Understanding perception of consumers and dermatologists is essential part of pharmaceutical and cosmetic business strategy. Whereas to understand perception of pharmaceutical and cosmetic companies view toward cosmeceutical category is important for future market growth. In this chapter perception analysis of consumers, dermatologists and companies is analyzed toward cosmeceutical category. The detailed analysis is divided into three parts. In Part-I consumers perception toward cosmeceuticals is studied. In Part-II perception analysis of dermatologists toward concept of cosmeceuticals is discussed. Whereas in Part-III views of company experts on scope, potential and hurdles faced by cosmetic and pharmaceutical industry with respect to cosmeceuticals is discussed through a questionnaire based survey. Part- I: Consumers perception toward cosmeceuticals 3.1.1. Introduction The demand for luxury cosmetic products known as cosmeceuticals, particularly in urban population is steadily rising owing to various reasons, such as, mall culture, better purchasing power, concern for better looking, by men and women, nature of the job, development in advertisement technology and in general, availability of a wide range of products [1]. Understanding and knowing Indian consumer behavior is never simple. Companies should understand needs and wants of consumers, identify preferences, and accordingly customize the business operations. Consumer skepticism is a challenge for cosmetic industry all the time. Consumer buying decision involves complex processes [2]. Considerate behavior of consumers is a key to the success of business organizations. Marketing people are constantly analyzing the perception, patterns of buying behavior and purchase decisions to predict the future trends. Perception is a mental process, whereby a person selects data or information from the environment, organizes it and then draws significance or meaning from it [3]. Consumer perception theory is useful to understand how a consumer behaves, react or respond to a particular product or services. The process by which consumers make purchasing decisions must be understood to develop strategic applications. Consumer behavior can be explained as the analysis of how, when, what and why people buy [4]. 3.1.1.1. Characteristics of Indian consumer behavior For any marketers to study Indian consumer is very crucial aspect. Indian consumers are branded as high grade of value orientation. The study of consumer behavior is the study of how individuals make decisions to spend their available resources (money time effort) on 29
consummation related items. It includes the study of what they buy, why they buy it, how they buy it, when they buy it, where they buy it and how often they buy it [5]. The way Indian consumers are spending their money on overall cosmetic products in recent years has changed. Cost-conscious consumers in India are changing their mindset about luxury cosmeceutical products. More and more consumers do not mind spending extra on beauty care and health care products, due, largely, to an increase in income at every level of society leading to more disposable income [6]. In cosmetic industry study of consumer perception is having significant importance, as it reveals why consumers make the decisions they do, and how they influence these decisions. The present study analyzed the perception of Indian consumers toward cosmeceuticals. 3.1.2. Objective To analyze consumer perception toward cosmeceutical products in India. Survey was carried out among the consumers mainly to understand the following aspects: To assess usage of cosmeceutical products Determine the purpose of using skin care products To find out whether consumers consult or seek advice from dermatologist To study spending pattern on skin care cosmeceutical products To assess usage of natural cosmeceutical products To know whether consumers read cosmeceutical ingredients on the label To analyze awareness level about animal tested cosmeceutical products Determine the factors which encourage consumers to use cosmeceuticals Determine the place from where consumers buy cosmeceutical products To find out the reasons for selecting places of purchase for cosmeceutical products Whether consumers agree with the product claims made by the manufacturers To assess how cosmetic advertisement influence and inspire purchasing decision To find out co-relation between price and quality of product To find out whether consumers had come across any adverse reactions To determine satisfaction level of consumers about using cosmeceutical products 30
3.1.1. Research methodology Data sources Primary Data Secondary Data Type of study: Exploratory Self-administrated questionnaire Research articles Review articles Sampling Unit: Consumers Correspondence and Views Age 15-55 & above Sample Size: 940 Newspapers and Magazines Sampling method: Non probability convenience method Authentic websites Analysis and Interpretation Figure 3.1.1. Research methodology. A research design (fig. 3.1.1.) is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and solve marketing research problems [7]. 31
Components of research design Information needed Information regarding consumer s perception about cosmeceuticals was sought to know the basics involved in cosmeceuticals. Information regarding buying pattern were explored during the study. Type of research design Research design type used in this work was exploratory and not conclusive. The primary objective of exploratory research is to provide insights into, and an understanding of the problem confronting the researcher [8]. The primary objective of study was to provide insights into and comprehension of the problem situation. Data collection Data was collected through primary research and secondary research. Sample size Target sample size was 1000. Final sample size which was used for evaluation was 940. Total 60 respondents questionnaire were excluded for analysis as they were not qualified because of some unanswered questions. Data analysis It was done considering the characteristics of the data. The data obtained is edited, classified and put in as tabulated form to make it understandable and presented with help of charts, diagrams and graphs etc. The data was analyzed by using chi-square tests. Qualitative exploratory research Qualitative exploratory research methodology was followed with a small sample size to have a preliminary idea of the problem. It was direct approach (nondisguised) where the purpose of the study was disclosed to the respondents. Data Primary data Primary data were obtained with the help of structured questionnaire. Secondary data Secondary data were obtained from published literature in medical and management online and print journals, newspaper, magazines, opinion articles and news items from the internet. Sampling design Sample, a subgroup of the elements of the population was selected for participation in the study. Sampling technique used for the study was nonprobability convenience sampling, which relies on the personal judgment of the researcher rather than chance to select sample elements. The consumers were interviewed at the leading cosmetic shops, college campus, and shopping malls belonging to ten cities of India, out of which, eight are metro cities viz. Bangalore, Mumbai, New Delhi, Kolkata, Ahmedabad, Pune, Nagpur, Hyderabad, Manipal, 32
and Mangalore. We decided arbitrarily which elements to be included in the sample. Final sample size used for evaluation was 940 out of 1000. Questionnaire design A questionnaire (structured technique for data collection consisting of a series of questions, written or verbal, to which respondents reply) which consisted of formalized set of questions was used for obtaining information from respondents. Questions were carefully framed to minimize the element of bias and errors. There were 15 questions in total which answered research questions. 3.1.4. Results and Discussion Variable Table 3.1.1. Demographic characteristics of the respondents (%) Gender Age (in years) Occupation Male Female 15-25 25-35 35-45 45-55 Student Professional House City wife Manipal 4.0 96.0 88.0 12.0 0.0 0.0 96.0 4.0 (4) (96) (88) Mangalore 13.9 86.1 38.0 (11) (68) (30) Bangalore 10.5 89.5 50.5 (10) (85) (48) Mumbai 23.3 76.7 55.6 (21) (69) (50) Delhi 31.0 69.0 47.0 (31) (69) (47) Kolkata 54.0 46.0 74.0 (54) (46) (74) Nagpur 55.7 44.3 97.9 (54) (43) (95) Hyderabad 19.1 80.9 50.0 (18) (76) (47) Ahmedabad 70.0 30.0 73.0 (70) (30) (73) Pune 25.6 74.4 50.0 (23) (67) (45) Total 31.3 68.7 63.2 (296) (649) (597) Parenthesis denotes actual response (12) 44.3 (35) 37.9 (36) 37.8 (34) 53.0 (53) 20.0 (20) 2.1 (2) 29.8 (28) 21.0 (21) 35.6 (32) 28.9 (273) (96) 17.7 0.0 38.0 (14) (30) 8.4 3.2 43.2 (8) (3) (41) 6.7 0.0 15.6 (6) (14) 0.0 0.0 16.0 (16) 0.0 6.0 76.0 (6) (76) 0.0 0.0 99.0 (96) 16.0 4.3 55.3 (15) (4) (52) 5.0 1.0 50.0 (5) (1) (50) 8.9 5.6 51.1 (8) (5) (46) 5.9 2.0 54.7 (56) (19) (517) (4) 12.7 (10) 26.3 (25) 82.2 (74) 71.0 (71) 18.0 (18) 1.0 (1) 21.3 (20) 39.0 (39) 17.8 (16) 29.4 (278) Businessman 0.0 0.0 44.3 (35) 5.1 (04) 18.9 11.6 (18) (11) 0.0 2.2 (2) 6.0 7.0 (6) (7) 4.0 2.0 (4) (2) 0.0 0.0 16.0 (15) 2.0 (2) 22.2 (20) 10.6 (100) Demographic characteristics are one of the important elements of a market research because the buying behavior, satisfaction level and also the potential performance of consumers depends upon this. Demographic characteristics determine what segments or subgroups exist in the overall population. Demographic factors included for study were place, gender, age and occupation of the respondents. The demographic characteristics of the respondents are shown in Table 3.1.1. 7.4 (7) 9.0 (9) 8.9 (8) 5.3 (50) 33
