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<ul><li>HUL’s <keyword id="9464376" type="UNKNOWN" weightage="20" keywordseo="glow-lovely">Glow &amp; Lovely</keyword>, the erstwhile <keyword id="413087" type="COMPANY" weightage="20" keywordseo="Fair-Lovely">Fair &amp; Lovely</keyword>, has been focusing on repositioning itself in the market since June 2020.</li><li>It recently launched a new advertisement lauding women athletes who participated in the Tokyo Olympics. Some experts are saying that it is a step in the right direction, while some said it is too little, too late.</li><li>We speak to young women from the advertising industry and experts to find out whether consumers will resonate with Glow &amp; Lovely’s recent advertising campaign.</li></ul>From using shade cards as a yardstick to determine a woman’s capabilities to using its advertising mediums to celebrate India’s women athletes, Hindustan Unilever’s Glow &amp; Lovely has come a long way. Previously known as Fair &amp; Lovely, the company announced its revamp strategy on June 25, 2020. It was shortly after protests against racial discrimination took over in the US and facing prolonged backlash on social media for building unrealistic beauty standards and stereotyping skin tones in India. It dropped the word ‘Fair’ from its name and has stopped using discriminatory words ‘White/Whitening', ‘Light/Lightening’ since then. Fair &amp; Lovely advertisements from the late 90s and early 20s often portrayed women with darker skins as failures; these women would ace their presentations, crack interviews or be able to upload their profiles on matrimonial websites only after applying a cream. They started by selling ‘gori twacha’ (fair skin) and moved to using alternatives like ‘nikhaar’ (glowing skin), which hinted that confidence is a by-product of fairness creams. However, after its transition to Glow &amp; Lovely, HUL has been attempting to take baby steps towards inclusivity. Its<a href="https://www.businessinsider.in/advertising/brands/article/glow-lovely-has-launched-its-new-campaign-but-why-does-it-look-and-feel-exactly-like-fair-lovely/articleshow/77986036.cms"> first ever ad</a> as Glow &amp; Lovely featured brand ambassador Yami Gautam. Following that, Glow &amp; Lovely released a rap video with Deepa Unnikrishnan, a.k.a. Dee MC, that targeted younger women and encouraged them to never shy away from pursuing their dreams and be confident in their own skin. Now, after India’s incredible performance at Tokyo Olympics 2020, the ‘brightening cream’ has released a new campaign that celebrates India’s athletes. <div type="Youtube" id="Eo_zEI0KJes" title="GlowGlow &amp; Lovely - Ready. Steady. Glow. #ReadySteady" thumbUrl="https://i.ytimg.com/vi/Eo_zEI0KJes/mqdefault.jpg"></div> Conceptualised by <keyword id="274876" type="COMPANY" weightage="20" keywordseo="Lowe-Lintas">Lowe Lintas</keyword> and produced by Crazy Few Films, Glow &amp; Lovely’s ad aims to talk about the inner-glow that comes after pursuing your dreams and goals. It celebrates 56 women athletes who represented India in the Olympics and countless others who are getting ready to follow in their footsteps. Out of seven medals this year, three medals were clinched by women. Josna Joseph, Creative Director, Tonic Worldwide calls Glow &amp; Lovely’s latest campaign a good start. “The new strategy has definitely defined a more progressive perspective and brand purpose. It is interesting to see Glow &amp; Lovely talking about a change in behaviour to empower its audience. It’s a start. The consumer today expects a lot more from brands. They are constantly asking - What is in it for me? And why shouldn’t they? For me, as a marketer, it’s a nice ad. As a woman, it could do more to create a distinct brand identity and stronger recall. If it was a race, chances are Glow &amp; Lovely would end up getting a participation certificate,” said she. For Schbang’s Creative Lead, Akshara Vasavda, it is too little, too late. “I think (and I may be biased here) as long as the brand exists, in whatever shape or form, there will be damage. Doesn't matter what they do with their communication, and really they're doing the bare minimum.” Since the revamp, Glow &amp; Lovely is trying to make it a point to include women of different skin tones and professions. However, does that really serve the purpose of portraying the brand as one that is more inclusive and progressive? Vasavda said, “The cast actually made me laugh. They just really can't bring themselves to cast a dark skinned girl. This brand should be boycotted culturally (by not making their ads and marketing efforts a conversation at all) and hopefully in the market by literally boycotting their products. It's a reach, I know, they have the country in a chokehold, but one can hope.” Shradha Agarwal, COO and Strategy Head, Grapes Digital was delighted to see a new approach. She said, “Slowly and steadily, Glow &amp; Lovely is trying to change the notion of being fairer to developing self-confidence. The brand's earlier advertising was perpetually obsessed with having a fair tone, but the latest ad is a good move depicting women athletes who represented India at the Tokyo Olympics. It is indeed positive to see that the brand has adopted a new strategy and intends to build an entirely fresh identity. The best part of the ad is, they have taken a simple storytelling approach and real-life champions rather than associating with a celebrity, which makes it quite encouraging and appealing for the audience. It is a noble effort in the right direction to correct the definition of beauty. Last year also the brand launched an ad with popular rap artist Dee MC spreading the message that a persons' beauty is not linked to skin tone alone.” She further said that the brand should continue focusing on bringing about change to win their audience. “It will take time for the brand to shed its earlier image, which was mostly surrounded by regressive values. But what matters the most is how the particular product is changing the narrative and breaking the stereotypes that have been associated with them for so many decades. It will not be a very smooth ride for them, the brand is under scrutiny and they can’t afford to make any mistake. They have a larger responsibility in bringing the change. The brand should come up with such campaigns if they want to change the perception among the masses,” added Agarwal. Fair &amp; Lovely has been in India for over 45 years now and has been one of the best-selling creams. According to media reports, Fair &amp; Lovely had entered the Rs 200 crore market back in 2017 and held a 60-70% share of the skin whitening industry. So to not lose a sense of familiarity with its consumers, the packaging, colour theme and celebrity haven’t been changed. While only time will tell if consumers will appreciate Glow &amp; Lovely’s new identity and repositioning in the market, we hope this repositioning is not just to please critics but also to change the narrative and bring about real change, and do some damage control.

