Breaking the myth that men take to grooming at a slower pace, Emami International FZE, the Dubai-based subsidiary of the US$ 450 million Indian business entity, Emami Group of Companies, today said the GCC market for men’s face care was growing at 37 per cent with the acceptance of metrosexual male image gaining ground at an exponential pace in line with the global trend.
Quoting a GCC retail audit by Nielsen, Emami said that there is increasing acceptance for skin whitening as part of face care and grooming in the GCC with the overall market for the six markets valued at US$82 million in 2009.
“Men’s face care in the GCC is still a nascent market at US$2.9 million, but growing at a fast pace with more men in the region breaking into the forte of women in beauty care. We believe the potential is huge as increasingly, there is a growing awareness on skin whitening with markets like the Saudi Arabia and the UAE contributing 48 and 29 per cent to growth respectively,” said Mr. Prashant Goenka, Director, International Business, Emami.
The Nielsen audit for 2009 has positioned Emami as the leader in the men’s face care with the brand growing at over 178 per cent in value terms – as per the markets and channels covered by Nielsen in GCC. Emami also leads the overall men’s face care market with a 55 per cent share in value terms for the markets and channels covered by Nielsen in its audit, 87 per cent of which comes from the UAE and KSA.
“Since our foray into the GCC market, Emami has been able to pry open the men’s face care and skin whitening market with our flagship brand, Fair and Handsome, making major inroads into the beauty segment. We believe that the unlocked potential for the men’s face care and skin whitening in the region so far is just the tip of the iceberg and the potential is huge,” said Mr. Goenka.
Emami International FZE has a targeted a 50 to 60 per cent CAGR for Emami products in the region in the next three years and considering that there are many underexplored markets in the GCC alone, the growth may even be better than anticipated.
“Men’s face care has grown from a small base a few years ago making its mark in the mainstream beauty business of the region. We believe that market’s potential is just unfurling and the scope to cater to the regional male grooming market is larger,” said Mr. Goenka, adding that the men’s face care category contributes some 10- 12 per cent to the group’s overall turnover.
Overall, the market for cosmetics and personal care products in the Middle East is growing at over 12 per cent annually. According to independent reports, the region leads in the uptake of fragrances and cosmetics in the world and the UAE plays a leading role with available statistics showing an uptake of close to US$500-600 million.
According to a Euromonitor research, the world’s fastest growing market for male grooming is Africa and the Middle East. The research said that the global sales of men’s grooming products touched AED 71.6 billion (US$ 19.5 billion) in 2008, with the market growing 11.3% to an estimated AED 79.7 billion (US$ 21.7 billion) in 2009. It is expected that the global sales for men’s grooming products are forecast to be worth AED 92 billion (US$ 25 billion) in 2011. The skin care market, growing annually by 18%, represents around 37% of global personal care product sales.
A worldwide poll by The Nielsen Company had earlier said that the global acceptance for metrosexual male was at 78 per cent. “Significantly, the acceptance levels in Europe, Middle East and Africa (EMEA) market was at 74 per cent, and this, we believe is a strong indicator for the players in this category,” Mr. Goenka said.
Strong growth prospects for its personal healthcare products in the region have also prompted Emami to look for an acquisition in the North African market where it plans to start a manufacturing base soon.
The company constantly strives to ensure that its brands are relevant to consumers, changing the packaging, technology and marketing approach based on regional considerations and consumer preferences.
“What is important is that we don’t compromise our core values in the process, giving the best quality product to the consumer at the best possible price. That’s what has helped us spread our wings so rapidly across the globe,” Mr. Goenka added.
He said that for Fair & Handsome, Emami sees a bright future in the region, reflecting on the accelerated growth the company has been experiencing in the male grooming sector ever since it established its presence in 2008.
Emami’s current portfolio comprises over 40 product ranges made from natural extracts, herbs and essential oils. It currently markets these products in around 60 countries in the Middle East, CIS, Europe, North America, Africa and Indian sub-continent, clocking top-line growth of over 50% in these markets, which contribute 20% of its turnover. In India, Emami has a domestic sales and distribution network that criss-crosses the country through 3,000 distributors and nearly three million outlets.
