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    Notes From Asia

    There’s Gold in Hair Oil Among Indian Consumers

    ...

    There’s Gold in Hair Oil Among Indian Consumers
    Hair oils nourish damaged tresses with beneficial ingredients.
    Michelle Yeomans, Freelance Journalist02.02.21
    There is a significant opportunity for growth in the traditional hair oil segment in India as consumers seek to counter the negative impact of the ongoing COVID-19 pandemic on their mental health and emotional wellbeing. India is among the countries worst hit by the pandemic, with more than 10 million cases and over 150,000 deaths reported as we went to press.

    As is the case around the world, the pandemic and subsequent uncertainty over the future has left consumers anxious, with almost three out of five consumers surveyed in June as part of Mintel’s Global COVID-19 Tracker reporting still being extremely worried about infection. The survey also found that more than four in five were still extremely concerned about how the pandemic had affected their lifestyle.

    “The pandemic has impacted Indian consumers with general feelings of anxiety over uncertainty of what lies ahead,” Tanya Rajani, beauty and personal care analyst at Mintel, told Happi. “This has resulted in increased stress and sleep deprivation.”


    Self-Care & Hair Oils

    According to McKinsey, there have been four fundamental shifts in consumer behavior, some of which will have a lasting impact, as a result of the pandemic. They are:
    • A shift to value and essentials. Up to 30% of consumers say they will decrease spending on discretionary categories.
    • Flight to digital and omnichannel. Up to a 25% net increase in intent to spend online even post-COVID-19.
    • Shock to loyalty. Ninety-four percent of Indian consumers have changed stores, brands or the way they shop.
    • Homebody economy. Seventy-six percent of Indian consumers are not yet resuming “normal” out-of-home activities.
    With more consumers staying in, they’re looking inward, too. The increase in focus among consumers in India on mental health and emotional wellbeing as a result of the pandemic “has uncovered new use occasions for hair oils” and is presenting brands with an opportunity to gain ground that was lost as consumers stayed put during the worst of the pandemic.

    Still, there have been bright spots, especially in the personal care category. According to Rajani, beauty and personal care brands, specifically those promoting self-care and wellness messages, are being favored by shoppers seeking mental and emotional well-being.

    “Brands are catering to consumer demands for self-care experiences that can help them unwind, relax and de-stress,” Rajani informed this publication. “Hence, a holistic spa-like narrative will especially appeal to the Indian consumers.”


    Holistic Approach to Relaxation

    Hair-oiling rituals are well-established in India and the traditional Indian head massage is associated globally with stress relief.

    In ancient Indian Sanskrit, the word “sneha” means “to oil,” as well as “to love.” The treatment typically practiced before bed at night, consists of harnessing the regenerative powers of natural oils by massaging them into the scalp and hair for nourishment.

    According to Mintel, there is an opportunity to combine self-care spin with these age-old practices to create an at-home spa narrative for a holistic approach to relaxation.

    “In India, the practice of oiling the head has been done for generations,” Rajani told Happi. “This offers an opportunity for brands to capitalize on positioning hair oils with a self-care spin and offers a fresh perspective that aligns with modern consumer needs.”


    Variations in demand and Product Preference

    The Mintel analyst reports there to be particular engagement with the hair oil category from consumers in lower-tier cities in India.

    She explains that while hair oiling is an intrinsic beauty ritual in India and part of the hair care regimen for the majority of consumers, it is those living in low-tier cities who are driving the most demand.

    “Consumers in lower-tier cities have basic requirements from hair oil; such as nourishment and tackling their hair concerns. Across genders, the usage of hair oils is more or less evenly split, with almost half of Indian women using hair oils,” said Rajani.

    While the use of hair oils among more metropolitan consumers has declined, the market researcher says that opportunities for growth in the hair oil category lies with these consumers in particular.

    Metropolitan consumers prefer premium hair oil products, but Mintel research indicates that the usage of hair oils has declined in metros.

    “Oiling can be an arduous task. Thus, hair oil usage in metro cities has seen a decline as consumers lead busier, stressful lifestyles,” Rajani said.

    To gain back this market share, the category’s brands are upping their game to match the modern lifestyles of consumers, essentially premiumizing their offerings.

    “Hair oil brands are premiumizing their offerings by upgrading their products and entering new demographics. They are adding new ingredients, changing the packaging and experimenting with texture to increase consumer interest,” Rajani told Happi.

    Premiumization can add value back into often-commoditized categories like hair oil. ‘Minis’ or small pack sizes can be further leveraged to provide on-the-go ease.

    The market research company advised that messaging around Indian heritage and culture plays a significant role  with consumers when it comes to premium products.

    “Brands can innovate with packaging to amplify tradition and culture,” said Rajani. “For example, Nihar Naturals ExtraCare Hairfall Control Oil played up the age-old method of soaking seeds in oil by creating an innovative built-in cap on the bottle containing a combination of five natural seeds which get soaked while pouring out the oil.”

    Ingredients that promote wellbeing  are being highlighted, too.

    Amla, also known as the Indian gooseberry, is regarded as a nutritionally potent superfood since it has 10 times the vitamin C content of an orange. This cooling oil also assists in rejuvenating the mind and body and provides a relaxing, calming effect.

    Other ingredients such as sesame oil are recommended in the cold seasons and coconut oil utilized in the hotter seasons for their respective warming and cooling effects.


    Michelle Yeomans
    Freelance Journalist
    michelle.yeomans@gmail.com
     
    Michelle Yeomans is an award winning multimedia journalist. She has been reporting on cosmetics industry movements in EMEA, US and Asia for five years and has won an award for her coverage of the complexities of operating in the Middle East. Michelle’s passion lies in tracking the beauty culture and trends of the Asia Pacific region. Ever the AV enthusiast, she also relishes the opportunity to create engaging video and podcast content for the B2B industry.
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