Analysis of Deodorant Industry Essay

3219 Words May 8th, 2008 13 Pages
Antiperspirant/deodorants are used to reduce underarm wetness and control body odor. These products are made by blending active ingredients with waxes, oils, and silicones and molding the mixture into stick form.
Body odor is primarily generated in the area under the arms where there is a high concentration of sweat glands. While sweat from these glands is initially odorless, it contains natural oils, called lipids that provide a growth medium for bacteria living on the skin. These bacteria interact with the lipids, converting them into compounds that have a characteristic sweaty odor. Isovaleric acid, for example, is one chemical compound that gives sweat its smell. There are two primary types of products
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In 1974, sticks held only about 4% of the market and they were considered to be wet and aesthetically unpleasing. Such products were generally associated with deodorants for men. Because of breakthroughs in ingredient technology that allowed for drier, more efficacious products, sticks gained acceptance between 1974-1978. Consumers embraced sticks as an alternative to aerosols and their market share swelled to over 35% by the mid 1980s. Today, sticks are the single most popular antiperspirant form.

3. COSMETICS AND TOILETRIES IN INDIA
India’s deodorant and antiperspirant industry is part of the cosmetics and toiletries market, which was worth about Rs 140 billion in 2002. The market grew at almost 6% in current value terms over 2001. Sun care and deodorants posted the strongest growth during this period. Marketing and educational initiatives by leading players such as Henkel SPIC and Hindustan Lever assisted the growth in the deodorants market. Changes in consumer behavior also fueled the demand.
The Indian cosmetics and toiletries market is fragmented, with many manufacturers.

Top five cosmetics and toiletries companies are:
- Hindustan Lever
- Colgate-Palmolive
- Nirma
- Godrej Consumer Products
- Dabur India.

4. MAJOR BRANDS IN DEODORANT INDUSTRY
Although new players entered cosmetics and toiletries, and existing players added to their offerings, Hindustan

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