Consumer products brand Henkel sells hair color brand Schwarzkopf directly to consumers. The German giant, whose hair coloring agents were previously only available in the professional salon segment, is also considering launching other hair care products in the B2C segment.
Kartik Kaushik, Country Head, India and South Asia Export Markets, Henkel Consumer Brands, said Schwarzkopf Professional’s growth trajectory in India is very strong. “India is one of the fastest growing markets in Asia Pacific for our professional hair care segment. We also see great potential in the home segment. We aim to capture 100% market share.”
With at-home and DIY beauty solutions gaining traction post-pandemic, the company hopes this foray will bring it to a larger consumer base.
Possibility of tapping
The Indian hair dye segment is pegged in the range of Rs 50 crore to Rs 6 crore and is expected to grow at a compound annual growth rate of 17.5% until 2026, according to some estimates. About 40% of this market is accounted for by cream-based hair coloring products, and Henkel aims for about 20% market share of this segment by 2025, he explained.
Regarding distribution strategy, Kaushik said: We have a very sharp distribution strategy with a focus on premium general trading and modern exchanges. First of all, we will focus on strengthening distribution in the top 20 to 25 cities, and then gradually expand. ”
The consumer products company has launched two ranges of at-home hair coloring solutions. This includes Color Specialist for Rs 675 and Simply Color for Rs 725. Products are also available in e-commerce markets outside of stores.
“Our hair care portfolio is a key strength for us. In the professional segment, we already have a full range of hair care products, so we are also looking to expand our home hair care portfolio beyond hair coloring agents. For example, Hairstyling has emerged as the fastest growing segment in the last two years,” said Kaushik.