next used was Kato Gholo aur Lagalo was responsible for giving Godrej complete control over the India hair dye market. The Godrej group has been very adaptive in terms of the changing needs and advertising strategies to be adopted for eg taking Katrina Kaif to campaign for Godrej Renew reflects the shift. The Godrej brand also organizes various on-ground events at selected haats and melas to encourage trials among rural audiences. . It also holds hair makeover sessions in various towns all over India. Godrej Expert Hair Color regularly invites local beauticians and barbers to hair styling workshops while the Godrej Hair Care Institutes interactive website is a store-house of useful tips on hair care and styling. It also offers online make over and provides video clips so that the consumers can learn best ways to apply the hair color. 4.2. LOreal (and Garnier)

LOreal is known for continuous innovation in order to improve the quality of their products and services they have to offer to their consumers. It has backed its innovations with the 12th largest media budget in the world. In India it has hired celebrities like Aishwarya Rai , John Abraham, Priyanka Chopra, Karisma Kapoor and Sonam Kappor for branding different product. Hiring John Abraham to target the men section in the Indian market and Karisma Kapoor for promoting Garnier Color Naturals explains the brilliant marketing strategy they adopt. LOreal has tied up with many beauty parlors and salons that can sell and promote its products. During the last 10 years LOreal has trained around 30,000 hairdressers in India how to use its products. And it has also helped to establish nearly 300 salons in the last 5 years. The theory is simple: If there is no natural demand for your goods, stimulate it. We have created a profession and a market, Didier Villanueva, LOral Indias country manager, said. If you train people they will use your products. The advertisements that are seen on screen are telecasted more in afternoon mostly to target the women with vivid subjects and attractive explanation of the products. In addition to advertisements they are also publish

adds in almost all the leading fashion and recipe magazines in India like Vogue, Stardust etc. LOreal products are also available easily on the internet. The LOreal slogan also connects well with the consumers and they keep changing it so that most people can relate to it. It changed from Because I am worth it" to Because you worth it" and now to Because we're worth it" so that it can relate to all customers. 4.3. Revlon

Revlon promotes its products through advertisements on TV and internet and outside home media on buses, trains etc. and outlets at various malls. It has set aside 15% of its turnover as its ad budget. It has been releasing ads from its International catalogue and has not appointed an ad agency in the country. They concentrate on 3ps Product Innovation, pricing and penetration to strengthen their position amongst the customers. The recent addition to Revlons global brand ambassador group was Olivia Wilde and Emma stone.

5. SWOT Analysis of Best Products of Each Brand

5.1. Godrej Color Soft

SWOT Analysis

1.Ammonia free formulation that protects hair 2.Largest selling hair colour in terms of volumes (36 per cent volume share) 3.No irritation to skin and eyes 4.Built in moisture lock conditioner 5.Available in five different colours 6.Complete packaging which includes colourant, developer lotion, shampoo, conditioner sachets, measuring cup and a pair of gloves. Strength 7.Creation of Godrej hair care institute

1.Limited semi-urban penetration which can be a huge market 2.Basics hair shades available rather than fashion shades available Weakness with other brands

1.Tie-up and start of brand own hair saloons 2.Launch of various fashion shades Opportunity 3. Global expansion and international presence

1.Increasing competition from sophisticated formulations creams and gel 2.In rural India heena is preferred Threats 3.Increasing competition from local manufactures


LOreal Excellence Creme

SWOT Analysis

1. Strong Brand reputation. 2. Hair color is quick and easy to apply. 3. Easily available in lot of varieties. 4. Continuing research and innovation in the interest of beauty. 5. Good brand advertising and distribution. 6. Many self owned hair cut and color shops in the country. Strength

1. Competition from other international brand like Wella and Revlon. Weakness 2. Expensive

1. Increased sense of fashion and more marketing reach. So target consumers are set to increase. 2. Hair greying problem is increasing, therefore increasing target Opportunity base

1. Growing competition within the field of cosmetic brands. Threats 2. Many brands available now in the same category.


Garnier Color Naturals

SWOT Analysis

1. Strong Brand reputation backed by legacy of Loreal. 2. Hair color is quick and easy to apply. 3. Affordable and easily available. 4. Continuing research and innovation in the interest of beauty Strength 5. Good brand advertising and distribution

1. Might not be suitable for a few customers with sensitive hair 2. Needs to be applied regularly. Weakness 3. Competition from other brands and local substitute products

1. Increased sense of fashion and more marketing reach. So target consumers are set to increase. 2. Hair greying problem is increasing, therefore increasing target Opportunity base

1. Increased awareness among people on its disadvantages. 2. LOreal Group may be producing the best of its line, people may find that their products are not of their basic needs and would skip buying LOreal products. Threats 3. Growing competition within the field of cosmetic brands


Revlon Color Silk

SWOT Analysis

1.Ammonia free formulation that protects hair 2. No irritation to skin and eyes. 3. Competitively priced. Strength 4. Brand name of Revlon


1. Limited semi- urban and rural penetration.

2. Limited brand awareness. 3. Limited advertisements.

1.Tie-up and start of brand own hair saloons Opportunity 2. More awareness and advertising

1.Increasing competition from already established brands like LOreal Threats 2.Increasing competition from local manufactures

6. Points to Focus
6.1. Godrej

Godrej should introduce an improved hair color product which can give competition to LOreal hair color products, Revlons high end hair color products and other brands such as Wella. As Godrej already has a strong market base in the dye market it should concentrate more on the color market and try to improve its products like Renew which have not been able to make much impact. Godrej should keep aside 10-15% of its revenue for ad budget and should advertise more and create awareness about its new products. LOreal (LOreal and Garnier)


LOreal should more actively participate in fashion events as it will increase the Market presence of the brand. LOreal focuses more on Word of mouth publicity and it believes in Viral Marketing, hence it should focus more on making the consumers use the product for the first time. If a consumer uses a product, there is a high probability that they are going to use it again.

LOreal should focus more on including natural products in their portfolio. They already have Garnier in the list which uses natural ingredients; however we can include other brands too like Hair color made from natural extracts. People are more concerned today about the quality of the product . They are also hugely concerned about the effect and side effect of the same. Hence LOreal should take this into consideration. LOreals target customers are middle class people and educated people -mostly working and youngsters. LOreal has already captured most of the market where they can tap their target audience. However once are where they can approach would be the corporate offices. They can put up stalls of LOreal in the office premises of different corporate companies, allowing the employees to check new products and buy the one they want to. Revlon


Revlon should appoint an ad agency in India if it wants its products to be more visible in India as locals can better relate to a brand if someone known to general public advertises for it. Revlon should also more actively participate in fashion events as it will increase the Market presence of the brand. Revlon should aggressively target all the sections of the market with effective branding and create awareness about its products.

7. References

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