Deodorant brands bet big on small-value packs

With the ₹2,300-crore deodorant market in India witnessing slow growth, brands have been shoring up reach by opting for small-value packs, especially those priced below ₹100.

From one or two brands in 2011, there are now seven major brands — Park Avenue, Cinthol, ITC, KamaSutra, Emami, Marico and Nivea — that have either rolled out or are experimenting with sub-₹100 offerings. The portfolio is generally spread across both deodorants and perfumes.

According to market sources, the deodorant market has seen a gradual growth at 4-5 per cent in the last two years. Signs of a revival were visible from April onwards, with a 11 per cent value growth in the April-June quarter.

“LUPs (low-unit priced packs) help consumers to try and experiment often. For a marketer, it ensures brands remain in the consumer’s monthly purchase baskets. They drive penetration, induce trials and help deliver increased value for money,” Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC, said in an e-mailed response.

LUPs are mostly targeted at rural consumers, who do not want to spend much on brands. However, there seems to be a shift in target audience driven primarily by usage patterns.

“There are segments like travel packs which are under-penetrated and less-experimented category in India. Moreover, brands are not sure of the cost dynamics and so many of them stay away from this segment. As such, small value offerings or LUPs come in to fill multiple gaps at both consumer and company-end,” an executive with an FMCG-major told BusinessLine .

Smaller offerings can be part of travel packs and also be carried in bags for daily usage.

In 2011, KamaSutra experimented with a ‘pack of three variants’ of 40 ml deos priced at ₹180. By 2013, Park Avenue had launched Deo Shots priced at ₹59. In 2015, KamaSutra launched a single unit pack of 40 ml (hanging dispenser variant), priced at ₹60 a piece.

Giriraj Bagri, President – FMCG Business, Raymond Ltd (owners of Park Avenue and KamaSutra brands), pointed out that the company has been able to add 50,000 new outlets to Park Avenue’s distribution network.

“It (smaller packs) has become an integral part of our portfolio, especially in certain States where the SKU contributes to more than 10 per cent of the deo revenue,” he added.

Nivea has introduced a ₹99 roll-on deo variant, while Cinthol has a ₹69 (deo) stick. Emami’s ‘He’ deo is said to have a ₹75- pack (of 40 ml) targeting rural and semi-urban markets.

From deodorants, the category is now being expanded with ITC having a ₹60 variant of “Engage On” perfumes, and Marico a ₹49 pack of “Set Wet”. Both of these were introduced earlier this year.

In fact, KamaSutra now plans to introduce low-priced perfumes ( Eau De Toilette ), sources said.

COMMENT NOW