HUL’s Glow & Lovely ad shifts focus from fairness to career in its latest ad; draws mixed reactions

<ul><li>Unilever announced today that it will remove discriminating words like ‘fair/fairness’, ‘white/whitening’, and ‘light/lightening’ from its products’ packs and communication to build an inclusive vision of beauty. This will be a policy for all its beauty and skin care brands. </li><li>As part of this decision, the Fair &amp; Lovely brand name will be changed in the next few months. </li><li>The brand said, “Fair &amp; Lovely has never been, and is not, a skin bleaching product.”</li><li>It also said the brand values have evolved and they do not align themselves with their old advertisements anymore. </li></ul>In a revolutionary decision, Hindustan Unilever has announced that it will rename its brand ‘Fair and Lovely.’ The giant said that it will drop racist words like ‘Fair,’ ‘White/Whitening,’ Light/Lightening’ from its packs and communications. As per company’s website, the idea behind updating its brand name is to ‘embrace and reflect a more inclusive vision of beauty.’ It will be shared once several legal and regulatory requirements are met in each country where the brand is available. This registration process is already underway, and they unveil the new brand name within the next few months. It also said their brand values have evolved and they do not align themselves with their old advertisements anymore. This move comes after Fair &amp; Lovely faced a lot of backlash on social media for building unrealistic beauty standards and stereotyping skin tones. Explaining what pushed the conglomerate to take this decision now, Sunny Jain, President Beauty &amp; Personal Care, said, “We are fully committed to having a global portfolio of skin care brands that is inclusive and cares for all skin tones, celebrating greater diversity of beauty. We recognise that the use of the words ‘fair’, ‘white’ and ‘light’ suggest a singular ideal of beauty that we don’t think is right, and we want to address this. As we’re evolving the way that we communicate the skin benefits of our products that deliver radiant and even tone skin, it’s also important to change the language we use.” “We have been working on the evolution of our Fair &amp; Lovely brand, which is sold across Asia, progressively moving to a more inclusive vision of beauty that celebrates skin glow. We have changed the advertising, communication and – more recently – the packaging in South Asia, and we think it’s important that we now share the next step that we have been working on: changing the brand name. We will also continue to evolve our advertising, to feature women of different skin tones, representative of the variety of beauty across India and other countries. We want Fair &amp; Lovely to become a brand that celebrates glowing and radiant skin, regardless of skin tone,” adds Jain. In a statement released on its website, Unilever said ‘Fair &amp; Lovely’s advertising has been changing since 2014, to a message of women empowerment.’ It upholds principles that no association should be made between skin tone and a person’s achievement, potential or worth. About the old racist ads, HUL said, “We are aware that historic advertising is available on the internet; these ads are not aligned with the current values of the brand. In 2019, we reflected this evolution on the Fair &amp; Lovely pack in India, removing before-and-after impressions and shade guides that could indicate a transformation; and we have progressed all communication of product benefits towards glow, even tone, skin clarity and radiance.” The brand will now tweak its communication by concentrating on its functionalities, not skin bleaching aspect. "Fair &amp; Lovely has never been, and is not, a skin bleaching product. It uses a combination of vitamin B3, glycerine, UVA and UVB sunscreens," read the company's statement. It further said, “The product is designed to improve skin barrier function, improve skin firmness and smoothen skin texture - all of which help enhance radiance and glow, as currently represented in advertising and communication.” The brand will be renamed in a few months and is under legal registration process.

Fair & Lovely to drop 'Fair' from its name: HUL

<ul><li>In the wake of the Black Lives Matter movement in the US which led to social media calling out <keyword id="1138672" type="PERSON" weightage="20" keywordseo="beauty-brands">beauty brands</keyword> for perpetrating a bias based on <keyword id="893394" type="PERSON" weightage="20" keywordseo="skin-colour">skin colour</keyword>, HUL has changed the name of its <keyword id="9470244" type="UNKNOWN" weightage="20" keywordseo="fairness-cream-brand">fairness cream brand</keyword>, <keyword id="413087" type="COMPANY" weightage="20" keywordseo="Fair-Lovely">Fair &amp; Lovely</keyword>.</li><li>The brand will now be called <keyword id="9464376" type="UNKNOWN" weightage="20" keywordseo="glow-lovely">Glow &amp; Lovely</keyword> and will be available on shelves over the next few months.</li><li>The brand said that this was the next step in the evolution of its skin care portfolio to a 'more inclusive vision of Positive Beauty'.</li></ul><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> (HUL) today announced that its 'Fair &amp; Lovely' brand has now been renamed to 'Glow &amp; Lovely'. The brand said that this was the next step in the evolution of its skin care portfolio to a 'more inclusive vision of Positive Beauty'. On June 25, HUL had announced that it will drop the word ‘Fair’ from its name and restrict using ‘White/Whitening',’ ‘Light/Lightening’ from all its packs and communications. In an official statement, the FMCG major said, "Over the next few months, Glow &amp; Lovely will be on the shelves, and future innovations will deliver on this new proposition." The Men's range of Fair &amp; Lovely has also been renamed to <keyword id="9504348" type="COMPANY" weightage="20" keywordseo="glow-handsome">Glow &amp; Handsome</keyword>'. The move comes in the wake of the Black Lives Matter movement in the US which led to social media calling out beauty brands for perpetrating a bias based on skin colour. Following this, Johnson &amp; Johnson announced that it will be discontinuing its skin lightening creams Neutrogena Fine Fairness and Clear Fairness by Clean &amp; Clear. L'Oreal too announced last week that it will remove words like 'whitening' and 'fair' from its products.

HUL's Fair & Lovely to now be called 'Glow & Lovely'

