Taking a chance once more, Hindustan Lever is betting on its Sunsilk brand to make a mark in the hair colour market. But this time it has chosen the indirect route of approaching the segment through a "revolutionary" new system of wash and care products specially developed for coloured hair. Considering Sunsilk's Procolour brand refused to take off, the FMCG giant is now betting on the wash and post-wash segments to make its mark in the nascent but one of the fastest growing segments within hair care.
"We believe that when we launched hair colour, we were ahead of the times, but this time the market is ready and so are we with our Sunsilk Colour Shine System," states Vipul Chawla, Category Head (Hair Care), HLL. So this time, it is not going to be the conventional hair colours that HLL is bringing in but a range of products to cater to the coloured hair segment. The new international Sunsilk Colour Shine System is bringing in products such as shampoos, nourishing hair conditioners and a leave-on lotion to cater to four different types of coloured hair.
At the same time, HLL is making a comeback in the hair-conditioning segment and has also added a new international Sunsilk Hair Expert range, a step-wise treatment (clean, care, manage and shine treatment) in eight new variants. Having withdrawn its Sunsilk Naturals brand of hair conditioners in the past, it re-entered the post-wash segment with Sunsilk Naturals 9 to 9, a combing lotion for both wet and dry hair.
Sunsilk's challenge would be to target the more evolved consumers while HLL's largest selling hair care brand, Clinic, would continue to be the recruiter brand in the company's portfolio.
Explains Chawla, "At the moment, nearly 80 per cent of new recruitment in the category continues to come from Clinic Plus. The brand is meant for the bottom of the market and is meant to get in consumers. In the case of Sunsilk, however, it is meant for the more evolved consumers at the premium end of the market."
The Rs 1,250-crore hair care market, which HLL has been dominating with Clinic Plus as its leading brand, is now consolidating its leadership at the premium end of the shampoo market. "We are still half the hair care market and now with the launch of 23 new variants across two premium product lines under Sunsilk in market, we are bringing in technology and width to the range," claims Chawla. Importing the new Sunsilk range from its Thailand subsidiary, HLL has chosen India to be the second country after Thailand for the launch of the new Sunsilk Colour Shine System. Having tested the products in the European markets, Unilever decided to launch them in the South Asian markets. "It's been a year since the Sunsilk Colour Shine system was launched in Europe where it has been successful. We have put in properties into the products, which are going to work in India as well. At present, we are importing the products from Thailand but with time, they will be manufactured in India," states Chawla.
Targeting a new and emerging segment within shampoos, HLL has priced its Sunsilk Colour Shine range at a 23 per cent premium to the existing range. "The base for coloured hair is small but it is growing. About 10 per cent of our consumers colour their hair and it is category that is rapidly growing," observes Chawla.
With brands from L'Oreal and Schwarzkopf sporting their shampoo brands, there have been local players such as Godrej who have also entered and exited this market in the past. "We had a shampoo brand by the name of Colour Gloss which was premature for its time. But we have no plans of bringing it back as we feel there is still time for the product to get accepted in the market. In the case of HLL, it did try to launch its hair colour brand twice in the market. By launching a shampoo now, it is approaching the same category from a different direction. Its attempt is to segment the market with another value-added shampoo," observes Hoshedar K. Press, Executive Director and President, Godrej Consumer Products Ltd.
Apart from catering to the coloured hair segment, HLL is reinforcing its presence in the post-hair wash category with Sunsilk Hair Expert. "The hair conditioning market is small but it is growing at nearly 40 per cent," observes Chawla. It has introduced Sunsilk 9 to 9, a product much along the lines of existing brands such as Livon and Silk & Shine, last year. "We intend bringing in the global best since there is rapid growth in this segment with more evolved consumers who are willing to consume these products at home. These offerings promise to bring the salon finish to your hair,'' adds Chawla. Explains Saugata Gupta, Marketing Manager, Marico, "The post-wash category has been growing higher since penetration has been low. It is all a question of evolution of the consumer and as long as it brings significant value, consumers will pay for such products."
Focusing on the premium end of the hair care market, HLL has been consciously reducing its focus on saturated hair care categories such as hair oils. Having sold off its Nihar brand, there is less attention being paid to the hair oil brands under Clinic franchise. Meanwhile, HLL's entry into the hair styling category last year under Lakme's HairNext range of products is expected to undergo a consolidation exercise this year. With six products including shampoos, conditioners and sprays, HairNext is the most premium brand in HLL's hair care portfolio. "Hair styling is a new category, we will be completing a year. We want to create awareness and educate our consumers without confusing them with more products," says Anil Chopra, Vice-President, Lakme Lever.
HLL's slew of new hair care products is also an indication of creeping competition from both MNC and local players. Observes M. G. Parameswaran, Executive Director, FCB Ulka, "While Sunsilk and Clinic are large brands, HLL has been facing the heat from players such as L'Oreal and P&G at the top end of the market and CavinKare and Ayur at the bottom of the market. It has now decided to take Sunsilk up the value chain to compete with such players."
On its part, HLL believes it is all about evolving consumer needs in terms of having specialist products in the hair care market. By catering to the demands of the market, HLL is attempting to consolidate its leadership in the hair care category.
Source from thehindubusinessline.com
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