Lux at 100: Battling for the bathroom shelf in the D2C era

Introduced by the Lever brothers in 1925,  Lux- a soap brand has become a €1.2 billion brand as of 2023 and is still growing. The brand’s earliest communication appeal was that it was ‘made like the costliest French soaps’, offering a luxurious lather and exquisite scents. A few years down the line, the brand roped in more than 400 Hollywood actresses including Marilyn Monroe, Elizabeth Taylor, and Audrey Hepburn to name a few, to drive its appeal.

So what has made it relevant all these years? 

Quality, brand identity, and celebrity-centric marketing have been key factors, say experts. In India, Lux is a household name on the back of its continuous advertising efforts featuring actresses from Leela Chitnis in the 1940s to Kareena Kapoor and Alia Bhatt in 2021. It remains one of the most popular bathing soaps despite the competitive landscape of the industry which also includes major players like Johnson & Johnson, ITC’s Vivel, Wipro Consumer Care’s Santoor, Nivea, and Godrej’s Number 1 among others. According to Hindustan Unilever’s FY’24 results, Lux is among its brands with a turnover of Rs. 2000 crore.

Many regard Lux as one of the first brands to popularise celebrity endorsements. The brand wanted people to associate the beauty of these film stars with Lux and was successful in doing so.

“Initially positioned as the ‘soap of the stars’, Lux successfully leveraged celebrity endorsements to build a glamorous image that resonated deeply with consumers. This strategy worked immensely in its favour, creating a distinct brand identity,” says Chandramouli Nilakantan, CEO of TRA Research.

According to Aalap Desai, co-founder, and CCO, tgthr, Lux’s celebrity approach was perfect for an India that needed role models and aspirations they had in themselves. Everyone had their favourites and those favourites used Lux. That's what made it relevant.

Challenges and opportunities

According to research agency Philip Capital, soaps are the most preferred personal wash items in India and have more than 80% penetration as a category. Out of this, the beauty soap category has a 15% market share.

Despite Lux's enduring success, a lot has changed when it comes to the marketing of personal care products. Lux's celebrity-centric approach has been its strength all along. While celebrity endorsements have helped elevate the brand's image and visibility, the debate is whether changing consumer perceptions has necessitated a shift in strategy. A lot of D2C brands including Dove from the house of Unilever don’t speak about ‘Beauty’ but rather have taken a minimalist and scientific approach in their brand appeal.

In 2019, Santoor overtook Lux’s market share to become the second highest-selling soap brand in the country, as per the Philip Capital report. Soaps as a category have also suffered due to the Covid-19 pandemic. The pandemic led to the resurgence of the personal wash industry. It provided required tailwinds for faster adoption of premium categories such as handwashes, and sanitisers– which were seeing slower growth in the past despite years of advertisement campaigns.

“A legend carrying the pioneer's cross' is how I would describe the Lux journey of 100 years. It became the symbol of the most aspirational feminine beauty aspirations during its glorious decades and perhaps is now trapped under the success even while the world around has drastically changed, explains Ashish Mishra, CEO, of Interbrand India & South Asia.

Speaking about how the brand can evolve with time, KV Sridhar, global chief creative officer at Nihilent Limited & Hypercollective says, “Beauty has always been synonymous with female celebrities. Lux couldn’t keep up with the changing times. Lux always stuck to film stars, and the world started to move ahead.”

Comparing Lux’s approach to the brand’s close competitors he says, “Godrej, Santoor, and other brands started shifting to newer faces and never narratives which disrupted the entire category. Bathing in earlier times was a closed-door activity. And then Liril came and challenged the routine depiction of freshness and stepping out of the shower. The brand took the entire category out of the bathrooms to waterfalls,” he explains.

Over time, the personal care market has diversified and shifted towards products that emphasise health and environmental concerns, which has posed challenges for Lux to maintain its traditional image in a rapidly evolving market landscape. Today consumers value authenticity and transparency, making it essential for brands to choose endorsers who align with their values and beliefs.

Pravin Shah, founder at BigBrandTheory explains that today’s consumer is a discerning individual who makes informed decisions and is not easily swayed by advertisements and endorsements, “Today’s celebrity endorsements are wherein celebrities are not just faces of brands but are actively involved in shaping and promoting products they truly believe in.”

Desai of tgthr adds that over the past few years, the internet and social media have hyper-educated our minds. “We know more than we ever did and that's why when someone speaks the truth, we appreciate it. Vulnerability and honesty were never more in fashion.”

Lux’s changing narratives

The legendary brand has tried shifting the narratives around itself a few times such as getting Shahrukh Khan as the brand ambassador in 2005 or onboarding celebrity couples to appeal to a larger demographic in the early 2000s.

HUL maintains its position as the leading TV advertiser across genres in India with an ad volume of over 4245 seconds. As a result, Lux remains to be an active TV advertiser. However, there is a need for more, say leaders.

Lux's enduring presence in the Indian market is a testament to its strong brand foundation and adaptability. However, to continue thriving in a competitive environment, Lux must balance its heritage with innovative strategies that resonate with today's diverse consumer base.

“The focus should instead be on creating value-driven experiences that resonate deeply with contemporary audiences. This could involve highlighting the scientific development behind its products to meet the growing consumer interest in product formulations and benefits. Additionally, Lux could engage in storytelling that emphasises the brand’s commitment to ethical practices and sustainability, areas where many new entrants are already focusing,” suggests Nilakantan of TRA Research. 

Product diversification and Suhana Khan

Apart from its soaps, Lux has also launched a range of products like body washes, body scrubs, and shower gels over the years; however, these products were always marketed in the backseat. 

Marking its 100th anniversary, Lux announced Suhana Khan as the brand’s newest ambassador for its iconic body wash range.

This may finally mean the brand is ready to focus on products other than bathing soaps. Experts also feel that getting Suhana Khan’s legacy and persona implies the brand is ready to talk to younger women.

“They need to do things that can get the imagination of young folks, something that is discontinuous, and still invitational for the newer consumers. Product diversification is a step towards that. Still, overall, a big brand like Lux needs to work extensively towards reimagining its product proposition, especially in a category that is so competitive,” says Sridhar.

“Suhana is a popular young celebrity and a fashion icon who brings a fresh and modern appeal to the brand. Her influence among the youth can help Lux resonate with a new generation of consumers who want to unapologetically ‘own’ their beauty and be proud of themselves,” adds Shah of BigBrandTheory.