% response Chapter III 68.7% of female respondents use cosmeceutical products. Percentage of female respondents is more compared to male respondents. The majority of respondents (63.2%) belonged to age group of 15-25 years. Majority of the respondents (54.7%) were students followed by professionals. Table 3.1.2. Use of cosmeceutical/derma-cosmetic products (%) Response Yes No City Manipal 100.0 (100) 0.0 Mangalore 100.0 (79) 0.0 Bangalore 98.9 (94) 1.1 Mumbai 100.0 (90) 0.0 Delhi 100.0 (100) 0.0 Kolkata 100.0 (100) 0.0 Nagpur 100.0 (97) 0.0 Hyderabad 97.9 (92) 2.1 Ahmedabad 100.0 (100) 0.0 Pune 97.8 (88) 2.2 Total 99.5 (940) 0.5 Parenthesis denotes actual response 120.0 100.0 80.0 60.0 40.0 20.0 0.0 % Yes % No Figure 3.1.2. Use of cosmeceutical/derma-cosmetic products. The above data (Table 3.1.2.) revealed that 99.5% of the respondents used cosmeceutical products and 0.5% of respondents replied that they do not use cosmeceutical products. For 34
% response Chapter III further analysis; out of 945 respondents, 940 respondents were included in study as they preferred or used cosmeceutical products. For analysis and interpretation total percentage was considered comprising all ten cities. The graphical presentation of the respondents is shown in fig.3.1.2. Response Table 3.1.3. Purpose of using skin care cosmeceutical products (%) Cleansing Smoothing Moisturizing Skin whitening Reduces fine lines and wrinkles Oil controlling City Manipal 17.0 (17) 14.0 (14) 30.0 (30) 12.0 (12) 14.0 (14) 13.0 (13) Mangalore 30.4 (24) 0.0 (0) 24.1 (19) 22.8 (18) 10.1 (8) 12.7 (10) Bangalore 21.3 (20) 11.7 (11) 25.5 (24) 22.3 (21) 10.6 (10) 8.5 (8) Mumbai 13.3 (12) 0.0 (0) 33.3 (30) 13.3 (12) 6.7 (6) 33.3 (30) Delhi 39.0 (39) 14.0 (14) 2.0 (02) 15.0 (15) 14.0 (14) 16.0 (16) Kolkata 29.0 (29) 7.0 (7) 18.0 (18) 12.0 (12) 14.0 (14) 20.0 (20) Nagpur 14.4 (14) 9.3 (9) 20.6 (20) 18.6 (18) 24.7 (24) 12.4 (12) Hyderabad 18.5 (17) 13.0 (12) 22.8 (21) 25.0 (23) 8.7 (8) 12.0 (11) Ahmedabad 30.0 (30) 13.0 (13) 26.0 (26) 11.0 (11) 12.0 (12) 8.0 (8) Pune 11.4 (10) 9.1 (8) 14.8 (13) 21.6 (19) 17.0 (15) 26.1 (23) Total 22.6(212) 9.4 (88) 21.6 (203) 17.1(161) 13.3(125) 16.1 (151) 2= 163.9, df = 45, p0.05; Parenthesis denotes actual response 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 % Cleansing % Smoothing % Moisturizing % Skin Whitening % Reduces fine and Wrinkles % Oil controlling Figure 3.1.3. Purpose of using skin care cosmeceutical products. 35
Skin care cosmeceutical products aimed at specific body parts are becoming more important. The human skin is exposed to an extraordinary hostile environment over the course of a lifetime. Whereas there are multiple products that consumer may select to help preserve and protect the skin, at a minimum cleansing, moisturizing, and protection against solar ultraviolet radiation. The responses are tabulated in (Table 3.1.3.) and presented in (Fig. 3.1.3). 22.6% of respondents used cosmeceutical product for cleansing purpose. 21.6% of respondents used these products for moisturizing. 17.1% of respondents used skin whitening products. Skin whitening products have 60% of share in the Indian cosmetic market. Among Asian consumers, especially Indians are more tilted towards having fair skin. These products lighten skin tone by reducing the concentration of melanin. 16.1% of respondents used cosmeceutical products for oil controlling. 13.3% of respondents used cosmeceuticals for reducing fine lines and wrinkles. Use of anti-wrinkle creams is on rise, the reason behind the growth of this category is, as these products make consumer look young by reducing visible wrinkles, expression lines, blemishes, pigmentation changes, discolorations and other environmentally related conditions of the skin. Respondents use skin care products according to their needs and skin type. Table 3.1.4. Consultation with dermatologist (%) Response Yes No City Manipal 7.0 (7) 93.0 (93) Mangalore 7.6 (6) 92.4 (73) Bangalore 17.0 (16) 83.0 (78) Mumbai 20.0 (18) 80.0 (72) Delhi 28.0 (28) 72.0 (72) Kolkata 20.0 (20) 80.0 (80) Nagpur 34.0 (33) 66.0 (64) Hyderabad 20.7 (19) 79.3 (73) Ahmedabad 10.0 (10) 90.0 (90) Pune 17.0 (15) 83.0 (73) Total 18.3(172) 81.7 (768) 2= 5.181, df = 9, p0.05; Parenthesis denotes actual response 36
% response Chapter III 100.0 80.0 60.0 40.0 20.0 0.0 % Yes % No Figure 3.1.4. Consultation with dermatologist. The respondents were questioned whether they consult dermatologist for advice on cosmeceutical products. From the above data (Table 3.1.4.) 81.7% of respondents do not seek dermatologic consultation for use of skin care cosmeceuticals. 18.3% of respondents seek opinion from dermatologist on skin care cosmeceuticals. The graphical presentation of the respondents is shown in fig. 3.1.4. Role of dermatologist in cosmeceutical care is increasing now. Most of the cosmeceutical products are available in shopping mall, department store and drug store. Consumers purchase products directly from these sources. Products that do not deliver what they promise can ultimately send consumers to the dermatologists. The market is swamped with too many cosmeceutical products, usually consumers are confused, it is dermatologists who may help consumers or patients to select the best product. Table 3.1.5. Monthly expenditure toward skin care cosmeceuticals (%) Response 25-30 50-100 100-300 300-500 < 500 City INR INR INR INR INR Manipal 10.0 (10) 35.0 (35) 37.0 (37) 14.0 (14) 4.0 (4) Mangalore 12.7 (10) 24.1 (19) 36.7 (29) 24.1 (19) 2.5 (2) Bangalore 14.9 (14) 36.2 (34) 23.4 (22) 16.0 (15) 9.6 (9) Mumbai 15.6 (14) 13.3 (12) 42.2 (38) 15.6 (14) 13.3(12) Delhi 5.0 (5) 3.0 (3) 39.0 (39) 37.0 (37) 16.0(16) Kolkata 16.0 (16) 30.0 (30) 44.0 (44) 8.0 (8) 2.0 (2) Nagpur 20.6 (20) 40.2 (39) 25.8 (25) 13.4 (13) 0.0 (0) Hyderabad 13.0 (12) 34.8 (32) 29.3 (27) 16.3 (15) 6.5 (6) Ahmedabad 12.0 (12) 20.0 (20) 48.0 (48) 8.0 (8) 12.0(12) Pune 19.3 (17) 14.8 (13) 39.8 (35) 17.0 (15) 9.1 (8) Total 13.8(130) 25.2(237) 36.6 (344) 16.8 (158) 7.6 (71) 2= 155.3, df= 36, p0.05; Parenthesis denotes actual response 37
% response Chapter III 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % 25-30 % 50-100 % 100-300 % 300-500 % < 500 Figure 3.1.5. Monthly expenditure toward skin care cosmeceuticals. The above data (Table 3.1.5.) shows that 36.6% of respondents spend monthly between 100-300 INR on skin care cosmeceutical products. 25.2% of respondents spend between 50-100 INR. 16.8% of respondents spend between 300-500 INR. Very less number of respondents spends more than 500 INR on cosmeceutical products. The graphical presentation of the respondents is shown in fig.3.1.5. Pricing has been one critical factor as far as cosmeceutical products are concern. For instance products falling under the price range of 45 to 200 INR are in the mass market category. The middle market price range is from 200 to 800 INR. In the high-end market, price range is from 800 to 5000 INR. In premium range products, price can touch up to 35, 0000 INR. Most of cosmetic companies in India target their products to mass segment. 38
% respose Chapter III Table 3.1.6. Preference for natural cosmeceutical products (%) Response City Yes No Manipal 79.0 (79) 26.6 (21) Mangalore 84.8 (67) 14.1 (12) Bangalore 89.4 (84) 11.2 (10) Mumbai 82.2 (74) 19.5 (16) Delhi 75.0 (75) 33.3 (25) Kolkata 64.0 (64) 56.3 (36) Nagpur 72.2 (70) 37.4 (27) Hyderabad 89.1 (82) 11.2 (10) Ahmedabad 77.0 (77) 29.9 (23) Pune 83.0 (73) 18.1 (15) Total 79.3 (745) 20.7 (195) 2= 69.65, df=9, p0.05; Parenthesis denotes actual response 100.0 80.0 60.0 40.0 20.0 0.0 % Yes % No Figure 3.1.6. Preference for natural cosmeceutical products. The above data (Table 3.1.6.) revealed that 79.3% of respondents used natural cosmeceutical products. Whereas 20.7% of respondents have not used natural cosmeceutical products. The graphical presentation of the respondents is shown in fig.3.1.6. Indian herbal cosmeceutical market had tremendous growth during last few years. However in the last 5-6 years, there has been a craze for herbal cosmeceutical products, especially in the skin care segment with the growing belief that chemical-based products are harmful and natural products are always safe. Herbal cosmeceuticals are first choice of many women and are popular these days as they provide long-term benefits. 39
% response Chapter III Table 3.1.7. Awareness about the cosmeceutical ingredients (%) Response City Yes No Sometimes Manipal 57.0 (57) 33.0 (33) 10.0 (10) Mangalore 69.6 (55) 20.3 (16) 10.1 (8) Bangalore 38.3 (36) 51.1 (48) 10.6 (10) Mumbai 44.4 (40) 22.2 (20) 33.3 (30) Delhi 62.0 (62) 19.0 (19) 19.0 (19) Kolkata 50.0 (50) 30.0 (30) 20.0 (20) Nagpur 53.6 (52) 43.3 (42) 3.1 (3) Hyderabad 39.1 (36) 50.0 (46) 10.9 (10) Ahmedabad 52.0 (52) 17.0 (17) 31.0 (31) Pune 42.0 (37) 46.6 (41) 11.4 (10) Total 50.7(477) 33.2(312) 16.1 (151) 2= 123.6, df=18, p0.05; Parenthesis denotes actual response 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % Yes % No % Sometimes Figure 3.1.7. Awareness about the cosmeceutical ingredients. Respondents were asked whether they read the various listed ingredients on cosmeceutical product labeling. The above analyzed data (Table 3.1.7.) showed that 50.7% of consumers read various cosmeceutical ingredients added to the product. On other hand 33.2% of consumers do not read listed cosmeceutical ingredients on the label. The graphical presentation of the respondents is shown in fig.3.1.7. The consumers should check the list of ingredients on the label carefully. They should try to analyze purpose and functions of various ingredients used in the product and try to understand that the natural claim on the label is actually a hype or an advertisement or really effective. 40
