abhishreshthaa
Abhijeet S
Penetration Levels in rural area
The personal and home care market is a mature one in urban.However, for the past three years, it is witnessing a lot of changes, in terms of product and usage patterns.
Products in the soap, detergent and hair oils categories have high penetration level (over 70 per cent). The value growth is mainly through higher realizations and improvements in the product mix.
The popular and economy segments currently dominate most of the product categories. With an increase in disposable incomes, the preferences of the target market would shift to the premium products.
For products in the hair oil and dental care market, the thrust of the organized sector is to convert users of non-branded products to branded ones.
The premium product categories like shampoos, skin care and cosmetics continue to have low penetration levels even in the urban areas and have achieved volume growth through packaging innovations and value growth through increased realizations.
In the shampoo segment, sachet packs, which contribute to over 30 per cent of revenues, have been successfully used to break the price barrier and have offered convenience and affordability.
In the product categories of mosquito repellents, where consumption is dictated by need, and shaving blades, which has low penetration levels, entry barriers are relatively high. Only players with strong brands can pass on cost increases