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A study on Men’s Personal Care Industry in DubaiCRP Group 3Viren Baid | Ameya Sonkusale | Ayush Golyan
Agenda• Why men’s personal care industry?
• Research Methodology
• Aim and Objectives
• Market Scenario
• Key Trends and Developments
• Primary Research
• Analysis and Interpretation
• Prospects
• Recommendations
2CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
Why Men’s Personal Care Industry?• Growth of 7% in the year 2013 which amounts to AED213 million
• The value growth outperformed volume growth
• Increased contribution margin across all products in men’s personal care categories in
2013
• AED 150 million, highest value contribution for Men’s shaving products category in 2013
3CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Research Methodology• Conduct a detailed analysis of the men’s personal care industry by reviewing journals,
case studies & papers, expert opinions, research databases and peer reviewed business
journals
• Conducting primary research by interacting with distributors and retail store managers
having in-depth interviews
4CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
Aim and Objectives
5CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
1• Identify the key drivers, trends and challenges within the industry
2
• Study the companies in the industry and their market share, pricing and product portfolios
3• To understand the impact of Expo 2020 on the men’s personal care industry
Market Scenario
6CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
World
• Positive growth and varying demand depending on region• No longer a women dominated industry
UAE &
Dubai
• Expected CAGR 5%, value rising to AED 271 million by 2018• Expatriates are a major reason for the boom in the industry• Grooming is a daily ritual and a big part of everyday life for men• Personal care expenses: AED 1,131 in 2013 to AED 1,280 AED by 2018
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Why Men’s Shaving Category?
7CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3
73%
27%
Men's Personal Care Industry 2012-13
Men's Shaving Men's Toiletries
72%
28%
Men's Personal Care Industry 2013-14
Men's Shaving Men's Toiletries
72%
28%
Men's Personal Care Industry 2014-15
Men's Shaving Men's Toiletries
72%
28%
Men's Personal Care Industry 2015-16
Men's Shaving Men's Toiletries
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Market Overview - 2013Men’s Grooming
Market - AED 212.7 Million
Men’s Shaving Products - AED
154.5 Million
Men’s Shaving Products
Growth - 4.6%
Men’s shaving products
category form 73% of the
market share
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 8
Key Trends & Developments
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 9
PEST Analysis of Dubai
• Supply and implementation of transport systems
• Expatriates comprise 80% of population
• Zero crime rate
• Tourism, real estate and construction
• No direct taxes on corporate profits
• Dynastic government structure
• FDI: 49% in LLC & 100% in foreign companies P E
TS
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 10
Increase in Disposable Income & Consumer Confidence
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 11
TRENDS
Increase in disposable income & consumer confidence
• Aftermath of global economic crises
• Highest standard of living in the world
• Increase in disposable income
• Shift of focus from traditional products to
more specialized products
• Customers now prefer to use branded &
premium products
Rising importance of having a well groomed personality
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 12
TRENDS
Increase in disposable income & consumer confidence Rising
importance of having a
well groomed
personality
• Increasing awareness of having a well groomed
personality
• Charismatic appearance and image through personal
grooming
• Potent product launches by leading international
players like Proctor & Gamble, Beiersdorf and Unilever
• Increase in efforts put in for advertisement
Massive Influx of Expatriates
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 13
TRENDS
Increase in disposable income & consumer confidence Rising
importance of having a
well groomed
personality
Massive Influx of
Expatriates
• Majority of jobs undertaken by expatriates
require high standard of personal grooming
• Pre-set and a ready base of consumers which is
available to the competing brands to be exploited
• Men in the UAE are more involved with using
cosmetics and grooming products when compared
to men in other Gulf countries
Increase in Product Offerings
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 14
TRENDS
Increase in disposable income & consumer confidence Rising
importance of having a
well groomed
personality
Massive Influx of
Expatriates
Increase in Product
Offerings
• Recent past the personal care products available for
men were limited
• Male-specific beauty and personal care products
by premium beauty and personal care brands
• Available in department stores, hair salons and
multi-brand beauty specialist retailers
• Beauty specialist retailers widely available in the UAE
Growth in Sub Segments
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 15
TRENDS
Increase in disposable income & consumer confidence Rising
importance of having a
well groomed
personality
Massive Influx of
Expatriates
Increase in Product
Offerings
Growth in Sub
Segments
• Men’s Shaving Products
• Men’s Toiletries Products