<ul><li><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> Limited (HUL) and <keyword id="40233" type="COMPANY" weightage="20" keywordseo="emami">Emami</keyword> have locked horns over the trademark rights of ‘<keyword id="9530697" type="UNKNOWN" weightage="20" keywordseo="glow-and-handsome">Glow and Handsome</keyword>’. </li><li>On Monday, the Bombay High Court observed that Emami’s comments do amount to a threat, it is yet to be determined whether or not the accusations are ‘groundless or lawful’. </li><li>Aditi Verma Thakur from IndusLaw explains the intricacies of the case and what’s at stake in the battle of the brands. </li></ul>Hindustan Unilever Limited (HUL) and Emami have a history of trademark conflicts. In some cases, Emami has even come out on top. However, this time around, simply being the ‘handsome waala cream’ may not be enough for the company to sue HUL for trademark infringement. Aditi Verma Thakur for IndusLaw told Business Insider for Emami to show a meritorious ground, it will have to file a suit for trademark violations to prove that it is interested in having an injunction order against HUL. HUL, on the other hand, will have to prove that the legal proceedings that Emami has threatened to initiate have no merits. There are two major points of contention between Emami and HUL. First, is the question of which has ownership of the trademark ‘Glow and Handsome’. Second, is whether HUL’s use of ‘Glow and Handsome’ constitutes unfair business practices. The question of ‘who done it first’ According to Emami, it had already changed its men’s fairness cream’s name to ‘Emami Glow and Handsome’ before HUL made its announcement. However, they don’t seem to have launched it fully on a commercial scale yet, since their website still shows ‘<keyword id="738114" type="PERSON" weightage="20" keywordseo="Fair-and-Handsome">Fair and Handsome</keyword>.’ <div type="image" title="Emami fair and handsome_edited" msid="76830044" hostid="261" caption="&amp;lt;p&amp;gt;Screenshot of &amp;#39;Fair and Handsome&amp;#39; on Emami&amp;#39;s website&amp;lt;/p&amp;gt;"></div> HUL, on the other hand, started rebranding ‘<keyword id="82344" type="PERSON" weightage="20" keywordseo="fair-and-lovely">Fair and Lovely</keyword>’ to ‘Glow and Handsome’ at the <a href="https://www.businessinsider.in/advertising/brands/news/huls-fair-lovely-to-now-be-called-glow-lovely/articleshow/76750953.cms">beginning of July</a>. The Bombay High Court observed that "prima facie" — on the face of it — it does appear that HUL was the prior adopter of the mark as it had filed its trademark application first in September 2018 and subsequently on 25 June 2020. <div type="Article" hostid="261" msid="76750953" title="HUL's Fair &amp; Lovely to now be called 'Glow &amp; Lovely'" mstype="2" mssubtype="0"></div> “There is a legal advantage that a brand owner gets when it is the first one to launch or anyhow commercially use a certain brand name,” said Thakur. Is it an unfair business practice? Emami has accused HUL and the rebranding of its men’s ‘Fair and Lovely’ line of products to ‘Glow and Handsome’ as being an “unfair business practice.” By this, Emami is alleging that HUL — by adopting a brand name that’s similar to Emami’s — is indulging in false representation to mislead and confuse consumers. This stems from the fact that Emami’s ‘Fair and Handsome’ range of products is currently the <a href="https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/when-fair-is-not-lovely-how-fair-and-handsome-targets-to-be-rs-1000-cr-brand/58279263#:~:text=Fair%20and%20Handsome%20which%20is,the%20men's%20fairness%20cream%20category.">market leader</a> in the men’s segment of fairness creams. Emami also claims that its product is generically known as the “handsome waala cream”. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> “We need to factor in the fact that this tagline is a combination of common words, including the word ‘handsome’ — a laudatory word,” said Thakur. According to her, Emami’s tagline will not give Emami an advantage over HUL in terms of its intellectual property worth. “The tagline may have been used, and may have also become known and connected with Emami’s product branded ‘Fair and Handsome’, but it is overall different from the brand name ‘Glow and Handsome’,” she said. HUL, on the other hand, has a hold over 80% of the <a href="https://www.researchandmarkets.com/reports/4480827/india-fairness-cream-and-bleach-market-overview">₹3,000 crore</a> fairness cream market in India overall. However, simply being the bigger brand won’t be enough for HUL to plead its case. “HUL’s market share will merely show to the High Court that they are bigger in numbers,” said Thakur. HUL went to court before Emami While Emami is reportedly consulting legal experts on the matter, but it has not filed any formal suit. It was, in fact, HUL that filed an application with the Bombay High Court under Trade Mark Act seeking an injunction to keep Emami from issuing ‘groundless threats’. Thakur explains this because India’s Trade Mark Act of 1999 provides for a special provision under which if a person receives a threat of legal proceeding from another person by any means — and if they believe them to be ‘groundless or illegal’ — they can initiate a suit against the person issuing the threats. “In such a suit, the first person would pray for (1) having those threats declared as groundless or unjustifiable, (2) injunction to prevent any more threats and also (3) damages that he may have sustained,” said Thakur. So far, according to the Bombay High Court, Emami’s threats “do amount to a threat” but the question for whether they are unlawful or groundless is yet to be determined. SEE ALSO: <a href="https://www.businessinsider.in/advertising/brands/news/fair-lovely-to-drop-fair-from-its-name-hul/articleshow/76621560.cms">Fair &amp; Lovely to drop 'Fair' from its name: HUL</a> <a href="https://www.businessinsider.in/advertising/brands/news/huls-fair-lovely-to-now-be-called-glow-lovely/articleshow/76750953.cms">HUL's Fair &amp; Lovely to now be called 'Glow &amp; Lovely'</a> <a href="https://www.businessinsider.in/business/corporates/news/hul-share-price-gains-even-while-company-warns-of-lower-profits/articleshow/76175124.cms">HUL shares spike despite a profit warning⁠ as investors get swayed by the broader market mood</a>

HUL vs Emami — A lawyer explains what’s fair and not in the battle of brands

<ul><li><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword>’s popular skin lightening product – Fair &amp; Lovely, is finally going to drop the word ‘fair’ from its name.</li><li>The recent protests against racial discrimination in the US has spurred the conversation again as brands take a conscious note of ideas that sell ‘fairness’ as beauty. </li><li>Fair &amp; Lovely has been in India for over 45 years now and has been one of the best-selling creams. </li></ul>Hindustan <keyword id="45009" type="CITY" weightage="20" keywordseo="Unilever">Unilever</keyword>’s popular skin lightening product – Fair &amp; Lovely, is finally going to drop the word ‘fair’ from its name. The move comes as the company has often been called out for propagating a certain idea of beauty. “We recognise that the use of the words ‘fair’, ‘white’ and ‘light’ suggest a singular ideal of beauty that we don’t think is right, and we want to address this. As we’re evolving the way that we communicate the skin benefits of our products that deliver radiant and even tone skin, it’s also important to change the language we use,” said <a href="https://www.outlookindia.com/website/story/india-news-hindustan-unilever-to-remove-fair-from-fair-lovely-skin-cream/355398">Sunny Jain,</a> President Beauty &amp; Personal Care, Unilever. The recent protests against racial discrimination in the US has spurred the conversation again as brands take a conscious note of ideas that sell ‘fairness’ as beauty. Fair &amp; Lovely has been in India for over 45 years now and has been one of the best-selling creams. The company said that it will be announcing a new name soon after regulatory approvals. The decision from Unilever comes just days after Johnson &amp; Johnson announced that it will be discontinuing its skin lightening creams Neutrogena Fine Fairness and Clear Fairness by Clean &amp; Clear. “Conversations over the past few weeks highlighted that some product names or claims on our Neutrogena and Clean &amp; Clear dark-spot reducer products represent fairness or white as better than your own unique skin tone.This was never our intention — healthy skin is beautiful skin,” said Johnson &amp; Johnson in a statement. All these brands were criticised and called out for years by many activists and celebrities for perpetrating bias on the basis of skin colour. But none of that managed to push these brands into sunset. However, the growing furore across the world has forced these multinationals to bite the bullet. Home grown brands of similar nature like Emami, Lotus among others are yet to see the writing on the wall. SEE ALSO: <a href="https://www.businessinsider.in/science/space/news/isro-has-three-new-reforms-the-works-for-indias-space-sector/articleshow/76619678.cms">These are the three new reforms in the works for India's space sector</a> <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-has-a-new-fan-donald-trumps-right-hand-man-calls-it-a-clean-telcom/articleshow/76617510.cms">Mukesh Ambani’s Reliance Jio has a new fan⁠— Donald Trump’s right-hand man calls it a 'clean telco'</a>

