CavinKare to tap into India’s male grooming market2 min read . Updated: 22 Sep 2021, 01:09 AM IST
- The move will see CavinKare launch a mass-to-premium male grooming range under the Biker’s brand
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NEW DELHI :
Chennai-based fast moving consumer goods company CavinKare is rolling out products in the male grooming category competing with the likes of Marico Ltd, Emami, and L'Oreal as it sees room for growth for multiple brands selling beard oils to shampoo-conditioners, and shower gels.
The move will see CavinKare launch a mass-to-premium male grooming range under the Biker’s brand.
The product range includes beard oils, creams and shower gel as well as a Rs2 shampoo sachet.
CavinKare, perfected the sachet model when its launched Chik shampoo in sachets in the 1980s helping the company drive sales at the bottom end of the market. It is now set to replicate the move in the male grooming category.
The Biker's range of products will be rolled out starting the with shampoo packs in Tamil Nadu this week.
"Men are becoming more aware of the self-grooming opportunities," said Venkatesh Vijayaraghavan, CEO and director, FMCG, CavinKare.
India's male grooming market is estimated at between Rs12,000 and ₹15,000 crore with a growth rate upwards of 15%. Shaving creams and deodorants form the largest chunk of the market.
The male grooming category grew after companies sought to capitalize on creating products specifically for men who for years did not have a range addressing their needs. Consequently, slew of brands including Garnier, Pond’s, Nivea and more recent entrants such as The Bombay Shaving Company, Beardo, Ustraa etc emerged in the last decade. This has also helped the market expand beyond shaving products and deodorants.
A 2020 report by researcher Mintel points to consumers below the age of 25 driving the demand for the category. These consumers are more conscious about personal grooming and appearance and are increasingly spending on beauty and wellness products.
In the next five years, Gen Z will mature into more prominent consumers with higher earnings. Tapping into them now will be key in both current and future strategies, it said.
CavinKare’s entry in the category with a sachet focus will also help it drive distribution across the million plus outlets it reaches.
Nearly 50% of CavinKare’s shampoo sales are driven by sachets; it sells shampoo brands Chik and Nyle in India.
The company will also focus on more online first launches in the category, and, perhaps, enter the more competitive men’s deodorant category that is dominated by players such as Hindustan Unilever Ltd., as well as ITC Ltd.
Despite the competition in the category Vijayaraghavan said the category has room to accommodate more players.
Last year FMCG major Marico acquired an additional 55% stake in male grooming brand Beardo. More recently, Emami Limited, increased its existing stake in Helios Lifestyle Pvt Ltd—that sells male grooming products under The Man Company.
“As long as differentiated products are being made available with very strong brand, we do believe that there's an opportunity of growth available in this category," he said.
The company’s move into newer product categories comes as it recently announced restructuring efforts under CavinKare 2.0 strategy. The move is meant to expand the group’s focus on e-commerce, retail, FMCG and research and development with a vertical dedicated to functioning as a start-up. the move is geared towards the company's planned stock market listing over the next few years.
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