The Hindu Business Line : A Perfect move?

TAKING a big leap forward, HLL's largest skincare brand Fair & Lovely has entered the premium skincare market with a new sub-brand, Perfect Radiance. Addressing a different cluster of consumers as Vivek Rampal, Business Head at HLL, describes it, it is expected to cater to the 10 million women consumers who have been waiting to use these products. These might also include the existing Fair & Lovely consumers as fairness is also a proposition included in this current sub-brand.

At the same time, HLL is clear that it is addressing a new set of consumers. "With our customised range we are looking at a different cluster of consumers who actually need these products," claims Rampal.

In fact, the Fair & Lovely brand in general has been segmenting its cream offerings in the past. The last time it launched a new variant, an oil-control gel, the company had claimed that it was planning to draw in new users through this variant.

The company is not afraid of cannibalising shares from its existing mega skincare brands such as Lakme and Pond's. "We are targeting a new bunch of women consumers and hope to bring in those incremental consumers who want to focus on skin lightening," stresses Rampal.

The technology used in manufacturing the Perfect Radiance range is superior to the existing Pond's and Lakme offerings and will compete more with the imported brands such as Vichy and Elizabeth Arden, which are present in the Indian market. The prices range from Rs 79 to Rs 225.

The premium offerings will not be seen with the rest of HLL's mass brands as the company has restricted the distribution to just about 150 retail counters across the country. "We have chosen a different distribution route for the Perfect Radiance brand which will be retailed at select outlets," says Rampal.

Indirect selling through opinion leaders is also being considered - the company has embarked upon a massive sampling exercise with these people, who could possibly influence consumers to buy the brand.

But there are still no chances of taking the brand to other countries in spite of the fact that Fair & Lovely already has a presence in 20 countries across the world. Working on this new range for over two years, it is HLL's R&D centre in India which has taken the international formulations from Unilver's Global Skin Technology Centre and combined it with ingredients best suited to Indian skin types and climates. "We work on different projects and on this one we have been working for over two years," states Rampal.

For a new and flawless face to go with the brand, HLL has roped in debutante actress Soha Ali Khan Pataudi to endorse the brand. Offering a bouquet of 12 different premium skincare solutions products, the Perfect Radiance brand is divided into three main groups - Cleansing, Daily Care and Special Care. All the products have been specifically formulated to re-activate the skin's radiance, while simultaneously working to lighten and tone the skin. The range comprises scrubs, creams, gels and lotions. Its Biolight Formula is reported to be researched and proven by Unilver Global Skin Technology Centre and is supposed to maximise skin lightening for visibly radiant skin. According to the company, the satin textures, pleasing colours and soothing fragrances of the products are expected to bring alive a spa-like experience.

Although it is too early to predict it, success, industry observers seem optimistic about Perfect Radiance's success. Claims an analyst from ICICI Securities, "Fair & Lovely has been gaining significantly in its shares in the skincare market. HLL has got its strategy right in terms of stretching the equity of its mega brand at the premium end of the market where it is likely to face some competition from the imported brands than the local ones."

Besides, the premium skincare market, although it may not be big right now, has been growing. Estimates from the House of Baccarose, which distributes premium international fragrances and cosmetics, peg the Indian beauty market at Rs 1,219 crore with a growth rate of 43 per cent between 1997 and 2003.

HLL is also planning to step up ad spends to promote the new sub-brand. Considering the premium nature of its offerings, it has, however, decided to restrict its ads to select media and already placed some in print. According to executives at Lowe, the agency handling the account, "Being at the top end of the skincare market, the advertising is going to be different from the mass image of the brand." However, the original appeal of fairness associated with the mass brand will remain the same even as it enters the premium end of the market. Claims the Lowe executive, "Fair & Lovely is all about changing the destiny of women and skin whitening is the process to achieving it."

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