Female Hair Treatment MarketSurvey on December, 2014

Date: 2nd January 2015

A. Research background

2

Procter & Gamble has mentioned that more women are spending more on hair care products. Hair care steps will be more complicated as new products are developed to solve specific problems that customers are facing. The opportunity to expand into the Hair treatment product market is high. However, consumers need to be educated about the products.

■Increasing in competitive landscape

Sunsilk has long been the leading brand in hair care product market. In 2010, Sunsilk is also the leader to offer various types of formula to solve different problems, while Pantene has less variety at that time. While Sunsilkdecided to reduce types of hair care products and cut out the color & perm hairstyle products, Pantene instead was promoting color & perm products. Continued to launch an innovative hair care product without silicone, while Sunsilk was not yet offering. As a result, Pantene increased its market share, while Sunsilk was facing a drop in sales.

As dandruff segment is significant, around 30% of the market, make Clear to be a leader in the dandruff shampoo segment. While Head & Shoulder as its counterpart is challenging the leader with more product lines for men. Dove is the leading brand for dry hair & hair styling. L’Oreal is the leading brand for hair damage prevention. Due to the emerging brand like Oriental princess, plus increasing in competition has led to the declining value sales of Sunsilk in 2013. Currently, there are around 20 key brands in the market. Oriental princess is a new brand established a good reputation on hair treatment and was ranked as the top preferable hair treatment from the review page

■Increasing in variety of product category for hair treatment

Basically, the categories of hair treatment products are for dry hair; treatment for loss-weight hair; treatment for heat prevention; treatment for hair split ends, and treatment for tangled hair. Currently, key brands are increasing their hair treatment product lines to solve specific problems. Moreover, the booming in hair coloring and hair curling treatment products have a significant growth in the past few years.

■Increasing in the complicated of hair care products

B. Research design

3

Research Method Online research

Fieldwork Period Dec 2014

Research Area Thailand - Nationwide

Respondent Criteria Female aged over 17,

Sample Size 650 samples

Number of Questions 5 Screening questions and 12 Main Questions

Survey Content Screening

Main Study- Hair Treatment consumer behavior- Hair Treatment Brand Awareness

48.2%

39.4%

7.5%4.9%

16 - 24 yrs

25 - 34 yrs

35 - 44 yrs

45 yrs & above

C. Respondent profile : Thailand

4

■Gender (N = 650)

■Region (N = 650)

■Age (N = 650)

■Monthly household income (N = 650)

100%

Female

13.7%

19.3%

11.5%

12.4%

10.6%

2.3%

30.2%

Northern

Central

Southern

Northeast

Eastern

Western

BangkokMetropolis

27.3%

36.8%

35.9%A

B

C

Class A : THB > 50,000Class B : THB 24,000 – 50,000Class C : THB < 24,000

D. Key findings

5

■Top hair treatment concern & satisfaction

The top concern for using hair care products is still those basic concerns that women are facing like treatment for hair

style (62.9%), shining hair (62.7%), hair damage prevention (59.8%) and bun hair(55.5%).

The increasing concern on treatment for hair coloring (47.9%) & hair curl (39.7%) is gaining popularity. This trend has led to the booming of related hair color & hair curl products.

While most of brands perform well in term of brand satisfaction (30.7% on average). L’Oreal outperforms for hair damage prevention (29.4% on average, 35.7% for L’Oreal). On average, 17.8% of respondents are satisfied with treatment for hair coloring of their current brands; 15.7% of respondents of hair curl treatment satisfaction.

■Key dissatisfaction points & reason for stop using the previous brands

Oily hair (19.9%) is the top key dissatisfaction point for most brands; Others top dissatisfaction points are treatment making scalp itchy (19.5%), making hair fall down (18.4%) and high price treatment (14.4%).

Fragrant of odor (78.8%) is the top reason to stop using the previous brands; Other reasons are ineffective hair curl treatment (76.7%) ; fall-down hair (75.0%) are other top reasons.

■Brand performance has confirmed the position as a leading brand of Sunsilk

Sunsilk is the number one brand, in term of brand awareness (Top of mind & Spontaneous). Despite the highest

percentage of brand favorability; Sunsilk was still not the top ranked in term of satisfaction score.

