2004/05

The Shampoo market

2004/05

The market figures

2004/05

The shampoo market represents a total of 535 million Euro. We are witnessing a

slowdown in its growth (+3% against +6% in 2002).

This mature market is therefore having to find new springboards for growth in

sophistication and the value of the product.

The penetration rate of the shampoo market is 95%

The provisional figures (Xerfi, hygiene and toiletries products, August)

Estimation of shampoo production in 2004: +18% (following a slower growth rhythm in 2003 of +12%)

2004/05

4%5%

2%

8%

10%

9%

10%

16%

19%

17%

2 in 1

Anti-dandruff

normal hair

coloured hair

dry hair

children

fine hair

greasy hair

anti-age

others

Division of shampoo sales depending on the different market groups (in %)

2004/05

With 90% and 91% respectively of users, Great Britain and Germany are the

countries who use the most shampoos.

Italy on the other hand register the weakest rate with 77% of users

The European market and its individual particularities

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Europe France Germany Italy Spain Great Britain

The number of shampoo users in the European countries (in %)

2004/05

The evolution of the market

2004/05

The market characteristics: competition and opportunities

The shampoo market is characterized

by its particularly competitive and aggressive

environment

The hygiene sector and particularly

the shampoo market remains with a

structurally solid growth despite a bad

consolidation and growing consumer price

sensibility

2004/05

Originally, shampoo had a basic usage but consumers have vastly changed

and evolved its status and image over the past few years.

Today, the range of products is more complete, the offer more and

more divisional and the target areas selected more and more specialised. The products

are more sophisticated and valorised by specific ingredients, a frontal approach for the

caring aspect and the creation of a concept. It should respond to the more precise basic

needs of the consumer, who is becoming more and more exigent.

The product status evolution

2004/05

The market growth in value is therefore linked to the politics of valorisation on all the segments

as well as the emphasis placed on the technical nature and innovation.

A mature market supported by innovation

Garnier Fructis Anti-Dandruff

A shampoo that eliminates dandruff after the first wash and which

prevents its re-appearance due to a zinc Pyrithiore formula.

Organics

Establishment of a shampoo specifically orientated for anti-age

capillary care with collagen E

Dow Corning HMW 200 non ionic emulsion.

The integration in the formula of an ingredient which leaves a

lasting fragrance of the shampoo on hair.

Elsève Solar: After sun renovation shampoo

Launch of an after sun shampoo which, due to a new Hydralium and

UV filter system, protects and repairs dry hair in summer.

EXAMPLES OF INNOVATIONS

2004/05

The market is therefore very dynamic and we are witnessing a great number of launches, re-launches, the creation of new sub-segmentations and new brands.

Therefore, during the first six months of 2004, the number of shampoo references increased by 5% in comparison with the same period of last year and the line size by 3%.

NEW RANGES

Herbal Essences- Procter & Gamble

The creation of the Herbal Essence mark,

range of 8 shampoos based on natural

ingredients.

Timotei Clear

Reinforcement of the Timotei range with the

launch of a menthol anti-dandruff shampoo.

Le Petit Marseillais Apaisant aux extrait

naturels de tilleul et d’iris bleu

The launch of an anti-itching shampoo.

Mennen Sport

The creation of a hygiene and caring range

(with shampoo, deodorants, shower gels….)

which touch on Olympian values and which

are constructed around the idea of energy,

performance.

Vivelle Dop- LaScad

The launch of a complete range of 4 shampoos

Temptation: Defended fruits for normal hair,

Extase rose for long hair, Ginger stimulating

for fine hair, Crazy citrus for greasy hair.

2004/05

Consumer needs

2004/05

Basic needs at the origin of the market The first basic needs of consumers are at the origin of the shampoo market. The

products are used for cleansing, alleviating odours etc. The qualities looked for

are efficacy, product performance (cleansing, purification, regeneration etc.).

More sophisticated needs

Today, basic needs are not enough for

consumers. They are more and more exigent and are

looking for a more personalized product, adapted to

their needs.

2004/05

Health and Care. Modern day life (stress, pollution, air-

conditioning, unbalanced diets etc...) damage the hair. Individuals

are increasingly concerned and turn to products where the

“innovation and natural technology” composition is important, to

protect their hair.