It took Black Lives Matter protests in US to kill fairness creams in India

<ul><li>Emami has been restrained from using the words 'Glow and Handsome' until further notice from Bombay High Court. </li><li>HUL filed a suit against Emami for violating Trade Marks Act. </li><li>HC says HUL were first to use Glow and Handsome in their advertisements. </li></ul>As per Bombay High Court's latest ruling, FMCG firm Emami will not be able to use the words 'Glow and Handsome' or sell any product under that name as HUL was first to use it in their advertisements, until further notice. HUL filed an application under the Trade Marks Act on Monday, seeking an injunction against Emami from using the trademark '<keyword id="9504348" type="COMPANY" weightage="20" keywordseo="glow-handsome">Glow &amp; Handsome</keyword>.' Emami claimed that it was the proprietor of this trademark, and was going to launch a skincare cream for men under the same name. "Plaintiff (HUL) prime facie appears to be a prior adopter and user of the mark 'Glow &amp; Handsome'," the high court said in its order. HUL recently dropped the word 'Fair' from its skin creams for men and women, and renamed the skin cream for men as 'Glow &amp; Handsome.' HUL had already launched its goods in the market with this trademark while Emami was still at the stage of adopting a process of launching its goods, the court noted. "Its (Emami) application for registration of that mark is also of a subsequent date," the order said. Further, HUL had sufficiently advertised its new brand 'Glow &amp; Handsome', said the court. "At this threshold stage, it is reasonable to see that there is concrete likelihood of confusion and deception in the public, if identical marks are allowed to hold the field for popular and much sold commodities," it said. Until the final disposal of the matter, Emami, which has not yet brought its own goods into the market under 'Glow and Handsome' brand, deserves to be restrained from doing so, said the judge. "Pending final hearing and disposal of the matter, the defendant (Emami) is temporarily restrained from using the alleged mark 'Glow &amp; Handsome' and/or any other mark containing the words in respect of any grooming, skincare and cosmetic products," the court said. It posted the matter for further hearing after two weeks. As per HUL, it launched <keyword id="413087" type="COMPANY" weightage="20" keywordseo="Fair-Lovely">Fair &amp; Lovely</keyword> face cream in 1975. In 2006 it launched 'Fair &amp; Lovely, Men', and in 2018, it coined and adopted the trademarks '<keyword id="9464376" type="COMPANY" weightage="20" keywordseo="glow-lovely">Glow &amp; Lovely</keyword>' and 'Glow &amp; Handsome', being the first company to do so, it claimed.

Emami can't use 'Glow & Handsome' because HUL were the first to use it, says Bombay HC

<ul><li>HUL’s recent attempt at rebranding Fair &amp; Lovely into Glow &amp; Lovely was appreciated by some experts while others called it merely an eyewash for the audience. </li><li>HUL has launched its first advertisement to communicate its transition from Fair &amp; Lovely to Glow &amp; Lovely. It bolsters the fact that the value proposition and the brand narrative stays exactly the same. </li><li>We speak to experts to find out if its new communication stands true to what HUL had claimed when it rebranded or if the exercise was merely lip-service. </li></ul>After protests against racial discrimination took over in the US, Black Lives Matter, <keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword> Limited’s Fair &amp; Lovely faced a lot of backlash on social media for building unrealistic beauty standards and stereotyping skin tones in India. It announced that it will drop the word ‘Fair’ from its name and restrict using discriminatory ‘White/Whitening',’ ‘Light/Lightening’ from all its packs and communications. It soon renamed the brand to ‘Glow &amp; Lovely’ as a reactive measure to an uprising. A few experts rejoiced this move, while some expected HUL to drop the product completely that stands for colourism in India. To announce its new rebranding exercise to consumers, HUL has dropped a very in-your-face TVC that establishes how nothing has changed and it still offers something “More than brightness and now gives HD glow skin.” Its advertisement just feels like the giant is selling its old wine in a new bottle. The only thing that has changed this time is that they got rid of the shade card. <div type="Youtube" id="nwcNySYxZ6s" title="Fair &amp; Lovely is now Glow &amp; Lovely | English" thumbUrl="https://i.ytimg.com/vi/nwcNySYxZ6s/mqdefault.jpg"></div> This made us question if glow is just a synonym for selling white-skin to consumers and if consumers will be able to see through their charade? “Fair, glow - it is all the same - all about bright and white skin. The re-branding seemed (pardon the pun) more a cosmetic exercise, perhaps to mitigate some of the flak faced over the years. The name may have changed, but the positioning remains the same. The audience will buy the cream irrespective. Unfortunately, that's how ingrained the whole idea of fair skin is,” said Srishty Chawla, Founding Partner, One Source. To make sure consumers don’t forget Fair &amp; Lovely is now Glow &amp; Lovely, the advertisement illustrates the transition to the new name twice -- to really hammer it in the consumer's minds. Vani Gupta Dandia, Founder, CherryPeachPlum Growth Partners - a marketing-led business consultancy said the steps HUL took till here -- to establish its transformation -- were fine. Telling us further how she would have gone about establishing the identity change in the market, Dandia said, “If I were the business head, I'd first spend a lot of money on just ensuring that the name change be registered. I'd do that with small edits - 5 and 10 seconders. And use other media similarly. High frequency, high recency modeling. However, quickly justifying the name with a tacky reason to believe undermines the intelligence of consumers. It does sound like the same old in a new bottle - worse still justified with the same old science. So are you telling me you can provide just about any benefit with the same old science? What is the difference between Fairness and Glow? If we were to respect consumers' intelligence, would we not like to explain why glow or radiance is aspirational?” Fair &amp; Lovely advertisements from the late 90s and early 20s often portrayed women with darker skins as failures, these women would ace their presentations, crack interviews or be able to upload their profiles on matrimonial websites only after applying a cream. They started by selling ‘gori twacha’ (fair skin) and moved to using alternatives like ‘nikhaar’ (glowing skin), which hinted that confidence is a by-product of <keyword