HUL losing share in paste, shampoo mkt
Rupali Mukherjee | TNN New Delhi: Smaller players like Dabur and CavinKare have started chipping away share from fast moving consumer goods (FMCG) biggie Hindustan Unilever (HUL) in the oral care and hair care market. In the soaps market, too, HUL has been losing its grip. During the first quarter (April-June) this year, HUL lost share in both volume and value terms in the fast growing shampoo market. While Dabur increased its share and now occupies 7.3% of the market, HUL’s share with brands like Sunsilk dipped to 50% (51.5%) and in value terms to 45.4% (46.5%) during the quarter. Procter & Gamble (Head & Shoulders and Pantene) also increased share marginally, while CavinKare (Nyle and Chik brands) maintained its share, according to AC Nielsen data. Overall, the shampoo market is growing at 14% a year. Analysts say that cheaper variants of rival companies and a stronger marketing push might have led to the biggie losing market share. “Any large company will face this issue. National positioning has its limitations in a large country such as India. Regional players have been chipping at shares of the larger players. “Players like Ghadi in detergents; Anchor in toothpastes, CavinKare in shampoos and Wipro in soaps are giving national players a run for their money through localisation of their communication and intense regional promotions,’’ says KPMG’s Anand Ramanathan. The shampoo market is driven by Re 1 packs, with over 90% of the rural market dominated by sachets. In cities, sachets account for about 40% of total sales. Small packs have helped in increasing penetration in rural areas where pricing plays a major role. Cavin-Kare is more of a regional player, and is active in the south, while Dabur leverages Vatika on the ‘natural’ plank. “Our market share is growing on better marketing push, launch of new variants and the growing shift in consumer preference towards natural products and benefits of natural hair care products vis-a-vis chemical-based ones. Our Vatika shampoos are positioned in the mass prestigeend of the market; they aren’t cheap and are on a par with the likes of other premium players,’’ says Dabur India COO V S Sitaram. A similar trend is visible in the toothpaste market, with both Dabur and Colgate Palmolive upping their market share to 13.1% and 51.9% respectively, while HUL’s share dipped from 25% to 23.1%. Its value market share dipped to 28% during the quarter from 29.6% in Q1 2008, while Dabur’s share increased to 10% (9.3%) and Colgate-Palmolive’s share to 49.5% (47.7%). The penetration in the toothpaste market is quite low, around 50%. Industry experts say that thanks to awareness and affluence in rural areas, there is a surge in demand with consumers graduating from ‘datum’ to toothpaste. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
