Emerging Trends in Skin care segment

SKIN CARE SEGMENT

SEGMENTATION

Impulsive buyersMake purchases based on

their impulses, in a unplanned way, they are

careless buyers.

PerfectionistsThey are highly quality

conscious, care for their looks a lot & well informed about the products available. They

cautiously choose the best for them as they conscious about

their looks.

Pleasure mongersThey buy products just for

their pleasure or recreation & the feel good factor.

ApprehensionDriven

They make purchases driven by fear of damage to their looks if they do not use the product, like, not using sun

screen will lead to skin damage.

Earnest seekersThey buy products to gain an emotional & social security of being groomed to be socially

important & relevant.

Nature freaksThey are very choosy about

the products they use as they are very conscious about their body, skin, , health, etc. So,

they seek for natural or nature based products.

Brand consciousWhen it comes down to their

body, they just prefer well known brands. So, for them

quality should be backed by a big name.

Brand loyal

They have rested their trust with one band & buy products

of that brand only.

Novelty consciousThey are not very conscious about brands & quality but

follow the latest novelty trend in the market to be trendy.

BASIS: buying behavior

KEY TRENDS• “Natural” at the tip

of the demand• At- home beauty

experience & DIY trend

• Dominance of “selfie craze”

• Multi functional products

“NATURAL” AT THE TIP OF THE DEMAND

• Be it natural or nature based or organic, there is a increasing demand on consumer side for products that are safe on skin.

• The growth in this sector has outpaced the growth in conventional personal care category creating a fundamental shift in the in personal care industry.

TARGET GROUP

need to feel confident & take in

charge of their lives.

conscious about their skin texture.

who believe in the concept of beauty

from within.

increasingly inclined towards taking a

healthy route to look good.

TG

Modern, aware, young, independent men/women

NEEDS ADRESSED

Security NeedIt is apparently giving them an assurance that what they are using is safe

on their skin, overcoming their anxiousness about effects of using non natural products. So, fulfilling their need to fearlessly indulge with the

product.

Identity needIt is addressing to their social need of being perceived as a member of a social group which is close to nature and is thoughtful & conscious about

themselves and what they are using.

Aspirational NeedNatural products also address their aspirational need to feel confident, be incharge of their lives and have a healthy skin as they believe that

natural products will increase their physical appearance in a better way than cosmetics from synthetic origin.

CHANGE DRIVERS

GROWING CONSUMER AWARENESSTRUST DEFICIT FOR EXISTING PRODUCTS

INCREASING POLLUTION

INCREASING PURCHASING POWER

YOUNG POPULATION BASE

GROWING CONSUMER AWARENESS

• The DuPont Green Living Survey: India, conducted by TNS Global, found that a majority of Indian consumers are familiar with green products, have confidence that green products are better for the environment, and feel that biobased ingredients enhance the desirability of a product.

• The advancement of technology and advent of sophisticated gadgets in the market and aggressive marketing strategies in the era of globalization have thrown open a wide choice to the consumers & also made them more aware about the products to be chosen.

TRUST DEFICIT FOR EXISTING PRODUCTS

• Consumers feel that cosmetic from the natural origin have fewer side effects when compared to the cosmetics derived from the synthetic origin.

• As we all know that skin is a very sensitive organ of our body and the facial skin reflects the appearance of a person.

• Consumers are not being told about the effect of individual ingredient in cosmetics, increasing their doubt on these products while natural products use nature based ingredients which are well known by consumers and are regarded as harmless.

INCREASING POLLUTION

• Despite the United Nations regulations, the stratospheric O3 layer is still thinner than that one century ago, leading to more exposure to UV rays.

(SOURCE: Air pollution and the skin-http://journal.frontiersin.org)

• UVA has been implicated in skin aging (photoaging), it has been linked, along with UVB, in the development of cutaneous immunosuppression and skin cancers.• Air pollution levels far exceed the

prescribed standards in 15 out of 17 Indian cities where National Air Quality Index (NAQI) stations are situated, according to Greenpeace India report.(2015)

• Delhi’s bad air competes with Beijing’s for the worst air pollution rankings, though the problem is not confined to the Indian capital. Air pollution is now the fifth largest killer in India, says The Global Burden of Disease Study 2010 (GBD 2010)

YOUNG POPULATION BASE

• With 356 million 10-24 year-olds, India has the world's largest youth population despite having a smaller population than China, a latest UN report.