id="16219" type="PERSON" weightage="20" keywordseo="fairness-creams">fairness creams</keyword>. This was Fair &amp; Lovely’s chance to reclaim the narrative and shift the odds in their favour. So, Vani Gupta Dandia also expected to see a bolder advertisement this time, that truly empowers women. She said, “I understand it's a tough job for a brand that has for centuries advocated skin lightness must now transition to glow. But consumers want to know what is glow? Why did you change? Has fairness become dated? No one in India relates to 'black lives matter'. The brand could have taken a tall bold stance to say -- after promoting fairness for years, we'd like to continue empowering you, not with skin lightness but with natural radiance. Natural glow. Our cream now has (suggest a change in the formulation) that works to make skin healthier from inside so the best of you can shine. But this communication should have followed after a while. Not immediately. The super quick airing of this commercial suggests that the brand merely changed name and VO on the film and made a fool out of me. But consumers are smarter than that I believe. They'll see through the charade.” Fair &amp; Lovely has offered glowing skin in the past as well and its packaging style hasn’t changed either. <div type="Youtube" id="NU4FnFkQTJQ" title="Fair &amp; Lovely Advanced Multivitamin: HD Glow | New Pack" thumbUrl="https://i.ytimg.com/vi/NU4FnFkQTJQ/mqdefault.jpg"></div> Shashwat Das, Founder, Almond Branding, also said that the audience is smart enough to understand that the rebranding move was just an eye-wash. Das said, “The Glow, which is meant to sound like “a more holistic and inclusive measure of healthy skin” is only a surrogate for fairness, brightness and radiance – call it by any name. So the consumer is left perplexed in the end as to what really has changed then. Brands should never under-estimate the consumers. They are smart enough to decode that this is an eye-wash. Same old cream and narrative being sold to them under a new name. Looks like this is deliberate and part of the plan so that it doesn’t alienate the current consumer base. The earlier announcement from HUL did claim that their ads are going to evolve to feature women of different skin tones as a representative of the diverse beauty across India. Where’s that diversity? I was expecting them to walk the talk.” This was an opportunity for HUL to include darker-skinned models in the ad and win millions of hearts. It wasn’t something new that a brand in India would have experimented with. Dove India has changed its narrative from selling milky skin to offering a bar that cleanses. However, there is still a void for an inclusive beauty brand in India that celebrates diversity, skin colours, body types and body hair in its truest form and HUL, a giant that holds a lot of influence in our country, could have led that narrative. “Dark skin can also be healthy and can have the glow, right?” asks Das. He added, “That would have actually demonstrated the real change in intent that the brand wants to be more inclusive and “celebrate a diverse portrayal of beauty. They already have a global campaign for Dove - ‘Real Women Real Beauty’ that became extremely popular. The diverse skin tone angle would have made more people talking about the new branding and would have earned them some good brand value (read karma) after all the harm they have done to young minds all these years." Fair/Glow &amp; Lovely's actual buyers are mainly dispersed in the small towns of India. Karthik Srinivasan, Social Media Expert and Independent Brand Consultant, said that Glow &amp; Lovely’s target audience perhaps doesn't really care for its name, they care more about making their skin whiter or fairer. Srinivasan said, “The product, no matter what it is called, has set the notion that being fair is the ticket to success in life. The change in name was mandated by global standards of 'saying the right thing' and is hardly indicative of the product's or the parent company's stand to offer meaningful change on the ground. The addition of that laughably silly assertion - that you will now get HD glow - further hammers the fact that there is no change, beyond a name. It also leads one to question, albeit pointlessly, if the earlier named cream offered only standard definition glow! Beyond very few marketing media, I really don't think anyone really cares for either the name change or the new ad. And HUL knows this all too well - the actual consumers of the product only see the product benefit that is imprinted in their mind.” Fair &amp; Lovely has been in India for over 45 years now and has been one of the best-selling creams. According to The Drum, Fair &amp; Lovely had entered the Rs 200 crore market back in 2017 and held a 60-70% share of the skin whitening industry. So to not lose a sense of familiarity with its consumers, the packaging, colour theme and celebrity haven’t been changed. Ronita Mitra, Business Consultant - Founder, Brand Eagle Consulting, said, “The new communication is a rational communication with its primary objective being an announcement of the change in brand name. The name change through the branding on the pack as well as the TVC is being communicated very emphatically. One can see that continuity has been maintained in all other aspects, understandably so, in order to seamlessly migrate existing consumers and equity to the new brand. In the foreseeable future, the identity in the consumers' minds will, in all probability, continue to be that of the erstwhile Fair &amp; Lovely identity.” Highlighting how consumers are evolving, Mitra added, “Any re-branding and brand building exercise is of a long-term nature. It remains to be seen whether, in the long term, the identity shifts significantly from the erstwhile identity of Fair &amp; Lovely and whether a new identity and positioning are appropriated by Glow &amp; Lovely which will truly be in consonance with the evolving belief system of the modern consumer whose sense of self worth is beyond superficial aspects such as skin colour.” Chawla thinks dark-skinned women of our country deserve an apology from fairness skin brands. Suggesting how HUL can undo the damage it has done, Chawla said, “The brand has a great opportunity to break the barriers of social conditioning pertinent to skin colour, and perhaps repair the damage done over the years to the psyche of dark skinned women. They can do so many things - from issuing a simple apology, to repositioning and overhauling the brand name, colours, key messaging. Conglomerates have the potential to change social perceptions. It is time they invested in the same. And on the social media front, the ad has a lot of potential to invite sufficient trolling and criticism, but honestly, the beauty of this change needs to go beyond skin deep.”

