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Godrej to take on L’Oreal, Garnier in premium hair creme segment

Purvita Chatterjee Mumbai | Updated on January 17, 2018

B:LINE: View of the organised Ratail products display at Big Bazaar, on Oct. 20, 2013._Photo: Ramesh Sharma

Pegs its latest product BBlunt Salon Secret in a new pricing strategy

Godrej Consumer Products (GCPL) is getting aggressive in the ₹3,000-crore hair colour market by finding a ‘sweet spot’ in terms of pricing in the mass premium hair crème segment.

By pegging its latest product BBlunt Salon Secret at ₹199 for 100 ml, it has positioned itself between L’Oreal’s Excellance Creme offering at ₹600 for 120 ml and Garnier Natural Creme at ₹175 for 100 ml.

“We are right in the middle of the mass premium creme segment with our pricing. BBlunt Salon Secret is in a sweet and vacant spot since as there is no brand there right now. While its initial pricing is at ₹199, we will extend it to ₹225 which will still be between the pricing of L’Oreal and Garnier.

“In the next two-three years, we expect to capture 20 per cent market share making BBlunt a ₹100-crore brand in the mass premium segment where currently L’Oreal is the market leader,’’ said Sunil Kataria, Business Head, India & SAARC, Godrej Consumer Products.

Making a mark

After being a leader in the mass hair colour segment, GCPL has been trying to make a mark in the premium segment after picking up a 30 stake in the salon brand of BBlunt owned by Adhuna and Osh Bhabani three years ago.

Since then, it has been launching shampoos, conditioners, hair extensions and temporary hair colours.

With the launch of BBlunt Salon Secret, GCPL is now entering the regular hair colour segment with a marketing investment of ₹20 crore, which involves increasing distribution and the cost of hiring a brand ambassador for the new brand.

“We spent nearly three years to develop the new brand and will be spending ₹20 crore on it,’’ he added.

More points of sale

Increasing distribution will also become a priority for its mass premium creme brand, which will not only ride on GCPL’s existing network, but will have added points of sale in the general trade.

“BBlunt products were available only in the premium outlets all these years with about 20,000 points of sale. But now, we will be rolling it out in the general trade where it would cover one lakh outlets in the first year for BBlunt salon secret,’’ he added.

Unlike most of the FMCG categories, which have witnessed a slowdown, hair colours has been the fastest growing at about 15 per cent.

“Growth in the hair colour segment has been driven by the crème segment which is now at ₹1,000 crore and within it is the premium crème segment which is already at ₹350 crore and we expect it to reach ₹500 crore with us capturing a 20 per cent share in the segment in the next three years,’’ he added.

The hair colour segment contributes 15 per cent of the ₹4748.19-crore domestic net sales of Godrej Consumer Products.

Published on August 24, 2016

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