Well being has today become one of the

principal needs of consumers. The products should produce

pleasure and emotion and therefore make reference, most

of the time, to nature.

Colour protection. More and more women are

colouring their hair and are looking for products that

preserve their hair colour.

2004/05

The distribution circuits

2004/05

0,4

8,7

87,8

3,1

mass distribution

selectiv distribution

chemists

direct sales

Distribution of the total turnover figure for shampoos between the distribution circuits in

2003 (%)

Source: Xerfi, Toiletries and hygiene products, August 2003.

The large scale

distribution is in full evolution. In

2003, it realised 87.8% of the

shampoo turnover whereas the

other sectors were experiencing

progression difficulties (selected

distribution and chemists, with a

respective evolution of 0 and 0.3

point compared to 2002) or in

recoil (-1 for direct sales).

2004/05

The players and their brands

2004/05

The shampoo market is a very competitive and particularly dynamic market.

L’Oreal Paris is the market leader but the brands are continually fighting to obtain market shares.

TOP 12 IN VOLUME IN 2003

Elsève 15.5%

Fructis 10.3%

Ultra Doux 8.5%

Dop familial 7.3%

Jacques Dessange

6.1%

Timotei 4.6%

Palmolive 4.1%

Head & Shoulders

3.7%

Dove 3.7%

Organics 3.5%

Pétrole Hahn 3.3%

Pantène ProvV 3.1%

TOP 12 IN VALUE IN 2003

Elsève 18.1%

Fructis 11.4%

Ultra Doux 8.2%

Jacques Dessange

7.7%

Head &Shouders 6.5%

Dop familial 5.3%

Timotei 4.2%

Dove 3.8%

Jean Louis David 3.6%

Organics 3.5%

Pantène Pro V 3%

Pétrole Hahn 2.9%

Source: Cosmétique magazine, juin 2003

2004/05

The segmentation

2004/05

In the face of a consumer need ever more exigent, we are assisting in a hyper segmentation of the market which makes it particularly complex.

1. By sexWe are seeing the appearance of products targeted at men. This segment is in full

evolution and growing.

Mennen Sport

The creation of a new brand 100%

masculine. Mennen communicate on the

masculine values of sport and

performance.

Elsève Homme Shampooing Doux Re-

Densifieur au régenium XY

This shampoo responds to masculine

needs linked to hair loss with a product

which gives thickness and strength to

hair.

Head & Shoulders Pour Homme

Anti-dandruff shampoo for men.

2004/05

2. By age

This target is an essential element of the personal offer, notably for the younger population who need to be different and yet to be identified as a group.

Mennen Sport

Mennen Sport targets the 12-35 age

group with a colourful packaging and a

communication centred on sport.

Vivelle Dop

Vivelle Dop targets the 12-25 age group

with packaging of acidulous colours and

very modern fragrances.

Organics Anti-Age with collagen E

For mature hair.

Ptit Dop/ L’Oreal Kids

Very young target

2004/05

3. By use:

- Individual- Family (example:Dop- the family format)

4. By hair characteristics

4.1. Type of hair

- normal hair

Elsève Shampoo Soft Vita-Max Fructis Normal hair Herbal Essences Equaliser Tonic Organics Daily Éclat Ultra Doux with natural grapefruit and green tea extracts Ultra Doux with hydrating vegetable milk Jacques Dessange Tonic Eclat Timotei with herbal extracts Palmolive Naturals with Aloe essence Palmolive Detangle and Brilliance Le Petit Marseillais with natural apple and olive leaf extracts

2004/05

- Dry hair Elsève Fortifying Anti Split Ends Nutra-Ceramide Fructis Dry and Damaged hair H&S Calming Dry Scalp Herbal Essences Soft and Silky Organics Nutrition Softness Ultra Doux with walnut and peach leaf oil J. Dessange Extreme Nutra dry and damaged JLD Total Repair Dove Repair Sunsilk Duo Keratin