Glow & Lovely has launched its new campaign, but why does it look and feel exactly like Fair & Lovely?

<ul><li>In a revolutionary decision, <keyword id="178761" type="COMPANY" weightage="20" keywordseo="Hindustan-Unilever-Limited">Hindustan Unilever Limited</keyword> has announced that it will rename the brand ‘Fair and Lovely.’ The giant said that it will drop words like ‘Fair,’ ‘White/Whitening,’ Light/Lightening’ from all its packs and communications. </li><li>This move comes after Fair &amp; Lovely faced a lot of backlash on social media for building unrealistic beauty standards and stereotyping skin tones. </li><li>We speak to experts to understand how Fair &amp; Lovely can go about rebranding themselves to undo the damage and win back consumer trust. </li></ul>On June 25, Hindustan Unilever’s Fair &amp; Lovely announced that it will drop the word ‘Fair’ from its name and restrict using ‘White/Whitening',’ ‘Light/Lightening’ from all its packs and communications. In the wake of Black Lives Matter, recent protests against racial discrimination in the US, social media was abuzz with people calling out beauty brands for perpetrating a bias based on skin colour. Following this, Johnson &amp; Johnson announced that it will be discontinuing its skin lightening creams Neutrogena Fine Fairness and Clear Fairness by Clean &amp; Clear. Now, HUL has joined the list. Albeit, it is only dropping the brand name. Over the years, HUL’s Fair &amp; Lovely has created an image for being a skin lightening cream. While there are many other players in this industry, Fair &amp; Lovely has faced a lot of backlash on social media for its poor choice of brand name, advertisements and for propagating unrealistic beauty standards and stereotyping skin tones. The statement released on HUL’s website said, "Fair &amp; Lovely has never been, and is not, a skin bleaching product.” However, its communication indicated otherwise. Its advertisements from the late 90s and early 20s portrayed women of colour as failures, who aced their presentations or could only upload their profiles on matrimonial websites after applying a cream. They started by selling ‘gori twacha’ (fair skin) and moved to using alternatives like ‘nikhaar’ (glowing skin), which hinted that confidence is a by-product of <keyword id="16219" type="PERSON" weightage="20" keywordseo="fairness-creams">fairness creams</keyword>. <div type="Youtube" id="FGsYdi3PdXw" title="Bidita Bag in FAIR &amp; LOVELY" thumbUrl="https://i.ytimg.com/vi/FGsYdi3PdXw/mqdefault.jpg"></div> About the old racist ads, HUL said, “We are aware that historic advertising is available on the internet; these ads are not aligned with the current values of the brand. In 2019, we reflected this evolution on the Fair &amp; Lovely pack in India, removing before-and-after impressions and shade guides that could indicate a transformation; and we have progressed all communication of product benefits towards glow, even tone, skin clarity and radiance.” So, we reached out to experts to understand how bad is the damage and how should HUL go about rebranding its popular ‘skin whitening’ product in India. Lloyd Mathias, Business Strategist and Angel Investor, said, “I think this a positive move by HUL – though long overdue – should be welcomed. Any product or service that reinforces stereotypes, be it race or colour, is never a great proposition, and global corporations need to be very sensitive to these issues. I only wish this had happened much earlier and did not need a movement like ‘Black Lives Matter’ in the USA, and Johnson and Johnson’s withdrawing a similar offering, to precipitate it. I believe the real solution is recasting the proposition, while taking the brand towards a more inclusive vision of beauty which could include holistic measures of healthy skin.” Ronita Mitra, Business Consultant - Founder, Brand Eagle Consulting also opines that HUL's move is just a reactive measure that was taken after Black Lives Matter. She said, "Brands have a responsibility towards shaping opinions of its consumers and in the process, the larger society, rather than following and reinforcing existing popular belief systems. Positioning by brands on the platform of fairness has always inherently had discrimination at its core along with a reinforcement of a regressive belief system. It is indeed a positive step for brands that are re-looking at the fairness positioning and branding. Given the timing of the re-branding exercise, it does appear like a reactive measure. Nonetheless, it's a big step forward in the right direction and will eventually shape and influence consumer psyche towards a more holistic perception of beauty. Brands ought to focus more on highlighting beauty at a deeper level celebrating quality (of skin) and the person and her character." Shashwat Das, Founder, Almond Branding was appalled by people rejoicing with this move. Das was not amused with HUL’s tokenism. He expected HUL to follow J&amp;J and drop the products altogether that stand for colourism in India. “In my opinion, it's only an eyewash. I am looking forward to a complete ban on skin-tone oriented products. The very foundation on which these brands are built is flawed. We have known it for years and it took 45 years and a raging anti-racial movement to force this move upon certain companies. How come there is a sudden awakening? This is not a change out of self-realisation. Had these protests not caught momentum, such a move by HUL would have taken a few more decades to come.” The official statement of HUL says that Fair &amp; Lovely’s advertising has evolved to communicate a message of women’s empowerment, they have started focusing on their career. On this statement, Das said, “I beg to differ here. For years, the brand has been making young Indian girls insecure of their skin tone by promising dreams coming true through fairness. That’s not empowerment, that’s exploitation! How do you claim to support women when your entire brand story is around colourism? The damage caused in the last 45 years is too deep to be healed by a mere change in name.” Winning back consumer trust with honesty and sensitive communication Fair &amp; Lovely has been in India for over 45 years now and has been one of the best-selling creams. According to The Drum, Fair &amp; Lovely had entered the Rs 200 crore market back in 2017 and held a 60-70% share of the skin whitening industry. Telling us how big the industry is, Rimpie Tulsiani, Senior Beauty and Personal Care Analyst, India, Mintel, said, "Historically in India, skin whiteners and lighteners contribute more than a third to overall facial care value sales. So it is a large contributor to business. And India's obsession with fair skin and persistent bias against darker faces has been the standard narrative for brand communications until recently. This narrative is now evolving to terms like “skin brightening/ whitening" and in the direction of health.” According to Mintel research, 39% of Indian consumers define healthy skin as one that is 'fresh, followed by bright and spotless.' To which, Tulsiani said, “The fairness category in India is currently under the radar as authorities are scrutinizing how brands communicate their claims and what ingredients they use. Whitening brands will need to accelerate their change in mindset and thereby positioning in order just to stay relevant to these consumers, they will need to regain consumer trust with honest claims and broaden their scope to skin health rather than focus on skin colour alone.” What's in a name? “No, it won’t just be called ‘And Lovely’,” jokes <keyword id="247533" type="PERSON" weightage="20" keywordseo="Karthik-Srinivasan">Karthik Srinivasan</keyword>, Independent Brand Consultant and Social Media Expert. Srinivasan said HUL should put all efforts again in rebuilding their brand image and occupying consumer minds. “The brand's name and use-case have been drilled into minds over many years, considering the brand was launched in 1975. That use-case is: if you need 'whiter' skin, you need to pick a cream. And that one of the best creams, which is in the name itself, is Fair &amp; lovely. Now if they change the name, it is not a big deal because they have already left an impression. However, it is in the right direction because they will be honest about what they are really selling in the cream -- standing to a truer representation of saying that you will get clearer skin without blemishes, a message they evolved after moving away from explicit connection with white/fair skin. From a product formulation point of view, there wouldn't be any doubt in anybody's mind, which product they're talking about. However, now they need to spend a lot of money to put a new name into consumers' minds because Fair &amp; Lovely was so iconic, it is like Maggi in India. There is a lot of history and legacy behind the brand which was built over the years through advertising and marketing. They need to spend at least a snapshot of it,” said Srinivasan. But isn’t HUL just selling an old wine in a new bottle? Will it be able to undo the damage it has caused over the years and regain consumer trust? In a simple answer, Das said no, they can’t and they shouldn’t. “You can’t just drop a word and claim innocence, when you still continue to sell the same product that people recognize as something that stood for colourism. At the end of the day, you are still selling a skin lightening cream, whatever fancy name you may give it. And only if Fair &amp; Lovely does drop the entire fairness range, can it come out as a brand who seriously believes in the cause. That’s when consumers can give it a clean chit and that’s when it can regain their trust,” said Das.

Fair and Lovely to drop ‘Fair’ from its name but will that be enough to appeal to new-age consumers?

The trend started in 1983, when Cavin Kare introduced the most innovative packaging concept in India’s fast-moving consumer goods (<keyword id="34523" type="CITY" weightage="60" keywordseo="fmcg">FMCG</keyword>) history by launching its Chik <keyword id="44692" type="UNKNOWN" weightage="100" keywordseo="Shampoo">shampoo</keyword> in sachets for Rs 1. That one step revolutionized not just the shampoo segment, but also the entire FMCG sector in the country, and today, sachets make up for more than 75% of the total volume of the shampoo segment. Since then, sachets have played quite a role in mobilizing FMCG products in India. Sachets have now become popular in the skincare and haircare segment too, including face creams, face wash, hair color etc. Can sachets create the same magic for the entire skincare and haircare segment, like it did for shampoo?

	The new wave of sachets<o:p></o:p>

	Gujarat-based company, <a href="http://www.business-standard.com/search?type=news&amp;q=Zydus">Zydus </a>Wellness, (which has brands like Sugar Free, <a href="http://www.business-standard.com/search?type=news&amp;q=Nutralite">Nutralite </a>and <keyword id="1162382" type="UNKNOWN" weightage="80" keywordseo="EverYuth">Everyuth</keyword>) recently launched facewash in sachet, a first in the product category. These sachets are priced at Rs 1.

	According to experts, this can be a breakthrough for the brand in the face wash category, especially with all the big brands wrestling it out in this field. The sachet strategy gives Everyuth an advantage, especially in the rural areas and villages, where face wash is not a regular product. This can help the brand boost its volumes and capture the bottom of the pyramid in this product category. If <keyword id="178761" type="COMPANY" weightage="80" keywordseo="Hindustan-Unilever-Limited">Hindustan Unilever Limited</keyword> (HUL) decides to follow this strategy for face wash, it can win more consumers thanks to its strong distribution network in the hinterlands of the country.

	HUL had applied the sachet strategy for its flagship fairness brand <keyword id="413087" type="UNKNOWN" weightage="80" keywordseo="Fair-Lovely">Fair &amp; Lovely</keyword> cream a few years ago. In fact, market reports suggest that sachets account for more than 50% of Fair &amp; Lovely’s sale in India. Encouraged by the success of sachets in fairness cream category, Garnier skin naturals launched Garnier Fair Miracle and Garnier White in Rs 10 sachet to capture the market.