Sunsilk successfully maintains their brand awareness (89.9%) for hair treatment products; while Pantene also shows its comparable brand awareness (84.2%). However, top of mind score for Sunsilk (34.2%) is significantly higher than that of Pantene (19.7 %). This made Sunsilk the number one preferred brand (52.8%); followed by Pantene (51.6%). Rejoice and Dove are in the same position for the third preferred brand (50.7%). L’Oreal is the fifth preferred brand (49.7%) and Oriental princess is the sixth preferred brand (48.9%).

E. Detail findings

6

1. Consumer Behavior

2. Brand Awareness

Hair & Body Care Behavior

7

Q6. Talking about your body, which part of your body that care? [Matrix MA] (N = 650)

82.1

69.2

58.3

12.0

0

10

20

30

40

50

60

70

80

90

100

Face Skin Hair Body Skin Others

Hair care related products are the second rank at 69.2% of respondents buying, more than body skin care products which is only 58.3% of respondents spending money on

Over 69.2% of respondents buying hair care related products

Unit : %

Key concern for using hair treatment products

8

Q7. Please tell us what factors you concern when choosing hair treatment products? [Matrix MA] (N = 650)

64.0

62.9

62.7

59.8

55.5

52.5

48.3

47.9

43.6

39.7

21.8

17.9

17.3

11.5

11.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Treatment for dry hair

Treatment for hair style

Shining hair

Hair damage prevention

Tangled hair

Reasonable price

Heat Prevention

Treatment for coloring

Aroma

Treatment for hair curl

Recycled packaging

Famous brand

Nice packaging

Prestigious brand

International brand

Definitely not important Rather not important Neutral

Rather important Definitely important

Other top 5 factors are; treatment for hair style (62.9%), shining hair (62.7%), hair damage prevention (59.8%) and tangled hair(55.5%); While brand & packaging are not the factors most respondents concern about

When choosing a hair product, Treatment for dry hair is respondent’s top concern (64.0%)

Unit : %

42.9

50.6

17.6

29.4

45.6

57.1

43

42.9

42.6

38.6

37.9

37.4

49.5

33.9

37.1

35.6

34.3

28.6

25.0

33.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Aviance

Oriental Princess

Asience

Tsubaki

L'Oreal

L'Occitane

Pantene

Caring

Sunsilk

Dove

Herbal Essences

Head & Shoulders

TRESemmé

Lolane

Schwarzkopf

Neutrogena

Clear

Feather

Rejoice

Kerastase

Very dissatisfied Dissatisfied Neutral Satisfied Very satisfied

Overall Satisfaction Points by brands

9

Q12. Please tell us what points you feel satisfied about your current shampoo brand? [MA] (N = 650)

Brands that are receiving high score on very satisfied point are L’Occitane (57.1%); Oriental Princess (50.6%)All brands are receiving over 65% of total satisfaction; while Aviance is the only brand receiving 100%

Rank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Total Satisfaction

100.0 (n=6)

89.6 (n=73)

88.2 (n=14)

88.2 (n=13)

87.0 (n=182)

85.7 (n=7)

85.4 (n=314)

84.3 (n=66)

82.5 (n=368)

81.6 (n=355)

81.0 (n=55)

80.5 (n=162)

79.8 (n=99)

79.3 (n=113)

75.8 (n=56)

75.6 (n=37)

74.8 (n=199)

72.1 (n=140)

67.0 (n=91)

66.7 (n=6)

Unit : %Total satisfaction = Very satisfied + Satisfied

Key satisfaction points split by key brands

10

Q13 Please tell us what points you feel satisfied about your current shampoo brand? [MA] (N=650)

30.7

29.4

27.9

23.5

23.1

17.8

16.2

16.0

15.7

14.8

14.6

14.2

0.0 50.0

Branding

Hair damage prevention

Reasonable price

Suitable for my favorite

Tangled hair

Treatmean for coloring

Nice packaging

Heat Prevention

Treatment for hair curl

Many promotion…

Treatment for hair style

Many types for choosing

Sunsilk

(n=368)

Dove

(n=355)

Pantene

(n=314)

