Henkel plans to increase hair care brand Schwarzkopf presence in India

Henkel Cosmetics – Professional, an Indian arm of Germany-based surfactants and chemicals company Henkel, is planning to increase the presence of its hair care brand Schwarzkopf.

The firm, which introduced the brand ten years ago, is now planning to to double the number of salons in India, reported newspaper The Hindu Business Line.

Schwarzkopf, which has allied with 5,000 salons, accounts for 18% share in this segment.

The brand had partnered with beauty salons such as Lakme, Naturals and Bounce, to compete with other beauty brands such as L’Oreal and Wella from Procter & Gamble (P&G).

Henkel Cosmetics country head Murali Sundar told the newspaper that since 2008 Schwarzkopf has been profitable, but the firm’s profits took a beting when it introduced a lower end brand of Indola in 2012.

"We have constraints compared to competitors such as L’Oreal as we do not have a retail presence and have also entered the market much after them. Today, we intend fighting them in the salon business and going beyond exclusive tie-ups with beauty parlours to give consumers a choice," Sundar added.

Besides Schwarzkopf, French cosmetics company L’Oreal, which has a local manufacturing facility, is also ramping up its advertising more in the salon business, compared with Schwarzkopf, which remained limited to the B2B segment as a salon offering.

Henkel is also limiting the number of Indola salons, which is currently offered at 7,000 salons and priced at a 35% discount to the premium brand of Schwarzkopf.