	Next in sachet category is hair colour creams. To compete with powder hair dye which is preferred by masses, L'Oreal launched its hair colour, Garnier Black Naturals, in a sachet of just Rs 39, whereas any other cream-based hair colour costs Rs 100. This clearly gives Garnier Color Naturals an edge in the mass market. This helps the product increase its overall sales. This is quite a shift in strategy for the brand as globally, it prices its products higher but in India, it is targeting the lower-end customer.

	Clearly, one can see that sachet packaging is increasingly being adopted by various companies in skincare and haircare category to tap the bottom of the pyramid of India’s FMCG market.

	Why sachets work in the Indian market<o:p></o:p>

	The question that comes to one’s mind is what makes sachets such a success in the Indian market. Firstly, Indian consumers are always up for value for money. Through sachets, they get to use an expensive product for a very low cost. Secondly, due to the low cost, new consumers who have never tried the product/brand are more inclined to give it a try. After a few uses, some of these consumers may upgrade to other products of the brand.

	Way forward for FMCG marketers<o:p></o:p>

	Certainly, there lies a big opportunity for marketers in the skincare and haircare categories. They can expand their consumer base by utilizing the real potential of sachets in many sub categories of the cosmetic segment, which are not so popular among the masses, like anti-aging creams, sunscreen, night creams, etc. Sachets can really be a complete game changer for marketers in these categories and even others. <o:p></o:p>

How Are Sachets Changing The Game In Skin And Haircare

<keyword id="2345391" type="UNKNOWN" weightage="80" keywordseo="Kan-Khajura-Tesan">Kan Khajura Tesan</keyword> (KKT) helped <keyword id="6365619" type="CITY" weightage="80" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> (HUL) brands such as Lux and Fair &amp; Lovely engage with rural consumers in media dark areas in India. HUL, one of the country's biggest <keyword id="34523" type="CITY" weightage="80" keywordseo="fmcg">FMCG</keyword> companies is planning to open its mobile-based marketing platform KKT for external advertisers, reported ET. This initiative was first launched in <keyword id="30033" type="COMPANY" weightage="80" keywordseo="Bihar">Bihar</keyword>, followed by <keyword id="6360371" type="COMPANY" weightage="80" keywordseo="Jharkhand">Jharkhand</keyword>, Uttar Pradesh, <keyword id="6355554" type="COMPANY" weightage="80" keywordseo="Madhya-Pradesh">Madhya Pradesh</keyword> and Rajasthan. The mobile-radio channel has been extended across India. 

	These are many areas in rural India that cannot be reached through TV, radio and print, but where at least one member of a family has a mobile phone. "These consumers are still significant contributors to the sales of FMCG brands. They also happen to be key growth markets for Unilever. Reaching out to these consumers with our brand communications and offerings remains a big challenge," an HUL spokesperson told ET. 
 KKT is the most popular radio station in Bihar. It works in a very unique way. Callers give a miss call on 1800-30-000-123 and in return the caller receives capsules of <keyword id="4578" type="COMPANY" weightage="60" keywordseo="entertainment">entertainment</keyword> that includes primarily local and <keyword id="143" type="CITY" weightage="80" keywordseo="Bollywood">Bollywood</keyword> music, with a strong preference for 90s movie hits, and comedy shows. 

	In the coming months, the channel will also air brand messages from other advertisers. But the company is keeping under wraps advertiser profiles, the exact nature of media deals and just how it'll affect programming, if at all, in the future. 
 

	"In the journey of taking Kan Khajura Tesan forward as an ever growing marketing platform we are now opening it up for brands beyond HUL's own. This will allow the platform to grow and help marketers reach out to media dark consumers who were difficult to reach before," the company spokesperson told the financial daily. 
 The campaign was conceptualised and executed in collaboration with media agency <keyword id="2798338" type="COMPANY" weightage="80" keywordseo="PHD-India">PHD India</keyword> and creative agency <keyword id="274876" type="COMPANY" weightage="80" keywordseo="Lowe-Lintas">Lowe Lintas</keyword>. 
	 
	(Image: Reuters)

HUL’s mobile marketing channel Kan Khajura Tesan is now open to all

<ul><li>As a D2C house of brands that’s going public, Honasa is a new IPO theme for investors.</li><li>HUL, Marico etc. are listed peers but it also has a lot in common with new-age companies like high advertisement expenses.</li><li>Honasa’s capex plans to go offline and customer acquisition cost can dent the profitability of the company, which has posted losses in FY23.</li><li>The company is catering to the premium BPC sector which in turn caters to the changing needs of the urban millennials and GenZs. </li></ul>If you are an investor who is tired of the same old consumer companies, there is a new theme in town. A direct-to-consumer or D2C company that houses several brands, Honasa Consumer, has taken the off-beat path of going public. “It can be a new IPO theme. There have been many D2C brands that were acquired by companies like Marico acquiring Plix, Beardo and Emani with The Man Company. This is the only one to go public,” says Preeyam Tolia, senior research analyst of FMCG &amp; Retail at Axis Securities. This ₹1,701 crore IPO, however, is also an acid test for direct to consumer (D2C) companies dreaming to go public. After the mixed reaction that many new-age digital companies like PayTM, Zomato and Nykaa received from the markets, most digital businesses are met with askance. Who are the peers? As a product creator, the company quotes HUL, Marico, Marico etc. as its peers. However, the company which produces its products via contract manufacturing, shares many traits with new-age companies. Honasa is one of the first-movers in the sector, and grew at a breakneck speed of 80% compounded annual growth rate (CAGR) for the last two years. In the crowded online BPC market, it managed to gain a market share of 5.4%, as per Redseer. It’s also in the most alluring businesses of the times. The BPC sector itself is expected to grow at a CAGR of 10% between 2022-27, the consulting firm says. It’s also establishing exclusive brand outlets (EBOs). But, it’s primarily a digital company that’s true to its nature. “We follow and listen to consumers and use the data to create new products. For example, our onion-based hair care products are based on the advice that most people receive as an antidote for hair fall. But people also pointed out that it’s tough to extract and use. That’s how we created it,” explained Varun Alagh, founder and CEO of Honasa Consumer at the company’s IPO press conference. In addition to its flagship, it has expanded its portfolio by incubating three brands and acquiring two more. It now has The Derma Co, Aqualogica, Ayuga, Dr Sheth’s and BBlunt (salons and products) – all catering to the new-age Indians who love tailor-made products. The ad-burn conundrum Honasa had to spend a lot of money to market the uniqueness of its varied products to the right consumers via online and offline channels. Its ad expenses stood at 34.99% of its revenue from operations as of June end. Experts say that it’s normal for a D2C company like itself. “D2C brands require a lot of advertising and promotional spends. They do need to invest in scaling up brands and they have been able to because of PE funds. But in a listed environment, it’s too early to comment on how they will fare,” comments Tolia. A large chunk of the net proceeds raised from the fresh issue will go towards ad expenses. It intends to spend more towards physical presence like more EBOs and BBlunt salons. That’s good for the brand in terms of customer acquisition cost, but in the long run. “As the brand scales, the company is looking to connect consumers offline. A large part of the revenue decline is concentrated in its D2C website and app, where CAC (customer acquisition cost) is considerably high. As consumers shift to the offline mode, CAC needs will also reduce,” said a report by Emkay. According to a Redseer report, most investors into new-age companies are confused about their business models. They’re unsure of which bucket a company falls into, especially when they go online to offline. They’re positioned online but grow offline. These are different models cost and growth-wise, it said enumerating investor concerns on startup listings. Moreso, the company had taken an impairment hit due to its subsidiary Momspresso in FY23, dragging it into losses to the tune of ₹150.9 crore. It had posted a profit of ₹14.4 crore in FY22. Its high expenses makes it tough to get back to the profit path, say analysts. “The company's focus on product development and innovation R&amp;D may impact short-term profitability due to high advertising expenses and capital expenditure,” says Prashanth Tapse, senior VP of research at Mehta Equities. What’s in it for the investors? The IPO is a combination of fresh issue and offer-for-sale (OFS). But the size of the fresh issue is much smaller than the OFS by promoters and other selling shareholders who will take a lion’s share of the intended fundraise of ₹1,701 crore. “New investors should be cautious as the IPO includes fresh share issuance of ₹365 crore and a low promoter stake of 37.41%. Conservative investors may wait and watch, while risk-takers can consider long-term investment for potential growth. However, the IPO appears to be overvalued in the current market conditions, and historical listings with high valuations have often faced post-listing challenges,” opines Tapse. Emkay too has broken its opinion on the company into three different scenarios — all based on how much of its past growth it can keep up with. If it’s able to double its turnover in three years, it’s an attractive investment. If it can keep up with its 20% revenue CAGR, it can be defined as ‘fair’, but if its revenue grows under 10%, then it’s an expensive investment. It all boils down to how far and clearly investors can gaze into the crystal ball.