• Since nearly 50 percent of India’s current population is below the age of 25, there is strong potential for green product adoption and demand growth.

• Currently, more than two-thirds (67 percent) of consumers are likely to purchase apparel, personal care, hygiene and household products made from biobased ingredients that offer environmental benefits.

(Source: http://articles.economictimes.indiatimes.com) DuPont Green Living Survey: India, conducted by TNS Global)

INCREASING PURCHASING POWER

Annual spending power of Indian consumers is expected to be in excess of $1 trillion by 2021.

In India, emerging middle class would grow to 570 million by 2021 from about 470 million people in 2010.

This emerging Indian middle earns modest sums -- $1.70 to $5 per capita per day-- and these consumers collectively

have large purchasing power.

(SOURCE: PwC report titled 'Profitable Growth Strategies for the Global Emerging Middle Learning from the 'Next 4 Billion' Markets' (2012))

BUSINESS REFLECTIONIncreasing demand for “safe” products by consumers.

SOURCE: Asia –pacific trends- Euromonitor Internationalwww.totalbeauty.com

Non preservati

ve beau

ty care

• This face wash has neem and has a gel based formula that gives mild froth.

• It keeps the skin oil free for some time and removes the deep lying skin impurities without making the skin dry. It does not contain any kind of chemical preservatives.

Dermatologists recomme

nded

• Neutrogena® products are recommended by dermatologists 2X more than any other skincare brand.

• The brand has many standouts in the skincare, sunscreen and hair categories.

Natural or orga

nic skin care

• In 2010, the emerginC skin care line diverged to include an organic line, Scientific Organics. Scientific Organics' Kombucha Cleanser is a transparent deep-clean cleanser suitable for all skin types.

BUSINESS REFLECTION

• New brands emerging, harping on the concept of natural ingredients to carve their space in the market.

SkinYogaFounded by three sisters, Radhika, Jagriti and Deepika, SkinYoga, as they claim, is a 100% natural skincare brand that adopts ancient philosophies into modern day lifestyle. The brand has products for the face, body and foot, and they ship worldwide.

Purearth Founded by former lawyer Kavita Khosa, Purearth partners with self-help groups and other organizations in the Himalayas to produce natural products while helping out these groups. Wild harvested, organic ingredients in their purest form make products for the face and body.

Ancient livingEstablished in 2011, Ancient Living has been producing pure, natural herbal products for healthy living thereby imbibing the soul of Ayurveda.

(Source: www.vogue.in)

BUSINESS REFLECTION

The country's largest FMCG company Hindustan Unilever (HUL) is doing: It has 'resurrected' its herbal brand Ayush, launching it online. A bunch of new products across haircare, skin care and

pain balms have been launched on e-commerce platforms under Lever Ayush Therapy.

The firm is also expected to increase its 'natural' offerings, moving into newer categories such oral care, lip care etc.

Godrej Consumer, for instance, has launched a neem-based mosquito coil; a crème hair color that has coconut oil; and

launched new variants under Godrej No 1, its naturals platform in soaps.

Expanding existing product lines to add more herbal products to the cart.

SOURCE: www.business-standard.com




• Dominance of “selfie craze.


At Home Beauty Experience & Do It Yourself (DIY) Trend

COST SAVING

TIME CONSTRAI

NT TO ACHIEVE INSTANT RESULTS

INCREASED DEMAND FOR AT HOME

BEAUTY PRODUCTS, PROGRESSI

NG GROWTH FOR DIY TREND

NEEDS ADRESSED

CONVENIENCE

Consumers are

motivated by getting

professional results

instantly at home saving a lot of time, especially, in their hectic schedule.

ECONOMIC

RATIONALIZATION

Consumers

are willing to rationalize the financial

commitment for such products

as a long-term

investment into their beauty care

routine, as opposed

to the high costs often

associated with

frequent visits to a spa or

dermatologist.

INDEPEND

ENCE

NEED

With

growing

education

& financial

security,

people

want to be

more

independe

nt in every

sphere of

life giving

them a

feeling of

self

independe

nce &

being in

charge of

their lives.

