FMCG companies rush to fill gaps in market

MUMBAI: Consumer product brands are trying to get the most of consumers' time by creating more occasions of usage and new categories within the same proposition to increase sales. Two decades ago, a consumer would just about use a single brand of toothpaste, soap (shampoos too have had a tough time converting non-users as soap doubled up as shampoo), hair oil and talc. Today, there are personal products looking at growth opportunities in the "white" spaces, or empty spaces, within existing categories where brands have still not ventured. So, while moisturizers were brought in — followed by sunscreens — ostensibly to tell consumers they need to take extra care of their skin, separate categories of face wash, anti-ageing and skin repair cream were created.

Post-shampoo conditioners, and now specialized hair oils, have got introduced to fill in certain gaps that marketers have only recently spotted. But guess what? There are still several crevices within existing categories that companies continue to exploit globally and in India to create fresh new categories. One such emerging category that got introduced last year in Europe is an in-shower skin conditioner, essentially a post-bath moisturizer by Beiersdorf which, it believes, would co-exist with moisturizers.

Even as this new category is being tested in Indian waters, consumers are getting used to stocking up on multiple brands of toothpastes (one normal, one for whitening and another for sensitivity), shampoos (one normal, another for special occasions), and even fairness creams (one for use at bedtime and another for daytime use).

Product usage based on functionality is fast catching up and marketers are going all out to leverage the higher propensity of the young Indian consumer to spend. "We don't think it is too early to launch a globally new category like an in-shower conditioner in India. There are a lot of consumers who would want to use it. But it may not immediately become a mass product," said Rakshit Hargave, MD, Nivea India. Point of sale merchandizing and education would be specific to ensure consumers understand the difference between a regular moisturizer and an in-shower conditioner, Hargave added.

Hindustan Unilever (HUL), on the other hand, is investing in the development of several new emerging segments such as face wash, fabric conditioner and hand and body lotions. It has parent Unilever's global R&D capabilities and product portfolio to leverage and address the emerging needs of consumers. "Consumers are increasingly looking for brand offerings to fulfill their specialized needs. It is imperative for brands to continuously innovate and refresh their offerings to ensure that they stay modern and relevant to consumer needs and aspirations," said an HUL spokesperson.

The company had earlier launched Tresemme shampoo to meet a different functional requirement of the consumer, even though it already had a premium offering in the Dove shampoo in its portfolio. "In a household, there will be a functional face wash for specific usage and a not-so-functional face wash which a consumer would purchase for herself," said Hargave, giving an example.

Another case in point is the teeth whitening segment, which Colgate introduced last year. "As the consumer's focus shifts from basic products to new-age, specialized solutions — such as teeth whitening — there is a constant need to evolve and innovate. Consumers are spending more on looking good," said a Colgate spokesperson.