In what will be a cross-country movement of products, Godrej Consumer Private Ltd (GCPL) may introduce some of its international brands in India this year. The move is aimed at securing its presence at the premium end of the personal care market, a segment it is not too strong in.
"We are exploring the possibility of getting the products into India this year," said Dalip Sehgal, managing director, GCPL.
The maker of Cinthol soap and Renew hair colour has a product portfolio in India which is largely targeted at the mass-market consumer. The premium end is a segment it hopes to address with the introduction of international brands from its Kinky and Keyline businesses.
Kinky is into hair extensions in South Africa, while Keyline has a strong skincare and haircare range in the UK. These businesses were acquired by GCPL in 2005 (Keyline) and 2008 (Kinky).
The products of both companies enjoy strong brand equity in their respective markets. GCPL is hoping to leverage that when introducing them in India.
The roughly Rs 20,000-crore (Rs 200 billion) personal care market in India (this includes skincare, haircare, bodycare and oralcare) has been growing at a CAGR of 15 per cent in the last few years. Key players such as Hindustan Unilever (HUL) and Procter & Gamble (P&G) have been focusing their attention at the premium end of the market for some time now.
This, say analysts, is partly because consumers have been moving up the value chain in terms of their needs.
"It is no more about using a shampoo or cream alone. The accent now is on what problem a product can solve," said Shirish Pardesi, senior analyst at Mumbai-based brokerage firm Anand Rathi. "This lends itself to some amount of premiumisation, which is why the focus on this segment," he added.
By and large consumers are averse to taking chances with products perceived to be low in value when it comes to personal care, say analysts. "That is also contributing to this trend of premiumisation," said Pardesi.
Image: Godrej Group chairman Adi Godrej. Photograph: Reuters
