Per capita consumption of personal care products is on a rise. This statement alone says many things about the growth of the personal care products industry segment. Most of the big players are following a simple strategy, in the first step they are coming up with a star product and later on, they are launching new products and creating a range of the products around it. This industry sector thrives mainly on brand loyalties. The premium segment of the users is brand conscious. For them, it is a matter of a style statement that they are creating when they are enjoying proximity to individuals.
The second type of the users are generic users, these users are price conscious and seek better deals. The frequency of these users is uncertain. It has been observed that the journey of the personal care products starts from the use of the cosmetics. This is why most of the cosmetic companies always enjoy this upper hand where they can launch a product and increase their range.
Big medicine companies are also eyeing this segment, it can be termed as an above the line vertical for them because medicated personal care products are leading the market and emerging as the next big solution. A toothpaste and a medicated toothpaste, the addition of the word medicated gives them a license to compete in a different market segment altogether.
In general, an investor should check the profile of a company based upon the consumer loyalty index attached with the offerings. It is the key factor; in the past, we have seen many hostile takeovers in the market where a big company with a deep pocket has taken over a smaller but successful company by purchasing the credibility of the brand name. In any case, an investment in this sector is safe and it can bring big surprises in the future if all the cards are placed sensibly.