- Greasy hair

Elsève Energy Citrus CR H&S Citrus Fresh Herbal Essences Purifying Freshness Ultra Doux Mint Timotei with lemon extracts Palmolive lemon and vitamins Sunsilk Aqua Minerals Le Petit Marseillais with natural nettle and lemon extracts

2004/05

-Greasy roots and dry ends hairHerbal Essences Hydra Regulator

Fructis greasy roots and dry ends Jacques Dessange Soft Clay Timotei Equalising with raisin

-All hair type H&S natural menthol Timotei with almond extracts Organics Express 2 in 1 Dop egg shampoo Pantene Pro V Extreme Softness Dove 2 in 1 Palmolive Natural with green apple and orange extracts

2004/05

4.2. Other characteristics

- Dry hair with no volume Elsève Thickening Volume Non-Stop Fructis Fine hair H & S Extra Volume Herbal Essences Extra Body Organics Full Volume JLD Volume Express

- Blonde hair Ultra Doux camomile for blonde hair Timotei with camomile extracts John Frieda Blonde Highlight Activating shampoo

- brunettesTimotei Henna

John Frieda Brilliant Brunette

- Wavy/Curly hairPantene Pro V Perfect Curls

Sunsilk Aloe Serum for Wavy/Curly hair

2004/05

- Coloured hair

Elsève Colour Care with UV Nutra filter UV Fructis Coloured Hair Herbal Essences Colour Intense J. Dessange Colour Revival JLD Colour Guard Le Petit Marseillais with olive oil and natural poppy extract Timotei with cotton extract Ultra Doux Fig and Rose Oil Sunsilk Colour Nutrium Dove Brilliance Care - Mid-length and Long hair

H&S Smooth and Silky Elsève Doux Brilliance Alpha Jojoba Ultra Doux 2 in 1 with Vanilla Le Petit Marseillais with natural pear and oatmilk extracts Fructis Long and Strong

2004/05

5. By promise

- Hydrating shampoos (Dove, Neutralia)

- Nutritive shampoos (Fructis)

- Treatment shampoos :

Anti-dandruff (Head & Shoulders, Elsève Ultra Doux with natural extracts of thyme

and blue eucalyptus, Herbal Essence, Organics, Timotei Clear, Palmolive…)

Anti-itching/calming (Le Petit Marsellais)

Anti-hair-loss (Elsève)

- Smoothing shampoos (Pantene Pro V)

- 2 in 1 shampoos (Dop, Dove, Head & Shoulders)

- Shampoos advertising highlights, brilliance (John Frieda)

- Anti-age shampoos (Organics)

2004/05

Appearance of a new segmentation: by season

- Summer:

Elsève Solar Hydralium and

UV filter system

Jacques Dessange (UVA and

UVB filter, with extracts of

vegetable and algae

vitamins)

- Winter: Wella anti-static shampoo

2004/05

The general olfactory trends

2004/05

The flowery and fruity notes are

very much present on the shampoo market. Simple

and natural, they give a fresh and soft appeal. Two

notions very important on the shampoo market.

The benefits of aromatherapy and

essential oils on the scalp intervene more and more in

the olfactory note of the shampoo. The aromatic and

hesperidia notes convey the notions of freshness and

cleanliness. Le Petit Marseillais Anti-Dandruff shampoo – myrtle and eucalyptus

Ultra Doux shampoo with lemon/olive oil for dull and dry hair

Elsève shampoo for mid-length/long hair with flowery/fruity notes of banana, blackberry and jasmine.

2004/05

The fern notes, woodland

and marine are also very much present; they

are addressed particularly at the masculine

consumer.

The avaricious notes are

equally present on the market. They convey

the notions of well-being and exoticism. We

find them for example in the summer

shampoos with sun protection.

Elsève Anti-Dandruff shampoo for men

Elsève Solar shampoo with a fondant texture and an irresistible perfume with avaricious notes.

2004/05

To each type of shampoo … its own olfactory family

Anti-dandruff and treatment shampoos

The notes are above all aromatic (thyme, eucalyptus, mint) but hesperidia notes are equally present. These fragrances evoke freshness and cleanliness and also the appeasing and caring side of the product. The woodland notes are likewise present.