% response Table 3.1.8. Awareness about animal tested cosmeceutical products (%) Response City Yes No Manipal 38.0 (38) 62.0 (62) Mangalore 40.5 (32) 59.5 (47) Bangalore 28.7 (27) 71.3 (67) Mumbai 33.3 (30) 66.7 (60) Delhi 55.0 (55) 45.0 (45) Kolkata 30.0 (30) 70.0 (70) Nagpur 36.1 (35) 63.9 (62) Hyderabad 27.2 (25) 72.8 (67) Ahmedabad 31.0 (31) 69.0 (69) Pune 47.7 (42) 52.3 (46) Total 36.7(345) 63.3 (595) 2=30.64, df=9, p0.05; Parenthesis denotes actual response 80.0 Chapter III 60.0 40.0 20.0 0.0 % Yes % No Figure 3.1.8. Awareness about animal tested cosmeceutical products. From the data (Table 3.1.8.) it is revealed that 63.3% of respondents were not aware of animal tested cosmeceutical products. 36.7% of respondents were aware of animal tested cosmeceutical products. The graphical presentation of the respondents is shown in fig.3.1.8. Some of cosmetic manufactures label their products with claims like cruelty free, not tested on animals, against animal testing. Many consumers mistakenly believe that all these claims mean the same thing. According to USFDA there are no legal definitions for these terms. Beauty industry is working to use alternative methods for animal testing such as computer models, in vitro cell culture tests, advanced chemistry methods, published scientific studies. European Union has already banned the animal tested cosmetic products. 41
Price Advice of beautician New technology of the product Celebrity endorsement Quality Word of mouth advertising News group on internet Loyalty to brand Safety Advertising Appearance Chapter III Table 3.1.9. Factors which encourages consumers to use cosmeceutical products (%) Response City Manipal 5.0 27.0 12.0 4.0 (5) (27) (12) (4) 0.0 (0) 3.0 (3) Mangalore 5.1 15.2 13.9 2.5 (4) (12) (11) (2) 1.3 (1) 2.5 (2) Bangalore 3.2 30.9 16.0 8.5 (3) (29) (15) (8) 0.0 (0) 3.2 (3) Mumbai 4.4 14.4 12.2 6.7 (4) (13) (11) (6) 0.0 (0) 2.2 (2) Delhi 2.0 18.0 22.0 9.0 10.0 0.0 (0) (2) (18) (22) (9) (10) Kolkata 0.0 18.0 32.0 10.0 (0) (18) (32) (10) 0.0 (0) 4.0 (4) Nagpur 7.2 24.7 9.3 1.0 (7) (24) (9) (1) 1.0 (1) 9.3 (9) Hyderabad 2.2 28.3 14.1 7.6 (2) (26) (13) (7) 2.2 (2) 8.7 (8) Ahmedabad 6.0 33.0 16.0 2.0 (6) (33) (16) (2) 1.0 (1) 2.0 (2) Pune 5.7 27.3 11.4 4.5 (5) (24) (10) (4) 1.1 (1) 2.3 (2) Total 4.0 23.8 16.1 5.6 4.8 0.6 (6) (38) (224) (151) (53) (45) 2= 189.31, df=90,p0.05; Parenthesis denotes actual response 40.0 (40) 46.8 (37) 31. (30) 53.3 (48) 31.0 (31) 28.0 (28) 21.6 (21) 26.1 (24) 35.0 (35) 36.4 (32) 34.7 (326) 1.0 (1) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 4.1 (4) 0.0 (0) 1.0 (1) 1.1 (1) 0.7 (7) 1.0 (1) 3.8 (3) 2.1 (2) 4.4 (4) 0.0 (0) 6.0 (6) 4.1 (4) 5.4 (5) 2.0 (2) 4.5 (4) 3.3 (31) 6.0 (6) 6.3 (5) 4.3 (4) 2.2 (2) 6.0 (6) 0.0 (0) 12.4 (12) 3.3 (3) 2.0 (2) 2.3 (2) 4.5 (42) 1.0 (1) 2.5 (2) 0.0 (0) 0.0 (0) 2.0 (2) 2.0 (2) 5.2 (5) 2.2 (2) 0.0 (0) 3.4 (3) 1.8 (17) The above data (Table 3.1.9.) revealed that 34.7% of respondents considered quality as major criterion for selection of cosmeceutical products. Cosmetic companies have to deliver quality product to consumers to sustain in competitive market. A company that satisfies most of its customers needs usually is called as Quality Company. 23.8% of respondents said that cosmetic advertisement in various media encouraged them to use cosmeceutical products. Advertising has more influence on purchase decision. Cosmetic advertising has the maximum impact in creating brand awareness and important factor to influence brand decision. 16.1% of respondents preferred product safety as important factor before selecting cosmeceutical products. By using the latest scientific advances and good manufacturing practices, cosmetic manufacturers have to efforts to maximize safety product. 5.6% of respondents were loyal toward the cosmeceutical brands. 4.8% of respondents relied on word of mouth advertising, as it is important in marketing of cosmeceutical product. With highly effective skin care product, the consumers were not only satisfied with 42
the product, but they also talk about the products to their friends, colleagues and family and recommend them to use it. 4.5% of respondents seek advice of beautician before purchasing cosmeceutical products. 3.3% of respondents looked for new innovative products like nanotechnology based products. Use of nanotechnology in cosmeceutical preparations is aimed to make fragrances last longer, sunscreens more effective and anti-ageing creams fight back the years. 1.8% of respondents looked for price factor, as it is considered to be one of important factor for selecting the cosmeceutical products. The overall graphical presentation of the respondents is shown in fig.3.1.9. Total Pune Ahmedabad Hyderabad Nagpur % Price % Advice of beautician % New technology of the product % Celebrity endorsement % Quality % Word of mouth advertising % News group on internet % Loyalty to brand % Safety % Advertising % Apperance Kolkata Delhi Mumbai Bangalore Mangalore Manipal 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Figure 3.1.9. Encouraging factors for using cosmeceutical products. 43
% response Table 3.1.10. Store type to purchase cosmeceutical products (%) Response Cosmetic Department specialty City store store Online order Drug store Manipal 42.0 (42) 16.0 (16) 6.0 (6) 36.0 (36) Mangalore 46.8 (37) 17.7 (14) 3.8 (3) 31.6 (25) Bangalore 47.9 (45) 12.8 (12) 5.3 (5) 34.0 (32) Mumbai 37.8 (34) 22.2 (20) 6.7 (6) 33.3 (30) Delhi 58.0 (58) 12.0 (12) 1.0 (1) 29.0 (29) Kolkata 58.0 (58) 4.0 (4) 4.0 (4) 34.0 (34) Nagpur 56.7 (55) 22.7 (22) 5.2 (5) 15.5 (15) Hyderabad 55.4 (51) 16.3 (15) 5.4 (5) 22.8 (21) Ahmedabad 51.0 (51) 6.0 (6) 8.0 (8) 35.0 (35) Pune 46.6 (41) 14.8 (13) 4.5 (4) 34.1 (30) Total 50.2 (472) 14.3 (134) 5.0 (47) 30.5 (287) 2= 51.87, df= 27, p0.05; Parenthesis denotes actual response Chapter III 60.0 40.0 20.0 0.0 % Department store % Cosmetic specialty store % Online Order % Drug store Figure 3.1.10. Store type to purchase cosmeceutical products. Result of this question indicated that 50.2% of respondents said that have brought cosmeceutical products from department stores. It is the main distribution channel for branded cosmeceutical products. In general, department stores in India can be divided into three classes the high, mid and low, based on the product they are sold, stored and type of management. 30.5% of respondents said that they have purchased cosmeceutical products 44
from pharmacy stores or drug stores. In India pharmacy chain shops are becoming popular for multifunction, medicated and herbal cosmeceutical product. 14.3% of respondents said that they have purchased cosmeceuticals from specialty stores. The professional services and the full range of goods provided by the special stores appeal too many consumers. There are two sub-types of specialty stores: Own-brand specialty and cross-brands professional stores. Specialty store are not only favored by the direct selling companies, but also by selling premium brands. In India International companies have started their own specialty stores like Farmasi from Turkey, Herme s store from France and the Body shop of L Oreal from France. 5.0% of respondents said that they purchased cosmeceutical products through online source. The graphical presentation of the respondents is shown in fig.3.1.10. Online shopping is increasingly popular among young people. There are many online sources selling different kinds of branded cosmeceutical products. Premium and imported products are usually sold at lower prices through this channel (Table 3.1.10). City Response Table 3.1.11. Reasons for selecting places of purchase (%) Convenience in access Store reputation Good service Variety of products available Low price & effective display Advice from close associates Manipal 42.0 (42) 16.0 (16) 6.0 (6) 30.0 (30) 3.0 (3) 3.0 (3) Mangalore 40.5 (32) 17.7 (14) 5.1 (4) 31.6 (25) 2.5 (2) 2.5 (2) Bangalore 41.5 (39) 17.0 (16) 7.4 (7) 24.5 (23) 4.3 (4) 5.3 (5) Mumbai 40.0 (36) 8.9 (8) 4.4 (4) 42.2 (38) 2.2 (2) 2.2 (2) Delhi 40.0 (40) 33.0 (33) 9.0 (9) 16.0 (16) 0.0 (0) 2.0 (2) Kolkata 56.0 (56) 12.0 (12) 14.0 (14) 8.0 (8) 8.0 (8) 2.0 (2) Nagpur 33.0 (32) 9.3 (9) 25.8 (25) 12.4 (12) 10.3(10) 9.3 (9) Hyderabad 39.1 (36) 19.6 (18) 8.7 (8) 22.8 (21) 5.4 (5) 4.3 (4) Ahmedabad 44.0 (44) 29.0 (29) 6.0 (6) 12.0 (12) 2.0 (2) 7.0 (7) Pune 42.0 (37) 6.8 (6) 2.3 (2) 42.0 (37) 1.1 (1) 5.7 (5) Total 41.9(394) 17.1 (161) 9.0 (85) 23.6(222) 3.9 (37) 4.4 (41) 2= 187.91, df=45, p0.05; Parenthesis denotes actual response The above data (Table 3.1.11.) revealed that 41.9% of respondents preferred the places for cosmeceutical purchases which are convenient for them preferably near to home or office. Choosing the right cosmeceutical product is an entirely individual decision based on personal preferences. Most of consumers looked for convenience. The consumers responded that department and discount stores are good choice to purchase cosmeceutical as they determine what types of cosmeceutical work best for them through a process of trial and error. 45
% response Chapter III 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Figure 3.1.11. Reasons for selecting places of purchase. 23.6% of respondents preferred purchasing cosmeceutical products from places where wide range of products are available. 17.1% of respondents purchased cosmeceutical products from the stores which are reputed and stands for quality service provider. 9% of respondents preferred for good service provided by stores. The graphical presentation of the respondents is shown in fig.3.1.11. City % Convenience in access % Store reputation % Good service % Variety of products available % Low price and effective display of product % Advice from close associates Table 3.1.12. Degree of satisfaction over product claims made by cosmetic manufacturers (%) Response Strongly agree Agree Neutral Disagree Strongly disagree Manipal 2.0 (2) 55.0 (55) 18.0 (18) 24.0 (24) 1.0 (1) Mangalore 0.0 (0) 60.8 (48) 13.9 (11) 22.8 (18) 2.5 (2) Bangalore 0.0 (0) 56.4 (53) 12.8 (12) 29.8 (28) 1.1 (1) Mumbai 0.0 (0) 51.1 (46) 28.9 (26) 20.0 (18) 0.0 (0) Delhi 2.0 (2) 48.0 (48) 35.0 (35) 15.0 (15) 0.0 (0) Kolkata 2.0 (2) 52.0 (52) 24.0 (24) 18.0 (18) 4.0 (4) Nagpur 21.6(21) 53.6 (52) 7.2 (7) 15.5 (15) 2.1 (2) Hyderabad 2.2 (2) 48.9 (45) 21.7 (20) 27.2 (25) 0.0 (0) Ahmedabad 4.0 (4) 55.0 (55) 28.0 (28) 13.0 (13) 0.0 (0) Pune 2.3 (2) 55.7 (49) 26.1 (23) 13.6 (12) 2.3 (2) Total 3.7 (35) 53.5(503) 21.7(204) 19.8(186) 1.3 (12) 2= 164.6, df=36, p0.05; Parenthesis denotes actual response 46
