HUL to extend Dove into hair oil segment

Indian consumer goods manufacturer Hindustan Unilever (HUL) is planning to extend its Dove brand into the hair-oil market in order to target the largest segment of hair-care business.

HUL, which is the market leader in shampoo and conditioner, is entering the premium end of the hair-oil market dominated by mass-priced brands of Marico, Dabur and Bajaj.

The firm’s spokesperson told the Times of India that the company is planning to launch a new Dove hair-oil at a price point ranging INR180-200 for a 100 ml bottle.

The firm’s new move comes after six years as the firm sold its Nihar brand to Marico for INR2.4bn ($43.16m), while its other brand Clinic oil is sold only in select markets.

The Indian hair care market is estimated at INR128bn($2.3bn), of which the hair oil segment accounts for 52%, followed by shampoos with around 31% share.

According to the newspaper, hair oil is one of the highest market penetrations at 90% and is highly competitive.

The branded hair oil segment grew 19.8% CAGR in value terms during financial year 2007- 2012, while light hair-oil segment, where HUL is launching Dove, grew 25% annually.

HUL’s Anglo-Dutch parent Unilever has recently extended the 55-year-old Dove brand into a range of skin, body and hair wash products where per-capita consumption is low in the country.

Since the last few years, HUL has been trying to extend most of its key brands into newer categories such as hand and face wash, liquid detergent and premium skin lightening.