Market
Helen of Troy may have launched a thousand
ships but the modern woman has spawned a
multi-billion dollar hair colour industry. The
genesis of hair colour is probably lost to history
but archaeologists digging at sites in the Middle
East have discovered dyes and tools that suggest
that men were colouring their hair as far back
as 27 BC. Red appeared to be the colour of
choice and it most possibly was used to rank
people in society. Since life expectancy was
short, it is unlikely that it was ever used to
cover grey.
However the colour business, today, is a
vibrant global industry. Its Indian counterpart,
coming out of years of hiding in the closet, is
surging forward at over 18% (Source: Nielsen,
June 2009). A plethora of home remedies,
regional and national players and international
brands now vie for this near Rs. 1000
crore (US$ 208.30 million) business
(Source: internal data).
Hair colourants are available in a variety of
delivery formats – powders, liquids, oil-based
gels and creams. Of these, powders comprise
the biggest segment controlling nearly a third by
value. In this market, Godrej Consumer Products
Limited (GCPL) is the category leader with a
market share of 34% (Source: ACNielsen data).
For GCPL the hair colour segment accounts for
23% of the net sales of the company. Hair
colours registered a growth of 16% in 2008/09
(Source: ACNielsen data).
Despite this frenzied activity, hair colour in
India is just one-tenth of the soap market by
value. This is in sharp contrast to the rest of the
world where hair colour is actually twice its size.
Industry research attributes this to the fact that
only 20% of Indian women use hair colour as
compared to 90% in developed markets.
Achievements
While there may have been several small
players in the market, it was actually Godrej
which kick-started the entire hair dye revolution
in India. The growing market caught the
attention of a number of companies, each of
whom sought to grab their share. However,
despite a veritable onslaught Godrej, with its
range of Expert Hair Dyes, continues to be the
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largest selling hair colour brand in
India.
Over this 20-year period of
leadership, Godrej has introduced a
number of innovations. For instance,
in 1995 it revolutionised the market
by packaging its hair dye in an easy-
to-use, convenient-to-carry sachet
format. The sachet format poses a
very special challenge, for hair colour
begins to rapidly oxidise when it
comes in contact with air. This
impediment necessitated the
development of an entire chain of
packaging machinery as well as
packaging material.
The customer response to this
unique offering was overwhelming. In
rural India – traditionally price
sensitive and almost completely
quiescent and immune to factory-
made dyes – it had an open sesame
effect. It wasn’t long before Godrej
had captured this market.
Today, this exceptional brand has a
giant distribution foot print. It is
available in 2.3 million outlets across
India.
Godrej Powder Hair Dye, the
flagship brand of Godrej Consumer
Products has also won recognition in
places other than the market. In
2007, it won the Platinum honour in
the Reader’s Digest Most Trusted
Brand award.
The company was recognised as
one of the 25 Best Employers in Asia
and was ranked eleventh in the
Outlook Business – Hewitt Best
Employers in India 2009 study; it also
featured in the Wall Street Journal
Asia – Hewitt Best Employers in Asia
2009 survey and moved up to the
sixth position in the 2008 Best Companies to colour brand – Godrej Liquid Hair Dye – in the
Work For appraisal conducted by Business 1970s. Used in those days with some degree of
Today and Mercer Consulting. hesitation, it did become a category leader and
laid the foundation for the market-to-come.
History In keeping with market developments, Godrej
Godrej was one of the early pioneers in the added to its portfolio in 1981 by developing
hair colourants category. It launched its first hair and launching a hair dye in powder form. While
this gave consumers a choice and
strengthened the relationship the brand
enjoyed with them, it was also a strategic
step in blunting competition. Following
the extraordinary success of the sachet
format Godrej moved to the next level
of convenience by offering a shampoo-
based permanent hair dye-cum-
conditioner.
In the meanwhile, hair colouring trends
were evolving and the demand for
colours, other than black, began to grow.
Godrej researched and introduced
several henna-based herbal products and
a range of in-demand shades in the
brown and burgundy families.
In its long history, Godrej has
surmounted many challenges. Its first test
came when it felt it necessary to veer
customers away from referring to Godrej
dye in the manner of a generic product.
What made this necessary was the
changing category trend. It was no longer
enough to be simply an affordable, black
dye but the product had to offer – and
deliver – the higher value proposition of
better hair care. Clearly, this was not
going to be possible without leveraging
the strong equity of the mother brand.