% response Chapter III 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % Strongly agree % Agree % Neutral % Disagree % Strongly disagree Figure 3.1.12. Degree of satisfaction over product claims made by cosmetic companies. Respondents were asked about whether they were satisfied and convinced over product claims made by cosmetic companies. From above data (Table 3.1.12.) 53.5% of respondents said that they satisfied with product claims made by cosmetic manufacturers. 21.7% of respondents were undecided on the matter. On the other hand 19.8% of respondents were not pleased with the product claims made by cosmetic manufactures. The graphical presentation of the respondents is shown in fig.3.1.12. Consumers are most wary of manufacturers' claims about the effectiveness of cosmeceuticals. There are many outrageous claims made by cosmetic companies when their products are available in the market. Usually all claims are not true. There are so many falsified claims just to attract the consumers. Some consumers have doubts about the benefits of cosmeceuticals, which leads to lack of trust and that will be a significant barrier to beauty cosmeceuticals market. 47
% response Chapter III Table 3.1.13. Major impact of cosmeceutical advertising (%) City Response Rising consciousness about your look Influence your idea of a perfect beauty Want to have cosmetic surgery Make more purchase on cosmeceuticals Manipal 60.0 (60) 24.0 (24) 1.0 (1) 15.0 (15) Mangalore 73.4 (58) 19.0 (15) 0.0 (0) 7.6 (6) Bangalore 71.3 (67) 18.1 (17) 0.0 (0) 10.6 (10) Mumbai 68.9 (62) 17.8 (16) 0.0 (0) 13.3 (12) Delhi 65.0 (65) 24.0 (24) 0.0 (0) 11.0 (11) Kolkata 54.0 (54) 30.0 (30) 0.0 (0) 16.0 (16) Nagpur 46.4 (45) 15.5 (15) 9.3 (9) 28.9 (28) Hyderabad 58.7 (54) 22.8 (21) 0.0 (0) 18.5 (17) Ahmedabad 50.0 (50) 39.0 (39) 1.0 (1) 10.0 (10) Pune 54.5 (48) 29.5 (26) 0.0 (0) 15.9 (14) Total 59.9 (563) 24.1 (227) 1.2 (11) 14.8 (139) 2= 119.4, df= 27, p0.05; Parenthesis denotes actual response 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % Rising consciousness about your look % Influence your idea of a perfect beauty % Want to have cosmetic surgery % Make more purchase on cosmeceuticals Figure 3.1.13 Major impact of cosmeceutical advertising. From the above data (Table 3.1.13.) 59.9% of respondents said that by viewing at cosmeceutical product advertising they become more conscious about their looks. 24.1% of respondents said that they get influenced by the advertisement. 14.8% of respondents said that they may purchase more cosmeceutical products by watching at advertisement. The 48
% response Chapter III graphical presentation of the respondents is shown in fig.3.1.13. Cosmetic advertising plays very important role in selection process of cosmeceutical products. The cosmetic advertising works by using different techniques that encourage its target market. Cosmetic advertising is very crucial element for companies to make sure that advertising message reaches the consumers. The effectiveness of cosmetic advertising typically depends on persuading people, that the product being advertised actually can deliver the results. Table 3.1.14. Correlation between product quality and price (%) Response Strongly Strongly Agree Neutral Disagree City agree disagree Manipal 5.0 (5) 49.0 (49) 7.0 (7) 36.0 (36) 3.0 (3) Mangalore 3.8 (3) 49.4 (39) 3.8 (3) 39.2 (31) 3.8 (3) Bangalore 4.3 (4) 45.7 (43) 13.8 (13) 34.0 (32) 2.1 (2) Mumbai 0.0 (0) 44.4 (40) 20.0(18) 35.6 (32) 0.0 (0) Delhi 3.0 (3) 39.0 (39) 12.0 (12) 40.0 (40) 6.0 (6) Kolkata 6.0 (6) 46.0 (46) 8.0(8) 30.0 (30) 10.0 (10) Nagpur 10.3(10) 57.7 (56) 8.2(8) 16.5 (16) 7.2 (7) Hyderabad 5.4 (5) 34.8 (32) 16.3 (15) 37.0 (34) 6.5 (6) Ahmedabad 14.0(14) 28.0 (28) 18.0 (18) 37.0 (37) 3.0 (3) Pune 13.6(12) 35.2 (31) 17.0 (15) 29.5 (26) 4.5 (4) Total 6.6 (62) 42.9 (403) 12.4 (117) 33.4 (314) 4.7 (44) 2= 98.59, df =36, p0.05; Parenthesis denotes actual response 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % Strongly agree % Agree % Neutral % Disagree % Strongly disagree Figure 3.1.14. Correlation between product quality and price. A popular belief is: You get what you pay for. Therefore, consumers tend to believe that high price is an indicator of better quality. Thus, buyers believe that the higher price of 49
% response Chapter III cosmeceutical product, the superior will be its quality. They believe that cosmeceutical products will give the greatest value for their money. The respondents were asked whether product quality is good if price of product is high. Table 3.1.14. showed that 42.9% of respondents believed that product is superior if price is high. 12.4% of respondents were undecided on the said matter. On the other hand 33.4% do not believe that product quality is good if price is high. The graphical presentation of the respondents is shown in fig.3.1.14. 100.0 80.0 Table 3.1.15. Adverse reaction of cosmeceutical products (%) Response City Yes No Manipal 10.0 (10) 90.0 (90) Mangalore 19.0 (15) 81.0 (64) Bangalore 18.1 (17) 81.9 (77) Mumbai 15.6 (14) 84.4 (76) Delhi 26.0 (26) 74.0 (74) Kolkata 14.0 (14) 86.0 (86) Nagpur 5.2 (5) 94.8 (92) Hyderabad 19.6 (18) 80.4 (74) Ahmedabad 16.0 (16) 84.0 (84) Pune 12.5 (11) 87.5 (77) Total 15.5 (146) 84.5 (794) 2= 22.58, df=9, p0.05; Parenthesis denotes actual response 60.0 40.0 20.0 0.0 % Yes % No Figure 3.1.15. Adverse reactions of cosmeceutical products. 50
%response Chapter III From the above data (Table 3.1.15.) 84.5% of respondents said that they have not experienced any adverse reactions by using cosmeceutical products.15.5% of respondents experienced adverse reactions like skin rashes, skin redness, increase in pimples, and scaling of skin. The graphical presentation of the respondents is shown in fig 3.1.15. Usually numbers of reported adverse reactions are very low. This may be due to absence of formal cosmetovigilance system in India. Table 3.1.16. Degree of satisfaction with cosmeceutical products available in the market (%) Response Strongly agree Agree Neutral Disagree Strongly disagree City Manipal 12.0 (12) 59.0 (59) 10.0 (10) 19.0 (19) 0.0 (0) Mangalore 12.7 (10) 65.8 (52) 11.4 (9) 10.1 (8) 0.0 (0) Bangalore 16.0 (15) 52.1 (49) 12.8 (12) 19.1 (18) 0.0 (0) Mumbai 2.2 (2) 55.6 (50) 31.1 (28) 11.1 (10) 0.0 (0) Delhi 1.0 (1) 58.0 (58) 27.0 (27) 13.0 (13) 1.0 (1) Kolkata 4.0 (4) 54.0 (54) 16.0 (16) 26.0 (26) 0.0 (0) Nagpur 9.3 (9) 45.4 (44) 15.5 (15) 23.7 (23) 6.2 (6) Hyderabad 8.7 (8) 51.1 (47) 19.6 (18) 20.7 (19) 0.0 (0) Ahmedabad 10.0 (10) 47.0 (47) 24.0 (24) 15.0 (15) 4.0 (4) Pune 2.3 (2) 52.3 (46) 26.1 (23) 19.3 (17) 0.0 (0) Total 7.8 (73) 53.8(506) 19.4(182) 17.9(168) 1.2 (11) 2= 114.1, df= 36, p0.05; Parenthesis denotes actual response 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 % Strongly agree % Agree % Neutral % Disagree % Strongly disagree Figure 3.1.16. Degree of satisfaction with cosmeceutical products available in the market. 51
It is no longer enough to satisfy consumers. Companies have to delight them. Satisfaction is a function of perceived performance and expectations. If the performance matches the expectations, the consumers are satisfied. If the performance exceeds expectations, the consumers are highly satisfied or delighted. From the above analysis (Table 3.1.16) 53.8% of respondents were satisfied with cosmeceutical products available in the market. 19.4% of respondents were undecided on the matter. Whereas 17.9% respondents were not satisfied with available range of cosmeceutical products. The graphical presentation of the respondents is shown in fig.3.1.16. This provides cosmetic manufacturer an opportunity to gain market share by serving unhappy consumers. 3.1.6. Conclusion The above survey provides insight into consumers buying behavior toward the purchase and consumption of cosmeceutical products in selected cities of India. Value growth of cosmeceutical products is driven by changing consumer perception, whereby most of cosmeceuticals are increasingly deemed as essential items for daily use, rather than luxury products. The expenditure on cosmeceutical products is increasing, as purchasing power has increased between middle class consumers. Consumers prefer natural cosmeceutical products compared to synthetic products. Nowadays consumers are aware and read various cosmeceutical ingredients added to the product. Majority of consumers are not aware of animal tested cosmeceutical products available in the market. Advertising, quality and safety are the major factors which encourage consumers to use cosmeceutical products. With increasingly availability of domestic and international brands and greater product availability at affordable prices, consumers also started to move away from using products from unorganized to organized channel. Consumers think that quality of product is better if the price of the product is high. Majority of the surveyed consumers were satisfied with claims and products available in the market. 52
3.1.7. References 1. Cosmetics and Consumers. [cited 2009 September 25]. Available from: http//www.consumereducation.incosmeticeng.pdf 2. Choi Ju Y, Hee Kim K, Kim M. Cosmetics Buying Patterns and Satisfaction among Female University Students in China, Japan and Korea. Journal of the Korean Society of Clothing and Textiles.2007; 12:1772-1783. 3. Vani G, Ganesh Babu M, Panchanatham N. Toothpaste Brands A Study of consumer behavior in Bangalore city. Journal of Economics and Behavioral Studies.2010; 1:27-39. 4. Vinith Kumar N, Prakash P. A Study on Purchase Pattern of Cosmetics among Consumers in Kerala. International Marketing Conference on Marketing & Society; 2007 April 8-10; IIMK 2007.p.581-595. 5. An introduction to the study of consumer behavior. [cited 2009 April 20]. Available from:http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplecha pter/0273736957.pdf 6. Indian consumers go premium. [cited 2011 June 11]. Available from: http://www.gcimagazine.com/marketstrends/regions/bric/128016893.html 7. Malhotra N K. Marketing Research An Applied Orientation, Third Edition, Pearson Education, First Indian Reprint, 2001, 83-85. 8. Thomas T. S. Marketing Research Needs Basic Research, Marketing News (April 14, 1997), 34. 53
