epages News [Beauty Parlours, February 2003]

• Estee Lauder puts off plan for subsidiary
• HLL to expand Sunsilk Brand
• Elle 18 peels off Lakme's share
• Wrinkle-free look comes of age
• Turmeric gets a fairness cream coat
• Baccarose to re-launch Elizabeth Arden
• Pampering consumers with high-end skincare products
• Back to Beauty Parlours Archives

Estee Lauder puts off plan for subsidiary

Feb 04, 2003: Ahmedabad: The $3-bn US cosmetic products giant, Estee Lauder's plan for setting up a wholly owned subsidiary in India is yet to take shape. It is understood that the firm has deferred its plans and is now looking at entering the country by the end of next year.

Estee Lauder already has a collaboration approval for setting up a subsidiary, Elca Cosmetics, with a 100% foreign equity participation of Rs 2.1 crore. The company is likely to take some more time to sort out issues regarding a wholly owned subsidiary. It is now seeking an extension for the foreign collaboration approval till September 2004. Estee Lauder was earlier planning to provide logistic and managerial support services as well as professional training to the Indian distributors of Estee Lauder products through the subsidiary. It was also looking at offering consulting services for the sale of Estee Lauder products at duty free shops across India.

HLL to expand Sunsilk Brand

Feb 07, 2003: FMCG major Hindustan Lever is planning to reshuffle the portfolio of Sunsilk brand. To begin with, the company plans to add a couple of variants to Sunsilk that would offer high-order benefits within hair care. The company may also ease out one or two variants from the existing range in the current year. The new launches could be a mix of specialised salon products and hair care products for the retail market.

Elle 18 peels off Lakme's share

Feb 13, 2003: Lakme, the queen of Indian cosmetics, is seeing its own sister brand Elle 18 and other premium brands chip away its market share. On the other hand, premium brands like Modi Revlon and Maybelline have gained. Maybelline and Revlon's share for premium brands was 10% and 16% respectively in December 2001. They rose to 14% and 19% respectively in December 2002. The share of HLL brands — Lakme and Elle 18 had decreased over December 2002. While Elle 18's market share in lipsticks was 16% in December 2001, it fell to 13% in 2002. In the premium category, Revlon is entering the mid-priced category too. The new brand, Streetwear, is expected to give both Lakme and Elle 18 a run for their money. ORG-Marg says the total lipsticks market size is Rs 116 crore, of which the organised sector is Rs 78 crore. Analysts say the total lipstick market is growing at 10%.

Wrinkle-free look comes of age

Feb 17, 2003: Anti-ageing products, consisting of anti-wrinkle creams and lotions, have reported a 40% growth in 2002. The anti-wrinkle product category in India is largely dominated by multinational companies. Avon and Garnier Synergie are the largest selling brands in this category, followed by premium brands like Estee Lauder, Christian Dior, L’Oreal and Clarins. Sales of anti-ageing products in East and South India are negligible. South India, dominates in the fairness cream market. The size of the market is miniscule as of now. According to research figures, the size of the urban skin care market is estimated to be Rs 800 crore. Of this, specific care accounts for just 1% i.e. just Rs 8 crore and 77% of the specific care market comprises anti-ageing products. Specific care refers to products which are used for a specific purpose, such as to reduce wrinkles, and distinct from general-purpose creams.

Turmeric gets a fairness cream coat

Feb 20, 2003: Kolkata: Fairness creams are stealing the show, leaving turmeric creams far behind. Big fairness cream brands have captured over 52% of the Rs 1,300-crore skincare market. HLL’s Fair & Lovely, CavinKare’s Fairever, Emami’s Naturally Fair and Godrej’s Fairglow among others seem to have done the real makeup. An estimated Rs 720-crore segment in itself, fairness creams have become the most favoured cream category for skin lightening these days.

With a more dedicated line of users, the traditional turmeric cream category is estimated to have lost about 30% of its market value. An almost 70% higher price for turmeric creams and the ‘direct’ benefit associated with fairness brands has moved users away from the turmeric cream category. Top turmeric brands Vicco and Himani Gold are busy reworking strategies to re-establish themselves in the competing creams market. Vicco Labs is planning a new turmeric cream priced 60% lower than its existing product.

Baccarose to re-launch Elizabeth Arden

Feb 24, 2003: It will be the second coming for Elizabeth Arden, the premium skincare and fragrances brand. Baccarose, which distributes and retails premium and select brands of fragrances, colour cosmetics and skincare products, has chalked out a strategy to re-launch Elizabeth Arden in the country in March. Plans are also afoot to bring in two new global brands towards the end of the year 2003. As part of the re-launch strategy, Baccarose plans to introduce the premium product in branded counters and shop-n-shops in multi-brand and large department stores such as Shoppers Stop and Ebony. To begin with, the product will be available in four metros like Mumbai, Delhi, Kolkata and Hyderabad.

Pampering consumers with high-end skincare products

Feb 27, 2003: Indian skin is being pampered like never before as a surfeit of global brands like Amway’s Artistry, Clarins, Nina Ricci and others are launching high-end, technologically advanced skincare products, prompting even homegrown players like Lakme Lever Ltd to upgrade their products. Pitched at the growing clout of the ‘progressive urban Indian woman’, the aims clearly is to upgrade her from using basic skincare to sophisticated solutions and thereby increase the consumer base.

Analysts said that increased demand for skincare products is not only coming from basic skincare products such as cleansers, moisturisers, but specific purpose products like under-eye creams and age-defying products. Analysts estimate that of the total Indian cosmetics market worth Rs 1,700 crore, skincare constitutes 71% while colour is 29%. Skincare is currently growing at 18% to 20% on a yearly basis, and is estimated to become Rs 2,300-crore market by 2005-06.