WIPES IN INDIA

Euromonitor International

June 2015

W I P E S I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 1 Prospects ..................................................................................................................................... 2 Category Data .............................................................................................................................. 3

Table 1 Retail Sales of Wipes by Category: Value 2009-2014 .................................. 3 Table 2 Retail Sales of Wipes by Category: % Value Growth 2009-2014 ................. 3 Table 3 NBO Company Shares of Retail Wipes: % Value 2010-2014 ...................... 4 Table 4 LBN Brand Shares of Retail Wipes: % Value 2011-2014 ............................. 5 Table 5 Forecast Retail Sales of Wipes by Category: Value 2014-2019 ................... 5 Table 6 Forecast Retail Sales of Wipes by Category: % Value Growth 2014-

2019 ............................................................................................................. 6

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WIPES IN INDIA

HEADLINES Current value sales of personal wipes grow by 20% in 2014 to reach Rs537 million

Home care wipes and floor cleaning systems remain negligible

Baby wipes posts the fastest current value sales growth of 24% in 2014

The average current unit price of personal wipes grows by 2% in 2014

Tainwala Personal Care Products leads personal wipes in 2014

Personal wipes is set to see a 15% retail volume CAGR and 11% value CAGR at constant

2014 prices over the forecast period

TRENDS Personal wipes grew by 20% in current value terms in 2014, primarily due to a very low sales

base. The customer base increased as wipes gained visibility in modern retail formats, such

as hypermarkets and supermarkets, but remained small compared with that for retail tissue

products.

Low-priced imports were rife in personal wipes, especially general purpose wipes, which

carried 20-30% lower prices than leading brands in 2014. They posed some threat to branded

wipes in India, but existing players used their distribution capabilities to protect shares.

The category largely depends on baby wipes, which accounted for a 59% share of retail

volume sales in 2014. The high birth rate and increasing inclination towards wipes for

cleaning were the key reasons for growth. The convenience of use while travelling makes it

almost mandatory for people who can afford baby wipes to purchase them.

Baby wipes posted the fastest current value sales growth of 24% in 2014, as well as a fast

20% increase in retail volume sales. Aggressive television marketing campaigns by top

manufacturers, such as Johnson & Johnson and Grasim Industries Ltd, along with the

expansion of child-centric retail stores, such as Mothercare, Kidz Shoppe and Kidz World in

metro cities, impacted sales of baby wipes positively.

Home care wipes and floor cleaning systems remained negligible in 2014 as people continued

to use the traditional method of cleaning with wet cloths. For tougher stains, some cleaning

agents were used, but the concept of disposable, single-use wipes did not take off.

The average current unit price of personal wipes grew by 2% in 2014. This was mainly due to

3% unit price growth for baby wipes. Baby wipes prices increased due to the higher cost of

raw materials. Meanwhile, the average current unit prices of general purpose wipes rose by

2% in 2014.

No demand for hand sanitation wipes was observed in India in 2014.

General purpose wipes and baby wipes were available mainly in flexible plastic packaging.

COMPETITIVE LANDSCAPE Tainwala Personal Care Products continues to lead personal wipes in 2014 with a 20% share

of retail value sales, though it as suffered decline in value share over the review period due to

new entrants and increased competition. Its leading brand, Fresh Ones, is preferred by

customers due to a soft texture and pleasant fragrance, according to company officials.

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Fresh Ones enjoys the early mover advantage in personal wipes and tie-ups with bus and

tour operators in India helped the brand to gain recognition.

In personal wipes, Johnsons Baby and Himalaya witnessed the highest current value sales

growth of 30% and 21% respectively among the established brands. Both brands made gains

due to their presence in baby wipes, which registered the fastest growth in personal wipes.

Johnsons Baby grew from a smaller sales base than Himalaya.

Fresh Ones dominated retail value sales of general purpose wipes in 2014 with 52% value

share, followed by Kara, Clarus and Greenlime. Bella, Kara, The Body Shop and Greenlime

are the leading brands in general purpose wipes. The share of others have increased by 37%

in value sales in 2014 due to expansion of local and regional manufacturers.

Grasim Industries has launched two variants of Kara general purpose wipes: Rose & Thyme

and Jojoba & Avocado. This move aims to provide customers with a variety of choice and

expand the customer base by catering to different preferences.

Personal wipes is led by Tainwala Personal Care Products Pvt Ltd which is a domestic

players. Johnson & Johnson, Unicharm, Bella Premier Happy Hygiene Care Pvt Ltd and The

Body Shop were among the foreign personal wipes players in 2014.

Procter & Gamble Hygiene & Health Care differentiated its baby wipes brand with the

introduction of Pampers Sensitive, with absorption layer mechanism, in April 2014. The

company aims to use the new offering to grow its retail value share in baby wipes in India.

No packaging innovation or green brand positioning was observed in wipes in 2014.

Private label found growth opportunities in personal wipes. Pantaloon Retail India Ltd

(Caremate) and Aditya Birla Retail Ltd (Handys) positioned their private label brands in baby

wipes and general purpose wipes, respectively, in 2014.