Part-II : Perception analysis of dermatologists toward concept of cosmeceuticals 3.2.1. Introduction Cosmeceuticals represent the fastest growing area in dermatology. Cosmeceuticals are today an increasing part of the dermatologist's therapeutic armamentarium. The biggest shift to impact dermatology practices in recent years has been the high demand for cosmetic services. Cosmeceuticals play an important role in management of common dermatological conditions both as a first line treatment for mild/moderate disorders or as adjuvant when more invasive or clinical therapy is required [1]. The field of cosmeceuticals is an important for the dermatologists to understand. Understanding dermatologist s perception about cosmeceuticals is an essential part of cosmetic and pharmaceutical business strategies. With safe and effective procedures, advancement in medical technology, increase in awareness, the Indian skin care solutions business is growing very fast. Topical treatments account for 27.9% of the OTC medicated skincare. In chronic therapies dermatologists tend to prescribe almost 50% systemic treatment and 50% topical treatment [2]. Patients apply several cosmetic products to the hair, face and body each day. These patients may consult their physician for suggestions on specific products or brands, particularly if they have an underlying skin disease. From the literature search the major challenge facing the practicing dermatologists is how to employ this ever growing array of products to improve patient care [3]. As cosmeceuticals are promise of the future skin care, they are continuing intellectual challenge for research dermatologists [4]. The dermatologists should play mediocoscientific role that is have an indepth knowledge of the physiology and the pathology of the skin and medico social role as define skin diseases their treatment and quality of life of consumers in near future [5]. Moreover there is rapid increase in number of specialized dermatologists which are more oriented towards cosmetics. The increase in number of skin care clinics shows progressing market and high demand. The growth of cosmeceuticals is at nascent stage in India. The role of dermatologists toward cosmeceuticals as to be ascertain with respect to India. With this aspect following objectives were framed. 54
3.2.2. Objective To study dermatologists perception toward cosmeceutical products in India. Survey was carried out among the dermatologists to understand mainly the following aspects: Awareness of cosmeceutical products Source of information about cosmeceuticals Whether concept of cosmeceuticals in India is popularized Whether dermatologists should be allowed to dispense cosmeceutical products To find out whether dermatologists prescribe cosmeceutical products to their patients Diseases conditions for which cosmeceuticals were usually preferred Whether dermatologists believe that product available in the markets are backed by science Availability of cosmeceutical products To know dermatologists opinion about present regulatory status for cosmeceuticals View on forming separate category other than drug, cosmetic and OTC products Opinion on future of cosmetic products To find out potential cosmeceutical products in future Factors considered by dermatologists while prescribing a cosmeceutical brand 3.2.3. Research Methodology Research Design A research design (fig.3.2.1) is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and solve marketing research problems. Components of Research Design Information Needed - Information regarding to dermatologist s perception and experiences about cosmeceuticals was sought to know the difficulties involved in cosmeceuticals. Type of research design Research design type used in this work was exploratory and not conclusive. The primary objective of exploratory research is to provide insights into, and an understanding of the problem confronting the researcher. The primary objective of study was to provide insights into and comprehension of the problem situation. Scale of measurement Nominal scale was followed for the study. The statistics applied were descriptive percentages. 55
Data sources Primary Data Secondary Data Type of study: Exploratory Self-administrated questionnaire Research articles Review articles Sampling Unit: Dermatologists, Cosmetologists Leave Behind Literature Sample Size: 48 Sampling method: Non probability convenience method Online articles Newspapers and Magazines Authentic websites Analysis and Interpretation Figure 3.2.1. Research Methodology. 56
Data Collection Data was collected through primary research and secondary research. Sample size Target sample size was 50. Final sample size which was used for evaluation was 48. Two respondents questionnaire were excluded for analysis as they were not qualified because of some unanswered questions. Data Analysis It was done considering the characteristics of the data. The data obtained is edited, classified and put in as tabulated form to make it understandable and presented with help of charts, diagrams and graphs etc. Qualitative Exploratory Research Qualitative exploratory research methodology was followed with a small sample size to have a preliminary idea of the problem. It was direct approach (nondisguised) where the purpose of the study was disclosed to the respondents. Data Primary data Primary data were obtained with the help of structured questionnaire. Secondary data Secondary data were obtained from authentic websites. Information with regard to research objectives was collected from published literature in medical online and print journals, leave behind literature, opinion articles and news items from the internet. Sampling design Sample, a subgroup of the elements of the population was selected for participation in the study. Sampling technique used for the study was nonprobability convenience sampling, which relies on the personal judgment of the researcher rather than chance to select sample elements. The dermatologists and cosmetologists were interviewed at hospitals and private clinics. The survey was carried in Manipal, Mangalore, Bangalore, Mumbai and Kolkata. We decided arbitrarily which elements to be included in the sample. Final sample size used for evaluation was 48 out of 50. Questionnaire design A questionnaire (Structured technique for data collection consisting of a series of questions, written or verbal, to which respondents reply) which consisted of formalized set of questions was used for obtaining information from respondents. Questions were carefully framed to minimize the element of bias and errors. There were 13 questions in total which answered research questions. 57
% response Chapter III 3.2.4. Results and discussion Table 3.2.1. Demographic characteristics of the respondents Variable Percentage of respondents Gender Male 62 Female 38 Age group 30-40 yr 58 40 yr 42 Experience 1-10 yr 64 11-20 yr 16 21-30 yr 20 Demographic characteristics are one of the important elements of a market research. The demographic characteristics are shown in Table 3.2.1. 62% of respondents were from male category and 38% of respondents were from female category. 58% of respondents were between age group 30-40 years. 64% of respondents were having professional experience between 1-10 years. Table 3.2.2. Awareness of cosmeceutical products Response Percentage of respondents Yes 96 No 04 100 80 60 40 20 0 Yes No Figure 3.2.2. Awareness of cosmeceutical products. 58
The data (Table 3.2.2.) revealed that 96% of dermatologists were aware of the cosmeceutical products available in Indian cosmetic market. Whereas 4% of dermatologists were not aware of cosmeceutical products. The graphical presentation of the respondents is shown in fig 3.2.2. For further analysis; out of 50 dermatologists, responses of 48 were included in the study as they were aware of cosmeceutical products. Table 3.2.3. Source of information about cosmeceuticals Response Percentage of respondents Newspaper 04 TV commercial - Magazine 02 Conference 54 Medical representative 40 Any other - Medical Representative Conference Magazine Newspaper 0 10 20 30 40 50 60 % response Figure 3.2.3. Source of information about cosmeceuticals. The responses and graphical presentation of the respondents are shown in table 3.2.3. and fig.3.2.3. 54% of the respondents got the latest information on cosmeceuticals through national and International conference. Most of the conferences on cosmeceuticals are organized in Europe and USA. 40% respondents were of opinion that medical representatives of companies are major information provider on cosmeceuticals. 59
Table 3.2.4. Is concept of cosmeceutical popularized in India Response Percentage of respondents Yes 56 No 29 Can t say 15 15% Yes 29% 56% No Can t say Figure 3.2.4. Is concept of cosmeceutical popularized in India. From the above data (Table 3.2.4.) 56% of respondents said that concept of cosmeceuticals is becoming more popular in India because consumers are giving significant attention to health and wellness as the concept of beauty and health are becoming increasingly interlinked. 29% of respondents said that cosmeceutical products are not popularized in India, However more popular and widely used in western countries. The graphical presentation of the respondents is shown in fig.3.2.4. Table 3.2.5. Whether dermatologists should be allowed to dispense cosmeceutical products Response Percentage of respondents Strongly agree - Agree 62 Neutral 25 Disagree 13 Strongly disagree - 60