Greasy hair shampoos

The notes are above all hesperidia (lemon in particular, grapefruit, orange…)

The green notes (apple, tea) and aromatic are equally present. They convey freshness and cleanliness (purifying effect) but also dynamism and energy.

2004/05

Dry and dull hair, reparative and nutritional

The notes are soft, fruity, flowery but

equally avaricious (caramel, coconut, vanilla, honey). The

hesperidia notes are equally present for freshness and

cleanliness.

Hydrating, soft shampoos

The notes are very cosmetic and

evoke softness. We find therefore, milky, flowery

(rose) and fruity (peach, pear) notes. They evoke

cotton, cream, silk, almonds, vegetable milk.

2004/05

Brands and products – market positions

2004/05

Shampoo Softness & Care

Shampoo Nature

ShampooTechnicity

Shampooing Pleasure

Shampooing Family

Shampooing Treatment

& Health

2004/05

Shampoo Softness & Care

Hair contains 10% water and as for skin, this

quantity is essential for its health. Whatever the hair type,

it needs hydrating regularly to stay beautiful. In fact, the

more the scalp is hydrated, the better it resists to exterior

aggressiveness (brushing, hair dryers and pollution).

Soft and caring shampoos gently respect the

hydration of the scalp and allow the hair to rediscover its

vitality, strength and brilliance.

This type of shampoo is addressed to all hair types. It allows

the gentle preservation of coloured hair, brings softness and appeasing

care with anti-dandruff shampoos and also more softness for longer hair.

2004/05

Shampoo Softness & Care

Their formulas are soft, derma-

protective, pH neutral and hypo-allergenic

(Neutralia).

This type of shampoo could contain

hydrating milk (Dove formulas contains ¼ of

hydrating cream) and is often associated to

softening ingredients such as almonds,

vegetable milk and Aloe Vera. The texture is

therefore creamy, unctuous and calls to mind

silk and cotton. This particularity is found at

the olfactory note level which is very cosmetic

and soft.

The brands

Dove

Neutralia

Ultra doux

The products

Total Softness shampoo from Neutralia

Anti-Dandruff and Care shampoo from Neutralia

Ultra Doux with hydrating vegetable milk

Dove Moisturising Milk shampoo for dry hair

Dove 2 in 1 shampoo for all types of hair

2004/05

Shampoo Nature

Nature is used in numerous ways on the

shampoo market.

This type of shampoo puts forward the

virtues of natural ingredients on the hair:

nourishing, fortifying, balancing (notably with

citrus fruits for greasy hair), hair-lightening,

calming (for anti-dandruff shampoos with aromatic

ingredients) reparative ….

2004/05

Shampoo Nature

The brands

Fructis

Palmolive Naturals

Timotei

Ultra doux

Le Petit Marseillais

The products

Fructis Fortifying Hydra-Smooth

Palmolive Natural Vitality and Brilliance with green apple and orange extracts

Timotei with raisin extracts (greasy roots and dry ends)

Ultra Doux with natural grapefruit and green tea extracts

Le Petit Marseillais appeasing with lemon tree and blue iris extracts

Nature is associated with

softness and caring but can also be

associated with well-being and pleasure.

On an olfactory level, the

notes evoke the multiple facets of

nature: freshness, cleanliness, well-

being, exoticism etc.

2004/05

Shampoo Pleasure

This new type of shampoo

corresponds to the new needs of the

consumer, searching today for pleasure, well-

being, a poly-sensorial experience. The

shampoos offer, therefore, fragrances and

textures that wake up the senses and offer the

consumer the chance to dream...

Shampoos are consequently becoming an experience, an

agreeable moment for the consumer. The product is appreciated

above its cleansing characteristics and performances.

2004/05

Shampooing Plaisir

The brands

Herbal Essences

Vivelle

The products

Vivelle Gingembre stimulant

Vivelle Extase de rose

Vivelle Fruits défendus

Vivelle Folie d’agrumes

Herbal Essences Douceur et brillance (aux extrait d’églantier, jojoba et thym)

Herbal Essence Hydra régulateur (aux extraits de bleuet, aloé vera et écorce de cerisier)

Herbal Essence Tonic Equilibre (aux extraits de camomille, aloé vera et passiflore)

Nature is omnipresent to evoke pleasure. It allows the link

between the virtues of natural ingredients (notably herbs and flowers

for the new brand Herbal Essence) and an agreeable perfume.

