Emami refreshes power brand

Though its Fair & Handsome was the first mover in men's fairness creams, it has ceded market share to HUL's runner-up offering

When Kolkata-based Emami, the fast-moving consumer goods major, carved out a virgin segment, in 2005, of men's fairness cream, 30 per cent of Indian males used a fairness cream positioned for women. It launched the Fair And Handsome (F&H) brand to get a share of the then-Rs 1,400-crore market. In recent years, the percentage of men using women's fairness creams has tumbled to 22 per cent, according to market estimates.

Other cosmetics majors have entered the market to woo gents. We have seen HUL enter with Fair & Lovely Max Fairness and Vaseline Men, Beiersdorf AG with its Nivea for Men and L'Oreal with its Garnier Men Powerlight.

The fairness cream market is now around Rs 3,000 crore, to which the men's fairness cream segment contributes around Rs 329 crore (up from Rs 186 crore to a Rs 2,200-crore market in 2010). Most of the players had stressed the need to extend their offerings beyond the promise of just fairness to market the brands better.

Emami, which has always underlined its focus on the men's fairness segment as being higher than other players by dedicating around 20 per cent of its revenue into promoting F&H, is making fresh noise around the brand.

According to Emami Group Director Mohan Goenka, the consumer has evolved and been wanting more than just fairness.

It is repositioning F&H with the tagline of 'Zyada' (more in Hindi).

"Recent research shows men have shifted to fairness creams specific to them. We also found they wanted more value than just fairness. So, this was the right time to relaunch Fair and Handsome," explains Goenka. The new F&H promises to provide sun protection, oil control, sweat control and spot reduction. A skincare regime for men has been tapped by the other brands in the men's grooming market such as Vaseline, Nivea and Garnier, with facewashes, sunscreens and oil-control moisturisers.

However, as the market has grown, F&H has ceded market share. It had commanded 68 per cent value share in 2009-10 when the other brands were still newcomers, and is now at 58 per cent in 2012-13, show Nielsen data. Garnier Men, the third largest brand in men's cosmetic grooming has slipped, too. The gainer has been runner-up Fair & Lovely Max Fairness from HUL, which had entered in 2006 in its earlier avatar, Menz Active. From around 13 per cent in 2010, it now commands around 28 per cent.

Abneesh Roy, analyst at Edelweiss Research says, "HUL's distribution is unparalleled. It has been promoting the product in rural areas quite extensively." Goenka of Emami is aware of sales in the hinterlands fast catching up with demand in urban India, which first saw men rush to be the fairer sex. At present, the ratio of urban to rural sales for

F&H stands at 60:40, which would come down to 50:50 soon, according Goenka.

With a rejuvenated brand following the relaunch, Emami hopes to extend its lead further with some more market share in its bag. "Our market share should be 65 per cent by the end of this fiscal," says Goenka.

Emami scored initially because it developed a niche segment into a money-spinning one. F&H is now a Rs 225-crore brand, with sights on clocking Rs 500 crore in the next three-four years. Roy says, "Most of the others did not launch an exclusive brand for this category but extended their existing brands to cover it. However, as more consumers engage with this category and with players such as HUL getting in, it will be interesting to see how Emami maintains/increases its lead."

The new TVC by Emami will portray F&H's brand ambassador Shah Rukh Khan's ascent by virtue of his pursuit of zyada from life. It will be directed by Shakun Batra of the film Ek Main aur Ekk Tu-fame and has been conceptualised by Situations Advertising and produced by Raj Kumar Hirani's Canvas Films. Goenka insists "the rural sales got a great boost after Khan joined F&H as brand ambassador" in 2007.

Emami might look at brand extensions in shower gels, facewashes and deodorants under the same brand, indicates Goenka. "Any such successful brand will always have scope for extensions to cash in on the brand's value. But at the moment, I cannot say if we will do the same," he cautions.