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India's shaving cream market has many global giants like Gillette, HUL's AXE, Dettol, Old Spice & Nivea competing
But the largest selling shaving cream brand in India is relatively lesser known
With a 25% market by volume
Revenues close to 500 crores
A thread on Vi-John
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But the largest selling shaving cream brand in India is relatively lesser known
With a 25% market by volume
Revenues close to 500 crores
A thread on Vi-John
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1960 - Vi-John was started as a personal care business by Suchet Singh Kochar in Chandni Chowk, Delhi.
He produced fragrant hair oil, talcum powder and cream in a small unit which he sold in the local markets of Delhi
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He produced fragrant hair oil, talcum powder and cream in a small unit which he sold in the local markets of Delhi
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A couple of years later, he formulated a shaving cream under the brand Vi-John. The English was an attempt to take advantage of the craze for imported products at that time.
The product worked well and began selling fast in Delhi and nearby regions
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The product worked well and began selling fast in Delhi and nearby regions
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After initial success, Vi-John focussed majorly on tier 2 & 3 cities & rural markets. As per consumer preferences of these markets, it had a strong fragrance & produced more lather
It was priced lower than other major brands. This made Vi-John very popular in these regions
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It was priced lower than other major brands. This made Vi-John very popular in these regions
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To gain market share, Vi-John promised much higher margins to distributors and retailers compared to competition. This incentivised them to push Vi-John products.
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The biggest move of Vi-John was to incentivise saloons to buy its products. They treated saloons like a direct sales channel & started offering discounts to use its products
By incentizing the channel to push its products, it started gaining market share with no ad spending
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By incentizing the channel to push its products, it started gaining market share with no ad spending
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In 1978, Suchet Singh setup his first factory on GT Karnal road. And as demand kept increasing, he added 3 more factories in the next 25 years.
He also setup a strong distribution network of 2500 distributors amd 3 lac retailers across the country.
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He also setup a strong distribution network of 2500 distributors amd 3 lac retailers across the country.
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After establishing itself in the smaller towns and rural market, Vi-John turned towards the tier 1 towns.
But since it didn't have a strong brand, it faced a lot of resistance. In cities like Mumbai, the stock was even returned back by retailers
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But since it didn't have a strong brand, it faced a lot of resistance. In cities like Mumbai, the stock was even returned back by retailers
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That's when, company decided to start TV advertising in 2011 by roping in celebrities like Shahrukh Khan.
It has continued this by regularly releasing ads with celebrities like Ayushmann Khurana and Varun Dhawan
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It has continued this by regularly releasing ads with celebrities like Ayushmann Khurana and Varun Dhawan
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Though the sales and brand awareness increased, but the margins started getting reduced further. For that, they slashed down the discounts offered to saloons.
This has caused saloons to move to other local and cheaper brands in recent times.
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This has caused saloons to move to other local and cheaper brands in recent times.
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But Vi-John has still managed to remain numero uno in this category, selling over 50 lac kg shaving cream every year 
The next 3 competitors' (Axe, Dettol, Old Spice) combined market share (by volume) is also lesser than Vi-John's total market share.
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The next 3 competitors' (Axe, Dettol, Old Spice) combined market share (by volume) is also lesser than Vi-John's total market share.
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Apart from the shaving cream, Vi-John group also has brands like
Feather Touch, 2nd largest hair removal cream behind Veet
Lip guard, 2nd behind vaseline
Cobra deodorant, splash after shave and Boro Shield antiseptic cream
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Feather Touch, 2nd largest hair removal cream behind Veet
Lip guard, 2nd behind vaseline
Cobra deodorant, splash after shave and Boro Shield antiseptic cream
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It's a perfect David vs Goliath story. But Vi-John still lacks an overall brand image in the consumer's mind like Gillette or Old Spice do
And this makes it vulnerable and dependent heavily on promotions & discounts
But nevertheless, an interesting indian brand story
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And this makes it vulnerable and dependent heavily on promotions & discounts
But nevertheless, an interesting indian brand story
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