The notes trendy and young (notably acidulate and sparkling)

are restored with the current flavours (Vivelle).

2004/05

Shampoo Treatment - Health

These shampoos could be anti-dandruff,

dry scalp relief, hair-loss etc.

Their formulas are extremely soft and

allow for daily washing

They are usually associated with

aromatic notes (Thyme, Eucalyptus, and Mint) to

evoke freshness and cleanliness and equally the

calming side of the product or the soft flowery or

fruity notes for the caring side.

2004/05

Shampoo Treatment - Health

The brands

Head & Shoulders

Pétrole Hahn

Elsève Homme

The products

Pétrole Hahn Force The Original Green

Head & Shoulders Classic

Head & Shoulders Freshness with natural menthol

Head & Shoulders Citrus Fresh

Elsève Anti-dandruff for Men

Elsève Thickening shampoo for Men

2004/05

Shampoo Technicity

This type of shampoo puts forwards the creativity, the

technical aspect and the efficacy of the products and their formulas:

silicones, magnesium salts, vitamins, UV filter systems, purifying

agents, concentrated essential oils, serums etc.

These shampoos reinforce, fortify, repair, protect, revitalise,

purify, nourish and relax the hair.

Specific formulas are appearing to respond to the new

preoccupations: curly hair, smooth hair, anti-age formula, sun

protection, shampoo for blonde hair etc.

2004/05

Shampoo Technicity

The brands

Elsève

Pantène Pro V

Kéranove

Jacques Dessanges

Jean Louis David

John Frieda

The products

Organics Anti-Age with Collagen E

Organics Hydra Purity

Elsève Solar

Elsève Intensely Smooth

Kéranove Hydra Purity

Pantene Pro V repair and protective care

Sunsilk Volume shampoo

Sunsilk Aqua Minerals shampoo

Sunsilk for Perfect Curls

Jacques Dessange Active Termo

Jean Louis David Total Repair

John Frieda Highlight Activator

2004/05

Shampoo Family

The brands

Dop

The products

DOP Egg Shampoo

DOP Soft Vanilla

DOP 2 en 1 Soft Almond

This type of shampoo is targeted

at the whole family with an economic price,

large bottles and simple olfactory notes,

agreeable and appreciated by all.

The offer is not largely segmented and

responds to the most basic requests. The

formulas are usually soft and apply to all

hair types.

2004/05

The trends to follow

2004/05

The hyper segmentation

Consumers are looking for targeted products to

which they can correspond. The idea of belonging to a

group and to be, at the same time, different is a strong

consumer tendency. The segments follow therefore the

particular strong growth areas:

- Products for men

- Products by age section (for example 12-25

years)

- Products for blondes/brunettes

Nature

This is a particularly strong axe in the

beauty hygiene sector. It represents numerous

symbols: softness, well-being, freshness etc.

Consumers appreciate natural components and the

natural trends (products with essential oil bases

highlighting quality raw materials) seem the most

interesting to follow.

2004/05

Pleasure and well-being

This tendency corresponds to the new consumer requests, looking today for pleasure, well being; a poly sensorial experience.

The shampoo products inspire spa or aromatherapy concepts.

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Collection

FloressenceShampoos

2004/05

For men shampoo:NEW MAN 34337

For a particular type of hair:

- normal hair:CLAIRBAL 34363D

CLAIRY 34009B- dry hair:

NUTRI 34263G

- greasy hair:APPLEMINT 9483B

2004/05

For particular characteristics:

-coloured hair:ACTIFCOLOR 34032C

- brunettes:ANITA 34331H

For particular promises:

- hydrating shampoo:HYDRA 34021D

- solar shampoo:SOLAR 34385D

- anti-dundruff shampoo:NO PELL 34421DANTIPELL 34342

2004/05

This publication is for information purposes only. It is not

exhaustive. This document cannot be used for a publication without

mentionning the origin.

Marketing Department