Company strategy analysis: Men’s Fairness Cream in India
Why India as market?
- India is a country with 1.1billion population of which 53% are males [1]. The Indian society has always given very high significance to the skin tone. Right from the Vedic ages to Katrina, beauty has been measured in terms of skin tone. With the increasing impact of Western culture, males are now getting attracted to fairer skin too. With women empowerment and liberal society, women can now select or reject men based on their fairness and looks.
The rise in income levels and living standards coupled with the international exposure is a major driving force.
Indians are obsessed with Skin color [6], as is pointed out by Man from Matunga. Every matrimonial column advertises for a suitable bride or groom who is fair. Many castes specifically ask out for fair girls during marriages. Now, as the basic needs are fulfilled for Indian consumers, as per Maslow’s hierarchy of need fulfillment they are moving up the ladder. Getting fairer and looking good are self-esteem needs and can be satisfied only after attaining the basic needs.
In southern India, people are darker than the rest and hence, sales are the most here. Fairness creams are used not only to get fair but also to protect from sun, UV and harmful rays [6]. Seasonality plays an important role and sales pick up during the months of extreme summer. As men work under intense conditions and tanning of skin is a major issue, the product is seen fit for heavy usage [2]. It has to be applied regularly to achieve measureable results thus increasing the offtake from shelves.
- The economic standard of living has risen in the past two decades in India. There are more middle class youth in the country today. These youth believe in earning well and moderately saving. The expenditure finds a considerable portion on self-grooming products. The rise of skin clinics, salons and dermatological consulting can be seen as a positive trend. Men today are more cautious about how they look. They now understand the importance of personality along with hard work for success.
The average monthly income for a male of 20 to 50 years old in India is Rs 3000[1]. The target group for a men’s fairness cream will be men earning an average of Rs 18,000 per month. The product can be placed on mass pricing rate of Rs 70-80 for 50gms packet or Rs 120-150 for 50gms packet which is priced at premium[3][4]. The product can be packaged and marketed in a way to make it credible and accessible in either format. Brand association of the product with corporate or umbrella brand will impact the pricing. The metro-sexual men today spend on good food, clothing and expensive homes [4]. Personal grooming and its benefits are becoming evident and men are ready to pay for these services.
A culture where beauty is mapped to fairness, creams and face washes to lighten the skin tone become an instant success. The consumers have strong brand loyalty to these fairness creams and usually don’t believe these chemicals cause side-effects [9].
- The current market size for grooming products for men is estimated at $2 billion in 2009[5]. The share for Men’s Fairness cream in India is Rs 200 crores[5]. The growth is estimated at 15% year-on-year. The contribution is highest from South India, 36% and next from West, 23% [5].
The need to look good and gain appreciation from fairer sex is not a mere urban phenomenon. Research shows that males in the income range of Rs 1-3 lakhs and educated till 12th are more inclined to usage of fairness creams [7]. They can spend about 30% on grooming, for bachelors, and about 16% for married men. Men in the age group of 25-35 are the most avid users of fairness creams [7]. The survey by AcNielson in 2009 states that 29% of users of fairness creams are men [8]. Products especially for men are either not available or are not of high quality. They are from local manufacturers with no promise of quality which a trusted brand can provide.
The market has a huge potential. The product can be used by men aged 14 to 55[11].
Brand endorsements from popular actors increase the receptive power of the advertisement. More than 50% of the consumers get to know about the product from TV commercials in leading channels [10]. Women are the key decision makers in the final purchase. Women inspire men to look fairer, either for them or because of them. Desire of a good looking girl drives a boy to look “Fair and Handsome” whereas a wife takes care that her husband looks fair and is appreciated well[10]. Females have been using fairness creams for decades now and act as consultants when advising their male friends, brothers or counterparts on the choice of a certain brand.
Why not African countries?
The African population is all black in skin color. They are proud of being dark and do not want to look fair. The culture and society in African nations do not undermine talent based on the skin tone. They have learnt to attain high personality even with dark skin tones. The leaders, actors and all big-shots of the nation are dark colored. Hence, farness creams are not needed there. Also, the economic condition in African nations is unstable. They suffer from floods and famine. Many children there are malnourished and people have no constant source of income. When the basic needs of home, food and clothing is unsatisfied, consumers do not turn to satisfying self-esteem needs.
Why not European countries?
The European nations are nearer to North Pole and face less heat than African and Indian nations. The people there have less melanin in their skin and covet dark tanned skin of tropical regions. The consumers there are very fair and need no extra cream or lotion to improve their skin tones. Companies like BodyShop have educated consumers that skin tones don’t measure beauty [12]. The consumers here have accepted and take pride in their own body and skin tone.
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