13% Agree Neutral 25% 62% Disagree Figure 3.2.5. Whether dermatologists should be allowed to dispense cosmeceutical products. Table 3.2.5. shows that 62% of respondents were of opinion that they should be allowed to dispense cosmeceutical products. 25% of respondents were undecided on said matter. The graphical presentation of the respondents is shown in fig.3.2.5. In India doctors are not allowed to sell the products directly to consumers or patients. However if a cosmeceutical has to be sold as an over-the-counter product in India it would need approval from the office of the drug controller general of India under the ministry of health. In USA, it is estimated that as many as 40-70% of dermatologists dispense products from their offices, and doctors of every other specialty is increasingly involved as well. Moreover, there has been a significant growth in dispensing of cosmeceutical products, driven by consumer demand, which has taken the place of dispensing of prescription products as the mainstay of the dermatologist's dispensing practice. Table 3.2.6. Whether dermatologists prescribe cosmeceuticals Response Percentage of respondents Frequently 58 Hardly ever 38 Never 04 61
4% 38% Frequently 58% Hardly ever Never Figure 3.2.6. Whether dermatologists prescribe cosmeceuticals. From the above analyzed data (Table 3.2.6.) 58% of respondents prescribe cosmeceutical products to their patients. Respondents said that people are more concern about their personal care than ever before. Patients are seeking advice from dermatologist on particular type of cosmeceutical products available in the markets like sunscreens, anti-acne creams, anti-aging and skin whitening products. 38% of respondents barely prescribe cosmeceutical products to their patients. The graphical presentation of the respondents is shown in fig.3.2.6. Table 3.2.7. Conditions for which cosmeceuticals were usually preferred Response Percentage of respondents Anti-acne 52 Aging/ Photo damage 26 Hair loss 08 Fungal infections - Cleansing 14 Moisturizing 20 Sunscreen 50 A/D shampoos 14 Baby care - Any other - 62
14% 50% 20% 14% 8% 52% 26% Antiacne Aging/ Photodamage Hair loss Cleansing Moisturizing Sunscreen A/D shampoos Figure 3.2.7. Conditions for which cosmeceuticals were usually preferred. Cosmeceuticals are employed to carry out many functions, such as preventing UV damage, reducing free radical formation, improving the skin lipid barrier, brightening and unifying skin tone, smoothing texture and reducing pore size. Majority of respondents were of opinion that cosmeceutical should be used in the treatment of minor skin disorders or mild skin abnormalities. Table 3.2.7. shows that 52% of respondents prescribe anti-acne products. Different types of anti-acne are used for different treatment purposes, depending on the severity of the condition. 50% of respondents prescribe sunscreen products to their patients, as there is increasing awareness about UV rays exposure and the signs of aging, including wrinkling and depigmentation. 26% of respondents prescribe cosmeceutical products for aging skin. 20% of respondents prescribe moisturizers for dry and chapped skin, as it is very common problem both in healthy individuals and in patients with skin diseases. According to respondents the future for hair growth is also lucrative. The overall graphical presentation of the respondents is shown in fig.3.2.7. Table 3.2.8. Whether products available in the market are backed by science Response Percentage of respondents Strongly agree - Agree 48 Neutral 23 Disagree 21 Strongly Disagree 08 63
% response Chapter III 50 40 30 20 10 0 Agree Neutral Disagree Strongly Disagree Figure 3.2.8. Whether products available in the market are backed by science. The above data (Table 3.2.8.) shows that 48% of respondents were satisfied with the products available in the market. 23% of respondents were undecided on the matter. 21% of respondents were not convinced with products available in the market. The graphical presentation of the respondents is shown in fig. 3.2.8. To gain the confidence of respondents cosmetic companies have to deliver the results what they claim for their products. To establish a new product in market, sampling and literature is utmost important. Especially in cosmeceuticals, providing clinical studies and elaborated description of the products ingredients, mechanism of action is very important to win confidence of respondents. Most of the respondents believe that products available in the market are backed by evidenced based science. Some of the respondents said that today cosmetic companies are more science focused than ever and products deliver the results what they promise and what they promote. In future dermatologists may play a role of expert in cosmeceutical research and development. Table 3.2.9. Availability of cosmeceutical products Response Percentage of respondents Prescription only products 77 OTC products 21 FMCG products 02 64
% response Chapter III 80 60 40 20 0 Figure 3.2.9. Availability of cosmeceutical products. From the above data (Table 3.2.9) 77% of respondents said that cosmeceutical products should be available through prescription only. 21% of respondents said that they should be available as over the counter (OTC) products. The graphical presentation of the respondents is shown in fig.3.2.9. As cosmeceuticals act functionally; help of dermatologists for use of these products are advisable because it can be difficult for consumer with respect to choosing the right regimen from the plethora of over the counter choices as well as being informed about potential risks and side effects. Table 3.2.10. Cosmeceutical products are equally regulated by regulatory authorities. Response Percentage of respondents Strongly agree 02 Agree 28 Neutral 24 Disagree 30 Strongly Disagree 16 65
% response Chapter III 30 25 20 15 10 5 0 Strongly agree Agree Neutral Disagree Strongly disagree Figure 3.2.10. Cosmeceutical products are equally regulated by regulatory authorities. From the above data (Table 3.2.10.) 30% of respondents were of opinion that cosmeceutical products available in the market are not regulated as like drugs or OTC products. Whereas 28% of respondents said that cosmeceutical products are equally regulated as like drugs. 24% were undecided on this matter. The graphical presentation of the respondents is shown in fig.3.2.10. Respondents were aware of various regulatory guidelines applicable for drug and cosmetic products. Table 3.2.11. View on forming new category for cosmeceutical products Response Percentage of respondents Strongly agree - Agree 36 Neutral 31 Disagree 31 Strongly Disagree 02 66
Strongly Disagree Disagree Neutral Agree 0 5 10 15 20 25 30 35 40 % response Figure 3.2.11. View on forming new category for cosmeceutical products. The above data (Table 3.2.11.) shows that 36% of respondents were of opinion that there should be new category for cosmeceuticals. 31% of respondents were undecided on this question. While 31% of respondents were of opinion that it is not essential to separate category or modification of the classification of products in the drugs and cosmetics, there is a need for better consideration of the outcomes of these products, from the patients point of view. The graphical presentation of the respondents is shown in fig.3.2.11. Table 3.2.12. Opinion on future of cosmetic products Response Percentage of respondents Strongly agree - Agree 69 Neutral 15 Disagree 16 Strongly Disagree - 67
16% 15% Agree 69% Neutral Disagree Figure 3.2.12. Opinion on future of cosmetic products. The above analyzed data (Table 3.2.12.) shows that 69% of respondents were of opinion that cosmeceutical products have bright prospect in India. They may replace conventional cosmetic products in near future.16% of respondents said that cosmeceuticals are marketing gimmick. The graphical presentation of the respondents is shown in fig.3.2.12. Table 3.2.13. Cosmeceuticals that would become popular over the next five years Response Percentage of respondents Sunscreens 32 Anti-aging 48 Antidandruff shampoos 22 Whitening creams 34 Skin repair creams 20 Fillers 06 Anti-acne 20 68
% response Chapter III 50 40 30 20 10 0 Figure 3.2.13. Cosmeceuticals that would become popular over the next five years. From the above data (Table 3.2.13.) 48% of respondents said that anti-aging products have high demand and would be popular among all cosmeceuticals. Euro monitor international estimates global market for anti-aging products approached US$ 15 billion last year and predicts sales US$ 21.3 billion in 2012. 34% of respondents were of opinion that skin whitening products are in more demand. Skin whitening is widespread phenomena in Asia. India has the highest penetration with over 60% of skin care sales from products with whitening benefits. 32% of respondents said that sunscreens would become more popular in India and may have impressive growth rate in future. The graphical presentation of the respondents is shown in fig.3.2.13. Table 3.2.14. Factors considered by dermatologists while prescribing a cosmeceutical brand Response Percentage of respondents Company image 06 Brand price 23 Brand experience 27 Brand safety 44 69
