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HLL launches Aviance cosmetics for direct marketing niche

Neena Haridas in New Delhi

Hindustan Lever Limited is going in for a nationwide launch of Aviance, its premium range of cosmetics.

HLL claims that it will provide "customised beauty solutions" through their consultants. In other words, Aviance would mean another direct marketer – a la Avon and Oriflame.

HLL giant launched the Delhi arm of Aviance today, and hopes to have a nation-wide presence by January. Aviance, with about 70 products, is targeted at the premium segment of the skincare and cosmetics market. The fast moving consumer goods company has annual growth potential of 10-15 per cent, according to HLL.

The total skincare and cosmetics market is guesstimated to be anywhere between Rs 2 billion and Rs 3 billion, of which one-third is accounted for by the premium segment.

With international brands such as Avon, Oriflame and Chambor well entrenched in the direct selling market, it could be a tough ride for HLL, say market analyts.

But HLL is confident and claims that it will initially target the top one-third of the market -- that is about 2.5 million households. Aviance business head Anil Chopra says, “Our target customers are already aware of direct marketing and the different brands that are available in the market.

"Cosmetics and skincare products have a good existing penetration in the market, but we found that there is great potential to increase usage. And this is where out trained consultants will come into play.

“Cosmetics is something that is very personal to a woman. She always wants to know more about the product before actually buying them.

"And our beauty advisors will educate her about our products. Our effort is to develop a make-up regime for the urban upper- to middle-class women.”

But wouldn’t brands such as Avon and Oriflame have the first mover advantage? Chopra disagrees. “The point is not how many players are in the market, but how to grow that market. The cosmetics market in India is growing at 15-20 per cent every year. So is the premium segment that we are targeting. Hence we see a huge market that can be tapped and our strategy is to get the customer involved in the entire process of trying, buying and using.”

As for the reach, though Avon and Oriflame have more or less spread across the country, Aviance hopes to spread fast. Chopra hopes to place the brand in at least 20 cities by mid-2000 including Jamshedpur, Dehradun and Ludhiana in the north. The brand has already spread its wings in the west to Bombay, Pune, Surat, Ahmedabad and Baroda.

Besides reach, another problem that Aviance could face is that its products carry a much higher price tag compared to other direct selling brands. Aviance price tags range between Rs 85 and Rs 395 covering nail polishes to skincare products.

But Chopra does not feel price will be a deterrent because Indian women are quality-conscious and would not mind paying for it if they are given the right reasons to.

According to Chopra, the real problem in India is that per head consumption of skincare products is still much lower compared to the West and Europe. For instance, in Argentina, per head consumption of skincare products per annum is 136 ml while it is 130 ml in Thailand and 119 ml in Indonesia. Compared to this, Indian women really don’t indulge -- just 13 ml per year!

Vivek Mathur, marketing and sales head, says the top one-third of the market is lowest in consumption on value terms too because the frequency of buying is much lower.

Asked about the expected turnover, general manager (sales), HB Joshipura, said it was too early to say anything. According to director, personal products division, Harish Manwani, the range encourages greater ‘individuality.’

“Since the products are marketed through “beauty parties” (once the consultant has achieved a certain slot in sales), the customers are able to break their inhibitions as they are in groups. “We want to reach this critical mass and make a dent in the beauty market within six months,” he said.

The research and development include Unilever formulations sourced from 6-8 regional centres in different countries. The products, HLL claims, are meant to suit various climates and skin types, and have ingredients that either reduce oxygenation or enhance renewal.

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