Shampoos score as soaps stumble

With a penetration level of just around 38% for shampoos in India, can increase in volume and value be attributed to, as the HUL GM & category head (haircare) N Rajaram put it, 'portfolios being developed and deployed for various consumer needs and price segments and marketeers being able to leverage their firm's global brands and technologies while tailoring them for Indian consumers' ?

Or is it just that a significant number of Indian consumers have stopped washing their hair with their bath soaps?

Whatever the reasons, shampoos are lathering over. ET reports that while soap volumes hit a record low last quarter, down by as much as 5%, shampoos made a strong comeback in 2007 riding on 'innovation' and fuelled by growth at both, the premium and entry levels. According to A C Nielsen, volume of regular shampoo more than doubled, growing 13.8% in 2007 compared to 6.7% in the previous year. Category leader Hindustan Unilever was at the forefront of the growth story. L’Oreal’s Garnier, which recorded the fastest growth in the year though on a small base, saw its value growth dip from 45.8% to 39.6% even though the brand grew in terms of volume. Overall, category value sales were up 13.8% against 7.9% the previous year.