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Asean Affairs   7 March 2014

Indians spent almost USD 67 million on personal care appliances in 2013: GfK

Rising affluence and consumerism drives growth

New Delhi: Personal care appliances are generally considered luxury products in India as they were mainly afforded only by those with higher earning power from metropolitan and urban areas. However, with the growing disposable income and increasing sophistication of the population, consumers in the world’s second most populous country are showing a growing tendency to spend to improve their personal wellbeing. In 2013, GfK findings revealed an intensified demand for personal care appliances, which garnered total sales volume of 3 million units.

According to GfK insights, two products were largely responsible to drive growth in the category, namely Shavers/Groomers and Hair Dryers which saw increased volume sales by 51% and 10% respectively. Last year, Shavers/Groomers made up two in every five (39%) personal care appliances sold; nearly 400,000 units more than the previous year.

“The personal care market in the country is still in very much in its infancy stage as a large chunk of the Indian population are still using manual alternatives such as razors, blades and hair rollers, which were much cheaper,” highlighted Ushpreet Singh Bawa, Account Director, Home & Lifestyle for GfK in India “Recognizing the potential of this market, manufacturers are trying to encash on the growing demand by launching new models of personal care appliances at regular intervals across price points.”

GfK retail tracking revealed a total of 17, 13, and 34 new launches under this category in the second, third and fourth quarters respectively last year, fuelling the strong expansion in volume and value sales of the local market.

GfK expanded its channel coverage in India for Small Domestic Appliances (SDA) from its original channels of electronic shops, SDA specialists, hypermarkets/departmental stores, and cash &carry by adding two more channels—electrical hardware stores and crockery/utensil stores in April 2013.

“The wider coverage allows our reports to more effectively identify growth trends during different occasions and also able to provide market players with actionable inputs for strategic business planning,” explained Ushpreet. “For instance, findings showed that sales of this personal care appliance market picks up during monsoon and festive period, as well as for gifting purpose such as during Valentine’s Day.”

With modernization, more consumers these days are also buying their personal care appliances from modern retail outlets. GfK report showed that sales volume contribution by these channels have been rising over the years and accounted for around 40 percent last year.

“These days, there are a lot more selection of local and foreign brands in the rapidly developing Indian market available at a variety of prices to suit all budgets,” noted Ushpreet. “Though the Indian market continues to be dominated by major international brands, Chinese and local brands are also becoming significant contributors to the category.”

“As the market continues to develop, we are anticipating the industry to expand rapidly in the next few years; not just in the metro cities although they would be the primary propeller of growth, but also penetrating into smaller towns as well,” Ushpreet concluded.

About GfK
GfK is one of the world’s largest research companies, around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.

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