Reasons to Purchase *Provides pertinent insights on the Indian consumers' changing perspective on personal care product purchase and usage *Access data from a recent primary research among Indian consumers, to be on track with the NPD and marketing activities *Provides actionable recommendations to the existing, as well as potential market players in India, on the basis of product segments & income quintiles Table of Contents : Overview 1 Catalyst 1 Summary 1 Table of Contents 2 Table of figures 3 THE FUTURE DECODED 4 Introduction: Heightened awareness and inclination to focus on personal appearance is driving uptake of personal care products among Indian consumers 4 TREND: Personal care product adoption among Indians follows a tiered structure and is fast evolving with the needs and aspirations of the consumers 6 Key takeouts and implications: the purchase and consumption of personal care products in India follows a well-defined structure, driven by inherent perceptions of hygiene, grooming and beauty, and thereby impacting consumer spending priorities 10 TREND: The 'at-home' personal care market is still in a nascent stage in India, but is slowly emerging as a key focus area for companies 11 'At-home' personal care products have had mixed success with Indian consumers, but the most popular ones have enjoyed high growth 11 The lack of skill and underlying consumer skepticism is a hurdle which has to be addressed by manufacturers before tapping into the full potential of at-home personal care products 14 Key takeouts and implications: driven by an inherent value consciousness, salon-quality personal care products which are affordable and convenient to use are going to drive the demand for at-home consumption 14 TREND: Consumers' usage pattern of personal care products has changed as a result of manufacturers' micro-segmentation efforts 15 Indian consumers' demand for more convenient and multi-functional products has increased along with the rising penetration levels across some personal care categories 16 Micro-segmentation is an effective route to not only ensure consumer loyalty to a brand, but also helps to increase purchase volumes per household of a certain product category 18 Key takeouts and implications: with rising category adoption, personal care products manufacturers in India have to consider micro-segmenting their product portfolio to retain consumer engagement with their brand and to push purchase volumes 18 TREND: More Indian consumers are actively seeking out personal care products with natural ingredients based on health and wellness concerns 19 The growth of natural ingredient-based personal care products is being driven by the skincare and haircare markets 21 The heightened consumer interest in products with natural ingredients is one factor driving the concept of 'premiumization' across several personal care categories in India 22 Key takeouts and implications: the demand for natural ingredients would continue to be a key driver in shaping product development both in the case of basic and premium personal care products 24 TREND: Rising tendency among the Indian parents' to move from traditional/home-made formulations or solutions to packaged baby personal care products 25 Though uptake of bath and haircare products is still sluggish due to the consumers' apprehension, disposable diapers have gained significant consumer trust and are the fastest growing category 27 Given a highly consolidated market structure and that majority of the baby care products in India have a premium positioning, the market for products with a mass positioning is going to present tremendous opportunities in future 29 Key takeouts and implications: although the baby personal care market in India is still in a nascent stage, rising disposable incomes and the willingness of parents to shift from traditional/home-made solutions to packaged or branded products creates an optimistic outlook for the market 30 TREND: Male consumers in India are seeking personal care products and services apart from what was traditionally defined as 'male toiletries' 30 Male inhibitions to personal grooming and styling are reducing in the face of active industry promotion of those products 30 Key takeouts and implications: male grooming and styling products need careful brand promotion over the next few years to sustain the initial demand that has been created among the Indian male consumers 33 INSIGHT: Both Indian men and women believe that physically attractive people have greater opportunities in life, and attach almost equal importance to their personal care needs 34 Key takeouts and implications: personal care products which are suited to the needs and lifestyles of both Indian men and women present tremendous opportunity across all the categories 37 INSIGHT: Among all the personal care product categories, Indians are most quality and brand conscious when it comes to their choice of shampoos and conditioners and skin creams 37 Key takeouts and implications: even amid economic uncertainty and the availability of affordable alternatives, the top brands of shampoos, conditioners and skin creams in India have retained their brand share owing to increased spending on brand promotion rather than just sales promotions 41 INSIGHT: Indians across all the age groups attach more importance to the tangible benefits of personal care products related to effectiveness, than the sensorial benefits 42 Key takeouts and implications: in a crowded marketplace, product communication based on results-led efficacy and not just sensorial attributes, is vital in building a long-term brand equity for personal care brands 45 INSIGHT: Family and peer group influence is a decisive factor in Indians' personal care product choices and this is most noticeable among younger consumers 45 Key takeouts and implications: the portrayal of actual user opinions is emerging as a preferred and powerful marketing strategy for personal care brands who wish to leverage on the consumer trust in the recommendations of friends/family 51 INSIGHT: Indian consumers are influenced by endorsements by professional associations/celebrities while choosing personal care brands, however, with age, the overall influence of endorsements reduces across all the categories 52 Key takeouts and implications: although celebrity endorsements would continue to play a significant role in creating an appeal for personal care brands, more companies might begin to seek endorsements from professional associations to drive the consumers' trust 55 ACTION POINTS 56 ACTION: While focusing on driving volumes from the lower income quintiles, manufacturers of hygiene level products need to explore opportunities for the existing consumers to trade-up 57 ACTION: Grooming product manufacturers should look at masstige positioning of their brands, especially to cater to the emerging demand from the Indian middle class 60 ACTION: Convenience of use and affordability to determine the future course of growth for styling products in India 62 ACTION: Careful marketing communication and positioning hold the key to increase the present low-penetration of lifestyle-focused personal care products in India 64 ACTION: FMCG companies should target the population of seniors who are seeking functionality and youthfulness 67 Align products with seniors' attitudes to 'healthy aging' rather than 'anti-aging' by leveraging functionality before appearance 68 Anti-aging concerns should be targeted by tailored skincare products for specific age brackets within these cohorts 68 Tackle senior specific oral hygiene issues such as plaque and sensitive teeth 69 ACTION: Correct price positioning, product innovation and marketing communication is key to grow in the Indian baby personal care market 70 Manufacturers should identify the gaps in the price bands in the baby personal care market in India on the basis of the willingness of Indian consumers to upgrade 71 Manufacturers should focus on innovation in product developments and packaging to tap the Indian baby personal care market 73 ACTION: Manufacturers should focus on developing products which offer long-term aesthetic solutions 75 Personal care players should focus on authentic and innovative ingredients in their marketing communication to promote long term aesthetics 76 Shea butter 76 Goat's milk 77 Personal care players care associate themselves with the cause of using safe personal care products 77 Personal care players should formulate and market products with reduced chemical composition 78 ACTION: Launch more multi-functional personal care products which help to save time and effort pre-purchase and post-purchase. 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