Bad hair days for Shikakai soaps

KOLKATA: It is a niche segment and, surprisingly, 60% of its users are urban, cutting across SEC A to B towns. Yet it seems to be experiencing a series of bad hair days. The niche, shikakai hair soaps market, valued at around Rs 38 crore in the April 2005-March 2006 period by the ACNielsen retail data, is not growing.

With shampoos having gained deeper penetration, especially with low-unit packs and price points having come down to as low as Rs 2 in sachets, the bubble seems to be on the verge of bursting for shikakai soap brands.

Shikakai is a seed that has conditioning properties and the soap manufactured with this input as the key raw material is targeted at those who want to avoid chemicals in their hair care products.

Companies like Wipro Consumer Care and Godrej Consumer Care are now attempting various innovations to whip up the lather in the 250 tonnes per month market. Jeeta Mona, product manager, hair care, Wipro Consumer Care, said: “Building category preference among youngsters is the biggest challenge the category is facing today.”

Said Dr RK Sinha, executive vice-president, marketing, Godrej Consumer products (GCPL): “The challenge lies in conveying the message of a better product experience to the consumer.” That is why GCPL is attempting a generic ad campaign later in the month to allow the product to connect with a wider cross-section of consumers.

GCPL has recently enriched its Shikakai AmlaPLus with additional natural ingredients like amla and bhringaraj while Wipro Consumer Care is looking to upgrade the product with more additives, almond oil being one of them.

Further, companies are attempting consumer offers and cross-promotions to grow their respective brands. While GCPL is offering “buy three, get one free for Rs 45, Wipro Consumer Care is attempting cross-promos in which, if a consumer buys two 100 g soaps, they get a 50 g Santoor soap free. In addition, an offer of 20% extra soap is also doing the rounds. According to GCPL, its marketshare in shikakai soaps segment is 60% while Wipro enjoys 43% of demand.