This archive report was first published on 24 July 2019.
On July 24, 2019, Godrej's Valon brand made a significant move into the Kenyan lotion market, expanding its product line to cater to the evolving preferences of consumers.
The Indian fast-moving consumer goods conglomerate has launched a body lotion line under its Valon brand, offering products in various sizes, including 100ml, 200ml, 400ml, and 600ml, priced between Sh19 and Sh220.
According to Rohit Vengurlekar, business head of Godrej Kenya, the decision to upgrade from petroleum jelly to lotions was a natural progression, given the shift in consumer preferences.
“Most consumers in Kenya are evolving from petroleum jelly to lotions as products and hence as a part of this journey; it was only natural that we upgrade our consumers from petroleum jellies to lotions,” said Mr. Vengurlekar.
The company plans to reinvest about 10 percent of its revenue to grow the lotion segment, which it anticipates will contribute 30 percent of the total business in five years.
“Lotions in itself is a sizeable market in Kenya. It is almost $50 million (Sh5.15 billion) in Kenya alone, so it is now ahead of petroleum jelly in skincare. So, it is a natural extension for Valon to be in (the segment),” said Mr. Vengurlekar.
The Valon brand was introduced under Godrej's umbrella after the company acquired a 75 percent stake in Canon Chemicals in 2016. Canon Chemicals, which has been operating in Kenya for over 40 years, had recorded revenues of Sh1.15 billion in 2015 prior to the buyout.
As the petroleum jelly market continues to decline, manufacturers have introduced perfumed and herbal varieties of the product to stay competitive.
