“Olay is an established brand and it is not as if it will have to catch up with the others in terms of equity.”

Fighting the ‘7 signs of ageing’ (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness) is Olay Total Effects which addresses this specific need in Indian women. This move also indicated the growth in this segment.

According to Sumeet Vohra, Marketing Director, P&G India, “The anti-ageing market in India has tremendous potential and is the fastest growing segment in the skincare market. At approximately 3 per cent of the overall skin category, it has doubled in the last three years. As the Indian woman is evolving, we realised she’s beginning to look for one product that will help her stay young and beautiful, hence we brought in Olay Total Effects, as it helps fight the seven signs of skin ageing – in one product. We believe our superior products will be accepted and highly appreciated by the Indian consumer.”

It is not as if anti-ageing was not an issue with Indian consumers. Brands from L’Oreal and Garnier have been offering products in this segment. Observes Ashwin Rajagopal, General Manager (Marketing), Garnier India, “While we have been in India for a decade with anti-ageing products, it is never too late for the others to enter this critical segment. It is still a small market and we can look at having more products for the Indian market in this segment.”

Another marketing manager from an MNC already present in the anti-ageing segment says, “A new anti-ageing brand will open up this market. The cost of building this market will now be shared as compared to a few brands which have been trying to create this market. However, Olay is an established brand and it is not as if it would have to catch up with the others in terms of equity.”

Analysing P&G’s strategy in the skincare segment, Praveen Tripathi, Chief Executive, Hansa Consulting, says, “It is a deliberate strategy to bring in a premium anti-ageing offering before it stretches the brand to the mass end. Olay would have to fight the established skincare brands and it would be difficult and expensive to establish its equity in the market.”

Explaining the decision to formally launch Olay, P&G’s Vohra says, “The timing of this launch is a function of multiple factors such as the development of the skincare category in India, growing consumer awareness and incomes and having the right formulation for India.” But industry observers feel that Olay is expected to cater to the needs of the working women more than any other segment. According to Tripathi, “It is the working woman who is more conscious of the way she looks rather than the woman who stays at home. And in India that segment is still small, unlike the Chinese market where there is a high population of working women. To that extent, the brand might have its limitations in India.”

In fact, apart from Sushmita Sen, other brand endorsers during the launch of the brand included successful professional women who have excelled in their respective fields. These were women such as Roopa Purshottam, Economist & Head, Future Trends (Future Group), fashion designer Anita Dongre and Tisca Chopra, TV anchor and actor, among other ‘real’ beauty icons who were roped in by P&G to speak about the virtues of the Olay brand during the launch.

Adds Vohra, “With the launch of the Olay range in India, P&G enters the skincare category. We will address challenges as they come.”

According to P&G, the Indian skincare market is estimated at Rs 2,100 crore with the skincare moisturiser market estimated at Rs 1,600 crore and the premium skincare market at Rs 450 crore. The skincare market has been steadily growing at 16 per cent as of last year. Apart from anti-ageing, Olay will make its presence felt in the whitening, moisturising, and cleansing products segments as well.

Meanwhile, P&G does not intend stopping with Olay in the Indian skincare market. As Vohra says, “P&G has a large portfolio of brands globally and is constantly evaluating the right propositions for the Indian consumer. Currently we are focusing on our existing categories and with the launch of the Olay range, we will continue to stay committed to meeting unmet consumer needs in India by bringing in the right brands and the right technologies from across the globe.”

Just like the rest of the P&G brands, it will import Olay from its manufacturing unit in Thailand, which supplies to many other countries besides India. Although the brand is present in over 55 countries across the world, in the SAARC countries, Olay is not marketed by P&G.

In India, the brand has been distributed and has been available in the grey market all this while. Olay was formulated as a fluid moisturiser by South African chemist-entrepreneur Graham Wulff and launched officially in 1957. Once popular as ‘Oil of Olay, the pink lotion’ it is now known as just ‘Olay’ and still enjoys a high recall value, even in India.

Now countering the grey market should be the top priority for the company. As Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, observes, “P&G has found a niche in the skincare market but now it must find a market in that niche. It has to take big, firm and quick steps to counter the grey market and that can happen only if the brand is well distributed.”

Building quick distribution to ensure availability of the brand will help in moving the products away from the grey market. Adds Vohra, “A part of the Olay range was available in select outlets through third party distributors or through the grey market. Today, with the launch of Olay, we are offering the Indian consumer a full Olay experience and bringing in a range to meet her needs, which will now be widely and easily available at all nearby chemists and stores. This is in addition to special Olay counters at cosmetics stores with counselling by expert beauty consultants at departmental stores and large modern retail outlets and further education on skincare and Olay.”

Building a leadership image in the growing skincare category should not be too difficult for the $2-billion Olay brand. Getting actor and former Miss Universe Sushmita Sen to endorse it is an added attempt to ensure Olay gets the right visibility and attention in the Indian market.

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