Honasa Consumer’s D-Street debut an acid test for D2C companies

<ul><li>Consumers are looking for toxin-free beauty products, and those that suit their specific skin colour.</li><li>They also choose brands based on ingredients, with prominence of genderless beauty and more.</li><li>Pure play beauty and personal care companies are capturing these trends better than their FMCG peers. </li></ul>Gone are the days when every second home housed the same popular shampoo, face cream and soap brands. The new-age consumers, driven by the rising incomes of the middle class, seek beauty products that offer personalization – instead of buying off the rack. A report by <keyword id="3359665" type="General" weightage="80" keywordseo="redseer" source="Orion">Redseer</keyword> and Peak XV says that consumers are looking for toxin-free products, products that suit their specific skin colour (as opposed to fair &amp; lovely preferences); with an increasing prominence for genderless beauty. There is also a trend wherein consumers are making ingredient-specific purchases, the report adds. Moreso, they are also exposed to tech that allows for customization into products like serums which can make the ‘best fit’. "From acne management to anti-ageing solutions, specialized use cases are where we're seeing a lot of the action. Brands are spending a significant portion of their resources and organisation bandwidth on new product development, R&amp;D, and customer insights to drive more efficacious products to a targeted audience," says Sakshi Chopra, MD, Peak XV. The market share of such specific use case products is expected to be around 60% by 2027, Redseer predicts. “Globally, there's a growing need among consumers for products 'made for them', tailored to individual skin or body types. They are increasingly willing to pay premiums for effective and safe solutions, leading to rapid growth in the masstige and premium categories,” said Rohan Agarwal, Partner, Redseer Strategy Consultants. Skin in the game So, who is winning the game that’s rapidly changing? Undoubtedly, pure-play beauty companies have more skin in this game — like L'oreal, Honasa (Mamaearth) and <keyword id="6376684" type="General" weightage="20" keywordseo="nykaa" source="Orion">Nykaa</keyword> as opposed to HUL. The average revenue growth that pure-play BPC companies saw between 2022-2027 is at 10% – that’s five times what FMCG companies in the business see, at 2%. They already have 33% of the market – which is expected to rise to 42% by 2027. The reasons for their ability to disrupt the market are many. For one, pure play companies are able to capture the trend of moving to masstige and premium products better with faster R&amp;D and product development. Some of them have been able to shorten time to market by 50%, the report says. This way, they are able to target a greater number of specific use cases — helping them curb a larger share of the rapidly fragmenting market. As the market breaks off from being ‘mass’, the channels to approach them are just as important as the product itself. Fortunately, a large chunk of these new-age customers are already online. The Indian BPC market is at $30 billion and a third of it — $10 billion is purchased online. There are over 150 million online BPC customers in India. A lot of successful beauty brands are not content on just ‘being online’ and offline – they’re meeting their customers via live commerce, VR/AR stores on metaverse and more. German company <keyword id="244393" type="General" weightage="80" keywordseo="beiersdorf" source="Orion">Beiersdorf</keyword> launched a personalized AI powered D2C brand using data from multiple customer surveys. Pure-play brands also spend a lot more on marketing as they build brands by educating and creating awareness — clinching the secret to make people feel good as well as looking good.

Beauty is in the detail: How tailor-made products are taking over the market

Nestle India’s Maggi might have to see some more downfall. The instant-noodles, which is badly affected due to lead and MSG controversy, may also lose Rs 2,000 crore brand tag this year. 
 There are handful of brands in FMCG industry that have reached Rs 2,000 crore mark and <keyword id="726194" type="UNKNOWN" weightage="100" keywordseo="maggi-noodles">Maggi noodles</keyword> had even crossed it a few years back. 
 
But due to the recent controversy, Maggi could slip from the club and the negative image attached to the brand is having a rub-off effect on other Maggi products as well. 
 
Economic Times reported that the Rs 2k crore club was growing stronger with the inclusion of Lifebuoy, an over 100 year old brand, Surf, Wheel and Rin from Hindustan Unilever (HUL), Aashirvaad and Sunfeast from ITC, Tide from Procter &amp; Gamble (P&amp;G) and Amul Butter. 
 
Other brands that fall in the Rs 2,000 crore bracket include Horlicks, Fair &amp; Lovely, Colgate, Ghari, Cadbury Dairy Milk, Thums Up and Sprite, among others. 
 
A senior analyst from an Indian brokerage house told the financial daily that the high-consumption categories, the percentage spend of the consumer's wallet and competitiveness determines the size of the brand. 
 
For instance, ITC is a big brand in cigarettes as it has a dominant presence; diary, on the other hand, is a huge-consumption category. “Amul Butter, which is a dominant brand in the category, has become a Rs 2,000 crore brand this year. Its impactful advertising, where the spend is minimal (less than 1% of turnover), has helped the brand in achieving this milestone,'' R S Sodhi, MD, Gujarat Cooperative Milk Marketing Federation, which markets Amul told ET. 
 
Even Maggi was for the longest period, the only player in the category. “For some brands it is very easy to touch Rs 2,000 crore or Rs 5,000 crore sales because of the category they are present in,'' the analyst told ET on the condition of anonymity. 
 
Maggi will certainly have to do rigorous campaigning to regain its lost ground in the country and past glory. 
 
(Image: Indiatimes)

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