Clear

(n=199)

L'Oreal

(n=182)

Head &

Should

ers

(n=162)

Feather

(n=140)

Lolane

(n=113)

TRES

emmé

(n=99)

Rejoice

(n=91)

Oriental

Princess

(n=73)

Caring

(n=66)

35.5 34.8 34.8 37.2 33.0 33.3 16.7 39.3 51.0 36.3 46.5 28.1

28.1 32.5 31.6 33.2 35.7 29.6 16.7 28.6 26.5 35.2 35.2 31.3

32.5 30.2 33.2 37.8 33.0 35.2 16.7 25.9 32.7 38.5 38.0 29.7

26.7 25.1 29.4 25.5 26.9 26.4 - 34.8 19.4 36.3 26.8 32.8

26.4 27.4 25.2 30.6 23.6 24.5 16.7 27.7 31.6 35.2 26.8 28.1

19.8 20.8 19.7 26.5 22.0 25.8 16.7 17.9 22.4 27.5 23.9 28.1

18.2 18.8 16.8 18.4 19.2 18.2 - 23.2 19.4 18.7 19.7 17.2

19.6 18.8 19.0 22.4 16.5 18.2 16.7 22.3 23.5 24.2 18.3 18.8

19.0 18.2 18.1 17.3 17.0 18.9 16.7

24.1 19.4 18.7 25.4 17.2

16.0 16.8 16.1 21.9 19.2 20.8 16.7 18.8 22.4 18.7 19.7 23.4

15.7 16.8 15.2 22.4 18.1 22.0 - 16.1 28.6 25.3 16.9 14.1

16.0 16.8 17.7 17.3 18.1 17.0 16.7 19.6 25.5 22.0 22.5 17.2

While most brands are focusing on brand satisfaction; Clear, Head & Shoulders and Rejoice are weighted on reasonable price. Apart from top brands, the rest brands are weighted more on other key factors satisfaction

Since hair damage prevention is the top concern for users; L’Oreal performs well with significant %

*Remark: Yellow color is those highest percentage for each brand; Blue color is those highest percentage for each satisfaction points

Average score

Key dissatisfaction points split by key brands

11

Q16. Please tell us what points you feel dissatisfied about your current shampoo brand? [MA] (N=650)

