For HUL, volume growth has been an issue in the skincare product department. The price cut may spur consumption in this high-penetration category, especially at a time when the demand for packaged goods is subdued.
The demand in the beauty care segment has been on the lower side. “Within beauty and personal care, personal products’ performance was steady, while personal wash witnessed a muted delivery, particularly in the popular segment," said the company.
HUL's annual report shows that beauty and personal care segment (personal wash, skincare, hair care, oral care, etc) contributed 46 per cent to overall revenue. Seeing the growing popularity of naturals, HUL
launched Lux Botanicals and Pears Naturale nationwide.
Edelweiss analyst Abneesh Roy told Livemint that HUL’s move is "the right strategy in our view, considering soaps volumes are soft and palm oil prices continue to remain lower on a year-on-year basis, although have picked up lately."