Godrej Consumer Products, which entered the professional hair care market about two years ago, aims for a 25% market share in this segment over the next three years.
The global market size of professional hair care and skin care is around €12 billion, while in India this segment is pegged at Rs 250 billion. Of this, the professional hair care market is valued at Rs 1.2 billion, registering 8-9% growth over the last few years.
Sources say Godrej’s stable brand currently has a negligible market share, and the space is dominated by Loreal, which has nearly 70% market share in the salon space. Besides these two brands, there are at least seven other brands operating in this category, including Revlon, Avon Products, Conair, Aroma, Estee Lauder and others.
“Although we are a latecomer to this space, we aim to capture a 25% market share over the next three years,” said Ketan Takalkar, Associate Vice President, Godrej Professional. .
Godrej Professional is a brand of professional hair care products such as color, shampoo and conditioner sold to salons. The brand operates under the Godrej Consumer Products division of Godrej Group.
Takarkor said it has been able to rope in 5,800 salons nationwide since the launch of the brand and plans to add another 4,200 salons this fiscal year.
“Our goal is to have 50,000 salons in the top 500 cities and towns in the country in the next five years,” he said.
The company plans numerous seminars to attract salon owners. However, following these seminars, the company plans to reach out directly to salon owners to form partnerships.
It also relies on the salon’s competitive pricing. Takarkor claimed that a 70 gm bottle costs around Rs 100 while a 50-60 ml bottle of his foreign brand professional hair color is priced around Rs 450. 310.
Branded hair colors are used by professionals to service their customers, while shampoos and conditioners are sold directly to consumers by these salons.
Hair coloring currently accounts for 70% of Godrej Professional’s revenue, but the company expects revenue from shampoos and conditioners to grow to 40% of total revenue over the next two years.
Takarkar declined to provide details of the company’s earnings or profitability, but said the brand should break even in the next fiscal year.