19.9

19.5

18.4

14.4

13.8

11.3

11.0

10.4

10.3

9.0

8.7

8.7

7.4

6.7

6.4

5.5

4.1

3.1

0.0 10.0 20.0 30.0

Hair is oilly easily

Make scalp itchy

Make hair fall down

High price

Quality is not so good as being advertised

Poor Treatment after hair coloring

Less promotion campaign

Treatment cannot solve tangled hair

Treatment cannot prevent split ends

Odour is not fragrant

Poor Treatment for dry hair

Not make hair smooth

Hard to buy

Not unique

Odour is not long-lasting

Odour is too heavy

Treatment cannot restore after hair curling

Not eye-catching packaging

Sunsilk

n=22

Dove

n=9

Panten

e n=27

Clea

r

n=1

5

L'Ore

al

n=12

Head

&

Shoul

ders

n=16

Feathe

r n=20

TRES

emmé

n=17

Rej

oice

n=5

8

Oriental

Princes

s n=24

Cari

ng

n=1

7

Sunsil

kn=22

22.6 23.9 20.1 24.6 20.9 21.0 33.3 16.8 26.3 26.4 26.0 16.7

20.9 22.3 19.4 24.1 15.4 22.8 - 23.0 20.2 25.3 27.4 15.2

19.3 18.3 17.8 19.6 23.1 21.6 16.7 17.7 26.3 20.9 19.2 13.6

16.0 18.0 16.6 17.1 18.7 18.5 - 17.7 15.2 13.2 12.3 7.1

17.7 17.5 17.8 16.6 14.8 17.3 16.7 15.0 14.1 17.6 17.8 19.7

14.4 14.9 12.4 12.6 9.9 12.3 - 16.8 13.1 15.4 13.7 7.6

11.1 12.1 12.7 13.6 15.9 13.6 - 13.3 14.1 13.2 12.3 12.1

10.6 12.4 11.1 8.0 10.4 9.3 - 16.8 12.1 11.0 9.6 13.6

13.0 12.4 13.4 10.6 11.5 11.7 16.7 15.9 12.1 13.2 11.0 10.6

8.7 9.3 8.6 11.1 6.6 9.9 - 8.0 6.1 8.8 5.5 9.1

12.8 10.1 10.8 10.1 8.2 9.9 - 10.6 9.1 12.1 9.6 7.6

11.1 11.8 9.9 9.5 10.4 9.9 16.7 13.3 12.1 14.3 12.3 13.6

8.7 8.2 8.3 10.6 6.6 11.7 - 10.6 14.3 5.1 5.5 9.1

7.1 8.7 7.6 7.0 7.7 5.6 33.3 8.0 8.1 8.8 5.5 10.6

9.0 9.6 8.6 10.1 8.2 10.5 16.7 10.6 8.1 14.3 11.0 13.6

4.9 5.6 6.7 4.5 8.2 4.9 - 6.2 8.1 7.7 5.5 9.1

5.2 3.7 3.8 4.0 3.8 4.9 - 6.2 4.0 2.2 6.8 7.6

4.1 3.4 3.5 3.5 2.7 4.3 - 3.5 4.0 3.3 2.7 3.0

Other top dissatisfaction points are treatment making scalp itchy (19.5%), making hair fall down ( 18.4%) and high price treatment (14.4%)

Oily hair (19.9%) is the top key dissatisfaction points for most brands

Unit : %Average score

Reason for stop using previous brands

12

Q15. Before you change to use your current brand, what brand you had used before? [SA] (N=237)

Q17. Please tell us why you stop using the previous brand? [MA] (N=237)

78.8

76.7

75.0

58.9

58.4

58.3

52.6

44.8

42.2

35.6

33.0

23.3

23.0

18.3

14.3

12.6

10.6

0.5

0.0 50.0 100.0

Odour is not fragrant

Poor Treatment after hair curling

Cause hair fall

Odour is too heavy

Not make hair smooth

Not eye-catching packaging

High price

Odour is not long-lasting

Poor Treatment after hair coloring

Make scalp itchy

Not unique

Poor Treatment for hair dry

Quality is not so good as being advertised

Treatment cannot solve tangled hair

Hair is oilly easily

Treatment cannot prevent split ends

Less promotion campaign

Hard to buy

Sunsilk

n=22

Dove

n=9

Pant

ene

n=27

Clear

n=15

L'Ore

al

n=12

Head

&

Shoul

ders

n=16

Feath

er

n=20

TRE

Sem

mé

n=17

Rejoi

ce

n=58

Orien

tal

Princ

ess

n=24

Carin

g

n=17

68.2 77.8 74.1 73.3 83.3 62.5 86.8 70.6 81.0 70.8 76.5

68.2 100.0 81.5 73.3 91.7 75.0 76.3 76.5 74.1 75.0 88.2

59.1 55.6 74.1 73.3 66.7 56.3 86.8 88.2 70.7 79.2 82.4

36.4 55.6 44.4 60.0 33.3 50.0 76.3 82.4 62.1 58.3 41.2

45.5 55.6 37.0 53.3 41.7 62.5 60.5 70.6 58.6 66.7 64.7

59.1 55.6 55.6 60.0 58.3 50.0 76.3 64.7 62.1 45.8 58.8

36.4 66.7 44.4 60.0 58.3 31.3 56.6 70.6 48.3 50.0 52.9

36.4 44.4 48.1 60.0 41.7 50.0 48.7 35.3 43.1 50.0 52.9

50.0 55.6 25.9 66.7 50.0 37.5 39.5 47.1 37.9 54.2 58.8

22.7 22.2 29.6 53.3 8.3 25.0 48.7 41.2 32.8 41.7 47.1

27.3 33.3 33.3 46.7 33.3 37.5 30.3 23.5 32.8 28.0 41.2

19.8 22.2 18.5 20.0 16.7 25.0 23.7 17.6 19.0 23.5 23.5

18.2 - 22.2 26.7 33.3 25.0 27.6 41.2 22.4 29.2 29.4

9.1 22.2 18.5 13.3 16.7 37.5 21.1 29.4 15.5 20.8 23.5

9.1 11.1 11.1 26.7 0.0 12.5 17.1 5.9 1.7 20.8 11.8

9.1 33.3 11.1 20.0 8.3 25.0 7.9 - 8.6 29.2 17.6

4.5 0.0 25.9 6.7 25.0 12.5 14.5 5.9 8.6 8.3 17.6

Fragrant of odor (78.8%) is the top reason for stop using the previous brandsOther reasons are ineffective hair curling treatment (76.6%) and fall-down hair (75.0%)

