The Hindu : HLL introduces new range of skin care products

Online edition of India's National Newspaper
Thursday, Feb 13, 2003

Business

Business

HLL introduces new range of skin care products

By Our Staff Correspondent

MUMBAI FEB. 12. In a move that would further consolidate its pre-eminent position in the Indian skin care market, Hindustan Lever, through its division Lakme, is introducing a new skin care range and five more premium products.

The new products are more expensive than HLL's current offerings and according to Vivek Rampal, Business Head, Skincare, HLL, "We are aiming at a consumer level of only ten million women and not the mass market".

The products to be offered include Icy Fresh Gel, Butter Up Body Smoother, Strawberry Silk Splash and two variants of moisturising glitter. The products have been developed exclusively for Indian conditions.

Lakme will sell these products at 500 counters in metros and not at the 90,000-100,000 counters that Lakme products are available at present. They would cater to women in SEC A, A1, A2 and B1 category and are priced between Rs. 75 and Rs. 300 and incorporate international technology tailored for Indian skin.

In terms of market share, Fair & Lovely has 36 per cent, Pond's, Vaseline and Lakme are between 4 and 7 per cent and some competitors tend to be at that level. In absolute terms, HLL would constitute about half the market, Rs. 700 crores.

According to Mr. Rampal, "The skin care industry size in India is around Rs. 1,400 crores and HLL's brands in this segment grew at around 20 per cent. In the last two years, the market has been relatively flat but only in December quarter, it showed double digit growth". This could be attributed to a winter slew of skin products. HLL's Fair & Lovely, Pond's, Vaseline and Pears are at a broader mass level while Lakme's brands will focus on the top 5-10 million customers".

HLL already offers ayurvedic products under the Ayush brand. Regarding a conflict of interest between existing HLL brands and the new products, Mr. Rampal said, "We have a brand focus strategy and develop it further by saying what is right for the brand and the target consumer, for example, Fair & Lovely and Lakme Fair Perfect. While the latter is targeted at only 5-10 million women, Fair & lovely is at a mass level. We are essentially trying to see what is the next move for the target audience of a particular brand.

This comes out of the power brand strategy and though there may be an overlap, there is no conflict of interest because it is probably addressing different consumers".

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