MUMBAI, OCT 18: JL Morison's Nivea brand ranks second in the cold-cream market, displacing Colgate-Palmolive's Charmis, whose market share has gone down over the last year.The Nivea brand is owned globally by Germany-based Beiersdorf, with which JL Morison has a marketing arrangement in India.
According to industry sources, while Nivea has increased its share in the roughly Rs 100-crore domestic cold-cream market, biting into the share of Charmis, Hindustan Lever's Pond's cold-cream continues to reign supreme with over 55 per cent market share.
The JL Morison brand's market share has increased by 3-4 per cent over the previous year to around 28 per cent. At the same time, Charmis witnessed a massive decline in its share to around 15 per cent from 28 per cent last year.
Nivea got a shot in the arm with JL Morison working out strategies to beef up its range with a number of consumer offers, starting last year.
Despite Nivea's aggressive consumer offers, Pond's managed to increase its hold over themarket, industry sources said. According to retailers, the JL Morison brand is moving very fast at the retail end, and so is Pond's.
However, the movement of other smaller brands, including Charmis, has comparatively slowed down.
In fact, Nivea is priced at a 50 per cent premium to Pond's. As against the Rs 87.80 charged for a Pond's 200gm pack, Nivea commands a maximum retail price of Rs 128.50. The price of a 100gm Charmis jar is Rs 43.60.
Analysts believe that Nivea has managed to create a dent in the market because of vigorous sampling exercise undertaken by JL Morison.
"We have come out with trial packs of Nivea cream which has elicited a good response from consumers," JL Morison executive director C Lahiri said.
He said that the ensuing winter season will stand a real test for the brand and this is when the company is understood to be planning a massive promotion campaign to push the brand at the retail end.
At present, a buy two-get one free offer is on which should enable the companygarner good volumes for Nivea cream, feel retailers.
"With our supply chain intact, we should be in a better position to push the brand," said Lahiri. However, retailers feel, that Nivea will have to slug it out with Pond's as there will certainly be aggressive winter schemes from the Lever's stable too. Post-winter will testify the depths to which Nivea has penetrated. In 1997-98, Nivea brand accounted for roughly two-thirds of JL Morison's turnover of Rs 43 crore. Cold-creams account for about 30 per cent of the Rs 350-crore skin-care market.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.