Unit : %

E. Detail findings

13

1. Consumer Behavior

2. Brand Awareness

Hair Treatment Brand Awareness

14

Q8. When mentioning about hair treatment brands in Thailand, what brands come to your mind? [FA] (N=650)

Q9. Please tell me what hair treatment brands you know in the list below? [Matrix MA] (N=650)

Sunsilk Pantene Dove ClearHead &Shoulde

rsFeather L'Oreal Lolane Rejoice

TRESemmé

Free &Free

OrientalPrincess

Caring

Total Awareness 89.9 84.2 77.0 75.3 68.8 62.2 58.7 45.0 44.7 42.2 35.3 35.3 28.9

TOM 34.2 19.7 16.6 6.7 1.3 4.2 10.4 4.2 2.7 1.8 1.6 1.3 1.3

Spontaneous 72.2 55.8 52.8 17.9 11.0 13.1 31.7 13.8 26.4 11.5 3.8 4.0 5.4

89.984.2

77.0 75.368.8

62.2 58.7

45.0 44.7 42.235.3 35.3

28.9

0.0

20.0

40.0

60.0

80.0

100.0

Total Awareness TOM Spontaneous

Sunsilk is best aware in TOM, as well as spontaneous and total awarenessWhile Pantene & Dove has made a comparable score for total awareness; the top of mind score & spontaneous score are still significant lower than top brand like Sunsilk

Unit : %

Hair Treatment Brand Favorability

15

Sunsilk Dove Pantene Clear L'OrealHead &Shoulde

rsFeather Lolane

TRESemmé

RejoiceOrientalPrincess

Caring

Currently used 56.4 54.4 48.2 30.5 27.9 24.8 20.6 17.3 15.2 14.0 11.2 10.1

Often used 25.9 17.2 14.0 8.1 8.1 4.8 2.9 2.8 4.4 1.4 2.6 1.2

56.4 54.448.2

30.5 27.9 24.820.6 17.3 15.2 14.0 11.2 10.1

25.917.2

14.08.1 8.1 4.8 2.9 2.8 4.4 1.4 2.6 1.2

0.0

20.0

40.0

60.0

80.0

100.0

Currently used Often used

Q10. Amongst brands you know above, what brands have you used?? [MA] (N=650)

Q11. Amongst brands you have used, which one you use most often? [SA] (N=650)

Sunsilk is the top brand currently used, followed by Dove and PanteneSunsilk is the number one brand often used with significant percentage in hair treatment market

Unit : %

Hair Treatment Brand Favorability among age group

16

Q11. Amongst brands you have used, which one you use most often? [SA] (N=650)

25.9

17.214.0

8.1 8.14.8 4.4

2.9 2.8 2.6 1.4 1.2

Age groupSunsilk

(n=169)

Dove

(n=112)

Pantene

(n=91)

Clear

(n=53)

L'Oreal

(n=53)

Head &

Shoulders

(n=31)

TRESemmé

(n=29)

Feather

(n=23)

Lolane

(n=18)

Oriental Princess

(n=17)

Rejoice

(n=9)

Caring

(n=20)

16 - 19 yrs 21.9 18.8 14.3 18.9 18.9 32.3 20.7 0.0 11.1 5.9 33.3 15.0

20 - 24 yrs 27.8 30.4 28.6 34.0 32.1 29.0 27.6 25.0 22.2 5.9 44.4 30.0

25 - 29 yrs 25.4 23.2 29.7 28.3 26.4 16.1 17.2 50.0 33.3 23.5 11.1 25.0

30 - 34 yrs 12.4 12.5 13.2 9.4 15.1 19.4 20.7 25.0 22.2 29.4 11.1 15.0

35 - 39 yrs 8.9 7.1 9.9 7.5 5.7 0.0 6.9 0.0 5.6 17.6 0.0 15.0

40 yrs 3.6 8.0 4.4 1.9 1.9 3.2 6.9 0.0 5.6 17.6 0.0 0.0

The most popular brands among 25-29 years old group are Feather and Lolane respectively. On the other hands, Oriental princess is popular in the group of 30-34 years old customers.