• Personal Care Appliances
Pricing Trends
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 16
TRENDS
Increase in disposable income & consumer confidence Rising
importance of having a
well groomed
personality
Massive Influx of
Expatriates
Increase in Product
Offerings
Growth in Sub
Segments
Pricing Trends
• Cost of raw materials majorly factors affect the
final price of the products in the personal care industry
• Year: 2013, the average unit price increased
• Products offered in the men’s personal care
industry are niche
• Market leaders can raise the prices without having
to worry about the fall in demand of their products
Primary Research Interview by Mr. Nitin H. Nandwani, General Manager, Roophar Trading LLC
• Current trends and scenario in the men’s personal care industry
• Government regulations
• Competition
• Challenges
• Role of regional culture
• Marketing strategies
• Product Packaging
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 17
Analysis & Interpretation
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 18
Company Shares of Men’s Grooming: % Value 2012-2013
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 19
36%
15%10%
7%
5%
5%
2%
2%1%
18%
Company Shares of Men’s Grooming: % Value 2013
Procter & Gamble Gulf FZE
SuperMax Corp
Beiersdorf Middle East
Malhotra Shaving Products Pvt Ltd
Unilever Gulf FZE
Coty Inc
Sté Bic SA
L'Oréal Middle East FZE
Unilever Middle East
Others
36%
15%10%
7%
4%
5%
2%
1%1%
19%
Company Shares of Men’s Grooming: % Value 2012Procter & Gamble Gulf FZE
SuperMax Corp
Beiersdorf Middle East
Malhotra Shaving Products Pvt Ltd
Unilever Gulf FZE
Coty Inc
Sté Bic SA
L'Oréal Middle East FZE
Unilever Middle East
Others
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Sales of Men’s Grooming by Category: Value (AED million) 2008-2013
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 20
Men's S
having
Men
's Post-
Shav
e
Men's P
re-Sh
ave
Men's R
azors
and Blad
es
Men's T
oiletri
es
Men's B
ath an
d Shower
Men's D
eodoran
ts
Men's H
air Care
Men's S
kin Care
Men's G
rooming
0
50
100
150
200
250
200820092010201120122013
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Forecast Sales of Men’s Grooming by Category: Value (AED Million) 2013-2018
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 21
Men's S
having
Men's P
ost-Sh
ave
Men's P
re-Sh
ave
Men's R
azors
and Blad
es
Men's T
oiletri
es
Men's B
ath an
d Shower
Men's D
eodoran
ts
Men's H
air Care
Men's S
kin Care
Men's G
rooming
0
50
100
150
200
250
300
201320142015201520162017
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Brand Shares of Men’s Grooming: % Value 2010-2013
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 22
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
Gillette S
eries
Super-
Max
Gillette B
lue II
Nivea f
or Men
Gillette M
ach3
Laser
Gillette F
usion
adidas
Axe fo
r Men
Bic
Superm
ax
L'Oréa
l Men
Expert
Dove M
en +
Care
adidas
for men
Rexona f
or Men
8x4
Clear
Dove M
en +
Care
T-zone f
or Men
Others
0
5
10
15
20
25
30
2010201120122013
Prospects
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 23
Compounded Annual Growth Rate
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 24
Men's Shaving Men's Toiletries 0
1
2
3
4
5
6
7
4.6
6
CAGR - Product Segments
CAGR - Product Segments
Men's S
having
Men's P
ost-Sh
ave
Men's P
re-Sh
ave
Men's R
azors
and Blad
es
0
1
2
3
4
5
6
7
4.6
5.7 5.8
3.9
CAGR - Men's Shaving
CAGR
Men's T
oiletri
es
Men's B
ath an
d Shower
Men's D
eodoran
ts
Men's H
air Care
Men's S
kin Care
0
1
2
3
4
5
6
7
8
6
7.3
5.4
7.4 7.5
CAGR - Men's Toiletries
CAGR - Men's Toiletries
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sourcesReport: Men’s Grooming In UAE, September 2014
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 25
Recommendations• Companies like Malhotra Shaving Products LTD, Beiersdorf Middle East need to strengthen
their distribution network in order to spread their reach in the market and be easily
accessible to the customers.
• In order to increase the popularity of their products and increase the awareness of their
brands they can have tie-ups with MNCs set up in Dubai to provide grooming solutions to
their employees at a discounted rates.
• They can also have tie-ups with international gyms as well as local reputed gyms frequented
by the locals and the expats all over Dubai in order to increase their brand awareness and
sales.
Recommendations• They can collaborate with various professional apparels’ brands for men like Boggi, Brioni,
Andrew’s Ties etc. and give the customers trial offers and trial products
• There are many sporting events like Gulf Cup (football), BWF Destination Dubai World Series,
FIT Awards and so on. In order to gain brad awareness and recognition these companies can
go ahead and be the title sponsors of such sporting events
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 26
CRP 1 PRESENTATION - MGB SEPTEMBER 2014 - GROUP 3 27
Recommendations• Companies can target the labour class in Dubai by setting up small kiosks near their
residential areas as well as near their work locations and make the lower price segment
products easily accessible to them.
• Dubai Expo 2020 will give a tremendous surge to the revenues from the sale of personal care
products for a short period of time, all the companies need to have a proper demand forecast
for the period to avoid the ‘Bull Whip Effect’ and accordingly stack up their inventories
Thank You!CRP Group 3Viren Baid | Ameya Sonkusale | Ayush Golyan