PROSPECTS Wipes in India is estimated to see an 11% value CAGR at constant 2014 prices over the

forecast period, due wholly to the performance of personal wipes. In retail volume terms, a

15% CAGR is expected.

Home care wipes and floor cleaning systems are unlikely to pick up in India in the short term.

Alternative cleaning methods are cost-effective while more affluent households usually hire

someone to clean the home on a daily basis.

Baby wipes and cosmetic wipes are expected to see double-digit retail volume and value

growth over the forecast period. Cosmetic wipes is set to record slightly higher retail volume

growth than baby wipes, due to a smaller sales base. Baby wipes will continue to consolidate

its leading position in personal wipes, and its retail volume share is expected to reach 63% by

2019.

The development and growth of modern retailing will push sales of wipes. Companies will

have opportunities to display new products and variants in baby wipes or cosmetic wipes in

hypermarkets, which should grow awareness and sales. The discounts and special offers in

modern retail outlets will also create growth opportunities for wipes.

Internet retailing can help intimate wipes to grow as shy customers find it more convenient

and less embarrassing to order such products online.

The possibility of adverse skin reactions and rashes attributed to higher chemical and other

hazardous compositions in baby wipes and general purpose wipes may hamper the growth in

sales of wipes in India. Thus, companies need to approach this aspect cautiously in new

product development and marketing terms.

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The average unit price of personal wipes is expected to see a negative 3% CAGR at constant

2014 prices over the forecast period. This is based on increased scales of production and

stronger competition. The average unit price (at constant 2014 prices) of both general

purpose wipes and cosmetic wipes is set to see a negative 5% CAGR compared with a

negative 2% CAGR for baby wipes.

CATEGORY DATA

Table 1 Retail Sales of Wipes by Category: Value 2009-2014

INR million 2009 2010 2011 2012 2013 2014 Home Care Wipes and - - - - - - Floor Cleaning Systems - Dry Electro-Static - - - - - - Wipes -- Starter Kits/ - - - - - - Sweepers/Sticks (Dry Electro-Static) -- Wipes and Refills - - - - - - (Dry Electro-Static) - Floor Cleaning Systems - - - - - - -- Refills - - - - - - -- Starter Kits/Trigger - - - - - - Device - Impregnated Wet Wipes - - - - - - -- All Purpose Cleaning - - - - - - Wipes -- Furniture Polish Wipes - - - - - - -- Toilet Care Wipes - - - - - - -- Window/Glass Wipes - - - - - - -- Other Impregnated - - - - - - Wipes - Starter Kits/Sweepers/ - - - - - - Sticks (Excluding Wipes) - Wipes (Excluding - - - - - - Starter Kits/Sweepers/ Sticks) Personal Wipes 212.9 255.0 307.8 374.5 448.7 537.0 - General Purpose Wipes 99.6 112.7 129.0 147.7 168.8 192.2 - Intimate Wipes - - - - - - - Baby Wipes 94.0 118.4 149.7 187.6 232.8 288.4 - Cosmetic Wipes 19.3 23.9 29.1 39.1 47.1 56.5 -- Facial Cleansing Wipes 19.3 23.9 29.1 35.1 42.1 50.4 -- Deodorant Wipes - - - 4.1 5.0 6.1 Wipes 212.9 255.0 307.8 374.5 448.7 537.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Retail Sales of Wipes by Category: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total

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Home Care Wipes and Floor Cleaning - - - Systems - Dry Electro-Static Wipes - - - -- Starter Kits/Sweepers/Sticks (Dry - - - Electro-Static) -- Wipes and Refills (Dry Electro- - - - Static) - Floor Cleaning Systems - - - -- Refills - - - -- Starter Kits/Trigger Device - - - - Impregnated Wet Wipes - - - -- All Purpose Cleaning Wipes - - - -- Furniture Polish Wipes - - - -- Toilet Care Wipes - - - -- Window/Glass Wipes - - - -- Other Impregnated Wipes - - - - Starter Kits/Sweepers/Sticks - - - (Excluding Wipes) - Wipes (Excluding Starter Kits/ - - - Sweepers/Sticks) Personal Wipes 19.7 20.3 152.3 - General Purpose Wipes 13.9 14.1 93.0 - Intimate Wipes - - - - Baby Wipes 23.9 25.1 206.8 - Cosmetic Wipes 20.1 24.0 192.8 -- Facial Cleansing Wipes 19.6 21.2 161.1 -- Deodorant Wipes 23.8 - - Wipes 19.7 20.3 152.3

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 3 NBO Company Shares of Retail Wipes: % Value 2010-2014

