HUL market share slips in Sept quarter

04 Dec 2008

 

FMCG major Hindustan Unilever (HUL) has seen its market share slipping in key areas of personal wash and skincare for the quarter ended September 2008. In case of personal wash, the market share slipped to 50.3% from 53.2% in the same quarter last year. Besides, there has also been a q-o-q drop from 52.7% in quarter ended June 2008 to 50.3% in September 2008.

Similarly, in case of skincare, the company’s market share stands at 52.7% for the quarter ended September 2008, witnessing a y-o-y drop of 4.2% and q-o-q drop of 1.3%. The company’s personal wash categories are dominated by brands like Dove, Hamam, Lux, Lifebuoy and Breeze among others. In skincare, the major brands are Pond’s, Lakme, Vaseline and Fair & Lovely. Increased competition amid the high-clutter segments of personal wash and skincare seem to be taking a toll on the company’s market share in the short term. The market share has been falling steadily over the earlier quarters, which is indicative of a trend forming in this regard.

 

Smaller FMCG players like Dabur, ITC and Godrej Consumer are getting more and more aggressive. This is eating into HUL’s share. This explains the company’s increased ad spend in the recent quarters in order to protect market shares from eroding. crackcrack
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