The company, therefore, decided to elevate it
by first of all retaining the powerful Godrej Hair
Dye nomenclature and introducing in it the
active association of the descriptor ‘expert’ –
the cue to suggest a better and an improved
product. Godrej Expert Powder Hair Dye was
launched in January 2008. Later that year, the
equity was extended to colour with the launch
of Godrej Expert Powder Hair Colour.
Product
As a category leader Godrej manufactures a
wide range of hair dyes and colours, each
designed to bridge a need-gap. However, it
actually stamped its authority on the market
with the launch of its easy-to-use powder
variant. This unique selling proposition put
succinctly in its communication – Kaato, Gholo,
Lagaalo (cut, dissolve, apply) – that helped it
establish unquestioned leadership.
In its stables are not just dyes but also a wide
range of colours and delivery formats. As a dye,
Godrej comes in only black; but in colours it
offers four shades: gentle black, dark brown,
natural brown and burgundy.
Godrej Renew is another important sub-
brand. It comes in a cream base, is easy to apply,
does not drip and gives a uniform, natural
colour to hair – from root to tip. Introduced
after extensive research, Renew conforms to
the world’s highest standards. This gentle
conditioning hair colour available in trendy
shades is enriched with protein and aloe vera
extracts. Thoughtfully, the product is also
available in single-use 20ml packs for the
convenience of those who have short hair or
require only a small amount for touch ups.
Renew Highlights is a kit specially formulated to
give vivid highlights to Indian hair.
Recent Developments
When Godrej Powder Hair Dye was re-
launched as Godrej Expert Powder Hair Dye it
carried with it the promise of a much-needed
product innovation. The colour
lock formulation technology
developed by Godrej, enabled
colour molecules to cover
every hair strand so that the
effect was a long-lasting, natural
look. Simultaneously, the mildly
perfumed conditioner also
nourished hair and made them
soft and shiny.
As part of its endeavour to
connect with the young, Godrej
acquired the UK-based Keyline
Brands. This gave the company
access to markets in Europe,
Australia and Canada. The
acquisition of South African
FMCG major Rapidol, further added
another clutch of young brands to its
product portfolio. Rapidol’s hair colour
brand, Inecto, with its bright and whacky
colours commands more than 70%
share of the South African youth
market.
Promotion
Hair dyeing was for long a below-the-
radar activity in India. Colouring of hair
was believed to be a little risqué and
advertising was minimal. Godrej as a
pioneer in the field was first off the
block when hair dye advertising was
finally deregulated in the early 1990s.
The first Godrej hair dye commercial
termed ‘Aunty-Didi’ was based on the
researched premise that no woman likes
to be called ‘aunty’. The commercial
made an instant connect with the target
group and powered its way into
advertising memorabilia. The tagline of
the next television spot Kaato Gholo
Lagaalo was in fact responsible for giving
Godrej complete control of the Indian
hair dye market.
Changes in consumer profile are
being reflected in the products and the
ads that support them. The choice of Katrina
Kaif, for instance, as the brand ambassador for
Godrej Renew reflects this shift.
As market leader, Godrej hair colour interacts
with consumers at all possible touch points. The
brand organises various on-ground events at
selected haats and melas to encourage trials
among rural audiences. It also holds hair make-
over sessions in various towns all over India.
Godrej Expert Hair Colour regularly invites
local beauticians and barbers to hair styling
workshops while the Godrej Hair Care
Institute’s interactive website is a store-house of
useful tips on hair care and styling. It
also offers online make-overs and a
video clip helps consumers learn the
best ways to use and apply Godrej
hair colour.
Brand Values
Godrej is a symbol of trust,
uncompromising quality and time-
honoured values.
Its hair dye brand is focussed on
delivering hair colouring solutions at
affordable prices. In this quest it
expends vast energies in researching
delivery formats and developing
products especially suited for Indian
hair. That it has been immensely successful is
demonstrated in its leadership status – a
position it has occupied for more than 20 years.
www.godrejexpert.com
Things you didn’t know about
Godrej Expert Hair Dye
Godrej Expert Powder Hair Dye is the largest
selling hair dye in the world
8 sachets of Godrej Expert are purchased
every second
If all the sachets of Godrej Expert sold in 2008
were lined up together they would stretch
14,000 kilometres – enough to go around
India’s land and see borders
Godrej Expert Powder Hair Dye outsells its
nearest competitor, two to one
Three out of every four outlet in India stocking
any hair colour sell Godrej Expert Powder Hair
Dye
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