TREND DRIVERS

CHANGING LIFESTYLE

TECHNOLOGY FRIENDLINESS

CHANGING LIFESTYLE

In India the general lifestyle has changed a lot over the years. There is no more the decades-long secluded and conservative attitude among women.

People from rural areas and small towns migrate in large numbers to metropolitan centers seeking better fortunes.

More women are now coming out of homes to work. Around 22.5% workforce is contributed by women.

Source: Changing lifestyle and its Implications(www.atlantadunia.com)

TECHNOLOGY FRIENDLINESS

Indians are becoming more tech savvy & the young generation especially is ready to adapt to new devices, which is also contributing to acceptance of at home beauty devices.

Tech-savvy Indians have emerged as the most hooked on to gadgets

globally with as many as 95 percent finding their smartphones “critically

important”

India has the highest number of smartwatch

owners globally, with 18 percent of them

owning/using the device

Personal care appliances grew by 15% in retail

volume terms and by 17% in current retail value terms

in 2015 due to a growing interest amongst

consumers in personal appearance

Source: From apps to Google Glass: Indians are some of the most tech-savvy in the world(2014)(www.firstpost.com)

BUSINESS REFLECTION

EpilatorIt is an electrical device used to remove hair by mechanically grasping multiple hairs simultaneously and pulling them out. The way in which epilators pull out hair is similar to waxing, although unlike waxing, they do not remove cells from the epithelium of the epidermis.

Mini Lady Woman Vibrator Full Body Face Neck Beauty Massager Pain ReliefLight weight and portable.Promote blood circulation better.Great companion for travelers.Includes 4 interchangeable massage heads to satisfy different needs.

BUSINESS REFLECTION

DIY format is helpful when it comes to trying out new stuff at home rather than going to expensive salons for small reasons like nail art, make up also it is empowering ladies to take up tutorials and get independent.

Interestingly the very first video that came out on How To/DIY/Tutorial was in 2006 both In India & Globally.

2015 has seen it picking up globally. India showed a 3x leap in the number of videos uploaded between 2013 and 2014.

SOURCE: BEAUTY INDUSTRY – GROWTH, FORMATS & TRENDS MIGRATION TO INDIA(WWW.CULTUREMACHINES.COM

BUSINESS REFLECTION

Mother Earth Living (previously Natural Home & Garden) is an American bimonthly magazine about sustainable homes and lifestyle published by Ogden Publications.

Conventional personal-care products contain an assortment of chemicals, including some that have been linked to health problems ranging from weight gain to cancer risk.

While many natural and organic options exist, these can be pricey.

Stay healthy—and save money—with homemade body, hair care and beauty products free of chemical preservatives.

Source: www.motherearthliving.com






SELFIE CULTURE• Consumers’ growing consciousness for how they are perceived by others is another

important trend somewhat attributed to the ‘selfie,” a buzzword for a photo taken of one’s self and uploaded to social media, seeking for self expression and appreciation.

• Selfies have become a medium of portraying self to the outside world for the youth, they seek for skin perfection for having a selfie.

Intex mobile’s miss selfie 2015 was an online contest organized by Amar Ujala. winner of the contest will be crowned in the grand finale of miss north India princess 2015.

Pond’s India has launched the ‘Selfie Ready’ campaign for the promotions of Pond’s White Beauty BB+ Cream, one has to upload their selfies or share on Facebook or Twitter with #pondsselfieready for a chance to feature on a Pond's billboard






MULTI-BENEFITS PRODUCTSNeed for multi-functionality as consumers no longer settle for a two or three-in-one product. All-in-one products are becoming mainstream and are expected in almost every personal segment.

MULTI FUNCTIONALI

TY

NOVELTYCOST SAVING

CONVENIENCE

Dettol Skincare with nourishing moisturizer & Dettol's germ protection assurity helps make skin softer smoother and healthy every day.

Garnier 3 in 1 Fairness Cleanser helps your face to fight the harmful effects of exposure to sun, pollution and harsh environmental conditions. The face wash cum scrub cum mask helps you reveal brighter and more radiant skin.

The 6 Oil Nourish Shampoo provides complete nourishment to your hair from root to tip with 6 Micro Oil making it soft, shiny, thick, strong, smooth and manageable.

Marketing

Emerging Trends in Skin care segment