% response Chapter III 50 40 30 20 10 0 Figure 3.2.14. Factors considered by dermatologists while prescribing a cosmeceutical brand. When it comes to prescribe a particular cosmeceutical brand, 44% of respondents preferred brand safety as important criteria. Brand safety is all about safety, effectiveness, healthiness and convenience, which are three most important attributes of the 'best of its kind' in cosmeceutical products. 27% of respondents said that experience with a particular brand is the key driver to prescribe a particular brand. 23% of respondents said that brand price is important factor which is considered before prescribing a cosmeceutical brand. The data and graphical presentation of the respondents is shown in table 3.2.14 and fig. 3.2.14. 3.2.5. Conclusion Company image Brand price Brand experience Brand safety Dermatologists have a unique and significant role in the development of cosmeceutical field in India. Dermatologists can advise their patient what should be avoided and personalize a skin care regimen for them to keep up healthy-looking skin. It was observed that majority of Indian dermatologists were of opinion that government should allow doctors to dispense cosmeceutical products from their clinics. The future of cosmeceutical field is very impressive according to dermatologists. Anti-aging products have better prospects compared to other category of products. The dermatologists are persuaded with cosmeceutical products available in the market and they are of opinion that they are backed by science. Brand experience and brand price are important factors considered before prescribing cosmeceutical brand. The cosmeceutical category has better prospects in future which may move the dermatology field forward. 70
3.2.6. References 1. Cosmeceuticals: Practical Solutions for Common Problems. [cited 2010 November 15]. Available from: http://www.pgbeautygroomingscience.com/wcd/forum3.php 2. Anti-Acne Cosmeceutical Products: Dermatologists Perspective.[cited 2011 February 11]. Available from: http://www.kppub.com/articles/nov2010/anti_acne_ cosmeceutical_products_dermatologists_perspective.htm 3. Sadick NS. Their role in dermatology practice (Focus On: Cosmeceuticals). Journal of Drugs in Dermatology 2003. [cited 2007 December 20]. Available from: http://www.accessmylibrary.com/coms2/summary-0286-286-2351396_itm. 4. Draelos ZD. Searching for the Cosmeceutical Connection. [cited 2011 March 4]. Available from: http://www.cosmeticsandtoiletries.com/research/techtransfer/ 2078912.html 5. Wallach. D. The field of cosmetic dermatology: the need for a patient-centred approach. Journal of Cosmetic Dermatology 2002; 1:137 141. 6. Malhotra N K. Marketing Research An Applied Orientation, Third Edition, Pearson Education,First Indian Reprint, 2001, 83-85. 7. Thomas T S. Marketing Research Needs Basic Research, Marketing News (April 14, 1997), 34. 71
Part-III : Companies view on cosmeceuticals in Indian context 3.3.1. Introduction The cosmetic industry is a massive industry, and is rapidly growing. As it expands and evolves in tandem with society, the industry creates higher and higher profit margins and gleans more and more prominence power in Indian consumerism and popular culture [1]. Companies are taking the opportunity to manufacture more of cosmeceutical products, which typically generate more profits. The cosmetic industry is more oriented towards producing cosmetic products with developing medicinally active cosmetics and pharmaceutical industry is more oriented towards developing cosmeceutically oriented medicinal products [2]. The manufacturing of cosmeceutical products is dominated by a small number of multinational corporations. The three largest cosmetic companies in the world in terms of market shares are Procter and Gamble, L'oreal and Unilver. However they face stiff competition from other companies like Estee Lauder, Colgate Palmolive, Avon, Shisiedo, Johnson and Johnson and Beiersdorf. There are also many domestic players within the market. Nowadays pharmaceutical companies are entering this lucrative market. Fig 3.3.1. gives glimpses why cosmeceuticals provides a huge opportunity for the pharmaceutical industry. With the boundary between cosmetics and pharmaceuticals blurring a few global pharmaceutical and cosmetic giants, including Pfizer and L Oreal are embarking on research to fill this niche segment [4]. With same pace Indian Pharmaceutical companies are now contemplating to enter this lucrative area. The probable reasons are: cosmeceuticals doesn t require premarket approval in some countries. Efficacy testing is not mandatory compared to drugs. Products should be safe but there is no definition of safety for cosmeceuticals. Labeling requirements are less complex compared with drugs. Average time for breakthrough technology in cosmeceuticals is about 3-5 years. Cost of creating and developing a breakthrough cosmetic technology is US$ 2-3 million compared to cost of R&D for new drug is US$ 800million. By looking at favorable conditions pharmaceutical companies are more fascinated towards cosmeceuticals segments. Companies like Piramal Healthcare have already done by joining hands with Pierre Fabre, even drug maker Dr. Reddy s Laboratories recently entered into licensing and distribution agreement with a USbased dermatology and aesthetic medicine company Cosmederm Technologies for distribution of proprietary skin care products in the country. Other Indian pharmaceutical 72
companies who have entered into the dermo-cosmetics area include Elder Pharma, USV, Ozone pharmaceuticals and Himalaya herbal healthcare [5]. Pharmaceutical drug Cosmetic Product Premarket application Efficacy determined by specified end point Safety studies: Animal studies, toxicology, pharmacokinetics, pharmacology, drugdrug interaction. Complex labeling requirements GMP regulations apply Change in formulation must be reviewed by the FDA Drug Vs Cosmetic No preapproval application No predetermined endpoint is necessary. Must be safe, but there is no definition of safety Labeling requirements are well defined by regulation, but are far less complex GMP regulations apply, Change in formulation is not reviewed by FDA. Marketing claims closely monitored by FDA Average time for drug development is from 7-15 years Cost of R&D for a new drug is US$ 800 million Marketing claims are seldom monitored, Average time for breakthrough technology 3-5 years Cost of creating and developing a breakthrough cosmetic technology is US $2-3 million Figure 3.3.1. Cosmeceuticals: Huge opportunity for the Pharmaceutical industry [3] 73
3.3.2. Objective To analyze cosmetic and pharmaceutical companies view toward cosmeceuticals in India. The survey was carried out mainly to understand: Number of cosmetic and pharmaceutical companies involved in manufacturing and marketing of cosmeceutical products Types of cosmeceutical products manufactured and marketed by companies To determine regulatory guidelines followed for identifying efficacy of cosmeceuticals To know which regulatory guidelines companies follow for ensuring safety of cosmeceuticals To determine regulatory guidelines companies follow for labeling the cosmeceutical products To find out the factors that would encourage consumers to use cosmeceutical products To find out which cosmeceutical products that would become popular over the next five years To find out future market potential for cosmeceutical products To know the interest of companies whether in future they continue to manufacture cosmeceuticals once the guidelines are established by the regulatory authorities To find out the reasons why regulatory authorities have not established guidelines for cosmeceuticals To determine factors that may impede growth of Indian cosmeceutical market in future 3.3.3. Research Methodology Research Design A research design (fig. 3.3.2) is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and solve marketing research problems [6]. Components of Research Design Information Needed Information regarding to companies opinion on cosmeceuticals was sought to know the intricacies involved in cosmeceutical manufacturing and marketing business. 74
Data sources Primary Data Secondary Data Type of study: Exploratory Research articles Self-administrated questionnaire Review articles Sampling Unit: Cosmetic & Pharmaceutical companies Sample Size: 10 Sampling method: Non probability convenience method Market reports Online articles Newspapers and Magazines Authentic websites Analysis and Interpretation Figure 3.3.2.Research Methodology. Type of research design Research design type used in this work was exploratory and not conclusive. The primary objective of exploratory research is to provide insights into, and an understanding of the problem confronting the researcher [7]. The primary objective of study was to provide insights into and comprehension of the problem situation. 75
Scale of measurement Nominal scale was followed for the study. The statistics applied were descriptive percentages. Data Collection Data was collected through primary research and secondary research. Sample size Target sample size was ten. Final sample size which was used for evaluation was ten. All respondents questionnaire were included for analysis as they were qualified and answered all questions. E-mail survey method was followed where the respondents were sent questionnaire as an attachment in the mail. Respondents typed their responses to open ended questions and highlighted or marked closed ended questions and sent the answered questionnaire through mail. Data Primary data Primary data were obtained with the help of structured questionnaire. Secondary data Secondary data were obtained from authentic websites. Information with regard to research objectives was collected from published literature in medical online and print journals, market reports and news items from the internet. Sampling design There was no specific sampling frame (A representation of the elements of the target population. For example telephone directory, an association directory etc.) from which the company personnel were contacted. It was possible to gather the mail addresses of the respondents through web pages of the companies and the network of people researcher had. Sampling technique used for the study was nonprobability convenience sampling, which relies on the personal judgment of the researcher rather than chance to select sample elements. We decided arbitrarily which elements to be included in the sample. Final sample size used for evaluation was ten. Questionnaire design A questionnaire (structured technique for data collection consisting of a series of questions, written or verbal, to which respondents reply) which consisted of formalized set of questions was used for obtaining information from respondents. Questions were carefully framed to minimize the element of bias and errors. There were twelve questions in total which answered research questions. 76
