Godrej to focus on cream hair colour

Tags: News
By introducing a mass-market product in the cream hair colour category, Godrej Consumer Products hopes to increase the penetration of the category and take it beyond the top 20 cities of the country. The company hopes that pricing of the product and its distribution network will help narrow the divide between powder hair colour and cream hair colour.

While the existing cream hair colour brands operating in the premium segment of the market have a penetration level of only three per cent, GCPL’s Godrej Expert is expected to grow this to 12 per cent in three years, said Sunil Kataria, executive vice-president, Godrej Consumer Products.

Most of the prominent brands like L’Oreal and Garnier have 100 ml packs priced between Rs 100 and Rs 460. Godrej Expert’s one-time use 40 ml is priced Rs 30, slightly above the powder hair colours available between Rs 13 and Rs 20 per one-time use pack.

Apart from the pricing strategy, GCPL will be banking on its distribution network of three million outlets even in towns with a population of 5,000, where its powder hair dye is currently selling.

“Though cream has 25 per cent share in the Rs 2,200 crore hair colour market, the penetration is low as the number of users is less. Powder colour accounts 50 per cent of the market and has a penetration level of 36 per cent. Our new product will see some migration happening from powder to cream, but the market is also widening with the use of hair colour for fashion purpose apart from grey covering,” said Kataria.

Godrej, one of the pioneers in powder hair colour, has brands like Renew, Nupur and Color Soft.

According to him, while the hair colour market is growing at around 18 per cent, the liquid hair colour segment accounting for 25 per cent of the market, is growing slower. Migration of that segment too is anticipated.

sangeethag@mydigitalfc.com

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