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Walt Disney to prance into personal care space
Prasad Sangameshwaran / Mumbai July 26, 2007
Unilever and Procter & Gamble might soon get competition from unexpected quarters. Walt Disney, the $30 billion entertainment giant, is looking at grabbing a share of the personal care products business.
 
The company will soon launch its range of shampoos and shower gels targeted at children in the age group of 4 to 14 years. The products have been test-marketed in markets like Mumbai, Delhi and Kolkata.
 
“The market response has been good. We will be launching the range very soon,” said Roshini Bakshi, director, Disney Consumer Products.
 
This time, however, Disney is not looking at tying up with a large consumer products giant and extend the goodwill of its characters to an established product. For example, in categories like chocolates, Disney had tied up with Cadbury to launch Cadbury Dairy Milk Wowie.
 
Instead, the products will be made by a smaller, relatively unknown, third-party manufacturer whose name Disney did not divulge. Bakshi, however, said Disney would be providing marketing inputs to the manufacturer, without getting directly involved in the marketing of the products.
 
Disney is not venturing into uncharted territory in India. In the past, companies like Johnson & Johnson, Hindustan Unilever, Colgate and smaller players like VVF introduced products targeting children. But after the initial hype, these products met with limited success.
 
“The market today will be more receptive to accepting a special range of products for children than in the past,” said Sharda Agarwal, director, Market Gate Consulting, a consulting firm.
 
Internationally, Disney offers a range of personal care products, including deodorants and colour cosmetics. However, there are no immediate plans to launch these in the Indian market. The personal care range, like all Disney merchandise, is expected to “add a twist to the product and engage the consumer.”
 
Globally, Disney earns revenues in excess of $4 billion annually through royalty for its consumer products division, while the total value of Disney branded merchandise bought annually is in excess of $26 billion (with partners taking the major part of the sales). The company does not share India-specific revenues
 
Consultants like Agarwal are not sure if the market will be big enough for this range.
 
She said, “Indian households are largely, single brand product households. Our approach to consumption is that at the earliest instance, we graduate young consumers into adult products. We are yet to get comfortable with the concept of indulging our children with fruity and fun toiletries on a daily basis.”
 
She adds that in Disney’s case, the novelty factor will bring in initial trials. “There will be some customers who will stay on but building a long-term sustainable business will be a challenge,” said Agarwal.

 
 
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