% retail value rsp Company 2010 2011 2012 2013 2014 Tainwala Personal Care 27.2 25.4 23.9 22.6 20.1 Products Pvt Ltd Zen Hygiene Pvt Ltd 14.3 14.0 14.3 14.5 13.6 Grasim Industries Ltd 3.8 4.7 5.2 5.7 5.5 Pigeon India Pvt Ltd 3.5 3.4 3.3 3.3 3.1 Pristine Care Products 3.5 3.5 3.4 3.3 2.9 Pvt Ltd Himalaya Drug Co, The 1.4 1.8 2.1 2.3 2.3 Unicharm India Hygenic 1.1 1.6 1.7 2.0 1.9 Pvt Ltd Bella Premier Happy 1.0 1.3 1.3 1.4 1.4 Hygiene Care Pvt Ltd Pudumjee Hygiene 0.9 0.8 0.8 0.8 0.8 Products Ltd Johnson & Johnson 0.2 0.3 0.4 0.4 0.5 (India) Ltd Quest Retail Pvt Ltd 0.2 0.2 0.2 0.2 0.2 Farlin Infant Products 0.1 0.1 0.1 0.1 0.2 Corp SCA Group - - - - - Procter & Gamble - - - - - Hygiene & Health Care Ltd Others 42.8 43.0 43.4 43.3 47.5

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Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 4 LBN Brand Shares of Retail Wipes: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Fresh Ones Tainwala Personal Care 25.4 23.9 22.6 20.1 Products Pvt Ltd Garfield Zen Hygiene Pvt Ltd 14.0 14.3 14.5 13.6 Kara Grasim Industries Ltd 4.6 5.2 5.7 5.4 Pigeon Pigeon India Pvt Ltd 3.4 3.3 3.3 3.1 Clarus Pristine Care Products 3.5 3.4 3.3 2.9 Pvt Ltd Himalaya Himalaya Drug Co, The 1.8 2.1 2.3 2.3 Mamy Poko Unicharm India Hygenic 1.6 1.7 2.0 1.9 Pvt Ltd Bella Baby Happy Bella Premier Happy 1.3 1.3 1.4 1.4 Hygiene Care Pvt Ltd Greenlime Pudumjee Hygiene 0.8 0.8 0.8 0.8 Products Ltd Johnson's Baby Johnson & Johnson 0.3 0.4 0.4 0.5 (India) Ltd The Body Shop Quest Retail Pvt Ltd 0.2 0.2 0.2 0.2 Farlin Baby Wipes Farlin Infant Products 0.1 0.1 0.1 0.2 Corp Tempo Procter & Gamble - - - - Hygiene & Health Care Ltd Tempo SCA Group - - - - Others 43.0 43.4 43.3 47.6 Total 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5 Forecast Retail Sales of Wipes by Category: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 Home Care Wipes and - - - - - - Floor Cleaning Systems - Dry Electro-Static - - - - - - Wipes -- Starter Kits/ - - - - - - Sweepers/Sticks (Dry Electro-Static) -- Wipes and Refills - - - - - - (Dry Electro-Static) - Floor Cleaning Systems - - - - - - -- Refills - - - - - - -- Starter Kits/Trigger - - - - - - Device - Impregnated Wet Wipes - - - - - - -- All Purpose Cleaning - - - - - - Wipes

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-- Furniture Polish Wipes - - - - - - -- Toilet Care Wipes - - - - - - -- Window/Glass Wipes - - - - - - -- Other Impregnated - - - - - - Wipes - Starter Kits/Sweepers/ - - - - - - Sticks (Excluding Wipes) - Wipes (Excluding - - - - - - Starter Kits/Sweepers/ Sticks) Personal Wipes 537.0 596.0 663.3 739.6 822.7 912.7 - General Purpose Wipes 192.2 202.6 213.6 225.4 236.9 247.7 - Intimate Wipes - - - - - - - Baby Wipes 288.4 330.6 379.8 436.5 499.7 569.9 - Cosmetic Wipes 56.5 62.8 69.8 77.7 86.1 95.1 -- Facial Cleansing Wipes 50.4 55.8 62.0 68.9 76.5 84.5 -- Deodorant Wipes 6.1 7.0 7.9 8.8 9.6 10.6 Wipes 537.0 596.0 663.3 739.6 822.7 912.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 6 Forecast Retail Sales of Wipes by Category: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL Home Care Wipes and Floor Cleaning - - - Systems - Dry Electro-Static Wipes - - - -- Starter Kits/Sweepers/Sticks (Dry - - - Electro-Static) -- Wipes and Refills (Dry Electro- - - - Static) - Floor Cleaning Systems - - - -- Refills - - - -- Starter Kits/Trigger Device - - - - Impregnated Wet Wipes - - - -- All Purpose Cleaning Wipes - - - -- Furniture Polish Wipes - - - -- Toilet Care Wipes - - - -- Window/Glass Wipes - - - -- Other Impregnated Wipes - - - - Starter Kits/Sweepers/Sticks - - - (Excluding Wipes) - Wipes (Excluding Starter Kits/ - - - Sweepers/Sticks) Personal Wipes 10.9 11.2 70.0 - General Purpose Wipes 4.6 5.2 28.9 - Intimate Wipes - - - - Baby Wipes 14.1 14.6 97.6 - Cosmetic Wipes 10.4 11.0 68.3 -- Facial Cleansing Wipes 10.6 10.9 67.8 -- Deodorant Wipes 9.4 11.5 72.2 Wipes 10.9 11.2 70.0

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources