EMERGING MARKET FOR BODY SHOWER GEL

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Until recently, there has been a rising demand for Body Shower Gel as opposed to the traditional bathing soap. More and more sales of the commodity by supermarkets and beauty shops across the country is a true testimony of the current market trend-which is often in tandem with the current lifestyle changes of the middle and upper class who constitute the highest market for consumer goods and of course with the highest buying power.

Kenya, as the regional economic super power, has in the recent past metamorphosed into a developing economy with its trappings of improved livelihood, selective preference and socio-economic empowerment witnessed in the IT sector, Education Sector, Beauty and Fashion industries. Beauty industry is the leading consumer for this new development. An average Kenyan lady spends 40% of her income on beauty. The remaining 60% goes into shelter, food, education and health. This spells a bright future for the cosmetic industry and this is proved by the recent buyout of Nice & Lovely by a leading multi national cosmetic company-Loreal. Another indicator for the growth of this sector is the mammoth influx of beauty products into the Kenyan market from abroad. A casual look into all the Kenyan supermarkets will reveal how hundreds of new cosmetic brands have crowded the shelves in the recent past.

Clear Body Shower Gel Stealing the Show.
The shocking growing demand for Body Shower Gel has left traditional toilet soap manufacturers in awe and thoughtful. But what has led to this revolution?

We have been able to establish some 7 facts about preference of Body Shower Gel over the traditional Beauty Soaps.

Fact No.1. Body Shower Gel is highly preferred in areas with hard water because of its ability to wash and foam-unlike the traditional soaps which form scum and poor lathering in such water.

Fact No. 2. Body Shower Gel is more durable than traditional Soaps. 200mls can take an average consumer 5 weeks as opposed to two weeks for the 200g bath soaps. A single squirt of the shower gel on a bathing towel can do entire body wash.

Fact No. 3. Body Shower Gel is a sign of affluence. The current changes in lifestyle has seen more people endeavoring to live a hyped affluential lifestyle.

Fact No. 4. The general public is becoming more aware and concerned about their health, skin appearance and looks. Their U-turn into the Body Shower Gel is driven by the fact that this product (Body Shower Gel) has the perfect answer to healthy looks and appearance of their skin. This is because the body wash has the advantage of incorporating skin goodies such as Lactic Acid, Essential Oils, Panthenol (Vitamin B5), and Humidifiers-something that the traditional bath soaps cannot incorporate. Therefore, to them, Body Shower Gel is the ultimate answer to their quest for beautiful, young, nourished, healthy skin

Fact No. 5. Body Shower Gel is more economical as compared to the traditional bath soaps. Though it is essentially expensive (good news to the manufacturer), the economic benefits outweigh the pricing of the commodity.

Fact No.6. The executive hotel lodgings all over the country are catching on in this new trend of consumer taste as a way of wooing and maintaining their valued clients.

Fact No.7. Many shops globally are stocking Body Shower Gel in trying to cope with the current global demands for finer things. This in turn is fuelling the popularity of the product all over the world. Remember how Lush popularized the Vanishing Cream?

The bad news about venturing in this new market is that the larger part of the potential market is not yet aware of this new product. However, the good news about venturing into this market is that it is an emerging market, and that, within a short time (as per the current global market trends), there will be an explosion of (Body Shower Gel) into this market. Only those who will have started manufacturing-be it on small or medium scale-will rip off the benefits of an exploded market. Secret: Never mind when the market will explode. Why? The big multi national cosmetic manufacturers are well on the way into promoting this new product through their established networks and media. And once they do so, they will create mass awareness and huge mad market rush will emerge. For the younger manufacturer-to-be like you, your sales will ride high on the popularity created by the big firms. (It will be like the hyena that is left to eat the meat of a dead buffalo after King Lion kills and drinks the Blood) The local beauty shops, small convenient stores on upscale countryside, the wholesale shops in the neighborhoods will provide an easy launching pad for your product.

Dynamics in Product Sale and Market Take-over.
Will Cussons or Proctor & Gamble or an Indian Manufacturer bring their Body Shower Gel brands in the canteen at your village estate? NO. Probably, a Local Distributor, buying on wholesale will do that, but it is you to approach that Local Distributor to take your product! Give him a good profit margin better than what they get from the big (selfish) firms, and he/she will shun them. Again, given the heavy investments required in securing tenders to supply these products from the big multi-national companies, the local distributor will find it easy dealing with you than them. He can even get several dozens from you through a credit-something that he (the Distributor) can NEVER get from them. Traditionally, it is the big market players that pave way for emerging market players. Capitalize on their weakness and earn big. Nice & Lovely took this advantage and in no time, they became the local market giants in beauty products. The level at which you start this new business does not matter. (There are many more examples but the space to discuss them here is limited). It is the quality and the right branding that matters.

Making A Quality Body Shower Gel.
A standard Body Shower Gel contains a minimum of 12 ingredients. It can be opaque but pearly or a clear gel. Many people prefer the clear gel type because it has a cosmetic value attached to it. It must have the acceptable pH range of 5.5-6.5. It must be high foaming, lathering and non-drying to the skin after bathing. In other words, it must leave the skin of the user feeling supple, humid and refreshed.

Cost of Production: A 200ml will cost anything between Ksh. 4-9 to make it. It will be Ksh. 4 if you source your ingredients at wholesale price and Ksh. 9 if you buy your ingredients at local chemical shops on retail prices. An average Sale price for the Body Wash Gel at the supermarket price is Ksh. 180-280. South African brands fetch the Ksh. 280 mark at the local supermarkets. With Ksh. 9 being the initial cost of production, add Ksh. 8 for a container, Ksh. 1 for the label and 20% of the Total Cost of Production on Indirect Costs (Electricity, Labor and Transport-about Ksh. 4/-) and you will gladly find out that your Total Cost of Production for a 200ml Body Shower Gel is Ksh. 22/-.

What a nice investment! If the competitors are selling their Body Shower Gel at, say Ksh. 180, sell yours at 170. The Ten bob discount means a lot to a consumer. If they are giving the Local Distributor at, say Ksh. 160, give him at 155. To the Local Distributor, 5 bob is a very big margin profit. He will trade with you and not them. If you are the one producing and selling them solely, aim to sell as many as 100 containers during the first month of production. Eventually, you will find that, as time goes, while establishing your customer base, you will be giving away the 100 containers of your brand every week, gradually turning it into days (100 containers daily). Once you gain this control, you will start realizing the true benefits of entrepreneurship. This might take 3-5 months and therefore patience and persistence is a discipline required here.

Now, assuming that you are selling out 100 containers of Body Shower Gel daily in your first 4 months, and that the Net profit for every container is Ksh. 150, then it is safe to say that you are making a cool 15,000 bob daily. This is by no means a feat less celebrating about. For those who would engage Local Distributors, the daily earnings will grow ten fold. You will now call yourself a Manufacturer! While the big multi-national firms are taking ages for their price review and new market strategies (because of the nature of grippy red-carpet internal policies), you will be determining and controlling the market trend by yourself because as a sole proprietor, you will be alot flexible when it comes to personal decisions at your firm. This is how the world billionaires like Bill Gates, Richard Branson, our own Dr. James Mwangi, Dr. Manu Chandaria, Dr. S.K. Macharia, Naushad Merali and Tabitha Karanja, etc. made it.

As I said earlier, this is an emerging market. Get grip of it! Be ahead of your peers. If you wont, others will.

We have been offering professional training on formulation of Clear Body Shower Gel and the training package includes information on how to do top-of-the-range branding, where to acquire certified raw material and how to register your product with the Kenya Bureau of Standards. We also have a booklet on the standard formulation procedure for the same.

Call our marketing manager on office mobile no. 0723424240. You can engage us through WhatsApp. Did you know that you can acquire Bar Codes for as little as 200 bob for each bar code?

What a brighter way to start the New Year as a manufacturer!

This report is also recommended for students doing their research study into related fields. Download this page and go over it many times.

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Cosmetics & Detergents Kenya Limited.

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