% response Chapter III Data Analysis and Interpretation: It was done taking into consideration the characteristics of the data. The data obtained is edited, classified and put in as tabulated form to make it understandable and presented with help of charts, diagrams and graphs etc. 3.3.4.1. Results and discussion Table 3.3.1. Whether companies involved in manufacturing and marketing of cosmeceutical products 90 80 70 60 50 40 30 20 10 Responses Percentage of respondents Yes 80 No 20 0 Yes No Figure 3.3.3. Whether companies involved in manufacturing and marketing of cosmeceutical products. The above data (Table 3.3.1.) shows that 80% of companies were involved in manufacturing and marketing of cosmeceutical products. Companies not involved in manufacturing and marketing cosmeceuticals were contemplating to enter this lucrative area. The global market is predicted to be US$ 8,240 million by 2012. The graphical presentation of companies response is shown in fig. 3.3.3. Table 3.3.2. To know whether the company is a large scale, small scale and medium scale Category Percentage of respondents Large Scale 30 Medium scale 40 Small scale 30 77
% response Chapter III 45 40 35 30 25 20 15 10 5 0 Large Scale Medium scale Small scale Figure 3.3.4. To know whether the company is a large scale, small scale and medium scale. The data (Table 3.3.2.) revealed that 40% of companies are medium scale, 30% of companies were large scale and 30% of companies were small scale. The graphical presentation of companies response is shown in fig.3.3.4. Ratios of domestic companies were more compared to multinational companies as study was focused on Indian context. Table 3.3.3. Cosmeceutical products manufactured by companies Product category Percentage of respondents Sunscreens 40 Moisturizers 40 Bleaching agents 20 Anti-aging products 50 Conditioning agents 50 Hair growth stimulants 40 Antidandruff shampoos 30 78
% response Chapter III 40% 30% 30% 40% 20% 40% Sunscreens Moisturizers Bleaching agents Anti aging Conditioning agents Hair growth stimulants Antidandruff shampoos 50% Figure 3.3.5. Cosmeceutical products manufactured by companies The above data (Table 3.3.3.) revealed that 50% of companies manufactured anti-aging products. 40% of companies manufactured sunscreen products. 40% of companies are manufacturing moisturizers, from skin care segment followed by hair care segment. The graphical presentation of companies response is shown in fig. 3.3.5. According company experts growth of anti-agers in all channel looks set to continue for some time to come. Table 3.3.4. Regulatory guidelines followed for safety of cosmeceutical products Regulatory guidelines Percentage of respondents 60 50 OTC products 50 Drugs - Cosmetics 30 40 30 20 10 0 OTC Products Cosmetics Figure 3.3.6. Regulatory guidelines followed for safety of cosmeceutical products. 79
% response Chapter III In present scenario due to lack of cosmeceutical regulations for safety aspects, 30% of companies followed existing cosmetic regulation for testing safety of cosmeceutical products. 50% of companies get their product approved as OTC product and hence they follow the guidelines specified for OTC product by regulatory authorities. The data is shown in table 3.3.4 and presented graphically in fig.3.3.6. Table 3.3.5. Regulatory guidelines followed for efficacy of cosmeceutical products Regulatory guidelines Percentage of respondents OTC products 30 Drugs - Cosmetics 50 60 50 40 30 20 10 0 OTC products Cosmetics Figure 3.3.7. Regulatory guidelines followed for efficacy of cosmeceutical products. From the above data (Table 3.3.5.) 50% of companies have acknowledged that for efficacy testing of cosmeceutical products they followed the regulatory guidelines as specified for existing cosmetic products. According to USFDA it is not mandatory to conduct efficacy test. It is up to the manufactures to conduct the efficacy tests. 30% of companies followed efficacy guidelines as specified for OTC products. The graphical presentation of companies response is shown in fig.3.3.7. 80
Table 3.3.6. Regulatory guidelines followed for labeling of cosmeceutical products Regulatory guidelines Percentage of respondents Drugs 10 Cosmetics 70 Cosmetics Drugs 0 10 20 30 40 50 60 70 80 % response Figure 3.3.8. Regulatory guidelines followed for labeling of cosmeceutical products. From the above data (Table 3.3.6.) shows that due to lack of cosmeceutical labeling guidelines, 70% of companies follow labeling conditions as specified for cosmetic products. Labeling requirements are well defined by regulation, but are far less complex compared to drugs. The graphical presentation of companies response is shown in fig.3.3.8. Table 3.3.7. Factors that may encourages consumers to use cosmeceutical products Encouraging factors Percentage of respondents Appearance/Packing 50 Newsgroup on internet - Word of mouth (friends) 40 Advertising 80 Quality 60 Safety 40 Price 60 81
60% 50% 40% 60% 80% 40% Appearnace and Packaging Word of Mouth Advertising Quality Safety Price Figure 3.3.9. Factors that may encourage consumers to use cosmeceutical products. A major factor which may encourage the consumers to use cosmeceutical product is cosmetic advertising. The above data (Table 3.3.7.) shows that 80% of company expert said that cosmetic advertising is very crucial element for companies to make ensure that advertising message reaches the consumers. 60% of experts were of opinion that quality product is another important factor where consumers may consider before purchasing cosmeceutical products. Next important factor is price of products, 60% of experts said that most of the cosmeceuticals are expensive and price tag is associated with status symbol in India. Indian consumers are increasingly looking for international cosmeceutical products brands as use of these brands confer one with sophisticated and upper class image. 50% of experts were of opinion that packaging of cosmeceutical products is another important factor which may encourage consumers to use these products. 40% of experts said that safe and result oriented products will have bright prospect ahead. The graphical presentation of companies response is shown in fig.3.3.9. Table 3.3.8. Cosmeceuticals that would become popular over next five years Product category Percentage of respondents Sunscreens 40 Anti-aging 80 Shampoos 10 Wrinkle reducers 70 Skin firming agents 50 Skin repair creams 50 82
Skin repair creams Skin firming agents Wrinkle reducers Shampoos Anti aging Sunscreens 0 20 40 60 80 100 % of reponse Figure 3.3.10. Cosmeceuticals that would become popular over next five years. From the above data (Table 3.3.8.) 80% of experts said that age-defying products will achieve the fastest gains, driven by a highly expanding group of graying baby boomers who want to redress visible damage to the skin caused by aging. Indian anti-aging market is 60 crore and is growing at a rate of 30%. At the same time wrinkle reducers and skin firming agents have major demand in the market. Moisturizing products with SPF also have the high demand in the market. The graphical presentation is shown in fig.3.3.10. Table 3.3.9. Potential cosmeceutical products in future Response Percentage of respondents Strongly agree 60 Agree 40 Neutral - Disagree - Strongly Disagree - 83
% of response Chapter III 70 60 50 40 30 20 10 0 Strongly agree Agree Figure 3.3.11. Potential cosmeceutical products in future. According Freedonia market research group by year 2017 the demand for overall skin care cosmeceuticals is predicated around US$ 11,520 million. There are more cosmeceutical products introduced in the market place on a monthly basis than pharmaceuticals. All experts were of opinion that cosmeceutical market will flourish in next five years. Looking at the lucrative cosmeceutical market, majority of companies are very much interested to manufacture more cosmeceutical products in near future. The data is shown in table 3.3.9. and graphical presentation of companies is shown in fig.3.3.11. Table 3.3.10. Future of cosmeceuticals, once regulatory guidelines are established Response Percentage of respondents Strongly agree - Agree 40 Neutral 30 Disagree 30 Strongly Disagree - 84
30% 40% Agree Neutral Disagree 30% Figure 3.3.12. Future of cosmeceuticals, once regulatory guidelines are established. The company experts were asked whether it would become difficult to manufacture cosmeceutical products if once guidelines are established, there were different opinion regarding the same. From above data (Table 3.3.10.) 40% of experts were of opinion that if guidelines are established there may be rigorous procedure to get the marketing approval for cosmeceutical products. While 30% of experts were undecided are on this question. 30% of experts disagree with the same, they were of opinion that if guidelines are established, consumers may get superior product and may be safe. This may restrict entry of substandard and spurious cosmeceutical products. The graphical presentation of companies response is shown in fig.3.3.12. Table 3.3.11. Reasons for not establishing the regulatory guidelines Responses Percentage of respondents May not feel the need 10 Financial Incapability - Procedural difficulties 70 Lack of infrastructure and manpower 20 85