The most popular brands among 20-24 years old group are Rejoice, Clear and L’Oreal respectively

Unit : %

28.817.217.2

11.917.817.118.1

1516.414.6

11.411.611.4

14.212.7

9.39.39.39.98.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

SunsilkPanteneRejoice

DoveL'Oreal

Oriental PrincessHead & Shoulders

FeatherLolane

Herbal EssencesTRESemméNeutrogena

CaringClear

SchwarzkopfAviance

KerastaseAsience

L'OccitaneTsubaki

Definitely not buy Probably not buy Not sure Probably Buy Definitely Buy

Future Purchase Intention

17

Q14. Amongst brands you haven't used before, please tell us your intention of using for these brands in the future? [Matrix SA] (N=650)

Branding has made Pantene ranked as the second preferable future purchase intention brand ; while reasonable price has made Rejoice ranked as the third preferable brand

Sunsilk is the leader in term of future purchase intention with significant percentage

Rank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Total Future Intention

52.8 (n=282)

51.6 (n=314)

50.7 (n=559)

50.7 (n=295)

49.7 (n=182)

48.9 (n=577)

48.0 (n=488)

44.6 (n510)

44.5 (n=537)

44.4 (n=595)

42.7 (n=551)

41.6 (n=613)

40.3 (n=584)

40.1 (n=451)

39.9 (n=594)

34.6 (n=644)

33.5 (n=644)

33.4 (n=636)

33.4 (n=643)

31.3 (n=637)

Unit : %

Hair Treatment Top 5 Prefer Brands in The Future

18

Q10. Amongst brands you haven't used before, please tell us your intention of using for these brands in the future? [Matrix SA] (N=650)

L’oreal has highest score in total satisfaction (87.0%); however; it performs under average in brand awareness (58.7%). However, due to the high score on its brand awareness; making L’Oreal performs better than Oriental princess & Rejoice. Despite of the higher brand awareness of Rejoice over Oriental Pincess, Oriental princess made the highest score in total satisfaction, making its brand performance better than Rejoice.

Brand performance score of Sunsilk is highest (72.8%), despite the third rank for satisfaction score

Top BrandBrand Awareness

(30%)Total satisfaction

(30%)Future Intention

(40%)Brand

Performance

Sunsilk 89.9 (1) 82.5 (4) 52.8 (1) 72.8

Pantene 84.2 (2) 85.4 (3) 51.6 (2) 71.5

Dove 77.0 (3) 81.6 (5) 50.7 (3) 67.9

L'oreal 58.7 (4) 87.0 (2) 49.7 (5) 63.6

Oriental Princess 35.3 (6) 89.6 (1) 48.9 (6) 57.0

Rejoice 44.7 (5) 67 (6) 50.7 (3) 53.8

FOR FURTHER INQUIRIES, PLEASE CONTACT:

W&S Group

W&S HoldingsJapan – Tokyo, Osaka, Okayama

W&S Co., Ltd

18th Floor, Two Pacific Place Building, 142 Sukhumvit Road, Klongtoey Subdistrict, Klongtoey District, Bangkok 10110 Thailand

Tel: +66 2 6530411 Fax: +66 2 6530412

Website: yimresearch.comGroup site: www.wsgroup-asia.comEmail: info@yimresearch.com

W&S Joint Stock CompanyVietnam – Ho Chi Minh

PT. NusaresearchIndonesia – Jakarta

Our Client of W&S Group

Our Client CountryUK, USA, Singapore, Germany, CanadaIndia, China, Hong kong, KoreaVietnam, Malaysia, Indonesia, ThailandAustralia, Japan, Philippines