Electrical appliance makers enter personal grooming space

Branded personal grooming products market in India, currently pegged at around Rs 1,500 crore, is seeing a flurry of activity, with more appliance manufacturers entering the space to spruce up their offerings and capture the segment which is growing at 25 to 30%.

Havells India, the latest player to enter this category which has been dominated by brands like Philips, Panasonic and Remington, is eyeing a 25% market share in the next three years.

Earlier this month, LED light maker Syska also launched 30 beauty and grooming products for men and women.

Speaking to DNA Money, Saurabh Goel, executive vice president, Havells India Ltd, said personal grooming as a segment is experiencing swift and dynamic growth.

"It's largely driven by an expanding middle class and an increased interest in personal grooming. We realised that despite our brand's strong recall and resonance among today's youth, we did not have any specific products for them. This launch will bridge the gap and strengthen our connect with young consumers who are key to this fast growing category," said Goel.

Among India's leading fast moving electrical goods (FMEG) companies, Havells claims its array of personal grooming products have been designed keeping the Indian conditions in mind, which is a key differentiator.

The 18-odd stock keeping units (SKUs) will be sold through its exclusive chain of 400 Havells Galaxies to start with while also making them available across e-commerce platforms in the country.

The products are being designed based on specifics provided by Havells and are currently being made-to-order by third-party manufacturers in various countries including China.

"With most of the categories, we first start with imports. Once we settle down in three to four years, the products are then made in our own manufacturing and assembly plants," said Goel.

On possible revenue targets, Goel said that it was too early to talk revenue numbers as the products have just been launched and the company was now working on ensuring their reach across markets in the country.

The personal grooming space in India is currently growing at a healthy rate of 25% to 30%, driven primarily by the young population across metros, tier I, II and III markets. While the availability of these products posed an issue earlier, the advent of e-commerce has solved that problem in a big way.

"Being in the electrical goods space for long, we have also developed a strong distribution and relationship with dealers and retailers across urban and rural markets. The entire product range will thus be made available across physical and digital distribution channels to ensure its reach across every potential market," said Goel, adding all products will be available across the country by March 2017.

Also, while the Indian market is currently flooded with international (latest entrant being Syska) and home-grown brands offering a variety of personal grooming products, according to Goel, the Havells range will stand out for its enhanced features at attractive prices.

"The products have been developed around the evolving needs of the Indian consumers. In fact, we also have come out with products for babies and kids. These are a perfect blend of unique designs and latest technology offering safety, durability and convenience," said Goel, adding that the price range is between Rs 1,000 and Rs 7,200.

On the advent of various online exclusive start-ups like Bombay Shaving, LetsShave, Ustraa, etc, entering the men's personal grooming segment, Goel said the online industry for such a personalised category has mushroomed due to the huge price differential that companies have started to show.

"We would be very guarded against this online trend as we would like the products to be sold on its merits and not necessarily predatory pricing," said Goel.